In the world of evolving sophisticated algorithmic trading, several technical analysis tools remain evergreen, with Fibonacci coming into play in gold. Chris Svorcik, Forex Trader, Technical & Wave Analyst Elite CurrenSea discusses EAs and technical trading tools. In an interview with Yohay Elam, Svorcik also provides tips for traders.
Yohay Elam: Hi Chris. So, Are you based in Prague?
Chris Svorcik: Yes, correct, very nice town. Lovely place
Yohay Elam: Yeah, I've been there some 20 years ago
Chris Svorcik: Where are you based?
Yohay Elam: I'm in Barcelona, originally from Israel
Chris Svorcik: Lots of things have changed in 20 years, but I think that this is true for all cities
Yohay Elam: Indeed
Chris Svorcik: Sounds good
Yohay Elam: How is the lockdown situation over there?
Chris Svorcik: Heard good things about Barcelona. but also that it was a bit overcrowded with tourists. I assume that there are much less tourists now though
Yohay Elam: indeed, now we foreigners that live here are not mistaken for tourists
Chris Svorcik: Lockdown is much looser. Things are returning slowly to more "new" normal.
Yohay Elam: it's a relief, especially as I live in the center of town
Yohay Elam: Same here
Chris Svorcik: I can see that, nice :)
Yohay Elam: Many traders have taken the opportunity to improve their skills during lockdown
Yohay Elam: High volatility is exciting
Chris Svorcik: Always important indeed. I myself am working on automated trading systems. Working on EA and also an engine that can test more EA ideas. Our first EA (Ultima EA) that Mislav Nikolic and I have created is doing great after 1 year of live trading completed so we are exciting to do more in this field
Yohay Elam: At Elite Currensea, have you seen an increase in interest?
Chris Svorcik: Certainly the market went into a wild ride during February and March
Yohay Elam: And is slowing down now
Yohay Elam: In relative terms of course
Chris Svorcik: I would say a little bit more interest. I think that such trends do create more time for people new to trading. Or traders that revisit trading in these times.
Yohay Elam: Indeed
Chris Svorcik: It's logical and good for people to be more diverse. Learning technical analysis, trading, fundamentals are all very worthwhile skills we believe
Yohay Elam: About that EA you've mentioned
Yohay Elam: The engine that is able to test more EAs
Yohay Elam: Does it help in fine tuning trading systems?
Chris Svorcik: This is our newest project indeed. Rather than focus on testing specific system ideas, we are now embarking on a new direction where we build a program for testing. It will include many of our manual system ideas that can be chosen to build a wide range of system ideas
Chris Svorcik: Like building blocks where we can choose multiple variables
Yohay Elam: Sounds impressive
Yohay Elam: Have you been testing it with different volatility levels?
Chris Svorcik: We aim to build a portfolio of automated trading systems so we diversify the risk. Now we are trading 1 EA so we hope to expand soon. It's exciting. We were always manual traders but we like this challenge.
Yohay Elam: Nice
Chris Svorcik: Yes, we have tested the current Ultima EA with 99.9% modelling accuracy and real variable spread for many years, more than 10 years
Yohay Elam: Is Elliott Wave Analysis the basis for this EA?
Chris Svorcik: Yes and no. The EA does use price swings, which is at the heart of Elliott Waves. But the EA does not use any specific wave labeling.
Chris Svorcik: We also incorporated Fibonacci in the system, which also goes hand in hand with waves
Yohay Elam: I see
Yohay Elam: Are there additional EAs in the works?
Chris Svorcik: I am a huge fan of EW and Fibs, but it does require some experience to handle it. Using moving averages does in my view shorten the learning curve. Also using price swings or EW as a support tool rather than a main trading tool, I think, makes it less complicated.
Yohay Elam: Indeed, moving averages are easier to comprehend and program
Chris Svorcik: Future EAs: I certainly hope so. We are now embarking on this project so I hope to see us trading more EAs at the end of 2020 I think
Yohay Elam: Nice to see you are not resting on the laurels, always looking for new stuff
Yohay Elam: Does fundamental analysis play any role? Or is everything you do only based on price action?
Chris Svorcik: Yes, much easier to comprehend price patterns with moving averages. Not simple crossovers for entries. But Mas help with many concepts like understanding impulse, trend, pullback, continuation. Traders can determine and understand the charts very accurately with MAs, Fibs and Fractals
Chris Svorcik: I am a big technical analysis fan as you can see :)
Yohay Elam: Undoubtedly into TA...
Chris Svorcik: Fundamentals are certainly a factor to be aware of. I use it for long-term direction (interest rates, QEs, etc) and for short-term price volatility (news, stats, events)
Chris Svorcik: However, I do not base my trading ideas on FA. But I am mostly a trader that uses 15m, 60m, and 240m charts, not daily or weekly for entries
Yohay Elam: I see, awareness of big picture developments and timing of events rather than paying too much attention to their actual content
Yohay Elam: Looking at content on FXStreet
Yohay Elam: I see that you previously ventured into cryptocurrencies
Yohay Elam: But you have not written about them lately
Yohay Elam: Sometimes cryptos are wild
Yohay Elam: Is TA useful with cryptos?
