Safe Hedging System - Daily Swap

Thanks melpheos,

but if you look my detailed statement you can see, I bought 1 lot and the next day 0.1 lot and a margin call stopped me out.

I´ll implement that. Maybe a SL: drawdown of x% close all positions.

Hi Carlos,

I had no stop loss. All positions were closed at 3.33 GMT +1 but in the log file there is nothing to see at this time:

00:00:03 FXDD - MetaTrader 4.00 build 205 started
00:00:11 '538101': login (4.00, #29F43936)
00:00:13 '538101': login (4.00, #29F43936)
00:00:28 '538101': login (4.00, #29F43936)
00:00:30 '538101': login (4.00, #29F43936)
00:00:56 FXDD - MetaTrader 4.00 build 205 stopped
02:05:31 FXDD - MetaTrader 4.00 build 205 started
02:05:48 '538101': login (4.00, #29F43936)
02:05:51 '538101': login (4.00, #29F43936)
02:06:11 '538101': login (4.00, #29F43936)
02:06:13 '538101': login (4.00, #29F43936)
02:13:23 FXDD - MetaTrader 4.00 build 205 stopped
10:41:03 FXDD - MetaTrader 4.00 build 205 started
10:41:07 '538101': login (4.00, #29F43936)
10:41:09 '538101': login (4.00, #29F43936)
11:09:55 '538101': instant order buy 0.10 GBPJPY at 242.38 sl: 0.00 tp: 0.00
11:09:55 '538101': request was accepted by server
11:09:55 '538101': request in process
11:09:55 '538101': order was opened : #9003416 buy 0.10 GBPJPY at 242.38 sl: 0.00 tp: 0.00
11:09:58 '538101': instant order sell 0.10 USDCHF at 1.2268 sl: 0.0000 tp: 0.0000
11:09:58 '538101': request was accepted by server
11:09:58 '538101': request in process
11:09:58 '538101': order was opened : #9003418 sell 0.10 USDCHF at 1.2268 sl: 0.0000 tp: 0.0000
11:10:00 '538101': instant order sell 0.10 GBPUSD at 1.9852 sl: 0.0000 tp: 0.0000
11:10:01 '538101': request was accepted by server
11:10:01 '538101': request in process
11:10:01 '538101': order was opened : #9003421 sell 0.10 GBPUSD at 1.9852 sl: 0.0000 tp: 0.0000
11:10:03 '538101': instant order sell 0.10 CHFJPY at 99.44 sl: 0.00 tp: 0.00
11:10:03 '538101': request was accepted by server
11:10:03 '538101': request in process
11:10:03 '538101': order was opened : #9003424 sell 0.10 CHFJPY at 99.44 sl: 0.00 tp: 0.00
14:40:03 '538101': instant order buy 1.00 GBPJPY at 242.22 sl: 0.00 tp: 0.00
14:40:03 '538101': request was accepted by server
14:40:03 '538101': request in process
14:40:03 '538101': order was opened : #9008944 buy 1.00 GBPJPY at 242.22 sl: 0.00 tp: 0.00
14:40:06 '538101': instant order sell 1.00 USDCHF at 1.2237 sl: 0.0000 tp: 0.0000
14:40:06 '538101': request was accepted by server
14:40:06 '538101': request in process
14:40:06 '538101': order was opened : #9008950 sell 1.00 USDCHF at 1.2237 sl: 0.0000 tp: 0.0000
14:40:08 '538101': instant order sell 1.00 GBPUSD at 1.9890 sl: 0.0000 tp: 0.0000
14:40:08 '538101': request was accepted by server
14:40:08 '538101': request in process
14:40:09 '538101': order was opened : #9008953 sell 1.00 GBPUSD at 1.9890 sl: 0.0000 tp: 0.0000
14:40:10 '538101': instant order sell 1.00 CHFJPY at 99.45 sl: 0.00 tp: 0.00
14:40:11 '538101': request was accepted by server
14:40:11 '538101': request in process
14:40:11 '538101': order was opened : #9008956 sell 1.00 CHFJPY at 99.45 sl: 0.00 tp: 0.00
14:55:18 FXDD - MetaTrader 4.00 build 205 stopped
15:37:32 FXDD - MetaTrader 4.00 build 205 started
15:37:36 '538101': login (4.00, #29F43936)
15:37:40 '538101': login (4.00, #29F43936)
15:37:50 '538101': login (4.00, #29F43936)
15:37:52 '538101': login (4.00, #29F43936)
16:07:05 FXDD - MetaTrader 4.00 build 205 stopped


What happen if Margin level go under 100%?

