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The Strategy Advisor Calculator is a new trading tool used for regular CFD trading that allows you, the trader, to choose from three well known data analytic strategies that can assist by giving you further insight into the behavior of an asset.

The three strategies used in the Strategy Advisor Calculator are:

  • Relative Strength Index (RSI) – This momentum oscillator developed by J. Welles Wilder, calculates price movement using speed and changes as its measuring points.  This momentum indicator compares the scope of latest gains to latest losses in an attempt to determine overbought and oversold assets based on the closing prices of a recent trading period.
  • Moving Average – The Moving Average is a widely used indicator that calculates information and analyzes data points by creating a series of averages.  These averages are calculated using a number of subsets taken from a complete set of data. The Moving Average is used to indicate the direction of the current trend and helps provide clean data by removing daily price fluctuations found in the financial data.
  • ‘Bollinger Bands’ – Is based on a technical analysis tool invented by John Bollinger, it uses a simple moving average and two standard deviations. There is middle band, one upper band and one lower band.  The algorithm creates a moving channel of prices composed of an over sell channel and over bought channel. The algorithm then compares the last executed price in the channel and creates a sell or a buy signal.

Once the trader has chosen one of the three strategies, the Strategy Advisor Calculator will calculate the data and will provide a call / put recommendation based on previous expiries of the asset.

This is a revolutionary device that will help make a prediction based on the real trends of an asset.  This will allow them to carryout trades with the fullest confidence we can offer.

Come take the time to try this innovative educated prediction calculator.

This algorithm takes the moving average of the last 12 samples into account. The interval between each sample is a function of the expiry time that the client chooses. (Intervals can be maximum of 5 hours and minimum 5 minutes) For example, if the client chooses a 10 minute expiry, the intervals between the 12 samples will be 10 minutes. The moving average is the average of the last 12 samples and will be compared to the last market rates. Therefore, there will be two lines of comparison. One above the other, one being the moving average and the second the last market rates. If two out of three samples are below the moving average a put signal will be given, if two out of three samples are above, a call signal will be given.
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Moving average calculation: First calculation (Red color) – Take the first 10 rates and perform a simple average. Compare the average and the last rate in the series (for the red color the last rate is 10). In case the last rate is higher than the average you get a positive result (+) and vice versa. Perform the same calculation for the blue and green arrows and get the +- results for both. The outcome of the calculation is what signal we get more times. In case a + was more frequent a Call outcome will be displayed and vice versa.
Relative Strength Index is calculated by creating 11 samples. The time difference between each sample is a function of the trade and the time left to expiry chosen by the trader. For example, if the trader chooses EUR/USD with an expiry time at 10:00 a.m. and the current time is 9:45 a.m., 11 samples with the time difference of 15 minutes between them will be sampled. The difference between each sample rate is calculated giving us 10 marginal differences between each two consecutive sample points. This will result in a percentage of upticks. For example, if 6 intervals are up and 4 are down, the result will be 60% up or 40% down. (If the last 11 samples are plotted in an upward trend, then the index will be 100%, if 11 are on a downward trend the index will be 0%) Above 81% – PUT signal Below 21% – CALL signal Below 50% – PUT signal Above 50% – CALL signal
There are three bands (lines) that are created and assessed. Moving average (explained above), + 2 standard deviation above and 2 standard deviation below. An average is performed for the ten rates. Standard deviation is then performed for the ten rates and the average. The upper limit (top Bollinger band) is set as follows: Top band = Average + (2 * Standard deviation value) * 2 more steps are added this way above the top band (5 & 6) so actually 6 steps are created. ** The same way the top band is created a bottom band is also in place and divided into 4 equal steps with 2 more steps below the bottom band. The delta between the average and the top Bollinger band is then divided into 4 equal segments (Steps). Step value is therefore: Step Value = (Top band – Average) / 4 To know in which step we are now and to know what outcome to display to the client we perform the following calculation: Current step = (Last rate – Average) / Step Value Outcome: Positive number between 1-4 will display a Call outcome. Positive number between 5-6 or above will display a Put outcome. Negative number between 1-4 will display a Put outcome. Negative number between 5-6 or below will display a Call outcome. Example: Let’s say these are the rates received: 5 , 5 , 6 , 6 , 7 , 7 , 8 , 8 , 9 , 9 , 10 Average is performed:
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Standard deviation is performed:
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Standard deviation = 1.5 Calculating the top and bottom bands: Top band = Average + (2 * Standard deviation value)
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Bottom band = Average – (2 * Standard deviation value) Now we can calculate the value of 1 step Step Value = (10.5-7.5) / 4 = 0.75
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Now we can calculate the outcome: Current step = (Last rate – Average) / Step Value Last rate = 10 Average = 7.5 Step Value = 0.75 Current step = (10 – 7.5) / 0.75 = 3.33 Step 3 outcome = Call.
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