Thursday, March 19, 2009

IFCM Dollar Force Predictor (DFP)



IFCM Dollar Force Predictor (DFP) is the calculation result of Dollar Sentiment on the FOREX market on the basis of the nonlinear multi-currency model. DFP produces a forecast for next 3 days and is an Outstripping Indicator. Its positive values correspond to positive Dollar Expectation and vice versa. The values of indicator are calculated on the closing of the trading days. It should be especially noted that considerable change of the dollar force occurs when the value of DFP is changing suddenly.How can DFP be used? There are many strategies that can be built by using the DFP. One of them is the trading in EURUSD with a volume proportional to a value of the DFP.For instance, let us assume that in accordance with your trading system you buy EURUSD, volume 1 000 000, and that the index of DFP= -55.Then firstly, DFP corroborates that it is expedient to buy (the DFP index is represented by a negative value and the planned deal is going against dollar), and secondly DFP provides the correction factor for the volume of the deal and you will buy 550 000 EURUSD (550000=1000000*0.55).

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