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Three Pairs Hedging

  • #1,141
  • Apr 5, 2021 7:23am Apr 5, 2021 7:23am
Quoting vonmunchy
Okey here is a 10 pair experimental EA for anyone interested to test it out. I have given the user a lot of control from being able to choose the lotsize for each symbol. The way i have created is with 2 Major Pairs and its cross pairs. EURUSD Cross Pairs: EURCAD,EURCHF,EURJPY,EURNZD AUDUSD Cross Pairs: AUDCAD,AUDCHF,AUDJPY,EURAUD All cross pairs have the same amount of lot (your free to test) and the main symbol has the sum of all its cross pairs. Iv created two ways to trade the symbol. The first being with a filter. Standard MACD Crossover with...
I am an index trader.
Can I trade 6 pairs of index (5 digits) and 2 pairs of FX (5 digits)?
Practice makes a person perfect
  • #1,142
  • Apr 5, 2021 7:30am Apr 5, 2021 7:30am
Quoting simnz
{quote} I am an index trader. Can I trade 6 pairs of index (5 digits) and 2 pairs of FX (5 digits)?
Yes. I haven't tried with this ea. But previous ones I did try us index and eurusd
  • #1,143
  • Apr 5, 2021 7:34am Apr 5, 2021 7:34am
Right now, upon buy signal, major pair buys and all cross pairs sells and the oppersit.

But when using it without the filter, it will only place 1 trade per symbol. I haven't tested throughly enough to check if if it's 1 buy and 1 sell per pair or just 1 open trade per pair
  • #1,144
  • Apr 5, 2021 6:00pm Apr 5, 2021 6:00pm
Below is one more of my experimental eas which i built with the intention of trading Correlation Coefficient. Iv tried various methods from buying with one pair and selling with another etc and they all have one thing in common. The price may goes against you. Im still in the middle of developing news ways such as a triangular correlation with entries at different timeframes at overbought and oversold levels.

Anyways as mentioned above the issue the i always had was with price going against me and suffering huge drawdowns and after scratching my head for days i realized use pending orders was much efficient so decided to implement a grid a system into that.

After testing different methods from using buy/sell limit/stop with different variations and grid levels, i came to the conclusion that the best method of choosing the grid was based on daily ATR.

Im still developing and testing but i wanted to see how much floating drawdown il have so below is a backtest for 1 year with GBPUSD and GOLD.

Attached Image (click to enlarge)
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The EA will place 25 buy/sell stop/limit orders at both direction and will not place any new grids.

In this backtest i choose a profit target of $50 to close the trades. Upon closing the trade, all previous grids gets deleted and new one is placed at the current price.

The maximum holding time during a dd was 17 days.

Attached Image (click to enlarge)
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Below is the result. The values are not optimal since im pretty sure i can use a higher profit target/grid to lower DD and increase profits or maybe use carry trades to benefit from swap.

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  • #1,145
  • Apr 6, 2021 2:42am Apr 6, 2021 2:42am
Hi vonmunchy
I would like to highlight what I think is a design flaw in your ea "All cross pairs have the same amount of lot (your free to test) and the main symbol has the sum of all its cross pairs."
The $value of a lot between different base pairs are different. So making entries for grouped cross pairs with the same lot size means you have different amounts of money values on different currency pairs. As price moves this will become a factor. When price is moving in favor of the lot $ bias created by having all currency pairs of the cross pair grouping of equal lot value you will make your profit target quicker. But when it is on the other side you will go deeper into drawdown. It is defeating the logic of this hedging strategy in my view.
I suggest lot sizes should be calculated by ADR, PIP $ value for each currency pair in the hedged cross grouping so it is a level playing field.
  • #1,146
  • Apr 6, 2021 11:40am Apr 6, 2021 11:40am
Quoting Jimiboy
Hi vonmunchy I would like to highlight what I think is a design flaw in your ea "All cross pairs have the same amount of lot (your free to test) and the main symbol has the sum of all its cross pairs." The $value of a lot between different base pairs are different. So making entries for grouped cross pairs with the same lot size means you have different amounts of money values on different currency pairs. As price moves this will become a factor. When price is moving in favor of the lot $ bias created by having all currency pairs of the cross pair...
Yes, that's why I gave the option to set lot size manually and that's a side project I built for anyone interested in checking past performance of different correlated pairs. My last post, the grid EA is one of the two main systems I'm developing.

