Hi,
I wonder how you calculate the dividence between the pairs by hand, without any indicator?
I wonder how you calculate the dividence between the pairs by hand, without any indicator?
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DislikedHi,
I wonder how you calculate the dividence between the pairs by hand, without any indicator?Ignored
Dislikedpipsalot-
In my opinion this sounds like a good idea but in reality it would be very bad, for two reasons:
Firstly, if the position goes against you then having your Lot1 entered on the zero line will impact greatly on your possiable overall DD should you get caught in a trendy move. This means, should you decide to try this, you should scale back your lot sizes to allow for this extra DD and the knock on effect of that is that you will earn less from the more regular small ranging moves.
Secondly,and much more importantly, having Lot1 entered on the zero line totally changes the point at which you will be able to exit the overall position at BE or a profit.
I do agree that there should be a better solution to the negative swap problem than simply 'close any short position older than 10 days at profit or loss' but unfortunatly I don't think this is it (wish it was). Until a solution is found you could just trade the shorts by opening Lot1 & Lot2 using half your normal lot size and then only move to full Lot size on the entry of Lot3. This makes any short position much easier to close quicker, even if you get caught in quite a trendy move. True you earn less on short trades but it's better than not trading the shorts at all or loosing sleep over the negative swap buildupIgnored
DislikedRichard,
Thanks for your reply. The point about changing the take profit point is very true. Maybe using a Sharia account is the best option for short positions.Ignored
Dislikedmother of all volatilities... been out of this space for a while trading oil.Ignored
DislikedCash is king
i did not like the 240 moove down of yesterday ( from my memory i cannot remember a 240 pips down on eur/chf)
So i decided to close all the positions at even money was 157,97 + spread.
I went out very luckily above 158 for an even trade but am happy with that one.
Zero loss so far since i started here almost a recordIgnored
DislikedCash is king
i did not like the 240 moove down of yesterday ( from my memory i cannot remember a 240 pips down on eur/chf)Ignored
Dislikedhello all,
can someone pinpoint me to a summary of the exact buy and sell rules for this strategy?
I have ZERO knowledge about spread, and after reading the word document summary in this thread, I am still very confused.
My understanding right now is, after downloading the "SpeilersHedge Divergence v5.1" indicator, put it on my 1 hr chart on EurChf.
looking at the % value on the indicator, I would
-o.25% buy 1 lot
-0.5% buy 1 lot
-0.75% buy 1 lot
-1.25% buy 2 lots?
what are the next sequences?
what are the exact profit targets?
vice versa for sell.
So could I actually start buying or selling only when it the % reaches 0.5%.
It seems to be a semi martingale mm style..
please enlighten me.. thanks.Ignored
DislikedAshes,
You are taking long positions and concurrently short position during the same "cycle"?
You also took double lot on entry 3.
Why are you doing this?
If you were trading the new "cycle" from yesterday. You should have opened 4 positions (equally of size and not doubling) and closed the last position 4 because of the pullback >+0.25%
For today you should be waiting with an entry from last exit -0.50% (being a long and being position 4 again) and working out your other 3 lots when the pullback continues.
Also, the markets are very volatile these days because of the bad environment and the rejection of the bailoutplan. Which made (probably) the eur-chf also drop or at least being very volatile for the moment. The bad ecenomics in u.s. and the rejection of the bailout have implications for the euro zone also. At least that is how it is perceived for know. This volatillity is great for the hedging strategy but in the meantime you have to be carefull not overtrading your lot size when the trend continues and the eur-chf is making moves of in excess of +1.5%. But by the same token this volatility creates also a lot of pull back to work your positions profitably. This last part is the great key of the Spieler trading hedge strategy. Not being passive but actively working your positions using the pull backs.Ignored