Currency Strength Meter Trading System
FORMULA FOR CALCULATION
This is an example of the currency calculation
Formula Using Forex Price Data
To calculate currency strength using forex price data you calculate the average price movement of all the
currency pairs:
Currency Strength = [[(C1) + (C2) + (C3) + (C4)] ÷ 4] x 100 where,
C1, C2, C3 ... = Currency pair price change of different pairs that contain
For example to find the USD's currency strength you would consider each USD pair and observe their
average price movement over a set period of time:
C1= GBPUSD = +2.5%
C2 = AUDUSD = +5%
C3 = EURUSD = -2%
C4 = USDJPY = -1%
C5 = USDCHF = +3%
You would then Add all the values where USD is the base currency, and subtract when it's the quote
currency as follows:
-2.5 - 5 - (-2) + (-1) + 3 = - 3.5
You would then divide this by 5, as there are 5 inputs. This will give the currency strength of the USD as:
((-3.5) ÷ 5)*100 = -70%
Use the data below to for the calculation
USD GBP EUR AUD CAD CHF JPY NZD
USD/ZAR GBP/ZAR EUR/AUD AUD/CAD AUD/CAD CHF/CNH AUD/JPY AUD/NZD
USD/TRY GBP/USD EUR/AUD AUD/CHF CAD/CHF CHF/CZK CAD/JPY EUR/NZD
USD/SGD GBP/SGD EUR/CAD AUD/CNH CAD/CNH CHF/DKK CHF/JPY GBP/NZD
USD/SEK GBP/SEK EUR/CHF AUD/CZK CAD/CZK CHF/HKD EUR/JPY NZD/CAD
USD/RUB GBP/PLN EUR/CNH AUD/DKK CAD/DKK CHF/HUF GBP/JPY NZD/CHF
USD/PLN GBP/NZD EUR/CZK AUD/HKD CAD/HKD CHF/JPY JPY/CZK NZD/CZK
USD/NOK GBP/NOK EUR/DKK AUD/HUF CAD/HUF CHF/MXN JPY/DKK NZD/DKK
USD/MXN GBP/MXN EUR/GBP AUD/JPY CAD/JPY CHF/NOK JPY/HKD NZD/HKD
USD/JPY GBP/JPY EUR/HKD AUD/MXN CAD/MXN CHF/PLN JPY/HUF NZD/HUF
USD/HUF GBP/HUF EUR/HUF AUD/NOK CAD/NOK CHF/SEK JPY/MXN NZD/JPY
USD/HKD GBP/HKD EUR/JPY AUD/NZD CAD/PLN CHF/SGD JPY/NOK NZD/MXN
USD/DKK GBP/DKK EUR/MXN AUD/PLN CAD/SEK CHF/TRY JPY/PLN NZD/NOK
USD/CZK GBP/CZK EUR/NOK AUD/SEK CAD/SGD CHF/ZAR JPY/SEK NZD/PLN
USD/CNH GBP/CNH EUR/NZD AUD/SGD CAD/ZAR EUR/CHF JPY/SGD NZD/SEK
USD/CHF GBP/CHF EUR/PLN AUD/USD EUR/CAD GBP/CHF JPY/ZAR NZD/SGD
USD/CAD GBP/CAD EUR/RUB AUD/ZAR GBP/CAD NZD/CHF NZD/JPY NZD/USD
NZD/USD GBP/AUD EUR/SEK EUR/AUD NZD/CAD USD/CHF USD/JPY NZD/ZAR
GBP/USD EUR/GBP EUR/SGD GBP/AUD USD/CAD AUD/CHF
EUR/USD EUR/GBP EUR/TRY CAD/CHF
AUD/USD
AUD/USD
NB: Where the broker does not have any of the above pairs, the calculation should factor in the
number of pairs available for the currency calculations
Time Frames – the currency should calculate in the timeframe below;
M1 – 1 minute
M5 – 5 minute
M15 – 15 minutes
M30 – 30 minutes
H1 – 1 HOUR
H4 - 4 HOUR
D1 - DAILY
Display Results
The system should display the percentages of the strengths with corresponding Timeframes grouping
under GREEN for strong currency and red for weak currency on charts
Timeframes USD GBP EUR AUD CAD CHF JPY NZD
M1 X% X% X% -X% X% X% X% X%
M5 X% -X% X% -X% X% -X% X% X%
M15 X% -X% X% X% X% -X% X% X%
M30 -X% -X% X% X% -X% -X% X% X%
H1 -X% X% -X% X% -X% X% -X% -X%
H4 -X% X% -X% X% -X% X% -X% -X%
D1 X% X% -X% X% X% X% X% X%
NO. OF
PAIRS 21 19 19 18 18 19 17 17
NO. OF PAIRS from the table represent the number of pairs used in the calculation of the currency
strength. Display number as shown above on the chart
TRADING LOGIC
BUY SIGNAL
For EA to open a BUY order, the EA will look for the STRONG base Currency and WEAK quote
currency. For example; EURUSD, from the strength table, if EUR is strong and satisfies the parameters
under the STRONG PERCENTAGE in the selected TIMEFRAMES, and USD as the quote currency is
WEAK and meet the WEAK PERCENTAGE parameter.
SELL SIGNAL
For EA to open a SELL order, the EA will look for the WEAK base Currency and STRONG quote
currency. For example; EURUSD, from the strength table, if EUR is WEAK and satisfies the
parameters under the WEAK PERCENTAGE in the selected TIMEFRAMES, and USD as the quote
currency is STRONG and meet the STRONG PERCENTAGE parameter.
EA PARAMETERS
Currency Prefix
Currency Suffix
Tradable Pairs - the pairs to be traded separated by commas, (for example; EURUSD, GBPUSD,
EURCAD)
Strong Percent (%) - From the strength meter table, this specifies the percentage to trade (example: 2 )
Weak Percent (%) - this is the weak percentage to which EA should make trades (example: 1.8)
Strength Time Frames: The system would check if all TimeFrames selected have strong percentages
and weak percentages before trades can be made.
M1 - YES/NO
M5 - YES/NO
M15 - YES/NO
M30 - YES/NO
H1 - YES/NO
H4 - YES/NO
D1 - YES/NO
Magic Number
Lot size
Take Profits
Stop Loss
Trailing Stops
Trailing Steps
Reverse: This functionality will open opposite trades of the main trading logic
Max Daily Profit (%) – EA should stop automatically when account profits is reached to this percentage
Max Daily Drawdown (%) – EA Should stop automatically when account loss reaches this percentage
daily.
TRADING TIME (based on broker Server time)
Begin Time – time for EA to start trading
End Time - After this time, EA only closes trades, no open orders
Comments – Ability to add comments to trades
Provide a locking system in the code to lock both real and demo accounts.
