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EUR/USD and USD/CHF Hedging Strategy

  • #21
  • Nov 20, 2007 3:21pm Nov 20, 2007 3:21pm
Have we missed the boat for long term hedge trading USDCHF EURUSD...that is a risk we are taking if we want to do this now.


Here is my (updated) last statement I will be likely to post of the buy/sell of the pairs. I know it was meant to be buy buy. This was just to see how fast profitable trades would close while they correlate but buy sell instead of both buy.

No it isn't easy and risk as always. I agree tdion.

I do have statement using the original thread trading strategy (buy EURUSD buy USDCHF) but profits are lower and some are not in profit.

If I was trading this way live (as shown in my statement) I would want to design a more advanced EA to see if it would handle risk better and keep positions open shorter time.
Attached File(s)
File Type: zip #Detailed Statement Updated The way not to trade...you tell me.zip   11 KB | 1,233 downloads
  • #22
  • Nov 21, 2007 5:30am Nov 21, 2007 5:30am
Quoting Fxscalp
Have we missed the boat for long term hedge trading USDCHF EURUSD...that is a risk we are taking if we want to do this now.


Here is my (updated) last statement I will be likely to post of the buy/sell of the pairs. I know it was meant to be buy buy. This was just to see how fast profitable trades would close while they correlate but buy sell instead of both buy.

No it isn't easy and risk as always. I agree tdion.

I do have statement using the original thread trading strategy (buy EURUSD buy USDCHF) but profits are lower and some are not in profit.

If I was trading this way live (as shown in my statement) I would want to design a more advanced EA to see if it would handle risk better and keep positions open shorter time.
Very nice results. Fxscalp, can you please answer my questions above of which TF to attach it to etc. I would really appreciate it.

Thanks
  • #23
  • Edited 7:44am Nov 21, 2007 7:27am | Edited 7:44am
Quoting jay9170
I see, on th einputs when attaching the EA do you put operation 2 as sell?

Thanks
This is how my one looks, the EA gives you the option of the pair you enter and buy/sell.

Hope this helps.

Now profit of over 10k for just over a month. Has anyone statements to share on the buy/buy EURUSD/USDCHF?

I have been using 15M TF with this one.

Profit parameter set to 6 using MM from default lot size (I set it to 1 in EA later) now it is up to lot size 2 as you can see.
Attached Image (click to enlarge)
Click to Enlarge Name: Capture of EA properties.JPG Size: 265 KB
  • #24
  • Nov 22, 2007 6:48am Nov 22, 2007 6:48am
Thanks Fxscalp...that does help alot. I am going to give it a try.
  • #25
  • Nov 22, 2007 10:20am Nov 22, 2007 10:20am
Quoting jay9170
Thanks Fxscalp...that does help alot. I am going to give it a try.
Let me know how it goes.
  • #26
  • Edited 1:30pm Nov 22, 2007 12:28pm | Edited 1:30pm
FXscalp,

How do you set up the EA, when to enter or close a trade?

Can you start w/ 1K instead of 5K.

I would like to test this on a demo account before going live.

Thanks,

  • #27
  • Nov 22, 2007 2:20pm Nov 22, 2007 2:20pm
Hi everyone,
Just to share some thoughts....

This kind of method does work for sometime while market conditions for it are prime but then a big enough hitch in the correlation can end your account.

If anyone was to attempt this then I would suggest withdraing profits everytime the account doubles, should certainly be profitable like this.

If the account only blows out 40% - of the time using the double and withdraw principle then ur on to a winner. I personally just off the top of my head would guess it would only blow 20% of the time using the rules I would implament.

I would suggest it would be ideal for leverage and possition sizing to be maxed out but to allow 200pips in minus before a margin call......

Id like to hear more oppinions/.........

leon
Living the adventure in my head.
  • #28
  • Nov 22, 2007 5:41pm Nov 22, 2007 5:41pm
Quoting chinkygurl
FXscalp,

How do you set up the EA, when to enter or close a trade?

Can you start w/ 1K instead of 5K.

I would like to test this on a demo account before going live.

Thanks,


leon makes a very good point. If you do eventually want to go live with this form of trading you do need to withdraw profit at the first opportunity, then you can sit back and relax knowing you have lost nothing that was yours.

I just let the EA decide when to take out trades that is why it can be so risky and it means waiting days or a week or more in some cases for the market to move for trades to close on profit. The EA takes out trades on both pairs at the same time and closes at the same time once a profit is made.

If you like I can upload a .set file for you to load directly into the EA properties.

