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Trading aud/nzd successfully

  • #1,381
  • Feb 17, 2009 1:26pm Feb 17, 2009 1:26pm
Quoting hilmy83
let's stick to the EA talk guys

Ok, but lets get the hedging idea out of the picture. That is all I was pointing out as it will not be feasable long term.
  • #1,382
  • Feb 17, 2009 1:41pm Feb 17, 2009 1:41pm
i'm currently working on a EA that uses martingale ideas when its in a ranging market. and if it starts to trend it sets up for winnings that way too. by adjusting my hedge.
but guess what i need hedging to do that

and it was a great idea too
the markets moving, time to get in!
  • #1,383
  • Feb 17, 2009 1:46pm Feb 17, 2009 1:46pm
That's an extremely narrow minded point of view IMHO. Not all of us are US citizens, nor do we all trade with US brokers.....

Quoting toyoproxo
Ok, but lets get the hedging idea out of the picture. That is all I was pointing out as it will not be feasable long term.
"The market giveth and the market taketh away"
  • #1,384
  • Feb 17, 2009 1:48pm Feb 17, 2009 1:48pm
Firstly, see my above post. Secondly, nothing stops you from trading your hedge in another account....

Quoting urbanFX
That's an extremely narrow minded point of view IMHO. Not all of us are US citizens, nor do we all trade with US brokers.....
"The market giveth and the market taketh away"
  • #1,385
  • Feb 17, 2009 2:50pm Feb 17, 2009 2:50pm
dow tanked during the signing.

i'm seeing small moves on charts but nothing big yet any of you?
the markets moving, time to get in!
  • #1,386
  • Edited 11:07pm Feb 17, 2009 6:02pm | Edited 11:07pm
My system for the AUD/NZD is a hedging system so talk about hedging should be done if it affects the system. 2nd hedging as IBFX is referring to is the ability to trade both ways with the same amount of margin. In other words if I use 100 margin to do a buy, I can use the same 100 to do a sell. If they stop hedging trades that means you would have to use 100 of margin to do a sell and 100 margin to do a buy. I do not think the stopping of hedging means you can only trade one way with a currency, I think they will make it two separate trades instead of just one hedged trade. As I referred to in my earlier post, banning hedging, defined as trading both ways at the same time, how in the world can they enforce that since it is not a controlled market but every bank can set up its own trading terms when exchanging currency? In other words my question is this, what are they actually going to ban, trading both ways or trading both ways using the same amount of funds? That is my question.
  • #1,387
  • Feb 17, 2009 10:25pm Feb 17, 2009 10:25pm
  •  onu
  • | Joined Feb 2006 | Status: superior senior member | 746 Posts
Quoting nanningbob
My system for the AUD/NZD is a hedging system so talk about hedging should be done if it affects the system. 2nd hedging as IBFX is referring to is the ability to trade both ways with the same amount of leverage. In other words if I use 100 margin to do a buy, I can use the same 100 to do a sell. If they stop hedging trades that means you would have to use 100 of margin to do a sell and 100 margin to do a buy. I do not think the stopping of hedging means you can only trade one way with a currency, I think they will make it two separate trades instead...
Good question Bob! Why not ask IBFX about this issue again? I asked there some weeks ago and my impression was they have no clue about this topic...
Maybe you have better luck
  • #1,388
  • Feb 18, 2009 2:45am Feb 18, 2009 2:45am
Someone will have to help me with the math on the FrostCall spreadsheet, but I believe if you put a hedge trade on the final level of the trade with a number of lots equal to the total # of lots of the counter trend trades, the maximum loss will be equal to the gain on the last trade. I know that's a long sentence but maybe I can give you an example.

I'm basing this on the 60x90. (Sorry, to those of you not working that EA, but the concept should be the same.)

Multiplier: 3
Take Profit: 60
Pips: 90
Max Trades: 4
Lot Size: .05
Stop Loss: 500

1st Level Trade 90 Pips from MA - Buy .05 lots
2nd Level Trade 180 Pips from MA - Buy .15 lots
3rd Level Trade 270 Pips from MA - Buy .45 lots
4th Level Trade 360 Pips from MA - Buy 1.35 lots and
4th Level Trade Sell 2.0 lots (.05 + .15 + .45 + 1.35)

If Stop Loss is 500 Pips from the first trade, then the number of pips between the 4th trade and the Stop Loss is 230 pips (500-270 (4th trade is 270 pips from 1st).

