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Red News Hedge Trading + EA

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  • Post #1
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  • First Post: Edited Sep 14, 2019 8:48am Nov 11, 2015 3:44pm | Edited Sep 14, 2019 8:48am
  •  MathTrader7
  • Joined Aug 2014 | Status: Trading | 2,155 Posts
This trading strategy is based on taking advantage of high volatility in the market due to high impact red news. In this strategy, we open two trades on two different currency pairs which are known to be correlated (positively or negatively). For example, we open Long positions on both EURUSD and USDJPY a few seconds before a high impact red news in the hope of earning some pips from any imbalance in the basket. I have written an EA that makes it easier to trade this strategy. Attach the EA to one of currency pairs' chart (for example, EURUSD), and enter the hedge currency pair symbol (for example, USDJPY) in the input settings of the EA. There are four buttons to open positions,

1. Buy/Sell: the EA opens a Buy position on the attached chart, and a Sell position on the hedge currency pair.
2. Sell/Buy: the EA opens a Sell position on the attached chart, and a Buy position on the hedge currency pair.
3. Buy/Buy: the EA opens Buy positions on both currency pairs.
4. Sell/Sell: the EA opens Sell positions on both currency pairs.

and there are three buttons to close the basket manually. You can specify the net take profit (in money, not pips!) in the input settings of the EA.

Positively Correlated Symbols
For a pair of symbols that are positively correlated (such as AUDUSD and AUDCAD), use either Buy/Sell or Sell/Buy button.

Negatively Correlated Symbols
For a pair of symbols that are negatively correlated (such as EURUSD and USDJPY), use either Buy/Buy or Sell/Sell button.

Forex Correlation Table
Here is a website where you can find a Forex correlation table,

https://www.mataf.net/en/forex/tools/correlation

for example,
AUDCAD ~ EURAUD
AUDJPY ~ AUDNZD
CADJPY ~ AUDJPY
...

How I trade with this strategy:
1. Choose a high impact red news of a major currency, for example AUD.
2. Choose two other major currencies to pair with AUD such that the absolute correlation of two pairs is greater than 0.5, for example AUDUSD and AUDCAD.
3. A few minutes before the news release time, look at a currency strength meter to observe which of above two currencies (USD or CAD) is more powerful.
4. Select a trade button according to both the sign of correlation (this can be automatically done by the EA for you), and the strongest currency you identified in the previous step.
See an example here:
https://www.forexfactory.com/showthr...4#post10532124

How to load history data for hedge symbols?
In order to load history data of hedge symbols, you can follow the steps below:
1. Hit <F2> key to bring up History Center window.
2. Select the symbol (for example, EURUSD).
3. Click on <Download> button.
4. Repeat 1 to 3 for all symbols you want to load history data.

Thread Rules:
1. In this thread we discuss only the strategy and the EA presented here. I will IGNORE anyone who writes any irrelevant post in this thread.
2. TBD.

== Update 2019-09-14 ======================
Ver. 1.84: An Experimental Currency Strength Meter (CSM) is added to the EA. Recompiled with MT4 build 1220.

Attached Image (click to enlarge)
Click to Enlarge

Name: EURCADM1.png
Size: 40 KB

Attached File(s)
File Type: ex4 MathTrader7_NewsHedgeEA.ex4   148 KB | 1,221 downloads | Uploaded Sep 14, 2019 8:47am


Note: The CSM needs your broker to provide all major currency pairs to work.

Input settings description:

1. Select Auto Time Based Action:

- Auto Trade Disabled (default), This option disables auto time based trading.

- Buy/Buy: This option makes the EA to open BUY/BUY positions at Auto Action Time.

- Sell/Sell: This option makes the EA to open SELL/SELL positions at Auto Action Time.

- Buy/Sell: This option makes the EA to open BUY/SELL positions at Auto Action Time.

- Sell/Buy: This option makes the EA to open SELL/BUY positions at Auto Action Time.

2. Enter Auto Action Time (broker time):

- yyyy.mm.dd hh:mm:ss, for example 2015.11.19 14:29:30

- The EA opens two positions at this time according to Select Auto Time Based Action setting.

3. Auto Button Selection?

- If enabled, the EA hides irrelevant trade buttons according to the correlation value between two symbols.

4. Hedge Symbol:

- Enter hedge symbol as exactly as it appears on the market watch of your MT4 platform.

5. Net Take Profit (money):

- When net profit becomes greater than this value, the EA automatically closes both positions.

6. Net Stop Loss (money):

- When net profit becomes less than negative of this value, the EA automatically closes both positions.

7. Equalize Pips?

- If enabled, the lot size of trading two positions will be recalculated such that one pip of both symbols will be (approximately) worth equal (see Post 104).