With the movee in market just now my demo account is now over 16k with a profit of over 11k. I have not yet gone live with this. I may do soon but I am looking to test some other strategies out first before that. it was always an experiment for me to see just how well it may perform. Not bad at all really.

I see no reason why you can't go live with 1k (just use small lot size) but really it is best 3k in my opinion because of the nature of this trading form, positions can be left open for days or a week or more and market will move in opposite direction than your orders for this time - risk of margin call, just something to think about before you do go live. Test throughly in demo account first then decide what is best for you, and always withdraw profit at first opportunity to cover your initial balance deposit. At the end of it all it is your choice to make.
  • #29
  • Nov 23, 2007 12:32am Nov 23, 2007 12:32am
FXscalp,

That would be great!

I really appreciate all your help.

  • #30
  • Nov 23, 2007 5:20am Nov 23, 2007 5:20am
Quoting Fxscalp
leon makes a very good point. If you do eventually want to go live with this form of trading you do need to withdraw profit at the first opportunity, then you can sit back and relax knowing you have lost nothing that was yours.

I just let the EA decide when to take out trades that is why it can be so risky and it means waiting days or a week or more in some cases for the market to move for trades to close on profit. The EA takes out trades on both pairs at the same time and closes at the same time once a profit is made.

If you like I can upload a .set file for you to load directly into the EA properties.

With the movee in market just now my demo account is now over 16k with a profit of over 11k. I have not yet gone live with this. I may do soon but I am looking to test some other strategies out first before that. it was always an experiment for me to see just how well it may perform. Not bad at all really.

I see no reason why you can't go live with 1k (just use small lot size) but really it is best 3k in my opinion because of the nature of this trading form, positions can be left open for days or a week or more and market will move in opposite direction than your orders for this time - risk of margin call, just something to think about before you do go live. Test throughly in demo account first then decide what is best for you, and always withdraw profit at first opportunity to cover your initial balance deposit. At the end of it all it is your choice to make.
That would be great if you could upload the .set file here.

Thanks Again
  • #31
  • Nov 23, 2007 8:28am Nov 23, 2007 8:28am
Here it is. It will be interesting to see how it continues to perform on my demo account.

Here is the set file attached.

After having the EA attached to the chart load it in EA properties. Remember to set your own lot size. The lot size in the set file is much higher now than it was when I first used this EA.
Attached File(s)
File Type: zip hedgetrader set file.zip   < 1 KB | 1,400 downloads
  • #32
  • Nov 23, 2007 11:53am Nov 23, 2007 11:53am
Hi Fxscalp:

Sorry my ignorance, but that is the ".set " file?

Thanks guy.
  • #33
  • Nov 23, 2007 3:27pm Nov 23, 2007 3:27pm
Quoting chaveznqoos
Hi Fxscalp:

Sorry my ignorance, but that is the ".set " file?

Thanks guy.
Yes it is and safe to download. I had to zip it because it won't allow me to upload .set type files on here.

Now here is a screenshot of both currency pairs to show you all what situation my demo account is in. I post this here so you can see how long it may take for the market to move in our direction for the EA to close out trades in profit. It can get discouraging at times but it is a waiting game. Keeping a cool head helps. And there is risk as always. If this was a live account I would have already withdrawn my profits covering all balance deposits by now.

Hopefully more experienced traders that hedge can share their experience with us more. Any info or advice appreciated. I know if we trade too many pairs overtrading happens fast. Account size can be vital along with money management.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: EURUSD-1.JPG Size: 258 KB
Click to Enlarge Name: USDCHF-1.JPG Size: 279 KB
  • #34
  • Nov 23, 2007 6:40pm Nov 23, 2007 6:40pm
Hello all,

Also maby another option to consider would be to switch the EA off whenever price is below a certain MA for safety....

Or is this starting to become a little too hands on for you all?

Well, whatever.... something like that would be easily programed!

leon

PS. Everone realises that this EA does not have the correct hedge values dont they?
It shoud be EU .8 UC .6! remember different currencies = different value per lot!
Living the adventure in my head.
  • #35
  • Nov 24, 2007 3:13am Nov 24, 2007 3:13am
Thanks for the post Leon.

I don't think most of us know about the lot sizing when hedge trading, it wasn't mentioned here earlier, I knew it wasn't set for my trading, also swap could be a problem when trading this way, it isn't carry hedge trading across two accounts so do you really think it would be best to have a swap free account when trading this live?

I would like the see the EA modified to be safer as well as you suggested, if it trades within a certain price range - somewhere both pairs are likely to range weekly would be good, now that is why I suggested a more intelligent EA for this trading method in an earlier post. If we had Neural Networks of some kind calculating the probabilities of price ranges based on historical data that may minimise risk even better. I don't know of any programmer that could do this though.