Then, if trend continues to stop loss, all trades are closed as follows:
1st Level Trade - Buy .05 lots -25
2nd Level Trade - Buy .15 lots -61.5
3rd Level Trade - Buy .45 lots -144
4th Level Trade - Buy 1.35 lots -310.5
4th Level Trade - Sell 2.0 lots +460
Net Loss: -81 (which would have been the profit on the 4th level)


If, trend reverses to the 4th level Take Profit, all trades are closed as follows:
1st Level Trade - Buy .05 lots -10.5
2nd Level Trade - Buy .15 lots -18
3rd Level Trade - Buy .45 lots -13.5
4th Level Trade - Buy 1.35 lots +81
4th Level Trade - Sell 2.0 lots -120
Net Loss: -81 (which would have been the profit on the 4th level)

Of course, this doesn't account for spreads and slippage. But all things being equal, you could trade a larger lot size since your drawdown would be even more limited than the original stop loss.

Please check my numbers but I think it would work.
  • #1,389
  • Feb 18, 2009 2:58am Feb 18, 2009 2:58am
you can't have apposing trades on the same pair in the same account.

but you can have 2 accounts with apposing trades
the markets moving, time to get in!
  • #1,390
  • Feb 18, 2009 4:00am Feb 18, 2009 4:00am
Quoting nanningbob
Change the ask to Bid in the buy order. You can have two lines on your screen, an ask line and a bid line. I used the ask line to into orders quicker on buys but as the spread widens it is line have no space at all from your median.
I have a trouble adjusting the EA settings. I would appreciate if someone could explain the above quote in simpler terms.

I am with FXDD, and their spread on AUDNZD is 17 pips. I discovered a buy entry was made 23 pips away from the median instead of 40 with the "30x20 buy sell EA 5M 120MA". What is the best way to ensure trades should be made at the exact point away from the median, please? Sorry about the basic question!
  • #1,391
  • Feb 18, 2009 4:54am Feb 18, 2009 4:54am
Quoting dmjservices
you can't have apposing trades on the same pair in the same account.

but you can have 2 accounts with apposing trades
when is that to be brought in, cos the buy/sell original EA does that all the time
Grabbing the bull by the horns!
  • #1,392
  • Feb 18, 2009 5:11am Feb 18, 2009 5:11am
Quoting newera
Someone will have to help me with the math on the FrostCall spreadsheet, but I believe if you put a hedge trade on the final level of the trade with a number of lots equal to the total # of lots of the counter trend trades, the maximum loss will be equal to the gain on the last trade. I know that's a long sentence but maybe I can give you an example.
I was thinking exactly like you. If you put a hedge trade on the 3rd level your loss will be only about -$22 (if my math is right). Is it possible to make such kind of EA? Or another Recovery EA?
  • #1,393
  • Feb 18, 2009 6:48am Feb 18, 2009 6:48am
Personally I think 30x20 is still the best.

Hopefully we'll get at trade during US Session for a change.
Unfortunately I forgot to turn it back on. There might have been
1-2 trade in the last 2 days. Anyone can confirm?
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  • #1,394
  • Feb 18, 2009 6:53am Feb 18, 2009 6:53am
Quoting Tjpld
Personally I think 30x20 is still the best.

Hopefully we'll get at trade during US Session for a change.
Unfortunately I forgot to turn it back on. There might have been
1-2 trade in the last 2 days. Anyone can confirm?
Just 1. It was a winner.
  • #1,395
  • Edited 8:07am Feb 18, 2009 7:51am | Edited 8:07am
Quoting newera
Someone will have to help me with the math on the FrostCall spreadsheet, but I believe if you put a hedge trade on the final level of the trade with a number of lots equal to the total # of lots of the counter trend trades, the maximum loss will be equal to the gain on the last trade....
All the above is the same as having SL @ 270 [$-81]

What's the point of having level 4 ? As soon as u open level 4 u expect to lose -$81. Why don't u put SL @ 270 [which is level 4, $-81] instead of wasting time waiting for the hedge to hit SL or TP. What's more, you have to pay spread for the hedge and u actually lose more money compare to having SL @270.

