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Hedging/averaging trades without prediction

  • #2,401
  • Aug 11, 2023 4:56am Aug 11, 2023 4:56am
I'm guessing patience is one of the biggest requirements

UK100 hit TP so retiring that as a trading index, didn't like the "dividend adjustment", which is a bit rich considering it's a CFD. I'm experimenting a little with correlation values and adjusting up/down with the pair that has the best swap, just trying to make sure my EAs don't get me in to too tilted a position. End of week moving into the positive but wil see how today pans out.
Sounds like a lot of screen time to me.
  • #2,402
  • Edited 1:16pm Aug 11, 2023 12:33pm | Edited 1:16pm
All closed for the weekend as balance today turned the week profitable. 0.64% per week average in 4 weeks = +2.54% since new deposit level, almost at 40% increase since the start, but this would be misleading as the balance would not have supported the margin requirements. The lot size adjustment seems to be working so far, basically once the EAs trigger a level I'm looking at the correlation value and keeping it close to 0 with small adjustments, and taking profit on the trades as they move positive. A bit more screen time I must admit, have a good weekend all.

PS. 2.54% of my live account is not small change. PPS. No stop loss (ever).
Sounds like a lot of screen time to me.
  • #2,403
  • Aug 11, 2023 2:01pm Aug 11, 2023 2:01pm
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  • #2,404
  • Aug 12, 2023 8:03am Aug 12, 2023 8:03am
Ok 8 days posted closed profits around £1200 , open positions now around minus £400 so net £800

Same as the first couple pages of this thread, but rather than using a TP just been doing it on time so will show example, this is not a prediction of where I think the market will go, I gamble on the price overall being average, it takes time, patience and practice on DEMO for again at least a month, I've only been doing this the last 3 weeks so nowhere near that this is profitable long term.

