I'd been demoing this system since July and wanted to really learn what could happen if I let it ride. Unfortunately got margin called out of my 5 positions last week. Strangely enough, even though its just a demo account I find myself hesitating to take entries per the system rules.
Just opened 1st long position @ EUR/CHF 1.4682, right before it plunged to 1.4642. Have to love this volitality.
Ignored
Opened and closed a total of 3 long positions today with profit. Just opened 1st short at EUR/CHF 1.4688.
Maybe things are getting back to normal in the currency markets.
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Joined Aug 2007
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Status: live to trade another day
|726 Posts
Hi,
I closed all my positions with a 20 % loss.
So my account balance is back to where I started trading the spieler system at beginning of September.
I have learned a lot, so I don't think I've lost two months.
Basically I have decided to close the trade by the fact that I started getting nervous and that I started opening and closing positions not according to the system and not according to my rules.
Still I think this system is great. One just has to maintain dicipline while facing a huge drawdown. It is important to know at each time which position numbers are active and which position will be next. It can get confusing though, having that many positions open.
Also i have realized that it affects the margin less, trading the system on eurchf only. Most probably that's what I'm going to do in the future, since trading the hedge actually is trading eurchf. Also like this the trades are better manageable, if not at the computer all the time, by pending orders and take profits.
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Joined Aug 2007
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Status: live to trade another day
|726 Posts
Hi again,
the spieler system has inspired me to develop systems that count on pullback to become profitable.
right now I'm backtesting a system that I'd call 'directional grid hedge system'. I'm pretty excited, because it appears simple and profitable.
it is designed to catch strong trends using moving averages.
but if a trade goes into the opposite direction, one would secure that trade hedging it by opening a short and a long position of the same currency pair after 100 pips. on a 100 pip pullback one could exit breakeven.
if the price continues moving into the opposite direction, one would open another hedge with increased position size. if the price would then pull back one would actually gain 100 pips. and so on ...
I will continue backtesting this idea during this weekend, and if it has proven profitable I will open a thread.
What is the sense of opening a hedge of the same currency ?
Basically you can as well sell your long/short position ... if you keep a hedge then it's doing the same thing except that you get charged a swap at the end of the day (the longs usually get paid less than shorts as far as swap is concerned)...
What is the sense of opening a hedge of the same currency ?
Basically you can as well sell your long/short position ... if you keep a hedge then it's doing the same thing except that you get charged a swap at the end of the day (the longs usually get paid less than shorts as far as swap is concerned)...
m78
Ignored
Hi m78,
swap is always a problem, that's true.
what I'm thinking is, to open a hedge of the same currency to secure the initial trade and make profit on a pullback. Or, to open a hedge straight away in a ranging market and to make profit on a pullback.
I'm still working on this. But soon I'll explain.
I have been hedging for a long time using the following method.
- BUY EURCHF
- BUY EURUSD
- BUY USDCHF
when, the EURCHF has been oversold.
works very well.
Yes, that is correct you BUY all 3 above for equal lot sizes at the same time.
Ignored
Hi cybernet69,
your approach sounds interesting.
Which indicator do you use to demermine the oversold status of eurchf?
Which are your exit rules?
For how long are you usually in the trade?
Do you also trade the opposite way, sell the three if eurchf is overbought?
i AM STILL HAVING MY LONG POSITION
Waiting 149 to break now.
THis trade has been the worst i have ever encounter by hedging but volatility period is exceptional.
I said to lower leverage and wait more than 0,25% to tak einto account this high volatility.
Once have to adapt to market condition
market should go back to 153 in my opinion even if euro seems so weak again
Why use the EUR/CHF for this strategy? I know there has been incredible ups/downs everywhere lately, but is the EUR/CHF historically closer together or more related/unrelated to one another? I read early posts about keeping in same time zones and that made sense, but I'm mainly interested in knowing which pairs are correlated more to one another or just completely unrelated and why this pair is chosen on this system.
I'm just learning the correlations between currencies so please forgive. I would like to know though.
Hedge trading spieler system derived from futures spread trading
