I am a relative newbie........how do I set those indicators on my IBFX charts? Anyone have a template? That I know how to do lol.
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To setup your MA, go to your Navigator area and click on the indicators folder. From there double click on the moving average folder. In the popup you will see a tab listed as Parameters. Period should be 25, Shift should be 0, MA Method should be Linear Weighted (HL/2). Style will be the color you chose your 25MA center to be. From there you click on Levels and then the add button (enter a 50 level and -50 level)
To setup your MA, go to your Navigator area and click on the indicators folder. From there double click on the moving average folder. In the popup you will see a tab listed as Parameters. Period should be 25, Shift should be 0, MA Method should be Linear Weighted (HL/2). Style will be the color you chose your 25MA center to be. From there you click on Levels and then the add button (enter a 50 level and -50 level)
And thats it. Your all set up.
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Thanks you for the info. I really appreciate that.
If you have 2 sell positions open and get a buy signal will you buy double lots?
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If I understand your question correctly, yes. The buy position or positions placed next must be at least as large as my combined south positions to make a solid hedge.
There has been a total of 41 trade positions taken since 12-25-06 resulting in a total of 8,209 positive net pips taken.
Of the 41 trade positions opened. 14 were in a negative direction and 4 of them would still be open at this time if you left them in a hedged position. Without the hedge 14 positions would have change your overall pip profit since 12-25-06 to 5,091 pips.
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Just curious, how many pips down were the 4 open positions? If you get stuck in a long-term trend, those open positions could be negative 1000s of pips, especially on this pair. This idea seems to favor the ranging market, correct?
Have you tried this on other pairs? Or is it just for G/J?
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I have not tried other pairs, it will work on any pair. You only need to adjust the levels to average daily range of that particular pair. For example the best levels for the Cable is 40. So levels for the GU should be set at 40 instead of the 50 for the GJ
Just curious, how many pips down were the 4 open positions? If you get stuck in a long-term trend, those open positions could be negative 1000s of pips, especially on this pair. This idea seems to favor the ranging market, correct?
David
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The other open trades mentioned above were taken at 222.11 on 3-6-07 @1:00 gmt, 226.67 @ 3-16-07 13:00, 230.71 on 3-30-07 @14:00 gmt.
When I originally considered trading with this method this was a standard concern that I might have a position that I can never be able to close or might take years to close. My findings are that these hedge positions at least so far are against the long term (W1) trend which has been south since
January 21.
But even if I didn't expect to be able to recover these hedges in the next couple of weeks, the profitability of the system allows you to be able to outgrow the few bad trades that you might be carrying with you until they clear.
Also, as your account grows your trade sizes increase to compensate for your new growth.
* Example you start trading @ 2% of 1,000. Starting trade is $20 invested. You make 100 pips on your first trade for a profit of $40, your new balance is 1,040. 2% of 1,040 is $20.80 which you invest in your next position, etc. Now lets say that your 2nd position was hedged so you have 20.80 in hedge with new position of 20.8 going the oposite direction of the second.
The 3rd position then earns 100 pips making the balance on your account to 1082.60. New 2% is now based on the 1082.60, etc. Your hedged position @ 2% was .40 lots and your last trade was .41 lots. As you can see your balance is growing greater than your hedged position is holding you back.
This system takes some getting used to as you are interested in preserving and growing your balance.
It seems to work well in ranging and trending markets. The best of both worlds perhaps.
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Joined Apr 2006
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Status: Commissioner of Autotrading
|462 Posts
I learned to trade without having hedging available - which was probably a good thing. It forces you to be fundamentally sound.
BUT - the more I consider hedging and toy around with it, the more I'm inclined to believe that it is a fundamental enhancement to Forex trading, like the 3-point shot in basketball, instant replay in football and the designated hitter in baseball.
Hedging is NO SUBSTITUTE for knowing how to trade effectively. But it might just take a 2-dimensional game and make it more of a 3-dimensional experience.
I'll have to play with it some more in order to solidify my opinion.
So thanks, Yezbick, I expect to use your framework to practice with!
Thanks Yezbick for sharing the method...I m very curious to see how this works...
Now for the silly technical question.....How do you get the two outer bands on your chart....I presume the middle one is the 25 LWMA...lost as to how to add the 50 band..
To setup your MA, go to your Navigator area and click on the indicators folder. From there double click on the moving average folder. In the popup you will see a tab listed as Parameters. Period should be 25, Shift should be 0, MA Method should be Linear Weighted (HL/2). Style will be the color you chose your 25MA center to be. From there you click on Levels and then the add button (enter a 50 level and -50 level)
And thats it. Your all set up.
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Bad.Hair.Spray -
That's it above. Set it all up at the same time. Use the "tabs" on the Moving Average box.
nice technical man..
but i think very difficult to definit where to exit, entry and SL.
i think from this market was formed at 3 zone.
1. upper from +50
2.down from -50
3. in range -50 to +50
if we have enough capital so funny for this system.
but absolitely its a good system..
thanks for sharing yoru system...
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Joined Nov 2006
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Status: Dragon Student
|486 Posts
Currently the last trend (short) started at 4-9-07 @ 12:00 (232.82) still looks like its in place. But market is not moving strongly in any direction at this point. My current positions are hedged waiting for the next movement which hopefully will come this evening. The current lower level (-50) is at 233.52. If this is broken again, we will hopefully have a sustained short position for a while.
I really don't understand the hedge... are you placing a hedge at entry? or only when price hits the opposite 50 level? i.e. there's a -100 difference between your original order and the new hedge? So this is akin to grid trading,, i.e. you want the price to come on back down... so ranging works wonders and trending works wonders only so long as it makes up for any open hedges and the gaps in the middle...
I really don't understand the hedge... are you placing a hedge at entry? or only when price hits the opposite 50 level? i.e. there's a -100 difference between your original order and the new hedge? So this is akin to grid trading,, i.e. you want the price to come on back down... so ranging works wonders and trending works wonders only so long as it makes up for any open hedges and the gaps in the middle...
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The only time you take out a hedge is when you have an open position in the oposite direction which is still in negative pips.
It appears that you have the gist of it with wanting both ranging and trending markets to work well. If we are in tight ranging markets like over the last couple of days. We will not be loosing any funds or gaining. Just sitting still waiting on the trending markets to kick in or to have a wider ranging market in place. It is a win - win situation. We will not loose in tight ranging markets, and we will win in wide ranging markets and trending markets.
wishing you the best in finding the pips you need.
nice technical man..
but i think very difficult to definit where to exit, entry and SL.
i think from this market was formed at 3 zone.
1. upper from +50
2.down from -50
3. in range -50 to +50
if we have enough capital so funny for this system.
but absolitely its a good system..
thanks for sharing yoru system...
nice to you..
best regard
maja
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Thank you for the compliment.
You put it right. We are ranging if the price is fluctuating between +/-50 levels (3) and we are in a trend when we are north or south of the +/-50 levels (1+2).
wishing you the best in finding the pips you need.
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Joined Nov 2006
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Status: Dragon Student
|486 Posts
Could be possible moving towards the north position. Positive 50 level currently set at 234.51 with a 25LWMA at 234.01. Place a pending order for a Buy Stop at 234.51 to cover the North bound position.
Open-Close Trending with Hedging Discussion Thread
