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Hedge trading spieler system derived from futures spread trading

  • #1,921
  • Edited 10:22am Oct 2, 2008 9:53am | Edited 10:22am
Quoting Big1red9
If going with EURCHF....

Limit orders could be used to help manage trades when your not glued to the computer.

Never operated with limit orders in Forex before...any problems with that??


BR
Hi Big1red9,

that's a good idea and worth trying. I've found out on my backtests that when hedging according to the eurchf % the profit is slightly higher as if having traded eurchf directly.
After having backtested with the three charts for a while (eurchf eurusd usdchf) I now do my backtests and strategy research on eurchf chart only and it works well. I just assume a profitable hedge when I close a trade.
As choppy as eurchf can be one could definitely place limit orders at 0:00 candle close, all with a 40 pip tp and no sl that expire after 24 hours.
The only problem is, it would not be possible to adjust the steps according to the pricemomentum.

For automated backtesting puropse it would be very interesting to have an ea that enters trades at every day, even if other trades from the day(s) before were open.
Unfortunately I'm not a programmer. But maybe there's a programmer on this thread that has the time to develop this simple ea. I'd apprechiate it.

...to answer your question: yes, I've been working with limit orders at oanda and have not had a problem. they all have been executed as set. the only downside are the temporarily high spreads during news time that may trigger an order to be right away 10 or 15 pips in minus with. but I haven't whitnessed this kind of slippage on eurchf yet.

Regards
  • #1,922
  • Oct 2, 2008 10:33am Oct 2, 2008 10:33am
Quoting Big1red9
If going with EURCHF....

Limit orders could be used to help manage trades when your not glued to the computer.

Never operated with limit orders in Forex before...any problems with that??


BR

That's a great idea! Limit orders are actually very nice, because you are guaranteed a fill at your price or better.
  • #1,923
  • Oct 2, 2008 11:17am Oct 2, 2008 11:17am
Hi,

my theory is, if we'd enter every day another hedge, many small winners would make up for a few big losers.

Imagine having entered long on 26th of February. and managing this trade until close of the 1st position.
in the meantime you would have entered on every following day according to the rules and managing each trade until close of 1st position.

I'm not trying to stipulate some rules here, just trying to present this theory in the making.

I think there has to be an exit rule though, otherwise only large account holders could afford this kind of trading. .. still working on it.

The chart attatched has daily and 40 pip grid on it to visualize my thoughts.

What do you guys think about this idea?

Regards
Attached Image (click to enlarge)
Click to Enlarge Name: eurchf_4h.gif Size: 33 KB
  • #1,924
  • Oct 2, 2008 11:31am Oct 2, 2008 11:31am
Being that we are trading contra-trend, I suspect there will be no fill problems. If we were trying to buy as it was rising in price, I would be concerned that the market would run-a-way leaving us without fills. But being we buy when it is dropping.....I would imagine it would be a non issue.

My only concern are what people have said is stop hunting. I suppose in our case, that too works out to be a positive.

Quoting pipsalot
That's a great idea! Limit orders are actually very nice, because you are guaranteed a fill at your price or better.
  • #1,925
  • Oct 2, 2008 11:37am Oct 2, 2008 11:37am
Ashes,

I don't have an opinion. But it is so different, I suggest the exploration of it should be in a different thread or it can get confusing to the new folks.

BR

Quoting ashes
Hi,

my theory is, if we'd enter every day another hedge, many small winners would make up for a few big losers.

Imagine having entered long on 26th of February. and managing this trade until close of the 1st position.
in the meantime you would have entered on every following day according to the rules and managing each trade until close of 1st position.

I'm not trying to stipulate some rules here, just trying to present this theory in the making.

I think there has to be an exit rule though, otherwise only large account holders could afford this kind of trading. .. still working on it.

The chart attatched has daily and 40 pip grid on it to visualize my thoughts.

What do you guys think about this idea?

Regards
  • #1,926
  • Oct 2, 2008 11:45am Oct 2, 2008 11:45am
Quoting Big1red9
Ashes,

I don't have an opinion. But it is so different, I suggest the exploration of it should be in a different thread or it can get confusing to the new folks.

BR
Hi Big1red9,

different is entering a trade every day (according to the rules).

apart from that it is very much "hedge trading spieler system".

the horizontal grid is visualizing 40 pip/ 0,25% distances, not entry points.

Regards
  • #1,927
  • Oct 2, 2008 12:29pm Oct 2, 2008 12:29pm
I thought trading Spieler system is based on the hedging principel.And trading eur/chf is a naked one where risk plays a big role. At least that is what I think
  • #1,928
  • Edited 1:37pm Oct 2, 2008 12:43pm | Edited 1:37pm
The hedge does NOT produce 100% protection. In fact there are times when I have seen the p/l worse with the hedge than the EURCHF.

