Hedge trading spieler system derived from futures spread trading

1.6160 out ( enter 1.6115) yesterday
one more in the bag

Spieler,

Would you please share your entry and exit prices for the EURUSD and USDCHF.

Thank you
BR

Thank you Big1red9 for your answers.

I have roughly backtested this hedgesystem on 4h timeframe from march untill today. By roughly I mean I've just taken positions if eur/chf divergence was above +/-35%, 2nd position above +/-60% and 3rd position above +/-100%. I always closed positions when 0% was hit. Plus I have always waited until candle close.

The results are impressing.

25 positions, 4 losses, +1839 pips, that's about 300 pips per month

I guess I will run the same backtest more accurately whenever I have more time.

But for now I', pretty impressed.

Regards

ok i ll do that but giving eur/chf entry point is close and faster

i dont understand your back test because on this period i have a lot more than 25 trades and have zero loss as well

i am a donkey at programming so know nothing about EA but am sure a good programmer can writte instruction like that;

if eur/chf reached 161.20 + x% ( 161.20 is your entry point) then close all open positions market value

richard
my sentences look corrects and understandables so i am not sure to exactly catch you so i prefer not to answer

where do you vote for the stars? I had assumed a thread gets a certain number of stars after a specific number of posts is reached.

Maybe the time of the EURCHF entry point then? I am trying to determine how many pips should have been made on the pairs for that trade.

Thank you
BR

Good people, good news at last we have received 5 stars but we deserve no less than 6 stars

lol Amazing
i just voted 5 starts to see how it works and we get 5

Waiting for a short if we go down more

Spieler, you mean you are waiting to go long? -0.25% is at 161.14, waiting to go long at this point

yes sir 161.15 here

Hi spieler,

zero loss sounds great. maybe I haven't understood something or maybe that's due to the fact that I always waited for candle close on 4h.

Probably the small amount of trades can be explained that I have just entered if eurchf divergence was larger than +/-35.

For me the 4h candle close is important since I can't sit at the screen all the time. Like this I would just check every 4h.

I come to love this system more and more. Thank you again for sharing it.


Regards


PS:Just voted maximum stars

I just voted 5 Stars ! ! !

There is one qn I like to ask. I have followed the thread and realised that the indicators are placed on the EUFCHF price action. Which means that if there is a divergence in EURCHF, we entered our positions in EURUSD and USDCHF.

Shouldn't we be monitoring EURUSD and USDCHF instead? The assumption that I can think of is that EURCHF mirrors the price action of EURUSD and USDCHF exactly.

What the Spielers Method is doing
--------------------------------
1) Track divergence on EURCHF with the MT4 scripts.
2) If divergence falls below 2 STDDEV in EURCHF, buy EURUSD, buy USDCHF in the right ratio as indicated by the script.
3) Wait for convergence to take place on EURCHF to the mean. (yellow line)

The question that is puzzling me is that does the EURCHF really track WITHOUT DIVERGENCE the price movement of the other two pairs EURUSD and USDCHF?

http://img171.imageshack.us/img171/7...dchfmh9.th.jpg

This is what I got from normalising the superimposed Daily closing prices of EURUSD and USDCHF (inversed)...

I am not very good in statistics and not very sure on how to get the Standard Deviations. But it seems like this kind of noisy waves is what we can use to pair trade the two currency pairs.

Can someone please post all the clear rules of this method here, as well as the MT4 scripts. This will be very helpful for new comers.

forexwoman, there is already a pdf document somewhere on this thread, I don't remember who exactly summarised it (i.e answers by spieler on some questions asked to clarify this method)

The pdf document is over 100 pages. Better read the thread.