- If disabled, the EA opens two positions with the user specified lot size.

8.1 Lot Size: 0.1 (default)

8.2 Hedge Lot Size: 0.1 (default)

9. Slippage (points): 30 (default)

10. Magic Number: 1122 (default)

- If you want to use the EA on the same symbol twice or more, you have to assign different magic numbers. Otherwise, leave it default.


====================================
How to install this EA on your MetaTrader4 Platform
For newbies, here is a video on youtube that shows how to install any EA on MetaTrader 4 platform in 5 easy steps
Trading is the hardest way to make easy money...
  • Post #2
  • Quote
  • Nov 11, 2015 11:50pm Nov 11, 2015 11:50pm
  •  techlover
  • | Joined Dec 2014 | Status: Member | 117 Posts
Thank you for your Ea Math

have placed it on Usdjpy chart with EURUSD to hedge and clicked Buy/sell button , it opened 0.1 Usdjpy and 0.08 Eurusd

may i know why it opened 0.08 in EURUSD ? , will it calculate the perfect hedging lot size ?
 
 
  • Post #3
  • Quote
  • Nov 12, 2015 4:55am Nov 12, 2015 4:55am
  •  MathTrader7
  • Joined Aug 2014 | Status: Trading | 2,155 Posts
Quoting techlover
Disliked
Thank you for your Ea Math have placed it on Usdjpy chart with EURUSD to hedge and clicked Buy/sell button , it opened 0.1 Usdjpy and 0.08 Eurusd may i know why it opened 0.08 in EURUSD ? , will it calculate the perfect hedging lot size ?
Ignored
You're welcome! :-)

And you're right! The EA calculates lots to equalize the worth of one point of both currency pairs. I uploaded a new version (v1.10) with an input to let the user enable/disable this function.
Trading is the hardest way to make easy money...
 
1
  • Post #4
  • Quote
  • Nov 12, 2015 5:04am Nov 12, 2015 5:04am
  •  techlover
  • | Joined Dec 2014 | Status: Member | 117 Posts
Quoting MathTrader7
Disliked
{quote} You're welcome! :-) And you're right! The EA calculates lots to equalize the worth of one point of both currency pairs. I uploaded a new version (v1.10) with an input to let the user enable/disable this function.
Ignored
there is a Bug in Ea, its not closing at desired Profit
 
 
  • Post #5
  • Quote
  • Nov 12, 2015 5:10am Nov 12, 2015 5:10am
  •  MathTrader7
  • Joined Aug 2014 | Status: Trading | 2,155 Posts
Quoting techlover
Disliked
{quote} there is a Bug in Ea, its not closing at desired Profit
Ignored
Please test v1.10, I optimized the close basket functionality to send order close command to the broker server as fast as possible.
Trading is the hardest way to make easy money...
 
 
  • Post #6
  • Quote
  • Nov 12, 2015 5:56am Nov 12, 2015 5:56am
  •  mpradeep
  • | Joined Apr 2012 | Status: Member | 168 Posts
Other than EU with UJ which will be the best pair?
 
 
  • Post #7
  • Quote
  • Nov 12, 2015 6:42am Nov 12, 2015 6:42am
  •  MathTrader7
  • Joined Aug 2014 | Status: Trading | 2,155 Posts
Quoting mpradeep
Disliked
Other than EU with UJ which will be the best pair?
Ignored
For AUD red news, I trade AUDUSD and AUDCAD. Go for either BUY/SELL or SELL/BUY for this pair of symbols.
For today's USD red news, I may go SELL/SELL for both symbols EURUSD and USDJPY.
Trading is the hardest way to make easy money...
 
1
  • Post #8
  • Quote
  • Nov 13, 2015 12:03am Nov 13, 2015 12:03am
  •  mpradeep
  • | Joined Apr 2012 | Status: Member | 168 Posts
Any more progress? anyone trading with this ea? i got profit buy buy EU and UJ
 
 
  • Post #9
  • Quote
  • Nov 13, 2015 2:41am Nov 13, 2015 2:41am
  •  MathTrader7
  • Joined Aug 2014 | Status: Trading | 2,155 Posts
Version 1.15 of the EA released. In this version a bug in auto closing the hedge basket is fixed. I updated Post 1.
Trading is the hardest way to make easy money...
 
 
  • Post #10
  • Quote
  • Nov 13, 2015 2:55am Nov 13, 2015 2:55am
  •  budidharma19
  • | Joined Aug 2013 | Status: Member | 214 Posts
Dear MathTrader,

Thanks for the EA,... truly I need the clear tutorial when to apply BUY/SELL , SELL/BUY, SELL/SELL or BUY/BUY,....