Yohay Elam: Or to what extent
Chris Svorcik: That is correct indeed :) Good observation. I'm not sure myself why I stopped actually haha. In the end, I guess that I just like currency markets the most.
Yohay Elam: Back to basics I guess
Yohay Elam: How about gold?
Yohay Elam: The precious metal attracted lots of attention
Yohay Elam: hitting the highest in over seven years
Chris Svorcik: I do think that TA is useful for cryptos. Price seems to move nicely in accordance to technicals. But I also think that there price movements that are strongly connected to crypto fundamentals news behind the coin. And personally, I do not follow those coin details.
Yohay Elam: Are you following it closely?
Chris Svorcik: Yes Gold I always follow closely. And expected a new bull run and uptrend, which seems to be nicely taking place now
Yohay Elam: Indeed, a bull run but one that seems far more rational than cryptos...
Chris Svorcik: Gold made a huge move up +/- 10 years ago and has been retracing for years. It finally bounced at the 50% Fib. It was time for a bullish breakout and retest of the previous top for Gold in my view
Chris Svorcik: Yes indeed, rational trend, agree
Yohay Elam: That Fibonacci line worked after all that time
Chris Svorcik: From an EW perspective, the main question is whether the current upside is a wave C or wave 3
Yohay Elam: I guess there is an open debate in the community
Yohay Elam: about C or 3
Chris Svorcik: Personally, I am not convinced of either of the 2 scenarios and waiting for more price info.
Chris Svorcik: Time will tell :)
Yohay Elam: indeed
Yohay Elam: So you are on the sidelines on gold at the moment
Chris Svorcik: For the moment, Gold still has more space for upside I believe
Yohay Elam: Any specific target?
Chris Svorcik: Price is now at the 78.6% Fibonacci level when placing the Fib from the all time top to the low around 2015 I think. But I think that Gold will keep pushing up, after a small consolidation zone, to the 88.6% Fib at +/- 1820 or the previous top at +/- 1920.
Chris Svorcik: I see 1650-1600 as key support zone at the moment
Yohay Elam: How do you see Gold?
Yohay Elam: From FA and/or TA point of view
Chris Svorcik: From a fundamental point of view, I think that 1820 makes sense, it would be an extension of the current trend as the Fed promised to do more
Chris Svorcik: Yet without another massive round of money printing from the Fed and others, the 2011 peak looks too high
Yohay Elam: Sounds good, we have alignment :)
Chris Svorcik: Perhaps in the winter, if there is a second wave of the pandemic, which hopefully we will not have
Yohay Elam: Hope not. This remains a wild card and unknown factor indeed. We will have to see how this develops
Yohay Elam: I do not know where the bottom would be, but the crash below 1500 that we've seen at some point in March seems too far
Yohay Elam: With so many traders taking advantage of the lockdown to trade or improve their skills
Yohay Elam: Do you have any advice for them?
Chris Svorcik: I see working from home as a good opportunity for everyone because people can work on other skills, ideas, and passions than just their "normal" work. I believe that trading and technical analysis is certainly worth everyone's attention. Financial skills will be worth gold in the 21st century.
Yohay Elam: Indeed, financial skills are becoming more and more important
Chris Svorcik: Certainly. Together with programming skills, it's very beneficial to be achieve financial literacy, including trading, investing, personal finance.
Yohay Elam: Fibonacci lines can be worth a fortune
Chris Svorcik: Working from home will allow people to reach their work targets in a much quicker and more efficient way. I think working from home, at least, partially, is much better for everyone.
Chris Svorcik: Yes, Fibs are golden :)
Yohay Elam: There is a bright side to this pandemic
Yohay Elam: Any additional messages to traders?
Chris Svorcik: It's very tough for all involved. And hopefully we can continue our lives as we use to very soon. But certain changes might not be that bad indeed. Lets see :)
Yohay Elam: You contribute to FXStreet several times a week, so traders can follow your ideas there and also on your website.
Yohay Elam: https://elitecurrensea.com/forex-cfd/swat
Chris Svorcik: Yes correct, almost every day I send my analysis to FXstreet showing my EW forecast and how I use MAs, Fibs and Fractals
Chris Svorcik: The above link is my own method, based on these 3 tools
Chris Svorcik: I will also have a webinar with FXstreet next week on MAs
Yohay Elam: Looking forward to that webinar
Chris Svorcik: And if you don't mind, I will also add the link to our current EA, https://elitecurrensea.com/forex-cfd/ultima/ It will be available from mid-June at no upfront costs, just profit-sharing module so we earn when you earn
Chris Svorcik: Thank you Yohay
Chris Svorcik: It was a pleasure to be here and speak with you. I know your work, excellent job
Yohay Elam: Sure, I'll dig into that EA
Yohay Elam: Thank you very much for your time
Chris Svorcik: Sounds good
Yohay Elam: The pleasure is mine
Chris Svorcik: Thank you very much too
Chris Svorcik: Take care!
Yohay Elam: You too!
Chris Svorcik: and good trading :)
Yohay Elam: Live long and prosper with forex profits
Chris Svorcik: :) cheers!
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