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Safe Hedging System - Daily Swap

  • #141
  • May 20, 2007 4:38pm May 20, 2007 4:38pm
INSTRUCTIONS FOR NEWBIES:

* Open 4 charts, GBPJPY; CHFJPY; GBPUSD; USDCHF;
* I use D1 (not importante);
* Place 2Day EA on all 4 charts;
* Go to Navigator (CTRL+N) --> Expert Advisors --> 2Day EA (Choose the option Modify)
* When MetaEditor is open go here:

extern int hr=15; // change 15 to the hour your want it
//to start placing orders;
extern int min1=00;
extern int min2=59; // After 59 min wont place any more
//orders (u can change this value. I recomend
// that you donīt use less then 15)
extern bool TradeMode = false; //if you want to trade, change
// it to true;
extern int Round=0; // Round 0 places 1 Lot orders;
// Round 1, 2, 3.. places 0,1 Lot orders

* After this, click on COMPILE. There should be 0 Erros and 0 Warnings.
* Close Metaeditor.

Note1: You donīt have to use metaeditor for this. Just click on EA properties on every chart and change the external variables you want. You have to do it on all 4 charts, not just one of them. If you use metaeditor you do it only once and changes take effect on all 4 charts

Note2: After min2 expires you can place orders for next day. All you have to do is change Round to next round: 1,2,3.. till 10; (leave TradeMode =true).

Iīm not a codder so, hope this helps.

alex.pt
Attached File(s)
File Type: mq4 2day EA.mq4   12 KB | 828 downloads
"Hoe ur pips mate?" fxcarllos
  • #142
  • May 20, 2007 8:12pm May 20, 2007 8:12pm
I'm a little confused about this system. I thought the whole purpose of it is to collect swap. But I keep hearing about stoplosses, breakevens, and trends occurring on JPY-based pairs right now. What do those things have to do with collecting swap? Is this system trying to collect swap or get in with trends?
  • #143
  • May 20, 2007 9:34pm May 20, 2007 9:34pm
Carlos, nice work, thanks!

Anamy,
This system exploits the rollover rate of GBP/Jpy, with 3 other pairs to hedge for safety.

but additionally, because gbp/jpy pair is more weighted (more monetary value compared to other pairs), when gbp/jpy rise, u also win pips. and we all know, gbp/jpy has risen for a long time, and will continue for more time.
  • #144
  • May 21, 2007 8:34am May 21, 2007 8:34am
2Day EA results:

I Started trading day 15.5.07 (Round 0 and Round 1 on same day + Another Round each day)

-> Initial deposit: $10.000

Today (16h30m FXDD server time):

-> Balance: $10.000; Equity: $11.110
"Hoe ur pips mate?" fxcarllos
  • #145
  • Edited 2:26pm May 21, 2007 2:13pm | Edited 2:26pm
Quoting charvo
Carlos, nice work, thanks!

Anamy,
This system exploits the rollover rate of GBP/Jpy, with 3 other pairs to hedge for safety.

but additionally, because gbp/jpy pair is more weighted (more monetary value compared to other pairs), when gbp/jpy rise, u also win pips. and we all know, gbp/jpy has risen for a long time, and will continue for more time.
Thanks. So would this system still be of any use if the gbp-jpy were falling? I've made my own EA that can handle this system, but I am not sure if I should devote the time to maintaining the demo account, and subsequently a live account with this strategy. Basically, I just want to know HOW safe and HOW versatile it really is.
  • #146
  • May 22, 2007 3:17am May 22, 2007 3:17am
I've also made an EA, been fine tuning if for a month on it, and so far i find if the initial margin is larger than 160%, it should be able to handle a drawdown of 40%, and most of the time, the loating loss is around 5%. I've been testing gbp/chf/usd and gbp/jpy/usd 3 pair hedging.
With the recent appreciation of gbp against the low interest currencies, apart from swap profit, it also made 18+% gain on 3 trading days, which is quite impressive, as you can see from the attachment.
Most of the trades are closed in the early few hours of London open, where account profit flucutates between -10 to +3%(that's my target profit), it rarely run less than -10%, so a free margin that can cover -40% should be well enuff.
In developing the EA, i've taken into consideration of
1. Margin of each pair
2. Spread of each pair
3. Pip value of each pair
4. Swap value of each pair
5. Daily range of each pair
6. TP in % of account balance (to close the hedge with a % profit that is achievable)