EXAMPLE:- open trade both sides LONG and SHORT then after 5 mins if neither in profit wait another 5 mins so on and so on, if say the LONG is in profit then close the LONG, then wait another 5 mins if now the SHORT is in profit closed the SHORT, both trades closed in profit happy days repeat again in another 5 mins, if the SHORT was still negative then place LONG again wait 5mins and repeat the same as if you first open the trades and then carry on as previous, ok the trades will tend to get further apart, this is where it gets personal for you and your risk, your patience or how aggressive you are as a trader, if say the trades are 100 pips apart you could close if you've banked more profit , you could wait or you could start another LONG and SHORT or just a SHORT or just a LONG, hope this all makes sense if not just ask questions, 5 min wait is not set in stone use what ever time frame you want, try avoiding big news events, if you are caught near a big news with a one sided trade just hedge it up....DEMO please...
  • #2,405
  • Aug 12, 2023 8:38am Aug 12, 2023 8:38am
... I also do this at work so sometime can be over an hour before I can open/close trades , roughly between 40-60 trades a day more if at home in front of screen, always only have 1 trade that's one sided e.g. 5 LONGS and 4 SHORTS, 20 LONGS and 21 SHORTS, don't get into positions where you say have 4 LONGS and 2 SHORTS if you keep to this it will keep your DD down to a minimum...
  • #2,406
  • Aug 12, 2023 8:48am Aug 12, 2023 8:48am
Thanks for posting Rob, one question, how many different pairs would you normally employ for this? Seems like a simple strategy so might try and EA it to see how it behaves historically. I don't put that much faith in backtesting but, together with simulations, it gives me a "feel" for such things.
Sounds like a lot of screen time to me.
  • #2,407
  • Aug 12, 2023 9:05am Aug 12, 2023 9:05am
Quoting LazyTrades
Thanks for posting Rob, one question, how many different pairs would you normally employ for this? Seems like a simple strategy so might try and EA it to see how it behaves historically. I don't put that much faith in backtesting but, together with simulations, it gives me a "feel" for such things.
I'm on about 8, I like to think that the more you have the more likely everything to average out, if one pair you're up £10 and another pair you're down £8 then if you are cautious close for the £2 net and start again, but I'll trade anything with a small spread, back testing for sure will give you a feel for it definitely as your not trying to predict the market, basically you could do it with a coin flip, will look forward to your EA...
  • #2,408
  • Aug 12, 2023 9:09am Aug 12, 2023 9:09am
Quoting Waveskierrob
{quote} I'm on about 8, I like to think that the more you have the more likely everything to average out, if one pair you're up £10 and another pair you're down £8 then if you are cautious close for the £2 net and start again, but I'll trade anything with a small spread, back testing for sure will give you a feel for it definitely as your not trying to predict the market, basically you could do it with a coin flip, will look forward to your EA...
Sounds good, if I can make a working EA I can run it on different timeframes/pairs then optimise, I'll post any results.
Sounds like a lot of screen time to me.
  • #2,409
  • Aug 12, 2023 9:15am Aug 12, 2023 9:15am
Quoting LazyTrades
{quote} Sounds good, if I can make a working EA I can run it on different timeframes/pairs then optimise, I'll post any results.
That would be brilliant...
  • #2,410
  • Aug 14, 2023 7:30am Aug 14, 2023 7:30am
Here's a little EA which opens buy/sells 0.01 lots, it doesn't get over the gap issue as this needs to be done manually, depending on your trading style, Rob has given some ideas around that above. This will wait until the next bar and check for a minimum 2 pip profit then reset, in other words if you are running it on a 5 min chart it will wait 5 mins, check, close if profitable, then reset. Might be useful for testing/simulation purposes.
Attached File(s)
File Type: ex4 OpenCloseTP.ex4   173 KB | 179 downloads
Sounds like a lot of screen time to me.
  • #2,411
  • Aug 14, 2023 2:30pm Aug 14, 2023 2:30pm
Quoting LazyTrades
Here's a little EA which opens buy/sells 0.01 lots, it doesn't get over the gap issue as this needs to be done manually, depending on your trading style, Rob has given some ideas around that above. This will wait until the next bar and check for a minimum 2 pip profit then reset, in other words if you are running it on a 5 min chart it will wait 5 mins, check, close if profitable, then reset. Might be useful for testing/simulation purposes.{file}
Will try when home
  • #2,412
  • Aug 14, 2023 2:33pm Aug 14, 2023 2:33pm
Current open trades minus £540....
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  • #2,413
  • Aug 15, 2023 2:43pm Aug 15, 2023 2:43pm
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  • #2,414
  • Aug 15, 2023 3:39pm Aug 15, 2023 3:39pm
My 6 pairs have been quite pedestrian so far this week, a few small trades taken by the EAs all closed at TP so currently +2.7% with no open positions. Have upped the lot size again so will see how that goes. Trades placed by EA, keeping an eye on daily correlation tables and balancing the basket using GU. No indicators (apart from RSI used in EA) blank charts, no predictions and no stop loss.
Sounds like a lot of screen time to me.
  • #2,415
  • Aug 16, 2023 2:11am Aug 16, 2023 2:11am
Long NZDUSD opened + closed overnight, equity +2.8%, no open trades.
Sounds like a lot of screen time to me.
  • #2,416
  • Aug 16, 2023 2:26am Aug 16, 2023 2:26am
Quoting LazyTrades
Here's a little EA which opens buy/sells 0.01 lots, it doesn't get over the gap issue as this needs to be done manually, depending on your trading style, Rob has given some ideas around that above. This will wait until the next bar and check for a minimum 2 pip profit then reset, in other words if you are running it on a 5 min chart it will wait 5 mins, check, close if profitable, then reset. Might be useful for testing/simulation purposes.{file}
Hi LTrader , do you use this ea
  • #2,417
  • Aug 16, 2023 2:31am Aug 16, 2023 2:31am
Quoting pret
{quote} Hi LTrader , do you use this ea
Hi there, if you mean HighLowTP then no I don't use it in my trading, it was something I made that opens and closes trades in the style of Rob's previous post. The EA on its own would not be profitable.
Sounds like a lot of screen time to me.
  • #2,418
  • Aug 16, 2023 3:07am Aug 16, 2023 3:07am
Quoting LazyTrades
{quote} Hi there, if you mean HighLowTP then no I don't use it in my trading, it was something I made that opens and closes trades in the style of Rob's previous post. The EA on its own would not be profitable.
ok
Thank you
  • #2,419
  • Edited 12:04pm Aug 16, 2023 6:49am | Edited 12:04pm
EA opened 1 x short EU earlier. Closed at BE.
Long NZDUSD
Sounds like a lot of screen time to me.
  • #2,420
  • Aug 16, 2023 2:07pm Aug 16, 2023 2:07pm
open trades now a round minus £460...was a good one today
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