It is recommended to use Pair Trading Station on the H1 timeframe with any currency pair. To get buy and sell signals, follow the instructions below for using the Pair Trading Station in the MetaTrader terminal.
- When loading the Pair Trading Station on the chart, the indicator will evaluate the available historical data on your MetaTrader platform for each currency pair. At the very beginning, the chart will display the historical data available for each currency pair. The minimum conditions for calculating trading statistics for a pair really depend on the available historical information. For example, to calculate trade statistics for EURUSD and GBPUSD, you need matching historical data for these pairs. There’s not much you can do if that data isn’t enough. First, you need to open the charts for these currency pairs, and MetaTrader can load the data. You can then use the historical data center to manually download the data.
- Next, you need to select the Pair Trading Station correlation level to generate trading signals. At a higher level of correlation, the signals will be more accurate, but you will receive them less often. Based on our experience, the correlation should be higher than 0.7.
- After you have specified the number of bars used in the calculation and the level of correlation, you can start a thorough calculation using the Pair Trading Station to get trading signals. Just click the “Analyze Pair” button to start the calculation. The calculation can take from 30 seconds to several minutes. The calculation time depends on two factors: the number of bars used and the number of currency pairs in the market overview. If you have recently calculated the trading statistics for a pair, you do not need to repeat the calculations again, as the Pair Trading Station stores the latest statistical information. To download the latest trading statistics for the pair, press “Ctrl” J on the keyboard.
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Important note: very often, traders do not pay attention to the amount of historical data loaded on the charts. Usually, by default, a small amount of historical data is loaded on the charts, which is pre-configured by the broker. To increase the amount of data on the chart, you can load the data from H1 for fast processing. Once the trading statistics are calculated and saved, you don’t have to worry about the broker rewriting or deleting the historical data. Pair Trading Station will continue to generate signals using the stored information.
- Bars to scan for calculation: to calculate trading statistics for a pair, you must specify the amount of data you want to use. Check the pairs with the lowest and highest history to see how much historical data is available in your MetaTrader terminal. Then select an acceptable amount of data to calculate the statistics.
- Minimum Bars to qualify for calculation: Pair Trading Station will not perform the calculation if the currency pair does not have a minimum number of bars
- Minimum Factor to qualify for signal: usually a signal is considered significant at a value of 2 or more, similar to the z-criterion for standard deviation
- Correlation Limit to match pairs: If the correlation is too low, the Pair Trading Station will not perform the calculation.
- Lines Per Column when signal is displayed: this variable specifies the number of signal lines displayed on the chart
- Color for Medium Strength Signal: the color of the signal with medium strength
- Color for High Strength Signal: the color of a very strong signal
- Color for Extreme Strength Signal: the color of an extremely strong signal
- Background color 1: the background color of the graph
- Background color 2: the background color of the graph
- Use Normalized Spread: to ensure equal weight of two currency pairs, Pair Trading Station normalizes the initial historical data
- Use Black Background (default = true): It is recommended to use the value true in most cases.