Feel free to pm me if anyone wants to take part in backtesing and finding ways to improve the system.

The second system is based on 3 pairs that sells and buys at overbought zones at 3 different timeframes
  • #1,147
  • Apr 23, 2021 3:10am Apr 23, 2021 3:10am
very interesting concept, it works on something similar. I applied this to the nasdaq index with a slight modification to the order opening times. very interesting result. I think it can be refined to perfection. You only need an automatic way of counting the distance between orders.
greetings
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  • #1,148
  • Apr 23, 2021 6:59am Apr 23, 2021 6:59am
Quoting stawisz
very interesting concept, it works on something similar. I applied this to the nasdaq index with a slight modification to the order opening times. very interesting result. I think it can be refined to perfection. You only need an automatic way of counting the distance between orders. greetings {image}
Sure, give an example and il add that
  • #1,149
  • Apr 23, 2021 7:30am Apr 23, 2021 7:30am
I open once a day before the opening of the US session I close once a day at the end of the day profit 9000 points, no closing after making a profit my EA is universal and I can't set parameters like in yours. you can send me an EX - so that I can check the optimizations in your opening conditions greetings
  • #1,150
  • Edited 12:49pm Apr 26, 2021 10:18am | Edited 12:49pm
looking into a version the 3-way hedge system. how do you find the correct pairs to trade at the right time so to say?

let's say you see a "setup " usdjpy -gbpusd- gpyjpy or usdjpy-eurusd- eurjpy . which would you pick and why?

eurusd buy
usdjpy buy
eurjpy sell

what if eurusd looks a clear sell at that time and still room to go down. would you sell and buy at support for example? or just stick buy, buy sell
  • #1,151
  • Apr 26, 2021 12:05pm Apr 26, 2021 12:05pm
Quoting stawisz
I open once a day before the opening of the US session I close once a day at the end of the day profit 9000 points, no closing after making a profit my EA is universal and I can't set parameters like in yours. you can send me an EX - so that I can check the optimizations in your opening conditions greetings
https://www.forexfactory.com/thread/...4#post13481824

i had posted the ex5.
  • #1,152
  • Apr 26, 2021 12:07pm Apr 26, 2021 12:07pm
Quoting tsip
looking into a version the 3-way hedge system. how do you find the correct pairs to trade at the right time so to say? let's say you see a "setup " usdjpy -gbpusd- gpyjpy or usdjpy-eurusd- eurjpy . which would you pick and why? eurusd buy usdjpy buy eurjpy sell what i eurusd looks a clear sell at that time and still room to go down. would you sell and buy at support for example. or just stick buy,buy sell
it will come down to your experience with forex correlation. There several options to choose from and the correlation of pairs always changes and how well if something works or not is based on back tests that you do yourself
  • #1,153
  • Apr 26, 2021 1:06pm Apr 26, 2021 1:06pm
Quoting vonmunchy
{quote} it will come down to your experience with forex correlation. There several options to choose from and the correlation of pairs always changes and how well if something works or not is based on backtests that you do yourself
if i may ask:

do you look at a correlation graph? Forex Correlation | Myfxbook before placing a trade. what do i need to see to pick the "correct pairs"?

or you can really see on the chart that the price is not in line between the pairs.

is it useful to use a strength meter. what do I need to see or not see if i want to trade eurusd-usdjpy-eurjpy
  • #1,154
  • Apr 26, 2021 4:32pm Apr 26, 2021 4:32pm
Quoting tsip
{quote} if i may ask: do you look at a correlation graph? Forex Correlation | Myfxbook before placing a trade. what do i need to see to pick the "correct pairs"? or you can really see on the chart that the price is not in line between the pairs. is it useful to use a strength meter. what do I need to see or not see if i want to trade eurusd-usdjpy-eurjpy
maybe you misunderstood. I provided a ea for you test out different paris on your own with the entry of trade based on macd which i already explained when i posted the ea.