I do not know what the factual differences over time are between trading EURUSD / USDCHF as compared to EURCHF, nor the true benefits when you consider 2X margin, missed trades etc.

BR

Quoting harar
I thought trading Spieler system is based on the hedging principel.And trading eur/chf is a naked one where risk plays a big role. At least that is what I think
  • #1,929
  • Oct 2, 2008 6:53pm Oct 2, 2008 6:53pm
156,37 just wake up and put a second lot long
  • #1,930
  • Oct 2, 2008 7:00pm Oct 2, 2008 7:00pm
The current down trend looks strong. I may wait to see if it gets near 156.00
  • #1,931
  • Oct 3, 2008 2:33am Oct 3, 2008 2:33am
Hi guys, there is one risky way to get out of a bad positions mhen there is no hope, may be I'm lucky but yesterday I took it at -36% when a saw it, by the end of the day it fell to 50-60%. By the night it have fall even more, and morning a little gain up but yet very small hope. Then I saw USD/CHF was barking near the uptrend line, by that time EUR/USD was on a very small + and I took it, left USD/CHF alone on its 4/5 more minuses and waiting, lucky ot not it go up and I took it on small + too.

Anyone with similar experience?

I apologise to spieler because I know he insist of strict following the rules, but I lost 1/3 of my capital during this crazy weak and wasn't having more lots to place.

And I confess I play this hege when I lost very big % of my account
  • #1,932
  • Oct 3, 2008 4:29am Oct 3, 2008 4:29am
Northfinance or now FXPRO didnt chage swap rates, still positive for long on EURUSD and USDCHF
  • #1,933
  • Oct 3, 2008 6:13am Oct 3, 2008 6:13am
How do you check the correlation between the pairs?

How long have they been correlated and what is the correlation?


What are the risks they will break apart from each other at some point?

Thanks!
  • #1,934
  • Oct 3, 2008 8:17am Oct 3, 2008 8:17am
I was sleeping when I should have closed the 3rd lot on GMT 06 pullback so I'm still 3 lots long with high negative swap rate. I think that this one I will close breakeven if the price goes up today.
  • #1,935
  • Oct 3, 2008 8:37am Oct 3, 2008 8:37am
if it goes up TOD
  • #1,936
  • Oct 3, 2008 11:40pm Oct 3, 2008 11:40pm
hi speiler
did u place a third lot long or not yet ? i placed my 3rd lot at 155.93 is that right ? even the 4th lot i think i should have place it at 155.54 but i didn't because it s the end of the week and i thought it s better to wait placing it if necessary on Monday . please correct me if i am wrong , because i am live .
thanks
  • #1,937
  • Oct 4, 2008 4:35am Oct 4, 2008 4:35am
you guys dont follow the working part of the position so that can be dangerous.

I have still 1 lot long at 157,20
1 lot long at 155,60
SO 2 lots at 156,40 on average.

BUt yestarday i made 2 profit trades following rules

i sold my long taken at 156,37 at 156, 80 ( +43 pips) we went to 157 but i wanted to secure because nfp days can be tricky.
Long at 155,98 ( Previous day close - 0,25%) sold at 156,32 ( we went to 156,43 but get back immediatly i went out on the back way so only 34 pips


So now i am over week end with 2 lots loosing 153 pips but having taken 77 pips i am quite confortable with these 2 lots.
Monday we will certainly go up
  • #1,938
  • Oct 4, 2008 4:37am Oct 4, 2008 4:37am
imad
good for the third lot but why did not you sold it when target has been reached?
In this system we dont want to wait till the whole position is + to start solding lots , we just want to get more margin and protect the capital
  • #1,939
  • Oct 4, 2008 4:56am Oct 4, 2008 4:56am
Quoting spieler
you guys dont follow the working part of the position so that can be dangerous.

I have still 1 lot long at 157,20
1 lot long at 155,60
SO 2 lots at 156,40 on average.

BUt yestarday i made 2 profit trades following rules

i sold my long taken at 156,37 at 156, 80 ( +43 pips) we went to 157 but i wanted to secure because nfp days can be tricky.
Long at 155,98 ( Previous day close - 0,25%) sold at 156,32 ( we went to 156,43 but get back immediatly i went out on the back way so only 34 pips


So now i am over week end with 2 lots loosing 153 pips but having taken 77 pips i am quite confortable with these 2 lots.
Monday we will certainly go up
good morning to you sir,
working the position if we have previously long positions we take only long from new day or if we have the chance short also?
because for me can work both ways i think (out of the rules-hedging the hedge for short time)
thks for your system
its very good i am using it live with very good results.

vassos58
  • #1,940
  • Oct 4, 2008 5:04am Oct 4, 2008 5:04am
PERSONALY i dont take short when long and vice versa but i think it is doable
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