Introduction to Forex

The Forex menu enables you to load any combination of currencies (e.g. USDEUR or JPYGBP), show current quote and historical data (candle) as well as forward rates (fwd). Furthermore, the menu has the ability to also apply Technical Analysis and Prediction Techniques while also having an integration with Oanda.

How to use

The Forex menu is called upon by typing forex which opens the following menu:

You have the ability to load any currency pair with load as follows:

When you do so, a lot of commands turn Blue. These can now be used to analyse the selected currency pair.

For example, you are able to show the quote of the currency pair by using the quote command:

2022 Jun 29, 07:04 (🦋) /forex/ $ quote

                     USD/EUR Quote
┏━━━━━━━━━━━━━━━━━━━━┳━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━┓
┃                    ┃ Realtime Currency Exchange Rate ┃
┡━━━━━━━━━━━━━━━━━━━━╇━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━┩
│ From_Currency Code │ USD                             │
├────────────────────┼─────────────────────────────────┤
│ To_Currency Code   │ EUR                             │
├────────────────────┼─────────────────────────────────┤
│ Last Refreshed     │ 2022-06-29 11:08:00             │
├────────────────────┼─────────────────────────────────┤
│ Exchange Rate      │ 0.94960000                      │
├────────────────────┼─────────────────────────────────┤
│ Bid Price          │ 0.94960000                      │
├────────────────────┼─────────────────────────────────┤
│ Ask Price          │ 0.94960000                      │
└────────────────────┴─────────────────────────────────┘

Or show the historical data on the currency pair with candle as follows:

2022 Jun 29, 07:09 (🦋) /forex/ $ candle

Which returns the following:

Lastly, insights in the forward valuations can also be given with fwd.

2022 Jun 29, 07:19 (🦋) /forex/ $ fwd

               Forward rates for USD/EUR
┏━━━━━━━━━━━━━━━┳━━━━━━━━┳━━━━━━━━┳━━━━━━━━┳━━━━━━━━━━━┓
┃ Expirations   ┃ Ask    ┃ Bid    ┃ Mid    ┃ Points    ┃
┡━━━━━━━━━━━━━━━╇━━━━━━━━╇━━━━━━━━╇━━━━━━━━╇━━━━━━━━━━━┩
│ Overnight     │ 0.9499 │ 0.9498 │ 0.9499 │ -0.5750   │
├───────────────┼────────┼────────┼────────┼───────────┤
│ Tomorrow Next │ 0.9499 │ 0.9498 │ 0.9498 │ -0.7250   │
├───────────────┼────────┼────────┼────────┼───────────┤
│ Spot Next     │ 0.9497 │ 0.9496 │ 0.9497 │ -2.3450   │
├───────────────┼────────┼────────┼────────┼───────────┤
│ One Week      │ 0.9495 │ 0.9495 │ 0.9495 │ -4.1550   │
├───────────────┼────────┼────────┼────────┼───────────┤
│ Two Weeks     │ 0.9491 │ 0.9491 │ 0.9491 │ -8.2600   │
├───────────────┼────────┼────────┼────────┼───────────┤
│ Three Weeks   │ 0.9487 │ 0.9486 │ 0.9487 │ -12.4150  │
├───────────────┼────────┼────────┼────────┼───────────┤
│ One Month     │ 0.9481 │ 0.9480 │ 0.9480 │ -18.8850  │
├───────────────┼────────┼────────┼────────┼───────────┤
│ Two Months    │ 0.9459 │ 0.9458 │ 0.9458 │ -40.8200  │
├───────────────┼────────┼────────┼────────┼───────────┤
│ Three Months  │ 0.9436 │ 0.9435 │ 0.9436 │ -63.4650  │
├───────────────┼────────┼────────┼────────┼───────────┤
│ Four Months   │ 0.9415 │ 0.9414 │ 0.9415 │ -84.5500  │
├───────────────┼────────┼────────┼────────┼───────────┤
│ Five Months   │ 0.9394 │ 0.9392 │ 0.9393 │ -106.2650 │
├───────────────┼────────┼────────┼────────┼───────────┤
│ Six Months    │ 0.9361 │ 0.9360 │ 0.9360 │ -138.8800 │
├───────────────┼────────┼────────┼────────┼───────────┤
│ Seven Months  │ 0.9342 │ 0.9340 │ 0.9341 │ -158.3750 │
├───────────────┼────────┼────────┼────────┼───────────┤
│ Eight Months  │ 0.9323 │ 0.9322 │ 0.9322 │ -176.9850 │
├───────────────┼────────┼────────┼────────┼───────────┤
│ Nine Months   │ 0.9302 │ 0.9300 │ 0.9301 │ -198.1200 │
├───────────────┼────────┼────────┼────────┼───────────┤
│ Ten Months    │ 0.9284 │ 0.9283 │ 0.9284 │ -215.5000 │
├───────────────┼────────┼────────┼────────┼───────────┤
│ Eleven Months │ 0.9268 │ 0.9267 │ 0.9268 │ -231.6250 │
├───────────────┼────────┼────────┼────────┼───────────┤
│ One Year      │ 0.9252 │ 0.9250 │ 0.9251 │ -248.6650 │
├───────────────┼────────┼────────┼────────┼───────────┤
│ Two Years     │ 0.9111 │ 0.9106 │ 0.9109 │ -390.6350 │
└───────────────┴────────┴────────┴────────┴───────────┘

Furthermore, the ability exists to take the currency pair to the Technical Analysis menu by typing ta:

Examples

First, let’s start with looking at the currency pair USD and GBP. These are the U.S. Dollars and the Pound sterling. This is done by using the load command as follows with the addition that the -s command is used to change the start date:

2022 Jun 29, 07:16 (🦋) /forex/ $ load USDGBP -s 2015-01-01
USD-GBP loaded.

Then, let’s see how this currency pair has changed over the last years with candle also adding in the --ma 60,120 argument:

Now it’s time to take this to the Quantitative Analysis menu by typing qa. This returns the following:

Within this menu we can show some rolling statistics, for example show the rolling values for the mean and standard deviation of the currency pair:

Lastly, more advanced techniques can also be applied regarding seasonality with decompose:

2022 Jun 29, 07:26 (🦋) /forex/qa/ $ decompose

Time-Series Level is 0.75
Strength of Trend: 421.7107
Strength of Seasonality: 0.0031