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Three Pairs Hedging

  • #1,161
  • Dec 9, 2021 6:19am Dec 9, 2021 6:19am
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 again, Could you share this mt5 EA in mq5 ? I would appreciate it.
  • #1,162
  • Dec 9, 2021 11:24pm Dec 9, 2021 11:24pm
Quoting cash4u2
Hi Guys, I am a great fan of hedging ;-) Here I show you how I hedge "circel pairs" = GBPUSD > USDCHF > GBPCHF" "Circel pairs" means each currency "GBP" "USD" and "CHF" appears twice in these three pairs. GBPUSD = Buy USDCHF = Buy GBPCHF = Sell or GBPUSD = Sell USDCHF = Sell GBPCHF = Buy I used no indicator at all, but it took sometimes a while to get in profit. I used same lotsize on all three pairs and TP of 100$ One might say, hey, why did you not trade just GBPUSD and GBPCHF? Because, it causes such a big DD which can blow an account in very...
hello.......i know this is an old thread, but is it still holding up...?
also if you're 'hedging'....means no SL..??? just TP....??

thanks
  • #1,163
  • Dec 10, 2021 7:50am Dec 10, 2021 7:50am
Quoting MetaCoder
{quote} Wrong. Just flat wrong. It goes without saying that you close when in profit. The benefit is that you are highly likely to get profitably hedged, and in fact this is what happens. I've implemented an EA that trades this approach with 10 pairs in both directions across two accounts. If you've done the same with even just 3 pairs, we can have a discussion.
hi Metacode, would you have that as an Mt5 EA to test? Thank you
  • #1,164
  • Dec 29, 2021 2:53am Dec 29, 2021 2:53am
Hey, guys
I don't speak english forgive the mistakes.
I was thinking..
GBP/USD - BUY 0.07 (I try to enter in favor of the gbp/usd trend)
GBP/CHF - SELL 0.05
USD/CHF - BUY 0.05

Close when a pair is in profit. and open the same position again.
I start at the frankfurt session Because it usually indicates a false trend. In other words, I can close winning trades and recover the ones that are below until the London and New York session.
  • #1,165
  • Jan 10, 2022 1:49pm Jan 10, 2022 1:49pm
Quoting cash4u2
Hi Guys, I am a great fan of hedging ;-) Here I show you how I hedge "circel pairs" = GBPUSD > USDCHF > GBPCHF" "Circel pairs" means each currency "GBP" "USD" and "CHF" appears twice in these three pairs. GBPUSD = Buy USDCHF = Buy GBPCHF = Sell or GBPUSD = Sell USDCHF = Sell GBPCHF = Buy I used no indicator at all, but it took sometimes a while to get in profit. I used same lotsize on all three pairs and TP of 100$ One might say, hey, why did you not trade just GBPUSD and GBPCHF? Because, it causes such a big DD which can blow an account in very...
This strategy is completely harmful. Admin, Please eliminate the thread. Thank you.
  • #1,166
  • Jan 25, 2022 8:32am Jan 25, 2022 8:32am
my cousin made this table with the possible ratio of 2:1 in each set (two lines on top of each other). where there might be 2 winners and 1 loser or 2 losers and 1 winner. at least we think it is like this. my request to him was that we avoid the 3:0 scenario where there can be 3 winners vs 0 losers and the other way around 3 losers vs 0 winners.

we are gonna demo test the dependencies in the triangle. as it may happen so that 1 winner vs 2 losers might not bring any money in the house, but highly likely will keep the account around the watermark line, me is pretty optimistic this will happen exactly as expected. the 2 winners vs 1 loser needs no attention, as it is all clear...

please, let me know, if you find any mistake in our grouping here:
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot 2022-01-25 at 16.18.32.png Size: 906 KB

here is an example of a winner:
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot 2022-01-25 at 16.29.22.png Size: 423 KB

and a loser (both with the winner are trading under the exact same directional logic. one is a buy and the other is a sell)
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot 2022-01-25 at 16.29.33.png Size: 434 KB

the idea is to keep a gap between the winner and the loser bigger than 2:1. anything higher than that, makes it all happen...
Maadik Hugiis. IQ 69.
  • #1,167
  • Jan 25, 2022 2:11pm Jan 25, 2022 2:11pm
Quoting MoneyZilla
my cousin made this table with the possible ratio of 2:1 in each set (two lines on top of each other). where there might be 2 winners and 1 loser or 2 losers and 1 winner. at least we think it is like this. my request to him was that we avoid the 3:0 scenario where there can be 3 winners vs 0 losers and the other way around 3 losers vs 0 winners. we are gonna demo test the dependencies in the triangle. as it may happen so that 1 winner vs 2 losers might not bring any money in the house, but highly likely will keep the account around the watermark...

If you wish to avoid all combos that have 3 wins or 3 losses you need to understand a bit of simple math and use it to calculate the triangular relationship between the base pairs so you can work out the appropriate formulas for 2 wins/losses vs 1 loss/win.

