Ok this time some light must be added.
#The system works like this: (the rules apply the same for inverse situation)
If EURCHF -25% versus day open , then we enter buy both pairs, until 0% or + 25%.#
Correct for entry . For exit differents options
1) the market reverse quickly so we have a winner i am waiting zero line and exit half , then i will close remaining close to +0.020% but this is more an experienced exit than a formal rule.
2) Market goes again our position but not enough so that we have only one position( go only to -0.40% for exemple) I will close half the position even and wait zero zone for remaining.
The idea is that hedge was again us so we lighted the pose in case the trend continious.
#Case 1: The hedge moves in our favour, so we close positions when EURCHF +25%, and in the same time, we open sell both pairs.#
Usually if we go from -0.25 to +0.25 i will wait a little bit the trend to weaken before entering the short ( i know this system is not a good candidate foe an EA sorry)
If you enter a long when eur/cfh is -0.25 than an other one at -0.50 then an other one at 0.75.
At this point it is better to wait 0.50 more before entering and that supposed that you are abble to do that by non being over leverage.
An important rule to avoid big DD in case of a huge trendy moove which can happens even if correlation supposed to be strong is that when you are in a dd situation you have to work your position:
Exemple you are long 1lot eur/usd and 1.5( or 1.60) lot usd/chf then usd/chf goes -0.50 you enter a second position,
You have to exit this position if we go to -0.25 and that is the entry point of the other one , So now you have only one position which is even and waiting for zero line.
By doing that you avoid a big trend which occurs 1 or 2 times per year because you have always a pull back so you can lighten the position and not being hitted by a Margin call.
If you keep the position ON , Let say on monday you are in short at +0.25% end of day i s+0.35%.
On tuesday ( my graphs are GMT) you start th ehedge at 0% but in your head you know that you are +0.35% , you HAVE TO wait again +0.25% and not only +0.10% more , doing that you minimize again the risk and th emoney management.
Amnd Money management is everything in this system ( in others too)
An iother question was do you keep on : anwer yes
I will post all the trades i will make so than after 2 weeks things will be clear.
i forget to take a picture on the friday exit but profit have been several K$ something close to +0.50% compared to the capital of the account.
Hedge trading spieler system derived from futures spread trading
Thanks for the quick answer. Can you please also confirm how much decorrolation you look for between EURUSD and USDCHF before you would consider the +/-0.25 in EURCHF to be a valid signal?
I dont understand the question as the 0.25% you are speaking about is the decorrelation.
You will beter understand this week as i wil post my entries and exit with the graphs.
Other abswer
you are Speaking of spread betting and of loosing whick looks normal to me as spread is everything but betting
But i understand your saying that s why i have developped rules over the year so that now the system is stable and avoid margin call so far ........
THis systeme is good for well capitalised account not for very small one in my opinion
I dont understand the question as the 0.25% you are speaking about is the decorrelation.
You will beter understand this week as i wil post my entries and exit with the graphs.
Other abswer
you are Speaking of spread betting and of loosing whick looks normal to me as spread is everything but betting
But i understand your saying that s why i have developped rules over the year so that now the system is stable and avoid margin call so far ........
THis systeme is good for well capitalised account not for very small one in my opinion