As soon as u open the exact amount to hedge, up or down 1 million pip doesn't matter, it will still be the same amount of loss from the point u open up the hedge [in this case, the point where u open hedge is @ level 4 and the DD @ level 4 was -$81. Which means the hedge is just to freeze your loss.]

1. U close ur position @ level 4 [-$81]

2. U open hedge at level 4 and it move to your TP/SL. You lose -$81 + spread + + slippage + time + loss chance of opening new position while holding the hedge & 4 level position
  • #1,396
  • Feb 18, 2009 8:21am Feb 18, 2009 8:21am
Quoting forexisfx
All the above is the same as having SL @ 270 [$-81]

What's the point of having level 4 ? As soon as u open level 4 u expect to lose -$81. Why don't u put SL @ 270 [which is level 4, $-81] instead of wasting time waiting for the hedge to hit SL or TP. What's more, you have to pay spread for the hedge and u actually lose more money compare to having SL @270.

As soon as u open the exact amount to hedge, up or down 1 million pip doesn't matter, it will still be the same amount of loss from the point u open up the hedge [in this case, the point where...

The loss is still the same, BUT, you've added another 90 pips to the range. So, you could either do one or more of the following:

1 - increase lot size
2 - begin 1st level trade closer to the MA
3 - trade an additional level

All of which should make the EA more profitable. Or, am I missing something?
  • #1,397
  • Feb 18, 2009 8:42am Feb 18, 2009 8:42am
Quoting newera
The loss is still the same, BUT, you've added another 90 pips to the range. So, you could either do one or more of the following:

1 - increase lot size
2 - begin 1st level trade closer to the MA
3 - trade an additional level

All of which should make the EA more profitable. Or, am I missing something?
The addition 90 pips is from level 4 and that 90 pips is useless becoz is there to loss money. U cannot gain anything from the 90 pips.

With hedge
As soon as u hit level 4 u open up hedge and u are sure to loss -$81

Without hedge
As soon as it hit level 4 [SL] u loss -$81

The 90 pips extra have no use ?

Maybe u are thinking of opening the hedge at 360 instead of level 4 [270]. That's why u get the idea that u get 90 pips extra.
  • #1,398
  • Feb 18, 2009 9:05am Feb 18, 2009 9:05am
Quoting forexisfx
The addition 90 pips is from level 4 and that 90 pips is useless becoz is there to loss money. U cannot gain anything from the 90 pips.

With hedge
As soon as u hit level 4 u open up hedge and u are sure to loss -$81

Without hedge
As soon as it hit level 4 [SL] u loss -$81

The 90 pips extra have no use ?

Maybe u are thinking of opening the hedge at 360 instead of level 4 [270]. That's why u get the idea that u get 90 pips extra.

I'm thinking of Level 4 as being 360 pips from the MA and 270 pips from the 1st Level trade is where the HEDGE is opened.
  • #1,399
  • Feb 18, 2009 9:11am Feb 18, 2009 9:11am
Quoting newera
I'm thinking of Level 4 as being 360 pips from the MA and 270 pips from the 1st Level trade is where the HEDGE is opened.
270 pips from the 1st level is level 4.

Level 1 - 0

Level 2 - 90

Level 3 - 180

Level 4 - 270

So you open up ur hedge at level 4. Or do u have level 5 ?
  • #1,400
  • Feb 18, 2009 9:16am Feb 18, 2009 9:16am
Quoting forexisfx
270 pips from the 1st level is level 4.

Level 1 - 0

Level 2 - 90

Level 3 - 180

Level 4 - 270

So you open up ur hedge at level 4. Or do u have level 5 ?

At level 4 you open 2 trades:
a BUY (the regular 4th level trade)
a SELL (a hedge with the trend)

Or vice versa depending on which side of the MA you are on.
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