Seems like if you had gotten into the trade on the EU, GU on 2/11, you would have been in it over 30 days and would have had to with stand a few thousand pip DD until the pairs crossed again...so the next question is how much of a cushin do you need to prepare for?
Can try it on M1 with EURUSD, USDCHF .Enter trade when both currencies are at opposite extreme ends . Close at predetermined profits or at crosses. practicing on a live account with 1 cent/pip for the last three days. Till now no losses. Trades can be closed quickly.
Can try it on M1 with EURUSD, USDCHF .Enter trade when both currencies are at opposite extreme ends . Close at predetermined profits or at crosses. practicing on a live account with 1 cent/pip for the last three days. Till now no losses. Trades can be closed quickly.
Hope this no loss marathon will continue !!!
Ignored
You are buying both ? What is the predetermined profit figure ?
Bill, any way to get rid of the unnecessary text in this indicator? All we need is the EUR/USD and GBP/USD at the far right, not the rest of the currency text. I got rid of all the other lines of the other currencies but can't seem to get rid of their text.
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try this, I modded the indicator thus:
0= show line inverted
1= show line normal
3= don't show line
Steve.
ps, got rid of text at top left & changed EurUsd to a better colour
You are buying both ? What is the predetermined profit figure ?
Thanks.
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Sell the curency which is at the top and buy the currency which is at the bottom. Same as it was given in the first post by Dreamliner.
Regarding the take profit, one has to detrmine by looking at the chart. and the percent of equity at stake.
Sell the curency which is at the top and buy the currency which is at the bottom. Same as it was given in the first post by Dreamliner.
Regarding the take profit, one has to detrmine by looking at the chart. and the percent of equity at stake.
Ignored
EURUSD and USDCHF move in the opposite direction (negatively correlated). So if I buy one and sell the other, I am entering trades in the same direction. That cannot be hedging, right?
whereas in the first post Dreamliner mentioned about EURUSD and GBPUSD which move in the same direction. So if you Buy and Sell, it becomes a sort of hedge..
EURUSD and USDCHF move in the opposite direction (negatively correlated). So if I buy one and sell the other, I am entering trades in the same direction. That cannot be hedging, right?
whereas in the first post Dreamliner mentioned about EURUSD and GBPUSD which move in the same direction. So if you Buy and Sell, it becomes a sort of hedge..
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Yes, Dreamliners strategy is based on hedging. But after looking at the charts I started using the following strategy:
The basic theory on which i base my trades is that the currencies which are overlaid cross at one point of time or the other and in M1 time frame they cross sooner than other time frames. But in M1 one has to be faster in closing and opening trades. But the waiting time is lesser. There are three possibilities:
(1) If the currencies cross then either both the currencies must travel half way each to cross.
then you earn profit in both and close both.
(2) One remains static and the other moves towards other currency to cross.
Then also get net profit.
(3) One moves in the opposite direction in which you have entered trade and the other currency moves toward the first currency pair to cross at one point of time.
Then you may not take much profit. or may be it will be break even.
The last possibility occurred just an hour back with USD CHF going down ( while I entered buy) and EURUSD went down too ( in the direction I entered) but it crossed USD CHF.
It is when I closed my trade. with zero profit.
I feel that my approach fits mathematically. But the drawdown when the currencies move in completely opposite ways - it depends upon your money management.
To avoid large drawdowns, M1 time frame is suitable because the cross occurs quickly.
Point mentioned above is a valid one.
With 1 Min TF how many pips you have been able to get so far? Probably we need a script to close trades.
Thanks.
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I used a mix of 1 cent a pip and 10 cent a pip yesterday and earned $10. On an average it may come out to 100 to 200 pips. You may find EAs which close the trade for predetermined profit or just at the prevailing price. Today I made 30 pips as I chose not to trade because of strong news.
I don't take this approach as granted but for three days it has given good result. Mathematically too it seems viable. There is a fixed exit method whatever may be the entry point. Rest time will tell. So earning at least $5 to $10 a day in $500 account is fine works out to $220 for 22 days of trading a month. Even If I manage to achieve quarter of that, it is a good return. But nothing is written in stone.
Hey thanks Dreamliner.
I've long knew that this method is a keeper.
When one trades Futures Options or Index Options, you're doing this all day long...arbitrage the spread. Straddles, Strangles, etc., etc.
I knew it would work on Forex. Mindful of the correlation factor, though.
I found that you MUST adjust position size according to difference in ATR.
Right now, I'm taking nearest & most high/low on one pair and the same (opposite) with the other. Distance in pips total one to the other, position size proportional to that difference. (Divide the larger number by the smaller & the result is # of position size, and the other is of course 1.)
Thanks for that overlay indicator RBRTSHA. Precisely what I was missing to take this from bright idea to actually happening. I pulled that up on the screen first time & just said,"...f%&ken-A..this is it.." Thank you thank you!
I am live now with a USD-CHF vs EUR-CHF. So far so good.
Yesterday I demo'd a 3-way, GBP-JPY, EUR-JPY & EUR-GBP. It went against me so I doubled-up after a time. Got tired of watching it so I went to bed.
This AM I was to the good like 1600+ pips. Needless to say I greedily & gleefully closed that one out! This thing rocks!
In case you didn't know, the Neutral Hedge Overlay repaints.
It begins x number of bars back and walks forward with each bar.
If you want to prove it, take a screen shot of it now and take another a day or so from now. To hurry the process, put it on 1M. You'll see it repaint quickly.
The wave shapes won't change, but the distance between the pairs change. You can't really pay any attention to pair disparity, because it's not accurate.
