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Hedging/averaging trades without prediction

  • #3,821
  • Oct 16, 2024 10:29am Oct 16, 2024 10:29am
Quoting LazyTrades
Another FTSE Div success story today.
totally forgot again...
  • #3,822
  • Oct 27, 2024 9:22am Oct 27, 2024 9:22am
I've read the threads and started working on the EA for hedging. Here are my steps:

  1. Take a trade randomly.
  2. If the stop loss hits, open a sell position larger than the previous one by a specific amount.
  3. If there’s a profit, take it.
  4. If not, repeat.

The problem is that the margin increases exponentially if the market is sideways. After some time, this leads to margin issues, and blow account. increase the swaps and so on. How to deal with it I don't know.

  • #3,823
  • Oct 27, 2024 11:56am Oct 27, 2024 11:56am
Quoting VolBog
I've read the threads and started working on the EA for hedging. Here are my steps: Take a trade randomly. If the stop loss hits, open a sell position larger than the previous one by a specific amount. If there’s a profit, take it. If not, repeat. The problem is that the margin increases exponentially if the market is sideways. After some time, this leads to margin issues, and blow account. increase the swaps and so on. How to deal with it I don't know.
The answer was at the header.
After a few trades, simply average out of the position and out with some profit.


Maximum drawdown of 20% for now is.
Consider running this strategy simultaneously across several pairs.
Will observe strategy and improve code.

