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Hedging THE HEDGE!

  • #81
  • Oct 25, 2008 12:21pm Oct 25, 2008 12:21pm
Signing up.

Lenoxer
  • #82
  • Oct 25, 2008 5:21pm Oct 25, 2008 5:21pm
great
If everyone believes it, it will work.
  • #83
  • Oct 27, 2008 5:53am Oct 27, 2008 5:53am
can download the file?why i cant download it?
  • #84
  • Oct 27, 2008 11:49am Oct 27, 2008 11:49am
Quoting andsonloo
can download the file?why i cant download it?
It downloads for me, not sure, try using a different browser.
  • #85
  • Edited 7:29pm Oct 29, 2008 1:29pm | Edited 7:29pm
After watching the HTH EA data, i came up with something new. It seems that correlation is going up and down everyday, creating opportunities to make a profit. This change in the strategy, is to minimize the drawdown.

Trading rules: enter 2 hedged positions with EURUSD, USDCHF, GBPUSD, AUDUSD at 0:00GMT, the duration of the trades is for a period of one day, and repeat.

Example:
Enter direction of previous day's deviation based on EURUSD. Previous day deviation for EURUSD was positive, enter LONG EURUSD, hedge with LONG USDCHF. Since EURUSD has stronger correlation with GBPUSD and not AUDUSD, hedge EURUSD with a SHORT GBPUSD, and hedge GBPUSD with LONG AUDUSD.

A total of 4 trades:
LONG EURUSD
LONG USDCHF
SHORT GPBUSD
LONG AUDUSD

In this trade, EURUSD is hedged with USDCHF, EURUSD is hedged with GBPUSD, USDCHF is hedged with AUDUSD, GBPUSD is hedged with AUDUSD.

Close trade at the End of Day!

Re-enter based on previous day deviation of EURUSD.

The EA is included....
Attached File(s)
File Type: mq4 HTH.mq4   6 KB | 1,673 downloads
  • #86
  • Oct 29, 2008 5:14pm Oct 29, 2008 5:14pm
Cod3,

How much the worst DD so far you ever got?
  • #87
  • Oct 29, 2008 6:27pm Oct 29, 2008 6:27pm
Quoting Andrie
Cod3,

How much the worst DD so far you ever got?
This is what could happen with DD, read the link below

http://www.forexfactory.com/showpost...postcount=2200
  • #88
  • Oct 30, 2008 2:41am Oct 30, 2008 2:41am
How does the EA work? Does it need any indicators?

Will it place trades immediately or at 0:00 GMT if trading is set to "true"?

Does it determine deviation automatically?
  • #89
  • Oct 30, 2008 3:00am Oct 30, 2008 3:00am
Dear C.,

The DD window from Mackus you refer us to is his DD from the Spieler method alone, i.e. being long/short the EURUSD/USDCHF hedge. You're adding a whole other hedging element into the equation. That being so, you'd expect the DD to be less. Check out the DD of your model at: http:/forexgear.net/

Lenoxer
  • #90
  • Oct 30, 2008 4:25am Oct 30, 2008 4:25am
Quoting c0d3
This is what could happen with DD, read the link below

http://www.forexfactory.com/showpost...postcount=2200
i understand. But my question is with this technique, how much should you have on margin so you could trade considerably safe...how much the most negative pip you ever experience using this technique?
  • #91
  • Mar 3, 2012 12:54pm Mar 3, 2012 12:54pm
http://www.myfxbook.com/id/members/a...me-hedge/81741
  • #92
  • May 6, 2013 2:20am May 6, 2013 2:20am
HOw about the progress using this system? Is this system still useable? thanks
  • #93
  • May 6, 2013 2:25am May 6, 2013 2:25am
Quoting ronald_fsm
HOw about the progress using this system? Is this system still useable? thanks
test it and let us know, thanks
  • #94
  • May 8, 2013 4:27am May 8, 2013 4:27am
Please anyone. Where can I get the mq4 versions of the indicators necessary for HTH EA to work?
  • #95
  • Edited 7:04am May 14, 2013 5:57am | Edited 7:04am
Quoting swingman
trading chances for the last two days: {image}

i want this template and indicators


dear friends upload
Attached Image (click to enlarge)
Click to Enlarge Name: template(reg).PNG Size: 46 KB
  • #96
  • Jan 19, 2015 9:56pm Jan 19, 2015 9:56pm
is this strategy still working? I don't see update for almost 2 years
  • #97
  • Jan 19, 2015 10:15pm Jan 19, 2015 10:15pm
Quoting ronald_fsm
is this strategy still working? I don't see update for almost 2 years
This strategy worked very well on January 15 for SNB (Swiss National Bank) ............... the eur/usd usd/chf hedge traders saw their nightmare come true.
The Thief of Wall Street
  • #98
  • Jan 19, 2015 10:58pm Jan 19, 2015 10:58pm
Quoting Chicky
{quote} This strategy worked very well on January 15 for SNB (Swiss National Bank) ............... the eur/usd usd/chf hedge traders saw their nightmare come true.
the difference between eur/usd movement is far with usd/chf movement so they won't hedge each other again
  • #99
  • Jan 20, 2015 12:23am Jan 20, 2015 12:23am
Quoting c0d3
Time-Series EURUSD divided by USDCHF gives RATIO1(download indicator below) Time-Series GBPUSD divided by AUDUSD gives RATIO2(download indicator below) Time-Series RATIO1 divided by RATIO2 gives RATIO(download indicator below) COMPARE EURUSD/USDCHF RATIO1 TO GBPUSD/AUDUSD RATIO2. PERFORMING CORRELATION ANALYSIS ON RATIO1 VS. RATIO2 GIVES NEGATIVE OR POSITIVE CORRELATION. +/- CORRELATION IS ONE OF THE REQUIREMENTS FOR HEDGING! THE REASON FOR THIS STRATEGY: AFTER DOING PAIRS-TRADING FOR A WHILE I NOTICED THAT SOMETIMES YOU ENTER AND THE PROFIT IS...
I don't want to spoil the party, but damn this is really sick!

First of all, Eurusd divided usdchf (your ratio1) is just eurchf.
So, buying eurusd and usdchf or viceversa, you are simply trading eurchf (hello???).

Second, Gbpusd divided audusd (your ratio2) is simply gbpaud.

Then, your ratio1 divided ratio2 (eurchf divided gbpaud) there is nothing really fitting between them, so you buy one sell the other, or buy both, or sell both, basically each of them are free to go in the direction that it want to go, there is not any correlation between the twos.

So basically your strategy is (for example):

1) Buy or sell eurchf
2) Buy or sell gbpaud
3) Wait and hope that they show a profit (????).
4) refund your account whenever it go to 0.
5) repeat!

  • #100
  • Apr 9, 2018 1:22pm Apr 9, 2018 1:22pm
Hi all,
Is it possible to have an EA for this:

1.Given Pair A and Pair B
2.Place order at 00:00 UTC:

Buy A
Sell A

BuyB
Sell B

3.Close trade at BuyA +BuyB= N pips ;Close trade at SellA +SellB= N pips;N>0

Close all trades at 23:55 UTC
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