Profitable Hedging Lots Strategy | Forex Factory

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Profitable Hedging Lots Strategy

  • #1
  • First Post: Jul 23, 2009 1:49pm Jul 23, 2009 1:49pm
hi folks,

please test this hedging ea.. for me it's very profitable.. trade today with eur/usd.. I trade it only from 12-18 gmt (london-new york overlapping)
my settings are:

Lots: 0.1
StopDistance: 20.0
TakeProfit: 15.0
StopLoss: 30.0

please see attached pdf for further instructions.. it's very easy to use..
give me your opinion

kind regards
Chris
Attached File(s)
File Type: mq4 Paulo_Costa_Hedge.mq4   12 KB | 4,965 downloads
File Type: pdf Hedging Lot Strategy.pdf   29 KB | 9,910 downloads
  • #2
  • Jul 23, 2009 2:21pm Jul 23, 2009 2:21pm
I'm getting an "cannot open program file" error when trying to compile.
  • #3
  • Jul 23, 2009 2:23pm Jul 23, 2009 2:23pm
hi,

i attached the ex4 file.. I hope this helps..
Attached File(s)
File Type: mq4 Paulo_Costa_Hedge.mq4   12 KB | 3,019 downloads
File Type: ex4 Paulo_Costa_Hedge.ex4   11 KB | 2,685 downloads
  • #4
  • Jul 23, 2009 2:46pm Jul 23, 2009 2:46pm
Take a look at the magneto, similar to what you have

http://www.forexfactory.com/showthread.php?t=178505


Quoting FxFux
hi folks,

please test this hedging ea.. for me it's very profitable.. trade today with eur/usd.. I trade it only from 12-18 gmt (london-new york overlapping)
my settings are:

Lots: 0.1
StopDistance: 20.0
TakeProfit: 15.0
StopLoss: 30.0

please see attached pdf for further instructions.. it's very easy to use..
give me your opinion

kind regards
Chris
  • #5
  • Jul 23, 2009 2:54pm Jul 23, 2009 2:54pm
This is a martingale. What happens if the market is trending? EURUSD is ok now co its stuck in the 1.41-1.43 area, but when it starts trending this strategy will be very dangerous

EDIT: sorry, I may have spoke too soon. Just one question, do you cancel the order if TP/SL not hit? still seems risky the way you constantly double lots till you win though
  • #6
  • Jul 23, 2009 3:05pm Jul 23, 2009 3:05pm
hi todd,

it's similar YES but not the same with my settings from my first post I've decreased the risk considerably..

@FrinkFX
yes it's martingale but i trade this ea only in the london/new york-session and backtest it manually with a very good result.. The biggest lot size I need was 1.2 lots from 01.05.09..

But I need some coding help, the ea has a start and end hour function, but it if you choose this function it takes only one trade per hour.. f. e. if you set 15 till 19 GMT it makes only one trade at 15, one at 16 and so on then ends trading.. I don't know why.. And second if you try this ea you will attract attention that the SL and the TP on the actual trade and the stop/sell type is not the same, but it should be the same.. at the moment I adjust the stop target levels manually.. so if somebody can look at the code i'm very appreciate
  • #7
  • Jul 23, 2009 4:19pm Jul 23, 2009 4:19pm
f.e. ea trade like this:

price S/L T/P Typ
1.41516 1.42134 1.41234 sell

1.41816 1.41216 1.42116 stop Buy

now I have to manually adjust like this:
1.41516 1.42116 1.41234 sell

1.41816 1.41234 1.42116 stop Buy

may be you can recode this, maybe it's a spread issue.. many thanks in advice.. hopefully there is somebody who can help me with this.. this ea is really successful if you trade the right times..
  • #8
  • Edited 12:28am Jul 24, 2009 12:11am | Edited 12:28am
Quoting FxFux
f.e. ea trade like this:

price...
My broker is a 4 digits and the EA is working correctly.
Maybe do you have a problem with 5 digits ?
In my opinion , your manual adjustement is bad because bid and ask are different according to sell and buy (spread).
  • #9
  • Edited 1:15am Jul 24, 2009 12:16am | Edited 1:15am
Quoting FrinkFX
This is a martingale. What happens if the market is trending? EURUSD is ok now co its stuck in the 1.41-1.43 area, but when it starts trending this strategy will be very dangerous

