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Safe Hedging System - Daily Swap

  • #401
  • Jun 25, 2007 10:41am Jun 25, 2007 10:41am
This version is using an agressive 2 lots, 0,2 lots.
Attached Image (click to enlarge)
Click to Enlarge Name: fxdd 2506.jpg Size: 77 KB
"Hoe ur pips mate?" fxcarllos
  • #402
  • Jun 25, 2007 6:22pm Jun 25, 2007 6:22pm
Quoting PTOURNIS
I have a question about the strategy itself. Now that the Swiss bank has become hawkish and will be raising rates. How will this effect the strategy?
The interest rate differential is still very high compared to others. But I guess we won't know until the rates are actually raised.
  • #403
  • Jun 25, 2007 6:26pm Jun 25, 2007 6:26pm
Quoting mikejody
Greetings,

I have a question for Neo, but since he no longer replies here (or to private messages) possibly somebody who understands this hedge could answer:

Why do we add to our position when we are 10% ahead? Aren't we in essence always "buying high" when our hedge grows by 10% or not?

Wouldn't it make more sense to add to the position when the equity is 10% behind instead?

Just trying to understand.

Thank you.

Ok, remember from the perspective of the 4 pairs, when you add position, you are actually buying high on one pair and Cost Averaging on the other three, or vice versa. So when you are accumulating pips with GBP/JPY, you are actually entering the GBP/USD at a better price than you originally entered, thus giving you an overall better price. Same principle applies to the CHF/JPY, and USD/CHF. As long as you are entering your trades and spreading your risk with averaged position, your account will be able to handle more movements and thus giving you more swap per day.

I hope this answers your question.
  • #404
  • Jun 25, 2007 6:30pm Jun 25, 2007 6:30pm
Quoting Carllos
Thanks to Mikejody i have an important question for Neo concerning EA strategy. Unfortunatly neo is not receiving pms right now, so i hope he came arround to answer my question.
Carllos Ask away!!!

I am here now and to stay!!!

Sorry guys been very busy lately, Didnt mean to abandon you all, but I am back now. So please shoot away with your questions, comments, or just to shoot the breeze...

neo
  • #405
  • Jun 25, 2007 6:35pm Jun 25, 2007 6:35pm
Quoting MegaPips
When I read the first post of this thread 2 months back, I was not impressed, the system looked complicated and I did't bother to read often. But, looking at this now, I can see how much it has been developed, grown this long and I am going to give it a try now. Thanks neo and all for this great system.
Thank you and I am very grateful for the people in the forum who participated in this thread. Its the people that make this system better, and if anyone should get props for making this into what it is today, I think Carllos is gotta be the MAN.

neo
  • #406
  • Jun 25, 2007 9:41pm Jun 25, 2007 9:41pm
neo, thanks for returning. here are a couple of questions for you.

did you end up making the change to adjusting lotsize for the different pairs as was suggested by some people?

You have talked a few times about spreading the positions to mitagate against price changes. Do you have a minimum gap between trades? If so do you just apply this to to the GBPJPY, all the pairs, or just as long as one of the pairs is sufficiently different to a previous trade?
Do you have any other rules in this area worth considering?
  • #407
  • Jun 25, 2007 10:03pm Jun 25, 2007 10:03pm
Quoting thebts
neo, thanks for returning. here are a couple of questions for you.

did you end up making the change to adjusting lotsize for the different pairs as was suggested by some people?

You have talked a few times about spreading the positions to mitagate against price changes. Do you have a minimum gap between trades? If so do you just apply this to to the GBPJPY, all the pairs, or just as long as one of the pairs is sufficiently different to a previous trade?
Do you have any other rules in this area worth considering?
To answer your question, I did not work out a lotsize adjustment because of the simple fact that doing so will negate your earnings on the daily swap. As you might already know this, the fact that this hedging is not 100% perfect, but it will absorb majority of the moves during unwinding of GBP/JPY trades. So I have decided to leave it as is.