Think about make the same on the 2-10 pairs and do the hedge at each pair and close the all trades when we have the profit, to have the 20 pips per day rule.
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  • #3,824
  • Edited Oct 28, 2024 6:06am Oct 27, 2024 12:19pm | Edited Oct 28, 2024 6:06am
Quoting VolBog
{quote} The answer was at the header. After a few trades, simply average out of the position and out with some profit. Maximum drawdown of 20% for now is. Consider running this strategy simultaneously across several pairs. Will observe strategy and improve code. Think about make the same on the 2-10 pairs and do the hedge at each pair and close the all trades when we have the profit, to have the 20 pips per day rule. {image}
Hello VB, I'd always factor in an outlier such as the Swissy decoupling some years back, earthquakes, EA/PC failure, delusional maniacal leaders coming to power again etc. etc. I focus on minimising risk and using the random behaviour of price these days to make my millions, and what's a stoploss?
Sounds like a lot of screen time to me.
  • #3,825
  • Oct 27, 2024 12:36pm Oct 27, 2024 12:36pm
Quoting LazyTrades
{quote} Hello VB, I'd always factor in an outlier such as the Swissy decoupling some years back, earthquakes, EA/PC failure, delusional meniacal leaders coming to power again etc. etc. I focus on minimising risk and using the random behaviour of price these days to make my millions, and what's a stoploss?
Hello,
Currently, I’m not sure how to factor this into the EA.
Sorry for the misunderstanding stop loss is the points after I will hedge.
  • #3,826
  • Oct 30, 2024 11:06am Oct 30, 2024 11:06am
Another small positive FTSE div EA trade today.
Sounds like a lot of screen time to me.
  • #3,827
  • Oct 30, 2024 11:08am Oct 30, 2024 11:08am
Quoting LazyTrades
Another small positive FTSE div EA trade today.
No internet today where I was working..., good to hear of its 100% win rate...
  • #3,828
  • Oct 30, 2024 11:12am Oct 30, 2024 11:12am
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Sounds like a lot of screen time to me.
  • #3,829
  • Nov 6, 2024 7:14am Nov 6, 2024 7:14am
A larger FTSE Dividend Adjustment today. 13.68.
  • #3,830
  • Nov 6, 2024 10:01am Nov 6, 2024 10:01am
Quoting zola
A larger FTSE Dividend Adjustment today. 13.68.
Forgot again but hasn't closed gap so LONG @ 8146...
  • #3,831
  • Nov 6, 2024 10:39am Nov 6, 2024 10:39am
Quoting Waveskierrob
{quote} Forgot again but hasn't closed gap so LONG @ 8146...
Shit have to go out, set TP @ 8160
  • #3,832
  • Nov 6, 2024 11:14am Nov 6, 2024 11:14am
And again.
Attached Image (click to enlarge)
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Sounds like a lot of screen time to me.
  • #3,833
  • Nov 6, 2024 11:17am Nov 6, 2024 11:17am
Quoting LazyTrades
And again. {image}
They dont fail
  • #3,834
  • Nov 6, 2024 11:20am Nov 6, 2024 11:20am
Quoting T721
{quote} They dont fail
I can't argue with you so far T. and even if the occasional one did, this should be manageable and even expected.
Sounds like a lot of screen time to me.
  • #3,835
  • Nov 6, 2024 11:31am Nov 6, 2024 11:31am
Quoting LazyTrades
{quote} I can't argue with you so far T. and even if the occasional one did, this should be manageable and even expected.
tbh i cant remember the last time i had a div go titsup on me... Im sure there must have been at least 1 but musta been years and years back. Nice Div of almost 14points today and real easy again to add multi positions
  • #3,836
  • Nov 6, 2024 11:33am Nov 6, 2024 11:33am
Quoting T721
{quote} They dont fail
Never ....TP hit easy 14 pips even if you miss the DIVI
  • #3,837
  • Nov 8, 2024 1:45am Nov 8, 2024 1:45am
Hi all. I've been trading this strategy for one week and achieved a 4% gain on the deposit. It might have been a bit over-risked, but this week provided ideal volatility for this approach.
Here are some of my observations: Swaps play an important role. I developed an EA that runs on demo and has been optimized over the last 2 years. From my observations, the longest trade duration was 82 days. So, focusing on positive swaps is crucial, as the tester doesn’t account for them.
This means it shouldn't be a full hedge strategy. We could either limit trades to pairs with positive swaps or open hedge positions based on the swap rate.
For manual trading, swap isn’t as critical since we mainly look for pip differences and can control risk. However, for the EA, swap rates are essential.
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  • #3,838
  • Nov 8, 2024 1:58am Nov 8, 2024 1:58am
Quoting VolBog
Hi all. I've been trading this strategy for one week and achieved a 4% gain on the deposit. It might have been a bit over-risked, but this week provided ideal volatility for this approach. Here are some of my observations: Swaps play an important role. I developed an EA that runs on demo and has been optimized over the last 2 years. From my observations, the longest trade duration was 82 days. So, focusing on positive swaps is crucial, as the tester doesn’t account for them. This means it shouldn't be a full hedge strategy. We could either limit...
Great post, some food for thought...
  • #3,839
  • Nov 8, 2024 2:03am Nov 8, 2024 2:03am
Quoting VolBog
Hi all. I've been trading this strategy for one week and achieved a 4% gain on the deposit. It might have been a bit over-risked, but this week provided ideal volatility for this approach. Here are some of my observations: Swaps play an important role. I developed an EA that runs on demo and has been optimized over the last 2 years. From my observations, the longest trade duration was 82 days. So, focusing on positive swaps is crucial, as the tester doesn’t account for them. This means it shouldn't be a full hedge strategy. We could either limit...
I want buy it
People don't plan to lose. They lose because they don't plan.
  • #3,840
  • Nov 8, 2024 7:57am Nov 8, 2024 7:57am
Quoting VolBog
Hi all. I've been trading this strategy for one week and achieved a 4% gain on the deposit. It might have been a bit over-risked, but this week provided ideal volatility for this approach. Here are some of my observations: Swaps play an important role. I developed an EA that runs on demo and has been optimized over the last 2 years. From my observations, the longest trade duration was 82 days. So, focusing on positive swaps is crucial, as the tester doesn’t account for them. This means it shouldn't be a full hedge strategy. We could either limit...
Positive swap direction normally determines my bias, far more reliable than predictions which have always let me down
Sounds like a lot of screen time to me.
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