Hedge trading spieler system derived from futures spread trading

Hi..


Spieler ....my entries were similar to yours....not sure what you ECH % was at the time....but on my charts it did not hit 0.55

.

ok i dont know cause afetr seeing -0.54% i had a cut for 5 minutes

Ok now we just have to wait

my psp is on my desk

I'm doing some math regarding the lot size to be used to be usd balanced and I found something to think about.
As example I use my early entry this morning :

long EURUSD @ 1.6007
long USDCHF @ 1.0047

for easy calculation let's suppose to enter 1 round lot (100000) on EURUSD and we want to know how much should be lot size for USDCHF. So we have :

1 lot EURUSD @ 1.6007 = Bought 100000 EUR, Sold 160070 USD (=100.000*1.6007)

so now to be usd balanced we should buy 160070 USD on the USDCHF trade, so we have to calculate variable X in this equation :

X lot USDCHF @ 1.0047 = 160070 USD

thus X = 160070 / 100000 = 1.6007 lot

but we cannot use 1.6007 lot so we have to round to 1.60 , this imply :

1.60 lot USDCHF @ 1.0047 = Bought 160000 USD , Sold 160752 CHF (=160.000*1.0047)

at the end we have :

* Bought 100000 EUR , Sold 160070 USD (from EURUSD)
* Bought 160000 USD , Sold 160752 CHF (from USDCHF)

finally we get this figures :

* Bought 100000 EUR
* Sold 70 USD
* Sold 160752 CHF

So it's clear (if my math are correct) that using platform like Metatrader where there's no way to buy/sell single units this system could not be used since we'll never be $ neutral.
I guess the only platform suitable for this system should be Oanda where it's possible to buy/sell single units but there's no way to automatize the whole process so it could be also hard to do all the calcualtion manually in realtime.

Spieler any comment on this ? How do you handle this in your pro-real time platform ?

Cheers,
Skyline

....I am using MT4 only for charting.

my order entry is via BARX where I can buy or sell simultaneously different amounts on as many pairs as I like.

regards
daytrading

prorealtime is not a broker only a graph provider

you dont have to be market neutral at zero sharp
1.50 1.60 is ok difference is so small that it does not impact performance

Dear Spieler,

What is the difference in trade quality if you take the % movement of the EURCHF pair alone or, rather, subtact the difference between the % movement of the USDCHF from the % movement of the EURUSD? ---Because the numbers aren't the same.

Thanks,

Lenoxer

Oh ok Spieler , that's fine thx

Cheers,
Skyline

EUR/CHF is hanging around -0.5% ...maybe still time to average the positions.

regards
daytrading

-0.54% dont want to go to 0.55
i am still waiting 0.55/0.60 if it speeds up down

Spieler,

if you not get your levels, will you stick with the initial position or will you still add during the convergence?

regards
daytrading

i never add when back to convergence only add when decorrelating meaning that i do the contrary of the rule never average a loosing position

But that s the way spread trading works with sound MM

...excellent, thank you Spieler.

regards
daytrading

-0.55% hit
on emore lot
eur/usd long 1.5999
usd/chf long 1.0051

Hi


Will you be adding to EUR first...then CHF...

i bought eur first i could win 2 pips

Hi...

I am just trying to formalize the taking of the next lots...I was waiting for -0.56 it was hit but by the time i was ready to click the trades it moved back...

So I will try use a 5min close equal to or below my add target..

doubled @ 1.5994 and 1.0052

regards
daytrading

your entry point is excellent better than mine

need sometime to be fast to click on the button and need a quick broker to get a fill because you have to send a second order onece done.
in spread trading on futures i did not have this problem because i could send a spread order directly with j trader and X_trader

Dear Spieler,

Sorry for the bother, but could you tell me what you think about the question on my post, #227?

Thanks so much,

L.