now when I understand how hedge trade works eg L EU and S GU I know that it's not so safety way to trade. In 90-95% our gain depends from EUR/GBP moves. So in 90-95% we're trading EG.
But I saw that there is possibility to use pairs trading (hedging) principal for directional trading. This way of trading is more safe for me. But it's out of this thread so I will post only things about hedging.
now when I understand how hedge trade works eg L EU and S GU I know that it's not so safety way to trade. In 90-95% our gain depends from EUR/GBP moves. So in 90-95% we're trading EG.
Ignored
yap..i notice that too..but the problem is when we trade directional, we have to choose between sell the stronger or buy the weaker..we dont really know weather one currency become too strong or become too weak...when it happens, we lose...on the other hand hedging can eliminate that kind of problem but when the spread in EG become higher than we lose as well..
i've tested the method to solve this problem..but i need to backtest it first...
this is a demotrade, using swingmans NeutralPriceOscillator
time is CET
long EURUSD 14828
long USDCHF 10890 at 15:10
closed both ca. 5:00 this morning with nice profit
i also dit a Spieler Hedge trade with mini Lot size, almost the same result.
The only diference i can see is, the entry with swingmans Oscillator is more correct cause it shows you the correlation of EURUSD and USDCHF.
Spieler follows the EURCHF moves from the start of the day and thats different with any broker. Some use GMT , im with oanda, they use NY ET., so what time should one take?
I don't want to change topic of this thread but you could try strategy with H1 candles on EU and Neutral Price Oscillator set up like this:
Pair 1: EURUSD
Pair 2: USDCHF
maxBars: 300
Period_Differences: 200
BB_Period: 200.0
BB_Deviation: 2.0
Time Frame for indicator: M5
When you have indicator over +2 or below -2 then simply look at H1 EU chart and wait for confirmation to reverse. I use only 4 candlestick patterns: mornig star, evening star, piercing formation and dark cloud cover. Entry on the next H1 candle or wait for pull back. I use 25-30 pips SL and 50-60 pips TP. I move my SL when position is in profit, usually when +20,25 to BE, and when +40,45 to +20.
If you have time, just try it.
EDIT:
results from last signals:
+20, +50, +20, +50, -25, +50, +50 and today I've made +41 pips (+7 SL, and +34 closed manually because of the news in few minutes).
I NEED MAJOR HELP. can someone that understands this system please pm me. i have read every word of this thread and im completly lost. the system looks very interesting and very promising. I would love to use it but I HAVE NO IDEA HOW. can anyone pm with answers to:
indicators? templates? entries? exits? EVERYTHING???? lol
i need to be walked by the hand here i guess because i just don't get it!!!
will someone please take the time to help me
thanks in advance
magictrader: i know i just pm you with these same questions and i don't want you to think im rushing for an answer. its just that im off today and would like to start grasping this concept as soon as possible. thanks again!!
can someone tell me why when i put the neutral price oscillator on my chart it freezes my screen. i have tried to use it with ibfx demo and fxdd demo on 2 diff computers and they both freeze up any ideas???
