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Hedge,Basket, Trading Calculation How to

  • #1
  • First Post: Edited May 26, 2007 8:10am May 21, 2007 1:54pm | Edited May 26, 2007 8:10am
Does anyone know how these sites do their calculations?
{links removed, see rule #3} True north Excel calculator
Some use
EUR)/CHF
Euro pip value 10 CHF 8.13 10/8.13 = 1.23 x .86 correlation
100- 86= 14 1.23 x 114 = 140
Buy 1.40 lots CHF
Buy 1 lot Euro

HowTo -pip value of each pair, swap value of each pair ,daily range of each pair Calculate
All these to factor how many lots to buy,sell

Does anyone know these calculation are done ? can you share any Excel sheets you have
  • #2
  • Nov 21, 2007 7:45am Nov 21, 2007 7:45am
I don't know how True North do their calculations but I can testify that their customer service is outstanding. They responded to all my questions (I asked a lot) quickly and their answers are to the point and very helpful. They really want their clients to be successful in Forex trading. Please note that I don't work for them. I'm just a satisfied customer.

Quoting toddanderson
Does anyone know how these sites do their calculations?
{links removed, see rule #3} True north Excel calculator
Some use
EUR)/CHF
Euro pip value 10 CHF 8.13 10/8.13 = 1.23 x .86 correlation
100- 86= 14 1.23 x 114 = 140
Buy 1.40 lots CHF
Buy 1 lot Euro

HowTo -pip value of each pair, swap value of each pair ,daily range of each pair Calculate
All these to factor how many lots to buy,sell

Does anyone know these calculation are done ? can you share any Excel sheets you have
  • #3
  • Nov 21, 2007 9:10am Nov 21, 2007 9:10am
I am finding that the lot calculation are the least important part
of these hedge, baskets,
Pips are made on the entry, exit
  • #4
  • Nov 25, 2007 12:06am Nov 25, 2007 12:06am
Todd, what do you mean by "Pips are made on the entry, exit". If lot calculation is not important, do you mean we can just set it on 1:1 ratio? I have done that and it doesn't seem to work all the time, and might get greater drawdown compared to true north calculation.

By the way, I used the search button on this site to look for threads related to true north concepts, I didn't expect that there would be quite a number of members in this board who are also using their hedge calculator. Lets brainstorm on this strategy and see if we can improve it. But so far, I'm more than satisfied with the pips that I'm getting from using the hedge calculator. I would recommend the hedge calculator.

I also agree with EATrader, they have great support!
  • #5
  • Nov 25, 2007 6:22am Nov 25, 2007 6:22am
I said the lot size was the least important thing, but still important
on a Euro/usa and usa/chf hedge or others you are making money as long
as the Euro/chf is going up. When the euro/chf is going down you are loosing money .

So what iam saying is enter a euro/ usa usa/chf hedge and
watch the Euro/chf for entry and exit.

Just having a lot calc. is not a lot of help . you need help with is
when to enter, exit the hedge. Most , all of these systems do the lot
calc and nothing else.


Quoting fxstar
Todd, what do you mean by "Pips are made on the entry, exit". If lot calculation is not important, do you mean we can just set it on 1:1 ratio? I have done that and it doesn't seem to work all the time, and might get greater drawdown compared to true north calculation.

By the way, I used the search button on this site to look for threads related to true north concepts, I didn't expect that there would be quite a number of members in this board who are also using their hedge calculator. Lets brainstorm on this strategy and see if we can improve it. But so far, I'm more than satisfied with the pips that I'm getting from using the hedge calculator. I would recommend the hedge calculator.

I also agree with EATrader, they have great support!
  • #6
  • Nov 27, 2007 7:38am Nov 27, 2007 7:38am
I see. The true north has already covered that issue. They suggest us not to hedge during carrys unwinding, if US stock has dropped significantly previous day and if government bonds rises.

They also gave the set of indicators to help us get in at the right time to avoid huge drawdown.

Its like what happen yesterday, the indicators gave signal to enter and I did, and before the US market close, it gave a exit signal. I get out with a small profit.
  • #7
  • Nov 27, 2007 8:28am Nov 27, 2007 8:28am
What type of indicators are they using
can you post them here


Quoting fxstar
I see. The true north has already covered that issue. They suggest us not to hedge during carrys unwinding, if US stock has dropped significantly previous day and if government bonds rises.

They also gave the set of indicators to help us get in at the right time to avoid huge drawdown.

Its like what happen yesterday, the indicators gave signal to enter and I did, and before the US market close, it gave a exit signal. I get out with a small profit.
  • #8
  • Nov 27, 2007 9:19am Nov 27, 2007 9:19am
Quoting toddanderson
What type of indicators are they using
can you post them here
Multi timeframe stochastic, CCI, ADX. And use TL and fibonacci levels for confirmation. You don't have to blindly enter the hedge trade like what you were trying to imply.
  • #9
  • Nov 27, 2007 10:45am Nov 27, 2007 10:45am
can you post your chart?

Thanks.
zu
  • #10
  • Nov 27, 2007 11:32am Nov 27, 2007 11:32am
sorry zu, I don't know how to put chart here.
  • #11
  • Nov 29, 2007 11:47pm Nov 29, 2007 11:47pm
Quoting zu si fu
can you post your chart?

Thanks.
zu
Here's the chart look like from true north, I just added fibonacci levels.

http://i84.photobucket.com/albums/k28/krugger21/3-3.gif

Nice recovery, I closed my positions when it touches the 50 fibo, I should have hold on to it much longer I guess, indicators didn't signal to exit yet. Seems its on its way to 38 fibo now.
  • #12
  • Nov 30, 2007 5:48am Nov 30, 2007 5:48am
How are you drawing fib levels, Daily fib, or recent high low swing, or something else


Quoting sam1
Here's the chart look like from true north, I just added fibonacci levels.

http://i84.photobucket.com/albums/k28/krugger21/3-3.gif

Nice recovery, I closed my positions when it touches the 50 fibo, I should have hold on to it much longer I guess, indicators didn't signal to exit yet. Seems its on its way to 38 fibo now.
  • #13
  • Dec 1, 2007 8:42am Dec 1, 2007 8:42am
Thanks Sam,can i have the fib level that u post on your chart?


Thanks in advance.

zu
  • #14
  • Edited 8:38am Dec 2, 2007 8:22am | Edited 8:38am
Quoting zu si fu
Thanks Sam,can i have the fib level that u post on your chart?


Thanks in advance.

zu
the fib on the chart i post is the standard fibonacci indicators in mt4 platform. You just need to add the 76.4% level yourself, according to true north concepts.

Go google search or go to babypips.com to know more on how to use fibonacci levels.

Here is a brief explanation.
1. When you are hedging eur/usd with usd/chf pairs.
2. Open up a eur/chf chart.
3. Look for the recent low point and recent high point, draw the fib from low to high if it is a bull swing and high to low if it is a bear swing.
4. After the recent swing, there would be a retrace. The important level of the retrace is 50, 61.8, and 76.4 levels. These is were price usually reverse.
5. The lower it dip, the stronger the reversal.
6. If it go below the 76.4 fib, it means the present trend has already change.

A good example of this is the recent retrace of eur/chf.
1. Open a daily chart.
2. draw the fib from aug. 17 low to the high of oct. 12.
3. You will see that price reverse nicely on 76.4 fib level. Try it.
  • #15
  • Dec 3, 2007 11:18am Dec 3, 2007 11:18am
Thanks Sam1.

ZU
  • #16
  • Last Post: May 4, 2013 5:16am May 4, 2013 5:16am
Is anyone still runing this type of system?
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