I don't know if you guys entered the market at 230 (GBP/JPY) when I first started to post this strategy, but many people would not have stayed in GBP/JPY long all this time if it werent for the hedging part. Now I am sure majority of you who started to test this strat back then are sitting on a very sizeable equity, and that goes to show even without the perfect Lot sizes, we can still stand to profit.

As far as the entry is concerned. I have always thought to enter your positions in a 10 day series. Obviously my advice is to enter the market when your entry will be at the greatest difference to your previous entry. Try to spread your entry as far apart as possible in terms of prices. Since this trade is directly related to GBP/JPY, we will use that currency pair as the basis of our entry. But even if you were to enter the market blindly, using Carllos EA, you are still going to be fine in my opinion. The only thing that worries me is when people over leverage and over trade. That is the one single factor that would knock your account out. Always start low and add in your position slowly. You are in this for the long haul.

neo
  • #408
  • Jun 26, 2007 3:11am Jun 26, 2007 3:11am
A Big thanks to all participating in this thread, and a special thanks to Neo for starting it and Carllos for your enthusiastic input.

Neo i have a question?

The GBP/JPY has retreated over the last 2 days.
We placed 2 new sets which never reached the 100 pips to place the 1 pip stop and they have retraced beyond our entry.
How do you handel this situation ?

Regards
Mike
Believing is seeing
  • #409
  • Jun 26, 2007 3:28am Jun 26, 2007 3:28am
Quoting Carllos
Don´t worry.
Do the following:
- turn EA off.
- replace the 2Day v6 for this one (2Day v6b)
- Check inputs (order lots, trading time, account management, etc..) so they will be the same has the version you are replacing

No need to start new account, just replace with same settings.
I found a minor bug on the 1 pip take profit code. Its corrected now.
If settings are the same everything will be ok, but Check Them!!

alex.pt
Hi Carllos,

i found a bug on yor EA,
this is a log on my IBFX account (mini).
21:57:23 2day EA v6c GBPUSDm,H1: invalid price 1.99780000 for OrderSend function
21:57:23 2day EA v6c USDCHFm,H1: invalid price 1.22820000 for OrderSend function
21:57:33 2day EA v6c USDCHFm,H1: invalid price 1.22830000 for OrderSend function
21:58:15 2day EA v6c GBPUSDm,H1: invalid price 1.99780000 for OrderSend function
21:58:15 2day EA v6c USDCHFm,H1: invalid price 1.22830000 for OrderSend function
21:59:05 2day EA v6c GBPUSDm,H1: invalid price 1.99780000 for OrderSend function
21:59:05 2day EA v6c USDCHFm,H1: invalid price 1.22830000 for OrderSend function
21:59:05 2day EA v6c USDCHFm,H1: invalid price 1.22840000 for OrderSend function
21:59:25 2day EA v6c GBPUSDm,H1: invalid price 1.99780000 for OrderSend function
22:00:11 2day EA v6c USDCHFm,H1: invalid price 1.22830000 for OrderSend function
22:00:11 2day EA v6c GBPUSDm,H1: invalid price 1.99780000 for OrderSend function
22:00:45 2day EA v6c USDCHFm,H1: invalid price 1.22830000 for OrderSend function
22:01:12 2day EA v6c USDCHFm,H1: invalid price 1.22840000 for OrderSend function
22:01:12 2day EA v6c GBPUSDm,H1: invalid price 1.99780000 for OrderSend function
22:02:00 2day EA v6c USDCHFm,H1: invalid price 1.22830000 for OrderSend function
22:02:00 2day EA v6c USDCHFm,H1: invalid price 1.22840000 for OrderSend function
22:02:00 2day EA v6c USDCHFm,H1: invalid price 1.22830000 for OrderSend function
22:02:09 2day EA v6c USDCHFm,H1: invalid price 1.22830000 for OrderSend function

Regards.
  • #410
  • Jun 26, 2007 3:31am Jun 26, 2007 3:31am
Hi Neo

i´m glad to have you here. I´ve been doing my best to get an EA with your strategy in it, but this thread needs you around.
Since you are here, i´d like to ask you to please post 2Day EA 6c.mq4 on first post, so everyone knows where is last version. That would be cool.

