FX Markets and signals

How do you know when a trend has started? Ended? This forum is for discussions about trend indicators and signals.
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Chris67
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FX Markets and signals

Post by Chris67 » Mon Feb 23, 2004 12:58 pm

Ive raised this issue in another topic but feel it may get a better response here:

Its very understandable for most markets to only take signals during the major session opening hours especially if thats what you've backtested on.. so you wouldnt want to be trading globex cattle for example...
However there is a major problem in fx markets in that , as some would argue , the bulk of thetrading day is probably outside of the chicago pit hours for fx futures contracts.. therefore does anyone share my thoughts that it would be better if we could backtest on SFAH4 for example than SF4..it seems silly to watch a market go 3 % against you and not exit in london fx time and wait to exit on a huge gap opening in Chicago ??
Also I have noticed that on some fx contracts in veritrader that the simulated trades show you exiting at the actual stop loss level even though the futures market opens up a per cent away on a gap move .. therefore is VT 1.5 assuming we exit in Globex in currency futures ??

AIMVHO

Chris :?

Demon

Post by Demon » Tue Feb 24, 2004 4:46 am

Hi Chris, If you're testing using the Turtle systems, your last point about exits may be due to the problem I highlighted a couple of days ago. On your other points, are you talking about FX or Currency futures?

Darran.

Chris67
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Post by Chris67 » Tue Feb 24, 2004 5:13 am

Thanks Drran ,

I'm talking about fx futures... when you backtest in 1.5 your basically backtesting the fx futures contracts for pit hours only .. the bulk of fx trading is obviously done within these hours mostly but there are time when a lot is done in London morning ... hence for example looking ata simple breakout system todays signal to sell the euro is at 1.2495 in euh4 .. by the time the market opens the euro maybe trading at 1.23 so you get in at 1.23 ..which is fine since other markets gap lower like coffee , hoggs etc ... however if you then have a stop at 1.24 and the market for euh4 doesnt trade at your stop during the futures session .. you're not stopped .. if however the following day in the london morning the euro trades to 1.25 you would exit at 1.25 when the euro opens up in chicago .. here you've got 1 big fig of slippage .. which is fine too coz markets gap... but i've noticed that when you look at a trade like this in veritraders backtested results it shows you exiting at 1.2400 .. you cannot do this if you are only backtested on the pit hours ?? does that make sense ?

Reagrds
Chris

SMKJ
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Let me help you out...

Post by SMKJ » Thu Jun 10, 2004 4:54 pm

I have been trading FX crosses for a while now..

let me give you a hint...

Day charts are significant, b/c it signals a break in the trading.. where traders get to go home... think about their trades and formulate new ideas, which they implement eagerly the next day at the opening. This is why there is always more volume at opening.

Since FX trades around the clock, there is really no such clear break.... so what do you do? You modify your system to a slightly longer time frame where there IS a natural break...closed markets...

NOIZE
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Re: FX Markets and signals

Post by NOIZE » Thu Jul 15, 2004 8:56 am

trade the $pot = solution

www.fxcm.com for individual FX traders
Chris67 wrote:Ive raised this issue in another topic but feel it may get a better response here:

Its very understandable for most markets to only take signals during the major session opening hours especially if thats what you've backtested on.. so you wouldnt want to be trading globex cattle for example...
However there is a major problem in fx markets in that , as some would argue , the bulk of thetrading day is probably outside of the chicago pit hours for fx futures contracts.. therefore does anyone share my thoughts that it would be better if we could backtest on SFAH4 for example than SF4..it seems silly to watch a market go 3 % against you and not exit in london fx time and wait to exit on a huge gap opening in Chicago ??
Also I have noticed that on some fx contracts in veritrader that the simulated trades show you exiting at the actual stop loss level even though the futures market opens up a per cent away on a gap move .. therefore is VT 1.5 assuming we exit in Globex in currency futures ??

AIMVHO

Chris :?

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