I find if you are aiming swap only, then you have to forget about perfect hedge 'coz profit only comes when the correlation is not in balance. Then if you aim for near perfect hedge, than you have to forget about swap profit as the spread, pip value and daily range will sure kill the swap. So i've chosen sth in between. I hope to see some gbp drops and see if this EA is robust enuff to stand it and still make good profit

Quoting anamy
Thanks. So would this system still be of any use if the gbp-jpy were falling? I've made my own EA that can handle this system, but I am not sure if I should devote the time to maintaining the demo account, and subsequently a live account with this strategy. Basically, I just want to know HOW safe and HOW versatile it really is.
Attached Image (click to enlarge)
Click to Enlarge Name: 0705222-1.jpg Size: 83 KB
Attached File(s)
File Type: pdf Report_DetailedStatem.pdf   62 KB | 1,072 downloads
make some money, have some fun, leave some footprints
  • #147
  • May 22, 2007 7:48am May 22, 2007 7:48am
Boostrade
How do you calculate in the daily pip range ? What formula are you using ?

Quoting boostrade
I've also made an EA, been fine tuning if for a month on it, and so far i find if the initial margin is larger than 160%, it should be able to handle a drawdown of 40%, and most of the time, the loating loss is around 5%. I've been testing gbp/chf/usd and gbp/jpy/usd 3 pair hedging.
With the recent appreciation of gbp against the low interest currencies, apart from swap profit, it also made 18+% gain on 3 trading days, which is quite impressive, as you can see from the attachment.
Most of the trades are closed in the early few hours of London open, where account profit flucutates between -10 to +3%(that's my target profit), it rarely run less than -10%, so a free margin that can cover -40% should be well enuff.
In developing the EA, i've taken into consideration of
1. Margin of each pair
2. Spread of each pair
3. Pip value of each pair
4. Swap value of each pair
5. Daily range of each pair
6. TP in % of account balance (to close the hedge with a % profit that is achievable)

I find if you are aiming swap only, then you have to forget about perfect hedge 'coz profit only comes when the correlation is not in balance. Then if you aim for near perfect hedge, than you have to forget about swap profit as the spread, pip value and daily range will sure kill the swap. So i've chosen sth in between. I hope to see some gbp drops and see if this EA is robust enuff to stand it and still make good profit
  • #148
  • May 22, 2007 9:55am May 22, 2007 9:55am
Hi, pls. use the attached indicator, I take it from there.
Enjoy trading

Quoting toddanderson
Boostrade
How do you calculate in the daily pip range ? What formula are you using ?
Attached File(s)
File Type: ex4 #(T_S_R)-Daily Range Calculator .ex4   16 KB | 734 downloads
make some money, have some fun, leave some footprints
  • #149
  • May 22, 2007 10:02am May 22, 2007 10:02am
Which pairs and time frame !???
  • #150
  • May 22, 2007 12:25pm May 22, 2007 12:25pm
Quoting boostrade
Hi, pls. use the attached indicator, I take it from there.
Enjoy trading
Attached the mq4 file (i guess is from Igor)
Attached File(s)
File Type: mq4 (T_S_R)-Daily Range Display#3.mq4   10 KB | 633 downloads
"Hoe ur pips mate?" fxcarllos
  • #151
  • May 22, 2007 5:35pm May 22, 2007 5:35pm
I under stand where and how to get the pip range for a given pair
but how are you relating this to your formula for the number
of lots to buy,sell ? and relating to pip value for a given pair


Quoting boostrade
Hi, pls. use the attached indicator, I take it from there.
Enjoy trading
  • #152
  • May 23, 2007 9:54am May 23, 2007 9:54am
larger daily range decreases lot size
lower pip value increases lot size
higher swap value increase lot size
but of course you need to take a blance out of them with margin level in mind, and have a clear primary goal:
if you want to make swap proft and treat it as a carry trade? OR if you want to close the pair in profit as fast as possible and make more profitable trades?

