Golang : Calculate US Dollar Index (DXY)



Tags : golang forex-trading us-dollar-index dxy

Below is a code example on how to calculate the US dollar index based on a basket of other related currencies pairs. The formula to calculate US dollar index is :

USDX = 50.14348112 × EUR/USD^(-0.576) × USD/JPY^(0.136) × GBP/USD^(-0.119) × USD/CAD^(0.091) × USD/SEK^(0.042) × USD/CHF^(0.036)

How you want to deploy the US dollar index in your trading strategy? You can read more about it here.

Here you go!


 package main

 import (
  "fmt"
  "math"

  "github.com/awoldes/goanda"
 )

 func main() {

  oandaAccountID := ""
  oandaAPIKey := ""

  // set the NewConnection 3rd parameter to [false] to use DEMO account.
  // [true] for LIVE account

  UsingLIVEAccount := false // set false to use https://api-fxpractice.oanda.com
  oanda := goanda.NewConnection(oandaAccountID, oandaAPIKey, UsingLIVEAccount)

  fmt.Println("Calculating USD index using this formula...")
  fmt.Println("USDX = 50.14348112 × EUR/USD^(-0.576) × USD/JPY^(0.136) × GBP/USD^(-0.119) x USD/CAD^(0.091) × USD/SEK^(0.042) × USD/CHF^(0.036)")

  EURUSD := GetPrice(oanda, "EUR_USD")
  USDJPY := GetPrice(oanda, "USD_JPY")
  GBPUSD := GetPrice(oanda, "GBP_USD")
  USDCAD := GetPrice(oanda, "USD_CAD")
  USDSEK := GetPrice(oanda, "USD_SEK")
  USDCHF := GetPrice(oanda, "USD_CHF")

  EURUSDPowerOf := math.Pow(EURUSD, -0.576)
  USDJPYPowerOf := math.Pow(USDJPY, 0.136)
  GBPUSDPowerOf := math.Pow(GBPUSD, -0.119)
  USDCADPowerOf := math.Pow(USDCAD, 0.091)
  USDSEKPowerOf := math.Pow(USDSEK, 0.042)
  USDCHFPowerOf := math.Pow(USDCHF, 0.036)

  USDX := 50.14348112 * EURUSDPowerOf * USDJPYPowerOf * GBPUSDPowerOf * USDCADPowerOf * USDSEKPowerOf * USDCHFPowerOf

  fmt.Println("Current USD Index : ", USDX)

 }

 //--------------------------------------------------------------------------------------------------------

 func GetPrice(oanda *goanda.OandaConnection, cross string) float64 {
  instrument := cross
  priceResponse := oanda.GetInstrumentPrice(instrument)

  return priceResponse.Prices[0].Bids[0].Price
 }

Sample output for 8-March-2019:

Calculating USD index using this formula...

USDX = 50.14348112 × EUR/USD^(-0.576) × USD/JPY^(0.136) × GBP/USD^(-0.119) x USD/CAD^(0.091) × USD/SEK^(0.042) × USD/CHF^(0.036)

Current USD Index : 97.54459899738309

Points to remember

If USD is the base currency (USD/XXX), then the USDX and the currency pair should move the same direction.

If USD is the quote currency (XXX/USD), then the USDX and the currency pair should move in opposite directions.

References:

https://www.babypips.com/learn/forex/using-the-usdx-for-forex

https://www.mql5.com/en/blogs/post/716041

  See also : Golang : Calculate pivot points for a cross



Tags : golang forex-trading us-dollar-index dxy

By Adam Ng(黃武俊)

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