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Zeusjoes Market-Neutral Hedge Strategy

  • #621
  • Aug 21, 2008 5:21am Aug 21, 2008 5:21am
Quoting Tjpld
~~
The funny thing is when you are Long EU and UC you gain interest on both and you are hedged!
Good Trading
  • #622
  • Edited 7:58am Aug 21, 2008 7:37am | Edited 7:58am
one more trade before the news (spread touch +2).

EDIT:
SL hit, but from previous transaction when we will close it at the middle line it was over 40 pip gain.
Let's see what happen next...
Attached Image (click to enlarge)
Click to Enlarge Name: trade2.JPG Size: 111 KB
  • #623
  • Aug 21, 2008 8:55am Aug 21, 2008 8:55am
Hi
So now you do not take hedge trades just directional ones
  • #624
  • Aug 21, 2008 9:49am Aug 21, 2008 9:49am
now when I understand how hedge trade works eg L EU and S GU I know that it's not so safety way to trade. In 90-95% our gain depends from EUR/GBP moves. So in 90-95% we're trading EG.
But I saw that there is possibility to use pairs trading (hedging) principal for directional trading. This way of trading is more safe for me. But it's out of this thread so I will post only things about hedging.
  • #625
  • Aug 21, 2008 10:50pm Aug 21, 2008 10:50pm
Quoting magictrader
now when I understand how hedge trade works eg L EU and S GU I know that it's not so safety way to trade. In 90-95% our gain depends from EUR/GBP moves. So in 90-95% we're trading EG.
yap..i notice that too..but the problem is when we trade directional, we have to choose between sell the stronger or buy the weaker..we dont really know weather one currency become too strong or become too weak...when it happens, we lose...on the other hand hedging can eliminate that kind of problem but when the spread in EG become higher than we lose as well..

i've tested the method to solve this problem..but i need to backtest it first...
  • #626
  • Aug 22, 2008 1:07am Aug 22, 2008 1:07am
this is a demotrade, using swingmans NeutralPriceOscillator
time is CET
long EURUSD 14828
long USDCHF 10890 at 15:10
closed both ca. 5:00 this morning with nice profit

i also dit a Spieler Hedge trade with mini Lot size, almost the same result.
The only diference i can see is, the entry with swingmans Oscillator is more correct cause it shows you the correlation of EURUSD and USDCHF.
Spieler follows the EURCHF moves from the start of the day and thats different with any broker. Some use GMT , im with oanda, they use NY ET., so what time should one take?
Attached Image (click to enlarge)
Click to Enlarge Name: spieler-002.JPG Size: 128 KB
  • #627
  • Edited 3:59pm Aug 27, 2008 12:01pm | Edited 3:59pm
Hello,

I don't want to change topic of this thread but you could try strategy with H1 candles on EU and Neutral Price Oscillator set up like this:
Pair 1: EURUSD
Pair 2: USDCHF
maxBars: 300
Period_Differences: 200
BB_Period: 200.0
BB_Deviation: 2.0

Time Frame for indicator: M5

When you have indicator over +2 or below -2 then simply look at H1 EU chart and wait for confirmation to reverse. I use only 4 candlestick patterns: mornig star, evening star, piercing formation and dark cloud cover. Entry on the next H1 candle or wait for pull back. I use 25-30 pips SL and 50-60 pips TP. I move my SL when position is in profit, usually when +20,25 to BE, and when +40,45 to +20.

If you have time, just try it.

EDIT:
results from last signals:
+20, +50, +20, +50, -25, +50, +50 and today I've made +41 pips (+7 SL, and +34 closed manually because of the news in few minutes).
  • #628
  • Aug 27, 2008 3:29pm Aug 27, 2008 3:29pm
Jup that NP Oscillator is a really nice tool.
I trade BB break outs which indicates turning points.
Chart is EUR/USD 1H.
Attached Image (click to enlarge)
Click to Enlarge Name: blasfasl.jpg Size: 127 KB
  • #629
  • Aug 27, 2008 3:35pm Aug 27, 2008 3:35pm
what are your settings Tjpld?

TF: H1
but what about
Period_Differences: ?
BB_Period: ?
BB_Deviation: ?
  • #630
  • Aug 28, 2008 2:04am Aug 28, 2008 2:04am
Quoting Tjpld
Jup that NP Oscillator is a really nice tool.
I trade BB break outs which indicates turning points.
Chart is EUR/USD 1H.
what indi is it
  • #631
  • Aug 28, 2008 2:11am Aug 28, 2008 2:11am
Quoting avi
what indi is it
Neutral Price Oscillator created by SwingMan.
  • #632
  • Aug 28, 2008 3:25am Aug 28, 2008 3:25am
Quoting avi
what indi is it
thanx, ilike to know how he create the red points on the chart topup,topdown
  • #633
  • Edited 4:35am Aug 28, 2008 4:10am | Edited 4:35am
Quoting magictrader
what are your settings Tjpld?

TF: H1
but what about
Period_Differences: ?
BB_Period: ?
BB_Deviation: ?
Period_Differences: 200
BB_Period:20
BB_Deviation: 2

Quote
thanx, ilike to know how he create the red points on the chart topup,topdown

Microsoft Paint
  • #634
  • Aug 28, 2008 6:21am Aug 28, 2008 6:21am
Quoting Tjpld
Period_Differences: 200
BB_Period:20
BB_Deviation: 2



Microsoft Paint
thanks sir. but ithink that is idi auto paint on chart top-down points cycle one
  • #635
  • Aug 28, 2008 11:36am Aug 28, 2008 11:36am
Quoting avi
thanks sir. but ithink that is idi auto paint on chart top-down points cycle one
Dude, I took the screenshot and edited it with MS Paint just to outline things better. Nothing fancy.
  • #636
  • Aug 28, 2008 11:56am Aug 28, 2008 11:56am
I NEED MAJOR HELP. can someone that understands this system please pm me. i have read every word of this thread and im completly lost. the system looks very interesting and very promising. I would love to use it but I HAVE NO IDEA HOW. can anyone pm with answers to:
indicators? templates? entries? exits? EVERYTHING???? lol

i need to be walked by the hand here i guess because i just don't get it!!!

will someone please take the time to help me

thanks in advance



magictrader: i know i just pm you with these same questions and i don't want you to think im rushing for an answer. its just that im off today and would like to start grasping this concept as soon as possible. thanks again!!
  • #637
  • Aug 29, 2008 5:00am Aug 29, 2008 5:00am
jtmoore007
check your inbox.
  • #638
  • Aug 29, 2008 10:52am Aug 29, 2008 10:52am
can someone tell me why when i put the neutral price oscillator on my chart it freezes my screen. i have tried to use it with ibfx demo and fxdd demo on 2 diff computers and they both freeze up any ideas???

it says not responding
  • #639
  • Aug 30, 2008 9:13am Aug 30, 2008 9:13am
Quoting magictrader
jtmoore007
check your inbox.
pls magictrader
can you send the same info to my inbox too

thks in advance
  • #640
  • Aug 31, 2008 4:01am Aug 31, 2008 4:01am
The NPO will freeze your MT4 if you're using 200 Period Differences and let it calculate the past 500 Bars. Set Bars to 50.
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