I give you an example, in the statementi attached earlier, my primary goal is to maximize swap profit while profit from uptrend of gbpchf. so I formulate the lot size of gbp/chf the same as usd/chf. why? pls. consider this:
swap of gbpchf: 16.35
swap of gbpusd: 0.3
swap of usdchf: -9.4
so to ensure swap profit, if you sell 1 lot of usdchf, then you should at least buy 9.4/16.35 lot of gbpchf, in which case you can make +0.3 from gbpusd. so that's the bottomline. if you take spread into account, then it should be a little higher, however, if you take daily range into account, it should be lower 'coz gbpchf moves more than usdchf.
Anyway, as i said my primary goal is to maximize swap profit, so i make it the same, another reason for this is i see an upward trend of gbpchf, actually gbp against all low interest currencies, so i'm confident that although there maybe decorrelation, the decorrelation will favour buy gbpchf.
Then if you see on the statement, gbpusd is minimized because it also has a large daily range and its pip value is larger than the other 2 pairs.

So, if you combine all these factors into consideration, you'll come up with a pretty neat formula for lot size that profits!

Enjoy trading

Quoting toddanderson
I under stand where and how to get the pip range for a given pair
but how are you relating this to your formula for the number
of lots to buy,sell ? and relating to pip value for a given pair
make some money, have some fun, leave some footprints
  • #153
  • May 24, 2007 12:30pm May 24, 2007 12:30pm
How about someone programming an EA that followed the same "hedge" rules and results, but only traded long gbp/jpy?

Good Trades,
Yukoner
  • #154
  • May 24, 2007 12:46pm May 24, 2007 12:46pm
Forgot to mention that u can see clearly each round trades if you select "comments" on your terminal.
The number of Round is the last digit ex comment: 14008 --> Round is 8th (8th Round of 0,1lot)

Hope it helps

Neo, can u give as a hint if you following this thread? Any use of EA?

alex.pt
Attached Image (click to enlarge)
Click to Enlarge Name: 2DayEA.jpg Size: 93 KB
"Hoe ur pips mate?" fxcarllos
  • #155
  • May 24, 2007 12:48pm May 24, 2007 12:48pm
Quoting Yukoner
How about someone programming an EA that followed the same "hedge" rules and results, but only traded long gbp/jpy?

Good Trades,
Yukoner
That is very easy to do, but whatīs the purpose of that?
"Hoe ur pips mate?" fxcarllos
  • #156
  • May 24, 2007 8:54pm May 24, 2007 8:54pm
so today now, my 1.2 lot position has a unrealised 2000 loss. I have 8000 capital now.

Neo, I am wondering if I should just wait, or what? because if jpy continue to rise, my capital seems to be eaten out completely.

Any suggestion?
  • #157
  • May 24, 2007 11:33pm May 24, 2007 11:33pm
Quoting Carllos
That is very easy to do, but whatīs the purpose of that?
I don't know... its almost exactly the same thing everyone is programming to do with four pairs hedged against each other, with stop losses, and take profits.

I'm not a programmer. But the danger I see here, is trying to make a system so complicated that you create false security in the complexity of your EA. Which is why i posted the question... Can someone write me an EA that is simply long gbp/jpy with the same stop loss rules??

Some to think about................

Good Trades,
Yukoner
  • #158
  • May 25, 2007 4:16am May 25, 2007 4:16am
Quoting Yukoner
I don't know... its almost exactly the same thing everyone is programming to do with four pairs hedged against each other, with stop losses, and take profits.

I'm not a programmer. But the danger I see here, is trying to make a system so complicated that you create false security in the complexity of your EA. Which is why i posted the question... Can someone write me an EA that is simply long gbp/jpy with the same stop loss rules??

Some to think about................

Good Trades,
Yukoner

I will do it for you when i come from my weekend at Lisbon.
In my opinion, having only one pair it is far better to grid trade it (one side only - Long GBPJPY). I do it in a different account.
Grid trading has itīs pros and cons and has nothing to do with the carry trading strategy in this thread

"Hoe ur pips mate?" fxcarllos
  • #159
  • May 25, 2007 6:19am May 25, 2007 6:19am
Quoting charvo
so today now, my 1.2 lot position has a unrealised 2000 loss. I have 8000 capital now.

Neo, I am wondering if I should just wait, or what? because if jpy continue to rise, my capital seems to be eaten out completely.

Any suggestion?
your GBPYEN should be going up big time then, no ?
  • #160
  • May 25, 2007 7:02am May 25, 2007 7:02am
today screenshot before Round 9
Attached Image (click to enlarge)
Click to Enlarge Name: gbbjpy.jpg Size: 82 KB
"Hoe ur pips mate?" fxcarllos
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