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Three Pairs Hedging

  • #1,181
  • Dec 1, 2022 4:11am Dec 1, 2022 4:11am
I have already analyzed the possibilities several times, but I have not found a sustainable profit.
but now I got my hands on an indicator that might give me hope.
yes, it is difficult to manage costs, perhaps this is the most difficult.

I'm testing now.
  • #1,182
  • Dec 1, 2022 4:19am Dec 1, 2022 4:19am
Please do let us know the outcome
  • #1,183
  • Dec 2, 2022 1:43am Dec 2, 2022 1:43am
I watched the YouTube video. What i understood that, we can use indicators like RSI or Stochastic. When all the three pairs are in sync in terms of the indicator, it takes the trade. Correct me if i am wrong here... the logic in the video is not using any correlation data of the three pairs. So I do not think that buying their service will work.
  • #1,184
  • Dec 2, 2022 7:02am Dec 2, 2022 7:02am
Quoting foxerr
look the screen, the equity from tf h4 is completely different to the daily!!! (notice near the white square, is 14 gen 2015). if i buy the same sets at 14 gen 2015, at 17-18th i will must have the same results, not -200 usd or +5 if tf is h4!!! {image}
Good morning everyone. Where can I find this indicator? Can anyone post it? thank you
  • #1,185
  • Jan 26, 2023 10:14am Jan 26, 2023 10:14am
If anybody is doing this or still doing this style of trading, what do you pay attention to before opening a three pair hedge trade? There must be some factor that plays a role regarding whether the trade (the three pair hedge) will yield a positive result or not, faster or later, etc.. I cannot imagine that opening at any price at any time of the day would work.
  • #1,186
  • Feb 19, 2023 8:29am Feb 19, 2023 8:29am
Quoting kweiss10
If anybody is doing this or still doing this style of trading, what do you pay attention to before opening a three pair hedge trade? There must be some factor that plays a role regarding whether the trade (the three pair hedge) will yield a positive result or not, faster or later, etc.. I cannot imagine that opening at any price at any time of the day would work.
well yes
you can't just open the trade. the pairs used must be in the right position.

and not all 3-pair combinations are suitable for trading. because when tested back in history, the profit curve must perform a smooth wave movement.+/-.

good luck with your testing.
  • #1,187
  • Edited Feb 20, 2023 6:22am Feb 19, 2023 9:41am | Edited Feb 20, 2023 6:22am
Hi, guys. Share with you semi-automatic EA for 3 pair trading.



Good Luck!
Attached Image (click to enlarge)
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Attached File(s)
File Type: ex4 3 PairTrading.ex4   28 KB | 1,068 downloads
  • #1,188
  • Feb 19, 2023 7:36pm Feb 19, 2023 7:36pm
Quoting davelansing
{quote} Geeze, this has been explained multiple times before: example: EURJPY = EURUSD * USDJPY EURJPY will rise IF: 1) BOTH EURUSD and USDJPY are rising 2) EURUSD is rising faster than USDJPY is falling 3) USDJPY is rising faster than EURUSD is falling 4) EURUSD is rising but USDJPY is flat 5) USDJPY is rising but

EURUSD is flat EURJPY will fall IF: 1) BOTH EURUSD and USDJPY are falling 2) EURUSD is falling faster than USDJPY is rising 3) USDJPY is falling faster than EURUSD is rising 4) EURUSD is falling but USDJPY is flat 5) USDJPY is...
Using CSM (Currency Strength Meter) the hierarchy of each can be seen

Condition #3 now, but incredibly early Monday, not even Europe session yet

So, this is for example only, I don't trade this early and its USA bank holiday as well

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And what is going on here

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It takes a lot for me to IGNORE you, but you can try.
  • #1,189
  • Feb 19, 2023 8:03pm Feb 19, 2023 8:03pm
Quoting azrfx
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.
Except that this is not hedging in the usual sense of hedging a losing buy or sell position on the same pair or commodity as you mentioned Gold.

It is trading the pairs created by 3 currencies which would generally move in the same or opposite direction depending on the strength of either 1, 2 or all 3.

Maybe offsetting is a better description word?

It takes a lot for me to IGNORE you, but you can try.
  • #1,190
  • Feb 19, 2023 8:07pm Feb 19, 2023 8:07pm
Quoting MoneyZilla
{quote} Thanks a MILLION! We are getting on this, first thing tomorrow!
A bit late, but did you ever update the Excel sheet?

It takes a lot for me to IGNORE you, but you can try.
  • #1,191
  • Feb 19, 2023 8:31pm Feb 19, 2023 8:31pm
Quoting Erebus
{quote} And what is going on here {image}
You caught me
  • #1,192
  • Edited 5:27am Feb 20, 2023 5:06am | Edited 5:27am
I use the 3-pair hedging strategy, but I only trade one pair, only the leading pair.
I now have a pedaáúl usd/cad short position.
you have to be very aware of the 3 pair trading options because otherwise you will only lose..
for me, the position of the 3 pair is only an indicator of the possibility of the leading pair.
for example, in the case of eur/gbp-eur/usd-gbp/usd, gbp/usd is the leading pair.

