A version of the Sentiment Ratio applied to EURUSD H1 has been automatically updating twitter feed @TSSMarkets.
Tag: Algorithmic Trading
Algo Trading: Sentiment Ratio
The Sentiment Ratio indicator gauges current Market Sentiment between -100% and 100%, where lower than -40% is considered Bearish and higher than 40% is Bullish. The channel between the two is considered Neutral.
The indicator has been a very useful additional filter tool for market signals.
Algo Trading: Multi Trendlines
The Multi Trendlines indicator automatically draws the dominant trendlines on the current chart.
The indicator looks for the 5 best Up trends and the 5 best Down trends as at the current price, drawing each trendline if filter conditions are met.
The price relative to the trendline values could be used as an additional filter tool for market signals.
The Trendline Syncing System (TSS).
Positions are based on the best entry and exit points in the rhythmic movements of trending markets, evaluated across multiple timeframes, applying aggregated Analyst pull ratios, Sentiment Ratio analysis, and economic news event actuals versus forecasts.
Over the past year I have experimented with three different methods of trading in the currency markets: computer automated algorithmic trading, human manual trading, and semi-automated algorithmic trading.
Purely automated trading – using pattern recognition and data mining – has proven to be very unsuccessful, which is is to be expected, as it is highly unlikely that there exists a magic formula for technical analysis that can be applied at all times. If such a thing existed, the designer of the magic money box would quickly become the richest person in history, given the trillions of dollars that pass through the financial markets every day. Successful automated algorithms in the markets compete on speed of response to price imperfections, and to variances between market expectations and economic data announcements.
Manual trading has had variable returns, yielding a slight net gain, but this is no guarantee of future performance due to the lack of a reusable fully codified strategy.
The most successful method is the hybrid combination of a human and a machine working together in real-time, which has performed very well over the testing time period. The human (me) innovates and modifies ideas from large volumes of data, processed by the algorithm, as directed by me. The semi-automated algorithm then dispassionately executes the trading plan in the lifespan of the strategy, instantly and precisely processing every market tick, every moment of every day.