Let me know your thoughts on this.

Do think it is better trading these two pairs as buy sell or just buy buy? On demo account it looks promising but I agree that it could use more safety with the EA.
  • #36
  • Nov 24, 2007 6:23am Nov 24, 2007 6:23am
Can someone please tell me how i can load mq4 files into an existing meta4 platform.

Thanks Ed
  • #37
  • Nov 24, 2007 8:00am Nov 24, 2007 8:00am
Quoting Leonlorenzo
Hello all,

leon

PS. Everone realises that this EA does not have the correct hedge values dont they?
It shoud be EU .8 UC .6! remember different currencies = different value per lot!
where exactly do I make this change..can't find anything that looks like this?

maybe a stupid question, do you have to use an EA?
can I just enter both these trades and let them run????

thanks
  • #38
  • Nov 24, 2007 7:16pm Nov 24, 2007 7:16pm
hharrington read here: or search for articles on this in search engine.

Copy and paste or move the .mq4 or ex4 file into the directory of your metatrader platform which is generally as shows:

C:/programfiles/MetaTrader/name of broker/experts

How to load or attach the EA you just imported:

http://www.metatrader.info/node/69

http://www.metaquotes.net/userguides

As with any software guide it is not easy for newbies.


generalz this may help you:
http://articles.mql4.com/445

Sorry I am not much help with this form of trading. I am rather new to hedge trading, it can be difficult to balance out your profits if you intend to hedge trade for the purpose of carrying swap/interest earned. It means carry trading I think the term is when you have two accounts with separate brokers. Personally though I think if we are to use one account some the the same principals in trading still applies such as the obvious money management a large account size is really useful and again money management making sure you do not over trade and use caution. There is a lot fo rme to learn yet about hedge trading the forex, I need to larn some historical data on the pairs as well if I intend to trade them, I don't mean to overcomplicate things here. And I am not the best to give advice on this kind of trading. I hope others will spare the time to do so though.

If I could spare some time learning more about hedge trading it would soon become simple once I had the know. I am working on designing and perfecting my own Expert Advisor now, I could be busy for some time. It is not based on hedge trading. Just a successful trading strategy that appears to be very consistent when traded manually, making it a consistent winner in an EA is another matter.

I have an EA I bought that does hedge trading and it performs so badly for me. I need to do futher testing yet though before I can say whether or not I can recommend it.
  • #39
  • Nov 26, 2007 11:08am Nov 26, 2007 11:08am
There is another hedge EA that is freely available for you to try if you do not get successful results with this EA, that is slightly more advanced.

You may have to tweak some settings and disable currency pairs you do not want to trade and use a big balance size in a demo account for testing.

I have attached a statement of my tests, it runs okay, but the trades that say partial close in comment section of statement were not from this EA so you can ignore those negative trades.

Down load the EA here:

http://codebase.mql4.com/en/957
Attached File(s)
File Type: zip Detailed fun Statement of SMA MiltiHedge2.zip   13 KB | 909 downloads
  • #40
  • Edited 11:27am Nov 26, 2007 11:11am | Edited 11:27am
Quoting generalz
where exactly do I make this change..can't find anything that looks like this?

maybe a stupid question, do you have to use an EA?
can I just enter both these trades and let them run????

thanks
Yep just manual trade use a nice size account with a take profit and nothing else. Unless you want a trailing stop but it seems risky using any stop loss with this trade method if you ask me, but hey I am no expert trading this style. You will need to calulate profit for each trade and execute trades at the price you want, limit open orders to prevent margin call. I find an easier way to make profit with pending orders if I can tell the direction it soon hits the open order in say 3 days and profits hugely with a big move, but not tried it with hedge trading, let me know how you go on with it though, on demo account first.

With my other manual trade systems I rarely use a SL and prefer to just use a TP, hasn't failed me yet. But with an EA that does NOT hedge trade a Sl or TS is ok I think.

Just keep your nerve when having open positions for a long period of time, just like with any trend trading don't close out too soon or too late for that matter or you'll have a longer wait. The benefit with manual trading this is that you can decide when not to trade which in my opinion is much safer, Richard Dennis used only 3-6 trades each year and made hundreds of millions because he got the big moves. Overtrading kills.

I have another account with a hedge EA I bought I will share statement of it in the future, I am trying to get it to make a profit, it really is not perfect but if used on a huge account it may just work. it trades often and closes out on a profit but always trades five pairs. Some pairs seem to always lose when hedging with all these EA's IMO.

Good luck.
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