May be you have better clear hints how to determine that operation.

Looking forward to have answer from you,...

Thanks,

Budi
 
 
  • Post #11
  • Quote
  • Nov 13, 2015 3:56am Nov 13, 2015 3:56am
  •  mpradeep
  • | Joined Apr 2012 | Status: Member | 168 Posts
Dear Mathtrader

Where is is version 1.15. need to download.
 
 
  • Post #12
  • Quote
  • Nov 13, 2015 4:20am Nov 13, 2015 4:20am
  •  jagzuk
  • Joined Sep 2015 | Status: Member | 493 Posts
Quoting mpradeep
Disliked
Dear Mathtrader Where is is version 1.15. need to download.
Ignored
Download from post 1. MathTrader updated the file (see the section at the end of post1 that says Update, and date after the download link?). Best Regards.
Always read Post #1
 
 
  • Post #13
  • Quote
  • Nov 13, 2015 8:42am Nov 13, 2015 8:42am
  •  BLACKFEET
  • Joined Aug 2005 | Status: Member | 327 Posts
Hi, Mathtrader

I used your EA with the last NEW : Core Retail Sales.

Everything worked perfect...but I asked for 30 bucks and it gave me only $10.91 (LOL)

Thanks

Best regards

BBF
Attached Image (click to enlarge)
Click to Enlarge

Name: 20151113_EURUSD.png
Size: 8 KB
BigBlackfeet Always on the(forex) war path !
 
 
  • Post #14
  • Quote
  • Nov 13, 2015 8:53am Nov 13, 2015 8:53am
  •  techlover
  • | Joined Dec 2014 | Status: Member | 117 Posts
Still Ea not closing trades at desired profit , kindly have a look Math Thank you
 
 
  • Post #15
  • Quote
  • Nov 13, 2015 9:33am Nov 13, 2015 9:33am
  •  MathTrader7
  • Joined Aug 2014 | Status: Trading | 2,155 Posts
Quoting techlover
Disliked
Still Ea not closing trades at desired profit , kindly have a look Math Thank you
Ignored
Are you using the last version (v1.15)?
Trading is the hardest way to make easy money...
 
 
  • Post #16
  • Quote
  • Nov 13, 2015 9:33am Nov 13, 2015 9:33am
  •  MathTrader7
  • Joined Aug 2014 | Status: Trading | 2,155 Posts
Quoting BLACKFEET
Disliked
Hi, Mathtrader I used your EA with the last NEW : Core Retail Sales. Everything worked perfect...but I asked for 30 bucks and it gave me only $10.91 (LOL) Thanks Best regards BBF {image}
Ignored
Good results!
We have to accept what market gives us
Trading is the hardest way to make easy money...
 
 
  • Post #17
  • Quote
  • Nov 13, 2015 9:36am Nov 13, 2015 9:36am
  •  techlover
  • | Joined Dec 2014 | Status: Member | 117 Posts
Quoting MathTrader7
Disliked
{quote} Are you using the last version (v1.15)?
Ignored
I am Using v1.10 , sorry i will test latest version

As of now the results with this Ea are very good , even we can use it for Scalping
have to test it few more days
 
 
  • Post #18
  • Quote
  • Nov 13, 2015 9:43am Nov 13, 2015 9:43am
  •  techlover
  • | Joined Dec 2014 | Status: Member | 117 Posts
New Version is Perfect
Attached Image (click to enlarge)
Click to Enlarge

Name: jpy.png
Size: 7 KB
 
 
  • Post #19
  • Quote
  • Nov 13, 2015 9:59am Nov 13, 2015 9:59am
  •  MathTrader7
  • Joined Aug 2014 | Status: Trading | 2,155 Posts
Quoting techlover
Disliked
{quote} I am Using v1.10 , sorry i will test latest version As of now the results with this Ea are very good , even we can use it for Scalping have to test it few more days
Ignored
Trading hedge is one of my favorite strategies. As you mentioned, we can use it for scalping here and there. Please post your results which may help other traders to learn this style of trading.
Trading is the hardest way to make easy money...
 
 
  • Post #20
  • Quote
  • Nov 13, 2015 10:06am Nov 13, 2015 10:06am
  •  techlover
  • | Joined Dec 2014 | Status: Member | 117 Posts
Quoting MathTrader7
Disliked
{quote} Trading hedge is one of my favorite strategies. As you mentioned, we can use it for scalping here and there. Please post your results which may help other traders to learn this style of trading.
Ignored
Why cant it be Auto trading , we can set small profit and use for scalping

leave the trader to chose the option of Buy/sell or Sell /Sell
 
 
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