FINDEX Fundamentals


The exchange rate is always given for a currency pair. A currency by itself is worthless if it is not compared to another currency or other reference, such as gold.

Therefore, whether in a flexible exchange rate or fixed exchange rate system, one always speaks of RELATIVE VALUE.

If a currency is very attractive to foreign investors and speculators, with high demand and attractive interest rates in a stable socio-political environment, it can be said that its value should go up. Now, if we face another even more attractive currency, the exchange rate between the two should go the other way.



The RELATIVE FORCE of the currencies is obtained by analyzing 23 pairs formed by the 8 most liquid currencies.

The current ADX value is also obtained. This information is decisive for an entry confirmation.

Lastly, an EXPONENTIAL MEDIA that confirms the trend is taken into account.


ADX  Average Directional Index

Designed by Welles Wilder, the ADX measures the strength of the trend without looking in the direction of the trend. It measures the momentum of a value. Generally a solid trend will be about ADX value 25, whereas it is considered that there will be no trend if the value is below 20.



STRENGTH or WEAKNESS OF FOREX. It is obtained with a screener where the dominant trend of 23 pairs formed by the 8 most liquid currencies is measured. Once detected the trends of all of them are obtained indices that value the relative strength of each currency.

MOMENT. It is essential for the strategy used to adapt to market conditions. Operations are always opened at the same time, if the input signal is given, based on the previous optimization performed with each currency pair. Most pairs obtain the best results by opening between 1 AM and 9 AM.

REFERENCE. In 1-hour charts, they serve to delimit the relative strength of currencies and trends. Here it is verified the level of ADX that will serve as the final trigger for the opening of operations. It also detects which pairs are suitable for operating in the day.

OPERATING. In 15-minute charts, they serve to place loss and profit stops levels depending on the ATR trend. 

ON AND OFF. The robots used are turned on and off at will, depending on the objectives achieved, the appearance of relevant news, weekends, etc. Automatic entry operations can be blocked if the context, at a technical or fundamental level, is very unfavorable.

Working Setup

When a currency crossing shows a DIFFERENCE between the RELATIVE VALUE of one and the other, a probable movement is anticipated in favor of the stronger currency.

  1. Difference relative strength, one strong currency and the other weak within the crossing. It is betting on a trend tracking in favor of the stronger currency.
  2. ADX on relevant level in 1 hour chart, which indicates current strength of the trend.
  3. Exponential average optimized, in favor of the trend, in chart of 1 hour.
    1. Position composed of one or several operations.
    2. The profit objective of all the operations is the same and is placed according to the previous optimization performed with each currency pair. The stop loss of the first operation is one and a half time the distance to the target.
    3. If the first open operation advances to half of its target, a next operation is added that will have a stop loss of half of that of the first operation that remains open.
    4. The process will continue the same, with an established limit, adding a new operation to each candle change if the first one that is still open is about half of its goal.
    5. If any of the operations of this position has closed in negative, all the others are automatically closed.


There is a variation of the strategy, called Findex_cbb, in which the setup varies slightly.

  1. Difference relative strength, one strong currency and the other weak within the crossing. It is betting on a trend tracking in favor of the stronger currency.
  2. Horizontal range zone, in 15 minute graph, looking for a Tom DeMark formation in which the price will advance after a pause.
  3. Exponential average optimized, in favor of the trend, in chart of 1 hour.



We also filter based on several assumptions:

– Emergence of VERY RELEVANT NEWS, avoiding those pairs more exposed to them.

– Selection of only one of those pairs that are very CORRELATED, neglecting those that present a worse technical or fundamental context.

– MAXIMUM NUMBER of simultaneous operations. As a general rule, we allow up to ten operations simultaneously between all currency pairs.

Management of the position




Any loss implies that a recovery will have to be made to return to the original capital. The more losses, the greater the difficulty in achieving consistent results. Here we must take into account the fundamental correlation between the percentage of hits and the ratio of benefit / risk.

The statistical data obtained with both parameters give the “MATHEMATICAL HOPE” which should always be positive.

A high level of risk will lead to greater losses in the event of lossy trading sequences.

As a general rule, this system contemplates a maximum level of DAILY RISK for total operations. It is placed around 1% of the trading account.

DAILY OBJECTIVES are established that can vary a lot, since there will be positions in which the profits are allowed to run, opening new operations until the price is returned.

The SIZE of the operations is calculated based on the distance to the stop loss and the risk to be assumed in the first of the operations. All others are the same size as the initial one. They do not do martingales.