Happy new year Traders,

The new year has not started in a great way as we have recently learnt of two or three companies who are illegally distributing FX AlgoTrader products online at massively reduced prices.

We can only assume at this stage that certain unscrupulous individuals have decompiled our source, removed the copy protection systems and then directly marketed our products at knock down prices.

Until we get to the bottom of this matter we have regrettably removed all the downloadable product demos.

It's a great shame people don't seem to have any respect for intellectual property on the internet!

We are pleased to announce the release of Trend Seeker - a low frequency high reward trend seeking expert advisor. The system is fully configurable and aims to identify emerging medium term trends and select low risk entry points. For more details visit Trend Seeker EA

The FX AlgoTrader Real-Time Correlation Indicator provides real time correlation data on MT4 charts for upto 30 FX pairs in real-time.

The indicator will return the correlation data for the current chart timeframe ie hourly charts return 60 minute correlation data - 5 minute charts return 5 minute correlation data. The indicator uses a custom library function which calculates Pearson correlation data on the fly which is then passed back to the Correlation indicator for display. The algorithm uses data over 200 periods.

The FX AlgoTrader Real-Time Correlation Indicator provides the following trader definable external input paramters which allow customisation and fine tuning. These parameters are:-

• Supports the following currency pairs:-
  
  • EURUSD,EURJPY,GBPCAD,
    GBPAUD,NZDCHF,GBPUSD,
    GBPCHF,CADCHF,AUDCHF,
    NZDJPY,USDCHF,GBPJPY,
    CADJPY,AUDJPY,AUDNZD,
    USDJPY,CHFJPY,AUDCAD,
    EURNZD,NZDCAD,EURGBP,
    USDCAD,AUDUSD,NZDUSD,
    XAUUSD,EURCHF,EURCAD
    EURAUD,GBPNZD,XAGUSD
    
    
• Customizable display options including:-
  • Trader defined positive and negative correlation thresholds
    
    
  • Define colours for pairs which meet correlation threshold requirements
    
    
  • Show only positively/negatively correlated pairs which exceed threshold
    
    
  • Define which pairs are submitted to the correlation calculation engine - allows the trader to customize the size of the correlation table. Program dynamically resizes table and data output.
    
    
  • Set colours for positive/negative/uncorrelated and 100% correlated pairs
    
    
  • Works with any MT4 account ie Standard, mini and micro. For mini and micro accounts some brokers use a suffix at the end of the pair data eg EURUSDgfx. The 'Pair Suffix' external input parameter allows any suffix to be added to allow full mini/micro account compatability.
    

Dear Stat Arb Customers,

I thought I’d tell you about some product development which may be of interest to you.

The current Stat Arb V2 engine is a passive system in that the hard work is selecting which
currency pairs to arb. Several of you have suggested a system where an EA auto selects an
arbitrage candidate pool which can then be fed into an EA so that it can trade in a fully
automated fashion. Obviously there will be a comprehensive set of controls and filters
which the trader would pre-define.

The good news is I’ve developed the real time correlation calculation engine and also
the filtering system. Some screen shots are below – the next steps are to develop a new
EA which can take the candidate pool and auto trade it – this is the hard part!

Some other ideas for improvements have been:-

• Aggregated profit controls – where the EA aims to make a defined profit from
  multiple arbs in a day – once the profit is achieved all current positions would
  be closed and the system would sleep until the next day or overnight session.
• Scaling options to allow multiple trades to be pyramided if the spread continued
  to diverge from the mean by x STDs. Effectively an averaging down process
  but not without risk…. LTCM!
• Ability to trade negatively correlated pairs
• Email alerts and position updates based at a defined frequency
• Stationary spread analysis tools – the current version has an option
  called ‘Mean Delta Filter’ – when this was developed the idea was to try and
  identify stationary spreads – ie spreads which are pretty flat (not going up or down)
  – you tend to get these when there isn’t a lot of liquidity in the market ie during
  the Asian session. I am not particularly happy with the current mean delta
  filter option and I know most of you don’t use it as it’s too selective.
  This is an area I am particularly interested in developing.

I would be interested in any additional ideas or suggestions for improvement
– let me know your thoughts.