You said EA enter the market blindly, that is not 100% correct. EA enter market when user choose. I build it so anyne can choose Day and Time for entering market. If anyone wants to wait for a retracement to enter, that is possible. It´s a very flexible EA. Lots, Rounds, Day, Time, position, to enter market is all configurable. It´s almost a suiss knife for carry trade (only 4 pairs allowed now).

Other thing i wanted to ask you. I was looking at your post (after a PM from mikejodi)
http://www.forexfactory.com/showpost...1&postcount=53
There is something there that it´s not very clear. The 10% profit to open a new trade is clear, but youalso say.. open new "1/10th of your position and take 10 days to enter them all". So.. now i´m just not sure what to do when we have profits in the same day, after opening a position.

Basicly, i set a new position every 10 days and position size is configurable. but EA isn´t build to enter a new position after some profit. My point is, should we forget the 10 days and enter market for new positions after some profit, or keep the 10 days for spreding risk? I guess there is something here that need to be cleared.

Thank you for your help neo
"Hoe ur pips mate?" fxcarllos
  • #411
  • Jun 26, 2007 3:35am Jun 26, 2007 3:35am
Quoting Me@Home
Hi Carllos,

i found a bug on yor EA,
this is a log on my IBFX account (mini).


Regards.
Please close MT4 and reopen it. Use only 2Day EA 6c and no other EAs on charts. See what happen. This is a strange event, that happened before, but my guess is something to do with IBFX itself. I´ll take a look anyway.

I have a feedback of several people using it on IBFX mini working fine, including myself.

Thankx

Note: i use D1
"Hoe ur pips mate?" fxcarllos
  • #412
  • Jun 26, 2007 3:42am Jun 26, 2007 3:42am
Quoting Carllos
Please close MT4 and reopen it. Use only 2Day EA 6c and no other EAs on charts. See what happen. This is a strange event, that happened before, but my guess is something to do with IBFX itself. I´ll take a look anyway.

I have a feedback of several people using it on IBFX mini working fine, including myself.

Thankx

Note: i use D1
Tnks for the reply.
I'll follow your instructions.
  • #413
  • Jun 26, 2007 6:26am Jun 26, 2007 6:26am
Would this system be helped if the base currency of the account was in yen as suggested by Gwan in the thread http://www.forexfactory.com/showthread.php?t=28080
?
  • #414
  • Jun 26, 2007 7:26am Jun 26, 2007 7:26am
Quoting fxfocused
A Big thanks to all participating in this thread, and a special thanks to Neo for starting it and Carllos for your enthusiastic input.

Neo i have a question?

The GBP/JPY has retreated over the last 2 days.
We placed 2 new sets which never reached the 100 pips to place the 1 pip stop and they have retraced beyond our entry.
How do you handel this situation ?

Regards
Mike
Just keep on entering the trades, as far as your new entry is concerned, your hedged 3 pairs should be absorbing most of the movement, just be patient and let the EA do its job.

neo
  • #415
  • Jun 26, 2007 7:35am Jun 26, 2007 7:35am
Neo, two questions for you. In your live trading, are you using the EA now, or do you add positions manually? So far, upto today, what was your maximum drawdown? Thanks.
  • #416
  • Jun 26, 2007 8:05am Jun 26, 2007 8:05am
Quoting Carllos
Hi Neo

i´m glad to have you here. I´ve been doing my best to get an EA with your strategy in it, but this thread needs you around.
Since you are here, i´d like to ask you to please post 2Day EA 6c.mq4 on first post, so everyone knows where is last version. That would be cool.

You said EA enter the market blindly, that is not 100% correct. EA enter market when user choose. I build it so anyne can choose Day and Time for entering market. If anyone wants to wait for a retracement to enter, that is possible. It´s a very flexible EA. Lots, Rounds, Day, Time, position, to enter market is all configurable. It´s almost a suiss knife for carry trade (only 4 pairs allowed now).