H1.
  • #1,193
  • Feb 20, 2023 6:24am Feb 20, 2023 6:24am
Quoting veter
Hi, guys. Share with you semi-automatic EA for 3 pair trading. Good Luck! {image} {file}
Guys, please, redownload the EA, the previous has some errors https://www.forexfactory.com/attachm...5?d=1676895725
  • #1,194
  • Feb 25, 2023 6:59am Feb 25, 2023 6:59am
Quoting Chris_B
{quote} Maxwell I think you are missing something... When you have that -2910$ at the same time you have that +3667$ and -558$ so it's not a drawdown....the net value is +199$ more or less There is an italian famous trader that works in a similar way....
who is this italian famous trader? I'm italian, interested.
in holiday till end of November
  • #1,195
  • Edited 8:03am May 20, 2023 7:34am | Edited 8:03am
Hi Guys...i was reading what you posted here and wanted to help you dedicate correct lot sizes for Multipair Hedging... you problem that you not understand that every pair have separate COST OF PIP (MQL language already have standart function to check Cost of 1 Pip at any pair).
-------------------------------------------------------------------------------------
Examples of pip value calculation: https://www.mql5.com/ru/forum/380536
Pip calculator : https://www.forextime.com/trading-to...pip-calculator
-------------------------------------------------------------------------------------

Example of Triangle Hedging for EURUSD + GBPUSD + EURGBP:

You can open 2 different multipair Hedging triangle at this 3 pairs (the color of first currency in pair will give you direction sell or buy ) :
1) EURUSD + GBPUSD + EURGBP
2) EURUSD + GBPUSD + EURGBP


There are three main types of online pricing:
- direct currency quote (base currency comes first: only USD, EUR, AUD or NZD);
- reverse quotation (the first is the national currency of any other state, except for those listed above)
- cross rate (pair without US dollar).


In our example we have direct currency quotes: EURUSD + GBPUSD and Cross: EURGBP
If you open 1 lot at EURUSD and 1 lot at GBPUSD and you need to hedge EURGBP - the lot size at EURGBP will be same as current quote at cross EURGBP = 0.87 Lot:
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Finally we have:

1) 1 sell EURUSD + 1 buy GBPUSD + 0.87 buy EURGBP
2) 1 buy EURUSD + 1 sell GBPUSD + 0.87 sell EURGBP

But remember if you do multipair hedging at 3 or more pairs you just Lock equity in minus from opened spread and will never receive profit or bigger loss as you have from start point, no matter which way pairs will go after that, onlything you will pay is Swaps, but what the point do so ?
If someone can explaine how to make profit and strategy based at this, or if you already posted it in this thread - link me to it, because i not found anything interesting or correct from my vision ...i will help make correct calculation in lot zises and code it in robot.
Have a good profit!
  • #1,196
  • Edited 9:23am May 20, 2023 9:00am | Edited 9:23am
Doing some code of market Model - i plane to teach Neural network with that figures . Current situation:

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If you have any good idea join
  • #1,197
  • Edited Jul 22, 2023 7:16am Jul 21, 2023 11:33pm | Edited Jul 22, 2023 7:16am
This is how I see this. This is not a triangular arbitrage system because it's not perfectly hedged. A perfectly hedged system can guarantee you a profit no matter how market moves. But it's only profitable when the profit is bigger than spreads+trading costs.

Since it's not a perfectly hedged system. I could only say this method is trading the correlation between two groups. It's not too different from two pairs correlation actually.

Here comes an example:
GBPUSD = Buy 1 lot
USDCHF = Buy 1 lot
GBPCHF = Sell 1 lot

What you actually do is trading one group against the other.
GBPUSD+USDCHF = A group
GBPCHF = B group

In this case, you are trading the correlation between these two groups. Then, it all comes back to the basics: spread trading. Since it's not a perfectly hedged system, the correlation between two groups is not 1. It's the contract size ratio between two groups. Also, the correlation is not a constant value. It fluctuates and this is what you trade.

p.s. The fluctuation comes from imperfect hedge. Your A group could be transferred to x lot size of GBPCHF + y lot size of GBPUSD or USDCHF. x size of GBPCHF balance GBPCHF in B group and the rest is why it fluctuates.


Hope it make sense to you guys.

Quoting MQLboy
Hi Guys...i was reading what you posted here and wanted to help you dedicate correct lot sizes for Multipair Hedging... you problem that you not understand that every pair have separate COST OF PIP (MQL language already have standart function to check Cost of 1 Pip at any pair). ------------------------------------------------------------------------------------- Examples of pip value calculation: https://www.mql5.com/ru/forum/380536 Pip calculator : https://www.forextime.com/trading-to...pip-calculator...
  • #1,198
  • Jun 16, 2024 2:18am Jun 16, 2024 2:18am
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 still working damn well. I have wrote an EA for this strategy, it works great.
Sopheak Khlot, MQL Developer
  • #1,199
  • Jun 22, 2024 9:46am Jun 22, 2024 9:46am
Quoting khlotsopheak
{quote} Questa strategia funziona ancora dannatamente bene. Ho scritto un EA per questa strategia, funziona benissimo.
Hello, where is your EA please. Tell me more please
  • #1,200
  • Jun 27, 2024 7:57am Jun 27, 2024 7:57am
Quoting Eod
{quote} Hello, where is your EA please. Tell me more please
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