I’m also considering setting up an arbitrage trading community on the website
where arb traders can exchange ideas. Is this something you would be interested in?

I’ve also put together a few short cuts and frequently asked questions about
the current version which may help you get more out of the product. This is by no
means an exhaustive list – just the most front of mind things…..

• Set up arb charts quickly – the Setup.exe program automatically installs a
  template called “STARB” – if you click ‘Charts’/’Templates’ and then select
  STARB you will get the EA, the STD indicator and the Price Trace indicators
  loaded automatically. The defaults settings are EURUSD and AUDUSD so
  you’ll need to change these.
• The GVAR table – when the EA opens arb positions it loads a global variable
  onto the global variable table. The variable will be called ‘Pair1/Pair2 Filled’
  and will have a value of 1. So if you traded EURUSD and AUDUSD the global
  variable will be called EURUSD/AUDUSD. If you manually close arb trades
  during testing or when you’re live you must DELETE the global variable
  otherwise the system will not make any additional trades – it will think the
• arb position is still filled. To access the GVAR table press F3 and then select
  the appropriate GVAR and delete it.
• Mean Delta Filter – leave it set to false – it needs more work.
• www.mataf.net  - this website has a pretty good correlation analysis area
  under the tools section – I have created a similar tool which runs as an indicator
  in MT4 and supplies real time correlation data based on trader defined pairs.
  I will release this shortly for traders who like everything in the MT4 environment.
• Avoid false trades when you launch the system – Try turning your EAs off
  (the sad face in the top right hand corner!) when you set up arb charts –
  this will allow the system  to settle down and pull the chart data from the
  brokers server if you don’t have it locally. Once you’ve got a decent looking
  STD indicator spread trace and you’re happy with the STD multiple then
  activate the EA (smiley face in top right corner!) Also keep an eye on the experts tab
  in the terminal window – if you see a zero divide error it means you haven’t
  got enough chart data on your terminal.
• Set realistic defined profit targets – if you are trying to make cash from trading
• on 5 minute charts (not easy!) you need a stationary spread and very realistic
  profit targets ie 2-5 pips – you also need to be able to manually kill trades which
  don’t work out. Short term arbing is normally easier during the overnight Asian
  session due to low liquidity but if you stay in the market too long the spread can
  become mobile as the western markets start coming on line. This is where a short term
  arb can leave you high and dry if you stay in the trade.
• Longer term arb trades are a lot safer but you also need to consider the fundamentals
  depending on your trading timeframes. I think the  EURUSD/GBPUSD breakdown
  presented some pretty good opportunities on the recouple. I didn’t trade it though!

 

Screen Shot of real time correlation indicator

Screenshot of the automated correlation filter tool – the next step on….
Note the total spread cost in the far right column – very important!

 

Hope this is of some interest and use to you.

Kind regards

Crispin

info@fxalgotrader.com

 

We have great please in releasing the new advanced moving average crossover system equipped with email alerts and a wide range of enhanced configuration options for Metatrader MT4 platforms. For additional details please click advanced moving average crossover alert indicator

Amazing 50% Discount now available on Trendline Auto Trade -for additional information clikc Automated trading from trendlines in MT4

We are pleased to announce the release of the Forex Strength Analyzer which automatically calculates the aggregated relative strength of the 7 major currencies which are: EUR,GBP,USD,CHF,JPY,CAD and AUD.

The Forex Strength Analyzer is provided as an MT4 indicator and allows traders to get a macro level view of the market in any chart timeframe. For additional information click: Forex Strength Analyzer Indicator for Metatrader

We are pleased to announce the release of our Trendline Alert system which provides traders with an automated alert whenever price action is within a trader defined proximity of a trendline. The system can operate with generic trendlines and also specific trader defined uptrends and downtrends. For additional details visit: Alerts triggered from price action near a trendline

We are very pleased to announce the launch of the Market Flow V1 indicator. Market Flow V1 is a multi-timeframe fractal based market flow indicator which calculates current flows for each timeframe.

The system also displays the next change level (the point at which the flow for the displayed timeframe will change)

The system is extremely configurable and has been developed in conjunction with active (and profitable) traders. For additional details visit: Forex Market Flow Indicator for Metatrader

We are please to announce the release of a new MACD indicator module for Metatrader MT4. The indicator provides the all important MACD Histogram feature which is widely used to predict reversals.