I'll just do the calculations for the currencies EUR GBP JPY
(if you divide the JPY denominated pairs by 100 to get a common scale it will simplify things if you actually calculate the spreads)
base pairs: EUR/GBP, GBP/JPY, EUR/JPY. You can solve for each pair creating 3 equations:
Inserted Code
1) EUR/GBP = EUR/JPY / GBP/JPY 
2) GBP/JPY = 1/EUR/GBP * EUR/JPY or just EUR/JPY / EUR/GBP
3) EUR/JPY = EUR/GBP * GBP/JPY
If you convert to log prices, multiplication becomes a plus sign, and division becomes a minus sign.
Inserted Code
1) EUR/GBP = EUR/JPY - GBP/JPY 
2) GBP/JPY = -EUR/GBP + EUR/JPY 
3) EUR/JPY = EUR/GBP + GBP/JPY
The formulas above are the only ways to offset 2 wins/losses against 1 loss/win for the currencies EUR, GBP, JPY. Let's rewrite so all terms are on the left and set equal to zero.
Inserted Code
1) EUR/GBP + GBP/JPY - EUR/JPY   = 0
2) GBP/JPY + EUR/GBP - EUR/JPY  = 0
3) EUR/JPY - EUR/GBP - GBP/JPY  = 0
Formulas 1) and 2) are the same with terms in different order. So you either have positive/negative EURJPY against the other two pairs. The three formulas above simplify to these two:
Inserted Code
a) - EUR/JPY + EUR/GBP +GBP/JPY  = 0 (SBB)
b) EUR/JPY - EUR/GBP - GBP/JPY  = 0    (BSS)
So referring back to the graphic you posted, only rows 1 and 2 of EUR GBP JPY are applicable. Your cousin will have to work out the rest for the other currency combinations, but you will find that there will just be two formulas on each triangle that will end in a 2 vs 1 scenario. Good luck!
  • #1,168
  • Jan 25, 2022 3:38pm Jan 25, 2022 3:38pm
Quoting FXEZ
{quote}...Your cousin will have to work out the rest for the other currency combinations, but you will find that there will just be two formulas on each triangle that will end in a 2 vs 1 scenario. Good luck!
Thanks a MILLION!
We are getting on this, first thing tomorrow!
Maadik Hugiis. IQ 69.
  • #1,169
  • Mar 15, 2022 4:24am Mar 15, 2022 4:24am
Hello Guys,

I'm software developer. I will create EA based on hedge strategy. Have you any proved strategy? If you have proved strategy, i will create ea based on your strategy.
  • #1,170
  • Mar 20, 2022 12:38pm Mar 20, 2022 12:38pm
guys, no one has been able to trade triangular arbitrage successfully since it was introduced before 2005.

I wonder if everyone has abandoned this thread because they simply failed
  • #1,171
  • May 25, 2022 4:31pm May 25, 2022 4:31pm
Quoting fxsavvy1
guys, no one has been able to trade triangular arbitrage successfully since it was introduced before 2005. I wonder if everyone has abandoned this thread because they simply failed
hello i was interested in pairs trading very badly not to eliminate DD but to just reduce it i found this video on YT he has a particular triangle strategy lmk what you guys think im testing it to see how it does
Inserted Video
SKQT - Super Kool Quant Trader
Daily Remy All Time Return: 5.6%
  • #1,172
  • Jun 4, 2022 5:54am Jun 4, 2022 5:54am
Hello to all,

I read all 59 pages of this thread and so many people are given their best effort.

My fund manager doing same concept like 3 pair hedging last 3 years successfully, but I don't know the strategy.
But, I can share my trading statement, if someone dig the statement, can discover the strategy.

All the best.

Thank you,
Attached File(s)
File Type: pdf Banu ATMTrades.pdf   3.5 MB | 1,607 downloads
  • #1,173
  • Jun 11, 2022 1:51am Jun 11, 2022 1:51am
thank you for sharing.. what is your TP and how you calculate lot size? is there an EXPERT ?
  • #1,174
  • Jun 18, 2022 10:51am Jun 18, 2022 10:51am
dears!
does this strategy still works?what is drowdown and profits? is this strategy suggested by pro traders?
  • #1,175
  • Jul 29, 2022 8:10am Jul 29, 2022 8:10am
Quoting Erpthetrader
{quote} hello i was interested in pairs trading very badly not to eliminate DD but to just reduce it i found this video on YT he has a particular triangle strategy lmk what you guys think im testing it to see how it does https://www.youtube.com/watch?v=Sp2Q...index=2&t=235s
Hi Erpthetrader,

Are you testing that strategy? I'd watching already this video but I don't understand.
First Step - Open positions buy, sell, sell
Second Step - If positions are at a loss then am I open 3 positions(sell, buy, buy) or 1(which pairs?) position?
  • #1,176
  • Jul 31, 2022 4:19am Jul 31, 2022 4:19am
Quoting batnyam
{quote} Hi Erpthetrader, Are you testing that strategy? I'd watching already this video but I don't understand. First Step - Open positions buy, sell, sell Second Step - If positions are at a loss then am I open 3 positions(sell, buy, buy) or 1(which pairs?) position?
As I understood its almost independent trades. But in triangular circles. Trades opened in different time for different pairs.
  • #1,177
  • Aug 4, 2022 5:18am Aug 4, 2022 5:18am
Hedging is dangerous ,it will need lot of experience and time. I have seen a trader who is good at Gold Hedging , He trade only gold using support and resistance levels. But it is not for everyone.
  • #1,178
  • Sep 19, 2022 4:04pm Sep 19, 2022 4:04pm
How can one control risk in this type of three pairs hedging strategy because sometimes the pairs go against up to 200 pips?
  • #1,179
  • Sep 27, 2022 12:49pm Sep 27, 2022 12:49pm
How can one control risk in these three pairs currency hedging because sometimes the pairs go against up to 200 pips?
  • #1,180
  • Oct 19, 2022 8:28am Oct 19, 2022 8:28am
Quoting Password
{quote} I really wonder.. is it so easy to make money in forex. I have tried such systems earlier but not so much profitable. and one of the reason is brokers spread. Well i have attached like same ea you may be talking about... it is for 4 pairs... anybody can enter 3 pair and leave 4th pair blank.. Well best of luck for your new thread! {file}
Hi, two questions, one is if that ea can be used in a live account, and the other what does "useMM" mean?
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