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Three way Hedge

  • #41
  • Feb 26, 2007 1:13pm Feb 26, 2007 1:13pm
Thanks! I just downloaded it and will have time on Tuesday to read the instructions and check it out.

: ) Thom
  • #42
  • Feb 26, 2007 3:19pm Feb 26, 2007 3:19pm
I'm still a bit new to this stuff. Is this calculator something i should be able to open up onto MT4. If so how, and if not how can open it up?
Taking Life One Pip At A Time I officially have my own opinion.
  • #43
  • Feb 27, 2007 3:37pm Feb 27, 2007 3:37pm
Quoting irusoh
Brentmark yoy've been extermely lucky so far. But email us later when you lose all your money in a demo account.
IRUSOH - all it took was the worst day GBP/JPY had in years! I got margin called today and lost half of the $5000 demo account. So this experiment is over on my end.

The hedge could still be a good idea, but not while being over-leveraged as I knew I was.
  • #44
  • Feb 27, 2007 3:42pm Feb 27, 2007 3:42pm
BMack,

Thanks for this sincere update. Were you hedged with 2.4 CHFJPY shorts to 1 GBPJPY long? I think you may have survivied the "day" had you been properly hedged.

But I think it's excellent that you even tried this hedge. Bravo.

Quoting brentmack
IRUSOH - all it took was the worst day GBP/JPY had in years! I got margin called today and lost half of the $5000 demo account. So this experiment is over on my end.

The hedge could still be a good idea, but not while being over-leveraged as I knew I was.
  • #45
  • Feb 27, 2007 5:19pm Feb 27, 2007 5:19pm
Quoting mrmikal
Were you hedged with 2.4 CHFJPY shorts to 1 GBPJPY long?
I had a full-sized lot long on GBP/JPY and full-sized lots short on GBP/USD and USD/JPY - all in a $5,000 demo account. It was much too small for this hedge.
  • #46
  • Feb 27, 2007 7:16pm Feb 27, 2007 7:16pm
Quoting brentmack
I had a full-sized lot long on GBP/JPY and full-sized lots short on GBP/USD and USD/JPY - all in a $5,000 demo account. It was much too small for this hedge.
Your hedge ratio is wrong. Increase your USDJPY short otherwise what you have: +1GBPJPY -1GBPUSD -1USDJPY is approximately +0.5USDJPY and thus you got a margin call.
  • #47
  • Feb 27, 2007 7:31pm Feb 27, 2007 7:31pm
Quoting brentmack
IRUSOH - all it took was the worst day GBP/JPY had in years! I got margin called today and lost half of the $5000 demo account. So this experiment is over on my end.

The hedge could still be a good idea, but not while being over-leveraged as I knew I was.
Hey Brent,

that's what I meant. You can make $10 a day, but lose $2000 a day doing it.
I don't know if you are interested, but I follow "down river" thread http://forexfactory.com/showthread.php?t=18243.
It is a little more complicated but I like it.

Here are my results so far on demo:
Inserted Code
 
My Intuitive DRT Trades journal
Completed Trades:
Symbol Type Opened   Closed   pips comment
------ ----- ----------------- ----------------- ---- -------------------------
USDCHF Short 2/21 19:08 1.2393 2/22 09:42 1.2432 -39 stopped out
USDJPY Short 2/22 16:19 121.31 2/26 15:42 120.62 +69 got out on return to river. too early.
AUDUSD Short 2/22 16:21 0.7893 2/26 16:55 0.7941 -48 stopped out
EURUSD Long 2/22 16:16 1.3103 2/27 15:34 1.3239 +136 euro feels extended. will get back at lower levels
USDCHF Short 2/22 19:05 1.2390 2/27 15:35 1.2215 +175 had enough
GBPUSD Long 2/23 15:47 1.9620 2/27 21:41 1.9651 +31 wait to see for zone congestion 
USDCAD Long 2/27 15:15 1.1611 2/28 00:55 1.1671 +60 the river was reached
Current Trades:
Symbol Type Opened   pips comment
------ ----- ----------------- ---- ------------------------------
USDJPY Long 2/28 03:05 118.57 +3 move back to river
GBPUSD Long 2/28 03:06 1.9628 -9 settled above river
EURUSD Short 2/28 03:07 1.3224 +3 pull back

I missed most of the move on USDJPY.
  • #48
  • Feb 28, 2007 6:44am Feb 28, 2007 6:44am
IRUSOH -

Thanks, I'll check it out...
  • #49
  • May 16, 2007 3:44pm May 16, 2007 3:44pm
Gwan, is right. You need to average into your trade and rotate it. FIFO your trades. You do not want to blow your load all in one day.

PT
  • #50
  • May 17, 2007 5:37am May 17, 2007 5:37am
Has
their been any updates to this calculator ? is thier one that could
be used for other pairs or to change lot size ?





Quoting irusoh
Here is Hedge Calculator.

It can calculate any number of pairs (with reason) in any combination.
First parm "Pairs" works as follows:

Pairs = symbol=lots;symbol=lots;...

symbol to buy when lots positive, to sell when lots negative
separated by semicolons.

Pairs for this thread will be "GBPUSD=-1;USDJPY=-1;GBPJPY=1"

start, end times shluld be at least one day.

Check it out, see if it works for you.
Attached File(s)
File Type: ex4 HedgeCalculator.ex4   10 KB | 503 downloads
  • #51
  • May 18, 2007 4:37am May 18, 2007 4:37am
You are right there. You have a floating +USD/JPY in this triangle. Did not know that at the time of initial posting. Thank you and others for clarifying.
  • #52
  • May 18, 2007 8:55am May 18, 2007 8:55am
Whatever happened to that interesting experiment Electric Savant was undertaking about a year and a half on carry trade baskets?

It just disappeared.
  • #53
  • Jun 10, 2007 8:27am Jun 10, 2007 8:27am
Why is the Binary Equation junk? Could you elaborate? Its just a Money Management System. If the underlying system makes consistent profits then this MM can only help.......I'd like to know your take though....

Quoting irusoh
Brentmark yoy've been extermely lucky so far. But email us later when you lose all your money in a demo account.
I tested this strategy extensively a little while ago on various pairs. There is a belief as usual that one can find some magical pair combination in some magical ratio to each other so that they will always be eaualized. But that just doesn't happen. Usually they get out of sync every 3-4 weeks and then go deeper and deeper into red. This happens when syddenly one pair refuses to cooperate and acts wild while other just sit there and hardly move. Then they equalize on a new level which incidentally is $600-700 below what it was.
BTW the guy who gave me this sterategy and was swearing by it, now hawks some martingale system on the net called binary equation (another piece of junk).
In Charts We Trust!
  • #54
  • Jun 10, 2007 11:38am Jun 10, 2007 11:38am
any update to this calculator


Quoting toddanderson
Has
their been any updates to this calculator ? is thier one that could
be used for other pairs or to change lot size ?
  • #55
  • Last Post: Jun 10, 2007 2:47pm Jun 10, 2007 2:47pm
I also studied this system before, the reason its working is because GBP/JPY been going up to the sky... but when it decided to go down, u will take maximum blow in the face with your cash, this triangle system seem to weight on the GBP/JPY when it move up or down, sometimes in other ones but a lot of weight on GBP/JPY, if u back test around years 1998-2000 u could lose up to 3200 pips on a dip when u're using this system... yes its been working lately... cause of the GBP/JPY... =(
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