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Does anyone have a good hedging EA? 0 replies

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Attachments: Just learned about hedging, does anyone use it for scalping?
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Just learned about hedging, does anyone use it for scalping?

Quoting wingate
{quote} Hi STrading, I applaud your honesty Sir and I accept that hedging is not for you... no problem, each to their own and peace You of course are perfectly correct, losers are inevitable even when hedging, I cannot dispute this you are 100% bang on. However...the losses will only effect your overall equity/balance if the 'loosing trades' are closed either INDIVIDUALLY at a LOSS OR as a NEGATIVE BASKET as a whole. This I believe is how MoneyZilla trades, He will hedge a trade gone wrong and then wait for an opportune moment to 'un-hedge'...

Interesting regarding maintaining your hedge until basket close.
I always found this thread interesting, but couldn't find the secret sauce when hedging multiple trades, multiple pairs.
I last looked back at it a few yrs ago, might re-investigate.
https://www.forexfactory.com/thread/...ition-building
Another way to use a hedge in forex trading.

Say, I enter a position short for EURUSD, instead of placing a sl of 20 pips, I may place a hedge buy of equal size.

This will help me to not stare at the chart and also get sleep. I will then decide wether I want to add more to the downside or to the upside...

Using only a sl sometimes if you have positions overnight can cause stress, and sometimes the stop gets triggered and the trade will continue in your original direction, in this case, wait for a pullback or continuation to keep adding to the position.
Quoting wingate
{quote} My method is somewhat different, I will continue to build my basket of trades with any number of BOTH buy and sell trades. I WILL NOT un-hedge my basket at ANY time.

Already lost with the ways of trading in use. Definitely doing your way, too. Hedging and trending, are somehow interconnected and the enemy camp really misses it all on that important point, don't know why.

May I suggest to you, to close the hedged SET trades (1 buy vs 1 sell) just before mignight? Each business day? Just go on with net positions opened. You will spare some cash on swaps?

In my EAs this is called "Close hedges before the end of the day" parameter. If you are not managing the hedge set around the chart, better spare on some of the expences?
Maadik Hugiis. IQ 69.
Quoting wingate
{quote} Don't continually hedge when price is against you as that would lead to financial ruin! Hedge once or twice but no more. Add positions in the direction of the 'main' trend and take profits along the way (reduces margin which is a good thing). Close 'whole basket of trades' when you have either a) Made your target for the day or b) You believe a trend change is imminent. DO NOT trade this live until you have practiced this method and are confident of 1. Consistently increasing your balance and 2. Just as importantly manage drawdown and preserve...
I though you can answer the question, but you told me an average magic bullshit about money management, believes, practice etc.
Wonder why no single word about cut losses, manual trading and brokers who care about us not allowing to hedge.

I auto trade this "hedge" mode, just want to ask how you guys determine exit. Something like "if 30% of good hedges after X days become bad hedges then exit". But not to hear 100500 time again and again all that stuff. Leave it for newbies. We need their money. So let then not hegde but use stop losses, let them trade manually because robots can't see the picture, let them work on 1w TF to have huge DDs. Yep.
Observer effect
Got to go to work today. Checking timeframes for longterm trend is as follows 1m,5m,30m and 4hr are all SHORT. Screenshot at 7.50 GMT below, which way would your first trade of the day be?

Just my 2 cents...
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Off to work shortly, last post for now, NO trading for me until later. Screenshot at 8.10am so which way for trade number 2 of the day?
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2 Longs and 1 Short anyone?
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Quoting MoneyZilla
{quote} Already lost with the ways of trading in use. Definitely doing your way, too. Hedging and trending, are somehow interconnected and the enemy camp really misses it all on that important point, don't know why. May I suggest to you, to close the hedged SET trades (1 buy vs 1 sell) just before mignight? Each business day? Just go on with net positions opened. You will spare some cash on swaps? In my EAs this is called "Close hedges before the end of the day" parameter. If you are not managing the hedge set around the chart, better spare on some...
Since you will understand this strategy easily, I am sharing with you. I will not post any more posts on it. The post and chart are self-explantatory.