Other thing i wanted to ask you. I was looking at your post (after a PM from mikejodi)
http://www.forexfactory.com/showpost...1&postcount=53
There is something there that it´s not very clear. The 10% profit to open a new trade is clear, but youalso say.. open new "1/10th of your position and take 10 days to enter them all". So.. now i´m just not sure what to do when we have profits in the same day, after opening a position.

Basicly, i set a new position every 10 days and position size is configurable. but EA isn´t build to enter a new position after some profit. My point is, should we forget the 10 days and enter market for new positions after some profit, or keep the 10 days for spreding risk? I guess there is something here that need to be cleared.

Thank you for your help neo
Neo and Carllos,
I am wondering what the reasoning is for 10 days as max, if I wanted 25 days? Just wondering if the GBP/JPY takes a tumble and it lasts 30 days and I want to average all the way in why not make it more flexible? Just curious.
Tks Neo and Carllos
  • #417
  • Jun 26, 2007 9:26am Jun 26, 2007 9:26am
Carllos
Version 6c doesn't seem to be opening any trades no alerts on the experts journal so it looks like it fell asleep. Using IBFX
  • #418
  • Jun 26, 2007 9:54am Jun 26, 2007 9:54am
Hi Neo

Thank you for taking the time to share your strategy and answer questions. Thank you to the other members who answer questions and take time to build EAs for the community. There are many of us here who appreciate your efforts.

I have been manually testing this on a demo account for a couple weeks. Of course it looks great while GBP/JPY keeps going up but now that it has retraced a bit I have some questions.

I had 2 trades that never reached far enough to have a +1 pip stop loss order placed. These trades seemed to only have GBP/JPY dip while the others did not pick up the slack, leaving that particular set a net negative.

1) When a trade never reaches 100 pips on GBP/JPY and it starts going down, how long would you hold on to it if it continues to fall? When, if at all, would you take action?

In the following quote, are you saying not to exit any trades going net negative at any time?
Quoting neo1001
Just keep on entering the trades, as far as your new entry is concerned, your hedged 3 pairs should be absorbing most of the movement, just be patient and let the EA do its job.

neo
2) When a GBP/JPY trade gets stopped out at +1 pip, how long would you hold on to the other 3 trades in the set? Would you exit immediately? Would you wait to exit with more profit or until they become positive? Would you hold them for multiple days?

3) During the time when you are building up your trade and entering a set every day (1/10th of your position spread over 10 days), suppose a GBP/JPY trade is stopped out at +1 pip and suppose you exit the corresponding 3 trades (exit the full set). Would you attempt to make up for the stopped out trade by entering 2 trades the next time? Or would you simply keep adding only 1 trade per day and make up that trade later?

4) When you are entering your 1/10th position spread over 10 days, if you see a few days where GBP/JPY is dropping over 200 pips per day, would you wait until it settled out before entering a set, or enter anyway? I am curious as to when it might not be a good time to enter a set.

I am really excited about this method and it is my desire to learn how to use it correctly. Its my responsibility to carry it out, of course, but I want to make sure I understand it well enough first.

Adam
  • #419
  • Jun 26, 2007 12:28pm Jun 26, 2007 12:28pm
Quoting berdj
Carllos
Version 6c doesn't seem to be opening any trades no alerts on the experts journal so it looks like it fell asleep. Using IBFX
There is something wrong with your settings. EA is placing trades correctly on all my testing accounts including ibfx mini. Make sure you have the SAME settings on all pairs. Please post your settings.
"Hoe ur pips mate?" fxcarllos
  • #420
  • Jun 26, 2007 12:37pm Jun 26, 2007 12:37pm
Does anyone here still need the pdf for newbies? The one about "How to use 2Day EA" ?
If i get enough answers i´ll do it, otherwise there is already a pdf file avalilable.

Neo, dont forget to include the pdf file and last version on first post. Thkx

alex.pt
"Hoe ur pips mate?" fxcarllos
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