EDIT: sorry, I may have spoke too soon. Just one question, do you cancel the order if TP/SL not hit? still seems risky the way you constantly double lots till you win though
The true risk is a ranging market and not a trending.
  • #10
  • Jul 24, 2009 2:43am Jul 24, 2009 2:43am
I don't know if the timefilter is working correctly but I suggest a volatility indicator as filter : ATR.
Because for this system, the volatility is the success key.
The picture shows in 15 M the 20 SMA and ATR 8.
Conditions of trade: only if ATR 8 > 0.0012 according to 20 SMA.
So we need this condition in the code.
Thanks for the future coder.
Attached Image (click to enlarge)
Click to Enlarge Name: 2.jpg Size: 126 KB
  • #11
  • Jul 24, 2009 4:42am Jul 24, 2009 4:42am
hi madscalp,

the time filter is working correctly, but it makes only one cycle per hour.. means that if you are in profit once the ea stopped working for this hour.. in my opinion we don't need a volatility filter, because the time period you trade is essential: just before London open and London/New York works perfectly..
yeah the spread I think you have to adjust the SL/TP to equal because it can happen that your open order f. e. buy 0.1 will close at S/L and the freshly opened sell 0.3 stays in the market and that is not correctly for this system.. so we need a coder who looks at the time filter and may be can solve the SL/TP problem.. I also contacted the original coder and ask him about his opinion yesterday I hope he'll answer soon i think if we work on and adjust a some things we can create a very very nice winning system and we need some kind of account protection f. e. one cycle is four times (buy, sell, buy, sell) if we then have a loosing cycle we don't have to cry we save our account in my backtesting since may 2009 i had only one time a 4-cycle with a positive ending for me thanks madscalp for your attention.. do you know a coder?
  • #12
  • Jul 24, 2009 5:06am Jul 24, 2009 5:06am
I agree except your opinion about the time London-NY.
I know it's a good period but there is also profitable periods.
If you look at my pic, you can see an excellent period from 15:00 to 23:00 according to the ATR. Why to miss that ?
Maybe the coder could introduce this condition ?
The trader is using it or no.
  • #13
  • Jul 24, 2009 5:32am Jul 24, 2009 5:32am
yeah you're right we should implement ATR, another big advantage is that we can trade just before news but now we need some coding people.. I think we should contact "findmanu" he's a very good coder in this forum.. do you know others?
  • #14
  • Jul 24, 2009 5:52am Jul 24, 2009 5:52am
Quoting FxFux
yeah you're right we should implement ATR, another big advantage is that we can trade just before news but now we need some coding people.. I think we should contact "findmanu" he's a very good coder in this forum.. do you know others?
Unfortunately no.
  • #15
  • Jul 24, 2009 7:24am Jul 24, 2009 7:24am
Quoting madscalp
The true risk is a ranging market and not a trending.
Yeah thats why I said I spoke too soon.
  • #16
  • Jul 24, 2009 11:46am Jul 24, 2009 11:46am
Quoting FrinkFX
Yeah thats why I said I spoke too soon.
OK we know all the risks of the martingales.
With this one, the problem is the ranging market.
So we try to avoid the choppy market by trading the volatiles periods.
In my opinion ATR with M15 is a good tool to filter the bad periods.
Maybe do you know another indicator ?
  • #17
  • Jul 24, 2009 11:50am Jul 24, 2009 11:50am
Quoting FxFux
hi madscalp,

the time filter is working correctly, but it makes only one cycle per hour.. means that if you are in profit once the ea stopped working for this hour.. in my opinion we don't need a volatility filter, because the time period you trade is essential: just before London open and London/New York works perfectly..
yeah the spread I think you have to adjust the SL/TP to equal because it can happen that your open order f. e. buy 0.1 will close at S/L and the freshly opened sell 0.3 stays in the market and that is not correctly...
I confirm there is a coding trouble in setting TP and SL .
A coder please ....
  • #18
  • Jul 25, 2009 7:46am Jul 25, 2009 7:46am
I made an EA 2 years ago using this strategy.

Hedging lots EA is always interested me much, but it was killing one of my testing REAL LIVE account in a long sideways run once.

Happy Trading & Have Some Nice Profits!
Keep your hands up, and use your pant! - FxMatics
  • #19
  • Jul 27, 2009 11:51am Jul 27, 2009 11:51am
Hi syanwar,

the potential of this ea is really really impressive.. I'm live on alpari with 0.01 lots.. but I think the ea sets wrong sl/tp's.. f.e. on alpari I have a spread on eur/usd 1.8 pips.. so first trade:

sell 0.01 1.42166 S/L 1.42484 T/P 1.42024 and
stop buy 0.03 1.42346 S/L 1.42046 T/P 1.42506

here you see the difference between SL and TP is 2.2 pips, so it can happen that sell order hits sl but the stop buy order not touch the t/p from the already opened stop buy order and that is wrong.. I hope you understand the problem.. my english is not so well http://www.forex-tsd.com/images/smilies/omg_smile.gif maybe you or someone else can fix this problem..

kind regards
  • #20
  • Oct 10, 2009 1:31pm Oct 10, 2009 1:31pm
Quoting madscalp
I don't know if the timefilter is working correctly but I suggest a volatility indicator as filter : ATR.
Because for this system, the volatility is the success key.
The picture shows in 15 M the 20 SMA and ATR 8.
Conditions of trade: only if ATR 8 > 0.0012 according to 20 SMA.
So we need this condition in the code.
Thanks for the future coder.
It would be simple enough to add an ATR filter in the BlockTradingFilter1() function, but I don't know what you mean by "if ATR...according to 20 SMA". Do you mean two filters: ATR and SMA?

Also, seems that the period M15 ATR(8) is almost always above .0012 for EURUSD, so it might not make a very good filter.
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