The Moving Average Convergence/Divergence (MACD) is one of the most widely used and reliable indicators which has become ubiquitous within FX and commodity trading. For additional details visit: MACD indciator with histogram for MT4

We are pleased to announce the launch of the FX AlgoTrader Statistical Arbitrage Newsletter which includes close to real time arb signals created from the new FX AlgoTrader Arbitrage Engine.

The new engine performs sophisticated data synchronisation and analysis on a basket of 28 fx pairs and commodities. Please contact us if you would like to receive the newsletter.

We are extremely pleased to launch our new Pivot Scanner which automatically calculates and displays multi-level pivot confluences and provides a sythesised TTS (Text to Speach) alert system.

The Scanner takes all the leg work out of scanning charts for areas of multiple pivot confluence. The Scanner can automatically scan 23 currency pairs and can be configured to search for twin and/or triple level pivot confluences. For additional details visit: Pivot confluence scanner for forex trading

We are pleased to announce the release of the Monthly V2 Pivots module. The new module has a brand new time shiftable pivot point calculation algorithm which allows the trader to configure the pivot calculation basis to his/her exact requirements.

The system displays an on-chart data label and calculation point which shows the exact hourly bar where the system starts it's calculation basis from.

As well as all the usual configration options the new Monthly V2 pivot system has a visible price proximity alert function which displays an upper and lower threshold above and below any pivot which has been set up with an alert.

We are pleased to announce the release of the flagship weekly pivots product - Weekly Pivots V2 Alert Plus.

The V2 Alert Plus system has nine price proximity alerts (one of each pivot level) and also the standard V2 time adjustable pivot calculation basis. The system is very configurable and clearly shows the pivot calculation basis to the trader.

Full configuration options for visibility, line length per period, colours and styles are all fully integrated.

We are pleased to have resolved the download problem. When customers purchased the software they were not clicking on the "Return to FXAlgoTrader" link on the PayPal order confirmation screen. We have made changes to our on-line order system to ensure customers are alerted to return to the FX Algotrader website and associated product download page after they have completed their transactions in Paypal.

It has come to our attention that some customers have been unable to download products from the website after they have completed their Paypal payment process. We are actively working with Paypal to correct this problem. If after completing your Paypal payment you are not directed to the download pages please send an email to info@fxalgotrader.com and we will send you the full products via email attachment within 24 hours.

We are please to announce the release of the Weekly Pivots V2 module with a time adjustable pivot point calcultion basis. This allows traders to customise the calculaion basis of their pivot points to suit the timezone they prefer to trade in.

We have just finished some code modifications to the current automated trendline trading package so that it can trade Indexes. The indexes on the MT4 platform are CFD based with minimum lot sizes of 1. The modified Automated Trendline Trader has manual input options to fix lot sizing on smaller accounts and therefore enable access to Indexes and non FX assets.

The standard position sizing algorithm is based on a maximum risk volatility algorithm.

We are pleased to announce the release of the flaghsip Daily Pivots indicator modules. The new system has nine price proximity alerts (one for every pivot levels) and has the same time shiftable pivot calculation basis as V2 along with variable line styling options.

Editors note: Daily Pivots V2 Alert Plus has now been replaced with the Daily Pivots V3 Indicator. For details visit: Full range S3-R3 Daily Pivots indicator for Metatrader MT4.

 

We will shortly be changing our launch pricing levels so please take advantage of the current reductions. The new pricing strucutre will be released in October 2009.

We are please to announce we are in the final stages of testing with a new Excel based interface for FX AlgoTrader Modules. Initially we have built the interface to work with the Daily Pivots Module but it will roll out to other products fairly quickly.

we have found that using Excel as the primary interface for configuring custom indicators and expert advisers provides a far higher degree of usability compared to the standard MT4 parameters which are only accessible on the indicator or EA tabs.

In terms of adjusting a pivot alert for price action the Excel interface is substantially quicker and easier to use than the conventional MT4 parameter based approach.

we have attached a sample of the Excel/MT4 Pivots Interface below. For further details please contact us.