you can take what you said into consideration when trading manually or a ea thats built around that and mine is a simple macd cross over
  • #1,155
  • Apr 27, 2021 1:19pm Apr 27, 2021 1:19pm
Quoting vonmunchy
{quote} maybe you misunderstood. I provided a ea for you test out different paris on your own with the entry of trade based on macd which i already explained when i posted the ea. you can take what you said into consideration when trading manually or a ea thats built around that and mine is a simple macd cross over
Thanks will test this out and tell ya how it goes.
  • #1,156
  • Apr 27, 2021 10:20pm Apr 27, 2021 10:20pm
Quoting vonmunchy
Okey here is a 10 pair experimental EA for anyone interested to test it out. I have given the user a lot of control from being able to choose the lotsize for each symbol. The way i have created is with 2 Major Pairs and its cross pairs. EURUSD Cross Pairs: EURCAD,EURCHF,EURJPY,EURNZD AUDUSD Cross Pairs: AUDCAD,AUDCHF,AUDJPY,EURAUD {file}
I used to be a regular on the forex factory forums but I have not posted for years. I am interested with hedging and spread trading strategies.

1. Can you make a Metatrader 4 version of the EA since many brokers don't offer MT 5 yet and many traders have not switched over?

2. I would point out that the AUD hedge should not include the EURAUD pair. For example if you Buy AUDUSD you must sell the other 4 AUD pairs. But if you include EURAUD you are selling EUR and buying AUD instead of selling AUD. I know that it can be changed in the EA so do you agree that the AUDNZD should replace EURAUD?

Looking forward to your reply and the Metatrader 4 version if possible.
  • #1,157
  • Apr 28, 2021 12:08pm Apr 28, 2021 12:08pm
Quoting PipStar
{quote} I used to be a regular on the forex factory forums but I have not posted for years. I am interested with hedging and spread trading strategies. 1. Can you make a Metatrader 4 version of the EA since many brokers don't offer MT 5 yet and many traders have not switched over? 2. I would point out that the AUD hedge should not include the EURAUD pair. For example if you Buy AUDUSD you must sell the other 4 AUD pairs. But if you include EURAUD you are selling EUR and buying AUD instead of selling AUD. I know that it can be changed in the EA so...
Sure
  • #1,158
  • Apr 28, 2021 2:58pm Apr 28, 2021 2:58pm
Quoting PipStar
{quote} I used to be a regular on the forex factory forums but I have not posted for years. I am interested with hedging and spread trading strategies. 1. Can you make a Metatrader 4 version of the EA since many brokers don't offer MT 5 yet and many traders have not switched over? 2. I would point out that the AUD hedge should not include the EURAUD pair. For example if you Buy AUDUSD you must sell the other 4 AUD pairs. But if you include EURAUD you are selling EUR and buying AUD instead of selling AUD. I know that it can be changed in the EA so...
sorry seems like i need to rebuild it from scratch. i thought i could convert it but its from mq4 to mq5. Reason why i dont want spend time on it right now is because you cant backtest multi pairs in mt4 if there was a working system in mt5 than sure its worth it to convert it to mt4
  • #1,159
  • Nov 27, 2021 9:10am Nov 27, 2021 9:10am
Quoting cash4u2
Have found a nice "beta" indicator from thread http://www.forexfactory.com/showthread.php?t=160912 GBPUSD USDCHF GBPCHF When GBPUSDand USDCHF is above 80 and GBPCHF below 20, we trade GBPUSDand USDCHF (buy - buy) and GBPCHF (sell) When GBPUSDand USDCHF is below 20 and GBPCHF above 80, we trade GBPUSDand USDCHF (sell - sell) and GBPCHF (buy) Here is a screenshot: {image}
Can you please share this EA with me please?
  • #1,160
  • Dec 7, 2021 5:20pm Dec 7, 2021 5:20pm
Quoting vonmunchy
Okey here is a 10 pair experimental EA for anyone interested to test it out. I have given the user a lot of control from being able to choose the lotsize for each symbol. The way i have created is with 2 Major Pairs and its cross pairs. EURUSD Cross Pairs: EURCAD,EURCHF,EURJPY,EURNZD AUDUSD Cross Pairs: AUDCAD,AUDCHF,AUDJPY,EURAUD All cross pairs have the same amount of lot (your free to test) and the main symbol has the sum of all its cross pairs. Iv created two ways to trade the symbol. The first being with a filter. Standard MACD Crossover with...

Hi Vonmuncy, have you got any further on the Ea?any new alterations? how can i test this on other pairs like gold and stocks? thank you
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