Reading your statement shows that you opened .8 lots only 7 days after the first open position.

Then you opened one more .4 lot position only 3 days after.

You were way off your limits in term of margin hence the margin call.

In total you had 5.2 lot opened for a 3k account which is too much.

This is from post #53:
"5. The idea is to enter 1/10th of your position and take 10 days to enter them all. So that each day you might enter the market at different price and spread out your risk. Just make sure that every GBP/JPY order when they reach 100PIP of profit you do lock in that 1 PIP so if the market comes back, you can then close the remaining 3 pairs that you entered along with that order. Do this as the market stops your GBP/JPY."

Therefore, my understanding is with a $3500 to a $5000 account you would begin with one mini set each day for 10 days in a row. Now you have averaged in for the equiv of one standard set. When you are up $350 in swap you add one mini set.

The hedge
Buy gbp/jpy,
sell chf/jpy,
sell usd/chf,
sell gbp/usd
gives almost same swap earnings with my broker, as the triangular hedge
Buy gbp/jpy,
sell usd/jpy,
sell gbp/usd
I wonder which would be a better choice where stability is concerned.

You are right. The swap earnings are same in both cases. I am testing both on FXDD demo. The results can only be certain after at least a month of watching. I have tried the first combination last month on demo and it gave me 25% rofit.


But what I feel is that the second combination is a perfect hedge

@Carlos,

can you build a 2Day EA-version for that triangular hedge?

Sure, i´m quiet busy at moment. I´ll get to it asp.

Hi Carlos,
Applied my 2 day EA on all 4 charts with buy only to gbp/jpy and sell only to the others. When applied it said Trade= On then gave the time as 23:0 to 23:55. This was the time of the 1 Pm PST candle which lasts from 1-2 Pm on may FXDD trading platform. At 1:55 PM it had not started to place the four orders for the day. Being as I had done the first 8 days manually and was going by Neo's .1 lot a day for 10 day to get the full lot ( spreading out the risk ). So I set the round to 9. Nothing happened as far as placing orders. We do want to use the time listed by the platform when you move the arrow over the candle that appears from 1 PM to 2 PM PST? Not the actual 13:00 to 13:55 that appears as a time stamp if you open the expert in the terminal at the bottom of the platform? So went ahead and placed todays orders manually and set the round to 10 as tomarrow will be the day I get to one lot. Would like to see it work so it will be ready to do the next set of rounds when swap reaches $350. Thank you for any help you could give me in setting this so it works. After you get it working you need to manually set the round each day?
Michael

Please post your settings.

Note: "gave the time as 23:0 to 23:55" - Time in EA properties is the Broker Time. So if YOU choose 23:0 to 23:55, it will place orders in that period @ Broker Time. Remember that according to Neo, one should place orders just before broker pay swap. That usualy is before 5pm EST time (see when your broker pays swap).

Note2: You place Rounds manualy in EA properties (please read thread carefully). If you want to trade Round 8 tomorow, go to EA properties and choose Round 8, go to hour and place the hour you want to trade tomorow. Better do it same time everyday; go to lots and choose lots you want to trade (Round 1-10, should be 0,1 lots).

Really, the only two things to do in EA is:
a) Change TradeMode = false; to TradeMode = true; (if you want to trade or not)
b) Change Round = x; (everyday place the new round)

The EA will take care of the rest.

Hedging strategies have always created alot of controversy. Most who do not understand them think its impossible to come up with a hedging strategy that actuallyworks. I created one about 4 years ago and have used it daily since then. Hedging is a compromise.......you're basically giving up some of your margin, for a little security.
However, the key to making it work is in your hedging strategy. Not all hedging strategies work. But once you find one that does, it's an excellent way to build long term daily gains in this market.

Running with 4 lots now on my 10k demo account and down -850 $ due to the latest move...

Will see how it goes tomorrow with tuesday swap

He coach, would be interesting to learn your hedging method.

Thanks

Any pointers?

Down 1300$ on test account atm i have still a lot of margin to handle the drawdown which is allready 11%

melpeos,
With your 10K demo did you begin with 2 mini sets and then adding 2 mini sets each day for 10 days? Also, is your leverage 200 to 1 ? What day did you begin? Thanks in advance.

Jun 06

I use your EA since 3 days but he opened only round 0?

Please look at my hedging, I have been in those trades for 4 months, it is now showing a gain of 19% on capital plus all the daily swap, but I was down 46% at one point.