I normally use 1m or 5m timeframe mini candle sub-window which shows pip candles

You can count the minimum size of candle height which can produce frequent transactions. It requires to do some statistics collection job,

Example: I will select 4 pips as TP (1 pip cost) , so my nett gain will be 3 pips. Both sell and buy will be executed either in 50% (5 buy 5 sell) or 70% (7 buy 3 sell if I am bullish at that moment; If bearish momentarily, then sell 7 and buy 3) ) .
I would select a time when it is not trending and goes up and down in a leisurely way.
Obviously transactions have to be executed with an EA. Manually, not possible.

I would sell 10 trades (with a slight directional bias of 70% (7 sell trades) and buy 30% (3 trades buy trades)

In 10 minutes one side will get into TP and the losing side will pullback. If it pullbacks fast enogh to exceed total winning amount, I will close all the losing trades. Sometimes.

If sell side 7 go into profit and 3 buy trades lose money, and if I am making net profit. I will close the closing position.

If buy side dips by more than the gains generated, I will then jack up 3 bought bars with 2 or 3 more buys to average it and get out with less loss.

In the demo trades you can find 13 trades, 7 sells and 3 buys first, followed by 3 buy trades to average. Luckily all trades hit TP of 4 pis within a period of 12 minutes.

Obviously, it's a probability game but I find it comfortable doing it without having to spend hours on the chart. Remember to do day trading only when you think trending will not happen. Choice of hours is important. You also have to collect statistics to find which hours and week days are good.
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Practice makes a person perfect
If you're profitable it doesn't matter if you hedge or not (brokers are happy with the extra transaction). If you are not profitable, don't think hedging will make you profitable. There is no edge in hedge if you know what I mean
Double the account
It took 25 m1 candles to get gains of 4 pips for 10 trades
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Practice makes a person perfect
I am actually just testing hedging with my strategy as an alternative to stop-loss after taking a beating the past three weeks. However, I am using it on higher time frames H4 and D1.

I've almost completely recovered an account using it. But am still testing.

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To make things a bit easier for exiting the hedge I set an EA to close the hedge once all the basket of trades is in profit.

Also, you should do this on one or two pairs because it becomes a challenge when managing too many pairs.

Here's a video that explains this trading methodology very well.

Inserted Video


Hope this helps.
Give the market little, Aim to take a lot!
Quoting MoneyZilla
{quote} Yes, you are the first here, from the enemy camp, who describes it correctly. If you Michi, can always nail any direction + distance-wise right, I am happy for you, then. I wish I could do the same, but I can't. Instead, out of every whatever 1000 pips, I book a net of 500 for me. When basic hedging is applied. More complex hedging techniques increase the net booked pips from 1000 to 2000 pips. I am already entirely happy with the base hedging btw... what to say about the more complex alternatives? One directional trading is a lot...
Let's say

Price goes up 200 pips
Makes a 75 pips retrace
Goes up 200 pips again

We both suck and expect the retrace sooner

We're both net long (10 Lot) as the price rises, let's after 120 pips you "lock in your hedges", so now depending on what you do you're either:

flat (If you sell as much as you bought)
short (If you open more shorts than you bought)
long (If you open less shorts)

I either

close everything (flat)
close everything and open shorts (short)
close partially (long)

Now let's say we decide to be still long after 120 pips but only with 50% of our initial position. So you open 5 lot shorts and I close 5 lot. We're now both 5 lot long.

After 170 pips we decide to be flat: You open 5 lot shorts and I close the rest. I'm completely out and you're fully "locked"

Now price goes 30 pips more up, let's say you catch the top and close your 10 lot longs

You bank in 200 pips * 100 = 20.000$ on the longs
Your shorts have a drawdown of 80 pips * 50 + 30 pips * 50= 5500$

So your equity is 14.500$ and you're now 10 long net short for the retrace

I closed 5 lot after 120 pips (6000$)
Closed 5 lot after 170 pips (8500$)
= 14.500$ and I can just open 10 lot short now.

