fbpx
  1. TraderOne
  2. Sherlock Holmes
  3. Commercial Forum
  4. Tuesday, 28 May 2019
  5.  Subscribe via email
Levy’s Relative Strength Indicator (RSL) is used to identify the instruments showing strength and weakness. The concept of Relative Strength to Levy is based on the assumption that securities which exhibited a large relative strength in the past will also develop relatively strongly in the future, and conversely. RSL is used to create balanced long-short portfolios in trading portfolios. For Currency traders, RSL can be used to pick the currency pairs showing the highest strength and weakness. Traders create a portfolio of positions by buying stronger instruments and selling the weaker instruments.
The first step in creating a long-short portfolio is ranking all instruments based on their strength and weakness. Note down the RSL value of each currency pair at the start of the week or month. The pair that has the highest RSL value is the strongest one. The pair that has the lowest RSL value is the weakest one. Now open Buy positions on the top two stronger pairs and open sell positions on top two weaker pairs. Keep the positions open for the next week or month start. At the start of next week or month, again rank the instruments based on their RSL values and adjust the positions. This portfolio is hedged, market neutral and offer steady return over long periods of time.

http://i64.tinypic.com/2z71rx0.png
Attachments (1)
Comment
There are no comments made yet.
Accepted Answer Pending Moderation
0
Votes
Undo
Do you have MT4 version?
Comment
There are no comments made yet.
  1. more than a month ago
  2. Commercial Forum
  3. # 1
Accepted Answer Pending Moderation
0
Votes
Undo
I don’t prefer just 1 indicator, instead I prefer multiple ways to decide up the way to trading. And this is where I find working with FreshForex good. It’s one of the best that is there having lowest possible spreads, bonuses and many more such benefits.
Comment
There are no comments made yet.
  1. more than a month ago
  2. Commercial Forum
  3. # 2
  • Page :
  • 1


There are no replies made for this post yet.
Be one of the first to reply to this post!
 
     
 

Latest Spot Rate

 
26 November 2019
US open - Trade, Alibaba, bitcoin, gold, oil - MarketPulseMarketPulseHome/Commodities/Crypto/FX/Indices/Market PulseShare 0Quiet Thanksgiving week For Wall StreetIt’s been a flat day in Europe so far and a look at US futures suggest the day on Wall ...
26 November 2019
European open - Trade talks, Alibaba, gold, oil - MarketPulseMarketPulseHome/Commodities/Indices/Market PulseShare 0Trade War Obsession ContinuesA mixed start to trading on Tuesday, with European stocks treading water as discussions continue between...
26 November 2019
Business Breakfast with OANDA on Jazz FM - MarketPulseMarketPulseHome/Indices/Market Pulse/MediaShare 0On this morning’s show, OANDA Senior Market Analyst Craig Erlam joins Michael Wilson to discuss the various UK manifestos, Uber, Alibaba’s flotati...
26 November 2019
 Hopes that the US-China Phase 1 trade deal will be concluded soon has lifted risk appetite, pressured safe haven assets and boosted crude oil. The agricultural sector is mixed but remains supported. Precious metalsGOLD has fallen for the past five s...
26 November 2019
Daily Markets Broadcast 2019-11-26 - MarketPulseMarketPulseHome/Daily Markets Broadcast/DAX/Indices/Market Pulse/Technical Analysis/Technical Analysis IndicesShare 0Daily Markets Broadcast2019-11-26Wall Street gains as trade hopes build...
How It Works | About | Contact | Privacy Policy | Forex Marketing
© 2009 - 2019 Forex Forum. All Rights Reserved. Risk Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.