I am working on a new hedge system that shows promise. I'll share it now and perhaps an EA can be built in the future.
My original idea is posted here:
http://www.forexfactory.com/forexfor...5&postcount=19
10 pip bounces are too common..... so I have worked with various geometric shapes for the "stop and reverse" region.
Also, Martingale is too dangerous for my taste, so I downgraded to adding a single lot to either side of the hedge. Backtests look pretty good with EUR/USD at the moment, where 2 pip spreads are attractive for this.
In the graph, l1 means "long 1 lot" and s2 means "short 2 lots." s and l are "long" and "short" followed by quantity. Each horizontal line is 10 pips away from the next. Take Profit levels are not shown on the graph, but are about 30 pips away from the megaphone.
All positions stay open until TP level is reached.
I experimented with upward and downward channels, and a pinnant for the stop and reverse area (In other words, I used those shapes in place of the megaphone.) I will post more later on those ideas if anything productive comes from them.
As always, please provide feedback. Thanks....
My original idea is posted here:
http://www.forexfactory.com/forexfor...5&postcount=19
10 pip bounces are too common..... so I have worked with various geometric shapes for the "stop and reverse" region.
Also, Martingale is too dangerous for my taste, so I downgraded to adding a single lot to either side of the hedge. Backtests look pretty good with EUR/USD at the moment, where 2 pip spreads are attractive for this.
In the graph, l1 means "long 1 lot" and s2 means "short 2 lots." s and l are "long" and "short" followed by quantity. Each horizontal line is 10 pips away from the next. Take Profit levels are not shown on the graph, but are about 30 pips away from the megaphone.
All positions stay open until TP level is reached.
I experimented with upward and downward channels, and a pinnant for the stop and reverse area (In other words, I used those shapes in place of the megaphone.) I will post more later on those ideas if anything productive comes from them.
As always, please provide feedback. Thanks....
Attached Image