And the game can go on and on
"Men Who Can Both Be Right & Sit Tight Are Uncommon" ~ Jesse Livermore
No trading for me today because of work commitments. Screenshot below illustrates (hypothetically) where and when I would have opened and closed my Basket Trades had I have been trading today. A total of 6 closed Baskets in profit, a 7th Basket would still be open currently consisting of 2 Sell trades.
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Wow, all the hedgers suddenly come out the wooddworks.
Quoting pa18
Let's say your target is 10 pips, as a scalper. Your normal risk per trade is 2%. Don't worry about the RR, scalpers normally aren't but say 10 pip emergency stop. For hedging, you spilt the risk, 1% risk buy, 1% risk sell. You place a perfect hedge, once you open a buy position, a sell position is also opened. It goes up 5, close sell position, let it ride to target. Obviously, lower profits but the point is that it's safer IF the market conditions such as slippage and spread are perfect. Anyone tried? Sounds fun but messy.
didnt read entire thread so maybe someone has pointed it out but all you are doing is doubling transaction cost without achieving any benefit. why not just place pending order to buy 5 pips from current price with 5 pips target and 15 pips stop loss (vice versa for short)?
Quoting simnz
{quote} Since you will understand this strategy easily, I am sharing with you. I will not post any more posts on it. The post and chart are self-explantatory. I normally use 1m or 5m timeframe mini candle sub-window which shows pip candles You can count the minimum size of candle height which can produce frequent transactions. It requires to do some statistics collection job, Example: I will select 4 pips as TP (1 pip cost) , so my nett gain will be 3 pips. Both sell and buy will be executed either in 50% (5 buy 5 sell) or 70% (7 buy 3 sell if I...
where do you get out though if the trades you averaged go against you? i think your approach works until it you hit that one big loss that will wipe out your entire account
Quoting michisuperfr
{quote} Let's say Price goes up 200 pips Makes a 75 pips retrace Goes up 200 pips again...

Salam alaikum.

Things are not even close to that...

The equty curve I have shared consisted of ~4.5 buy lots and ~4.5 sell lots. For me, these are ~450 buy baskets of 0.01 lot each. vs ~450 sell baskets of 0.01 lot each.

End result is an approximately 620+ NET pips locked for each hedge set. On average.

The overall hedged pips did cover a balance of -65k, resulting in equity of +30k.

Your example has absolutely nothing to do with that kind of hedging.

I can recall at least 5-6 different hedging techniques I am using. And there are probably another 5-6 I am not using, but have everything to run them, if I like.

The world of dynamic hedging is far wider and bigger than the one of the static hedging, which almost everybody talks and understand here...

I can't share more than I already did...
Maadik Hugiis. IQ 69.
Quoting michisuperfr
{quote} Let's say Price goes up 200 pips Makes a 75 pips retrace Goes up 200 pips again We both suck and expect the retrace sooner We're both net long (10 Lot) as the price rises, let's after 120 pips you "lock in your hedges", so now depending on what you do you're either: flat (If you sell as much as you bought) short (If you open more shorts than you bought) long (If you open less shorts) I either close everything (flat) close everything and open shorts (short) close partially (long) Now let's say we decide to be still long after 120 pips but...
What if there are a bunch of hedging strategies going on interacting with each other according to their own strategy but resulting in a overall dynamic basket?
Maybe there's no TP for a trend following...but there are countertrend selling and hitting TP and while TP is not hit, trend following profit became locked.

just an idea
The game is about your equity growth and not balance, hedge can do that when applied correctly
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Quoting Offujimori
{quote} What if there are a bunch of hedging strategies going on interacting with each other according to their own strategy but resulting in a overall dynamic basket? Maybe there's no TP for a trend following...but there are countertrend selling and hitting TP and while TP is not hit, trend following profit became locked. just an idea

Great post! It does happen like that constantly!

At some point, there is auto hedge going on and the operator cares only to keep the trades generated in the daily average number of signals each strategy generates. To create net position or hedge.

For example, 4 signals per day or close to, is the base for each strategy involved. This is forex, so natturally, on average, there will be two buys and two sells... and then? Predictable and unpredictable auto hedging occurs.

This is so vast. Huge. I am still doing different quite successful mixes, while heavily and aggressively searching for more "clouds" I call them.

I will give you just one example. Mon to Fri. Use one strategy only and reset in a different day of the week? See what happens? Now add one more strategy for each day of the week to be reset? And another one? And another one? ext. ext.

This is so impossible to predict and so natural to auto hedge almost everything... This is exactly how I grow my accounts at the moment.
Maadik Hugiis. IQ 69.
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