EUR/USD and USD/CHF Hedging Strategy

Hi,

I was recently testing the HedgeTrader expert which buys EUR/USD and USD/CHF simultaneously and closes the two trades whenever a profit occurs. So far it looks promising. Has anyone tried a similar expert or strategy, any success?

Cheers,
Steve

I'm testing something simular now, it gives about 20% a month profit.
Results and EA are posted here:
http://www.forexfactory.com/showthread.php?t=44434

You can find out more about another swap basket here:

http://www.forexfactory.com/showthread.php?t=24673

There is also a company called "freedom rocks" that implements a USDCHF EURUSD basket. The idea is to collect the positive rollover premium differential, while offsetting the volality between the pairs.

The problem with these systems is that you can overleverage your account and get a margin call...... the thread I linked is a very interesting read..... it shows what happens when the GBPJPY fell over 1000 pips, leaving some member trading that basket in dire straights.

Hi, please explain how this EA works, does it buy/sell both pairs at the same time and wait for an overall profit to be realized and then start over again

Can you share results.

broken link??

no it is broken script

http://www.forexfactory.com/showthread.php?t=44434

i can't connect to the thread.......is the method still profitable ?

forex101 do you have a statement to share on the trading system you say you're using with this EA?

I tried it a little differently using this EA and it worked for a short time very well with good profit but I can see it won't last.

I am new to trading so any advise on hedge trading will be appreciated. Ideally there are meant to be 3 currency pairs used to hedge I have read. How would this be done?

EURUSD and USDCHF have good correlation in a mirror chart image if we compare them. I decided to go with that for a test with this EA. buy EURUSD sell USDCHF. The problem I can see with this EA is that it is now buying EURUSD high instead of low and selling USDCHF lower than it should do (makes it trade in wrong direction then making a loss or keeping open order for long period of time and is risky), it doesn't have any intelligence that way so maybe it should be left only to buy or use as forex101 has.

See attached statement on demo account. You can see what I mean about buying high and selling lower than it should with open trades and this is the second time now. it means much fewer trades each day and fewer pip profits. Not good.

Ignore the first few trades until ticket 3301868. Maybe this is the way not to trade using this EA.

Are you still trading this?Can you update me on how your performance has been? Thanks

Yes, I can give you a quick update.


So far it shows an average of ROI on a small balance using mini account: $7k per month using lot size lower than 1 per trade using money management is a good option to use though but if you want low risk just set lot size low. You can adjust the amount of pips you want to earn before the EA closes out trades.

it is your choice if you want the EA to decide lot size for each trade using its money management or if you prefer to use a fixed lot size.

Still using same trading as shown in above statement and still making a profit. Not bad for a system that will fail...that is what others have said about this, it sure beats the tradition true hedging stretegies some traders use across multiple brokers. Don't you think?

I am not sure this kind of trading should be traded live until you know -1 only to risk what you can afford to risk and -2 withdraw earnings when in profit for first 3 times (months) you make back your balance, that way when trading live you lose nothing if this works for your first month of trading.

I am also testing another EA out but it is not hedge trading, it is just scalping. Not many brokers allow that.

$5k - $10k starting balance seems good with this trading. That is all I have tried so far in demo accounts. I think using higher balances is risky because it means it will trade in much higher lot sizes and there is a risk of over trading or even blowing up the account. Just don't use the EA on more than two pairs and I think it will show statement similar to my one above. Some positions are open for 3 days or longer but few are. It all depends on when the EA buys sells, sometimes it does the opposite of what it should/a human would do, which takes longer for the positive pips to roll in. If this EA had some artificial intelligence that worked it would be nice.

I was bored of this for a while so I shut the trading platform down for a week with open positions, I did this a few times but it is still trading in positive balance with nice profits.

FXScalp,

so what is the method ? i don't and can't see anything about it on this thread ?

is it that you buy eur/usd and usd/chf at same time and close out both when there's a profit ?

very simple question, what is the method... this thread just want to see the result of the EA or share about hedging strategy? maybe i can try this EA, look interesting..

Here is is the equity chart that is generated for holding these two pairs over different time periods.

5 MINUTE CHART

http://i13.tinypic.com/8bp9h0z.jpg

15 MINUTE CHART

http://i9.tinypic.com/7wr0x21.jpg

60 MINUTE CHART

http://i18.tinypic.com/836tp51.jpg

DAILY CHART

http://i16.tinypic.com/7y5o379.jpg

Coder

Thanks for the screenshots Coder.

For anyone not understanding what this trading method is please re-read the thread from start to finish, it includes buying two corruency pairs at the same time then closing out orders while in profit. The statement in one of my posts I posted was not using this trading method but was buy/sell of these pairs.

Try this out on demo accounts using the EA to see how it works for you.

jay9170 you sent me a PM. I have been unable to reply to you, not sure why this is because I had been able to send messages before even though I have few posts here. I sent an email to admin but they haven't replied telling me why this is.

Just attach the EA to either currency pair it only needs to be on one.

Thanks FX
Which TF do you attach it to and how are you getting it to open a buy/sell as you are? Isn't that what the EA does anyway? Opens a buy on one pair and a sell on the other?

Thanks Again

I see, on th einputs when attaching the EA do you put operation 2 as sell?

Thanks

Thank you, coder.

Greetings. I have studied EURUSD USDCHF correlation strategies extensively. The past few years would have been a very good time to do this long term.

However, the real question here is: "Have we missed the boat?"

The old cliche "past performance doesn't guarantee anything" applies. The correlation has had years where it lost equity in the same veracity as it gained it in coder's chart.

So what I am saying is that this is risky, and do not let the past few years performance convince you that this is a slam dunk.

I am not here to bash anyone or anything, just trying to provide perspective. Thank you, everyone.

i tried this sometime ago as suggested by forexforsmarties but depends on how much usd/chf and eur/usd you buy at the time, it made money for sometime but later fell into serious drawdown especially when you enter just before a meltdown when both pairs go down by a few hundred pips combined.