Can any traders out there help me observe the behavior of this indicator, and possibly create an EA if it has any true value?

The Predictive Price Indicator (PPI) uses the logic of fractional product inefficiency (FPI) to determine the target price to make an efficient market. If you are unfamiliar with FPI, you can read about it here. The indicator locates any 3 symbol rings that contain the symbol taken from the chart and calculates it's target price to make that ring efficient.

I had to code this as an EA because custom indicators will not allow you do use infinite loops, which are needed to keep the data refreshed. Make sure to compile this in the experts folder NOT the indicators folder!

I appreciate any feedback, and hope that this proves to be usefull. Nevertheless it is kind of fun to watch...

Attached Files

Predictive_Price_FPI.mq4 (4.2 KB, 1413 views)

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"Anyone who has never made a mistake has never tried anything new." -Albert Einstein

This one is useful, people use it. Thanks for the post

I have had some PM's regarding some troubleshooting and though I would post it here for everyone to benefit:

one thing you will need to try is to right click on the "market watch" window where the quotes are and then select the option to "Show all". Sometimes the platform will not grab data for all the symbols necessary to operate this indicator, thus resulting in "zero divides".

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"Anyone who has never made a mistake has never tried anything new." -Albert Einstein

Very fascinating write-up, is this used in live trading?

What does each colour of those colored lines mean?

FPI? Absolutely. Big firms use it all the time to ARB the market. As far as the PPI indicator goes, it will be interesting to see if there are any paterns, but i know for sure if any pair is lagging in a news release this will show us immediately!

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"Anyone who has never made a mistake has never tried anything new." -Albert Einstein

The colored lines are the new target prices based on the FPI concept. Since it is calulated from rings of three symbols only one of two things can happen. When the target price jumps away from the actual price either:
A) One of the two other pairs in the ring will adjust its price
B) The pair on the Chart will adjust its price

The more targets going in one direction the more likely it is that the pair on the chart will be the one to adjust.

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"Anyone who has never made a mistake has never tried anything new." -Albert Einstein

i've put in on the eur/usd. which other currencies do the colored lines refer to?

also, comment says it found 5 matches.

I have studied this the last two months.

Great stuff.

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Safe Trades

the source

The prices refer to the target price set by FPI for the given ring it is positioned in. The matches refer to how many matching rings (rings that contain chart currency).

The rings are (example EURUSD rings in RED):

1. "EURJPY","EURAUD","AUDJPY"
2. "EURJPY","EURCHF","CHFJPY"
3. "EURJPY","EURGBP","GBPJPY"
4. "EURJPY","EURUSD","USDJPY"
5. "AUDJPY","AUDUSD","USDJPY"
6. "EURUSD","EURAUD","AUDUSD"
7. "EURUSD","EURGBP","GBPUSD"
8. "USDJPY","USDCHF","CHFJPY"
9. "GBPJPY","GBPCHF","CHFJPY"
10. "GBPJPY","GBPUSD","USDJPY"
11. "EURCAD","EURUSD","USDCAD"
12. "EURCHF","EURGBP","GBPCHF"
13. "EURCHF","EURUSD","USDCHF"
14. "GBPCHF","GBPUSD","USDCHF"

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"Anyone who has never made a mistake has never tried anything new." -Albert Einstein