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Hedge and Correlation Strategy

  • #961
  • Sep 7, 2009 2:23am Sep 7, 2009 2:23am
Quoting Galation
Why is it dangerous?
Negatively correlated pairs can go against each other for longer periods and gaps can be bigger than in case of positively correlated ones. You can get a margin call much easier.
  • #962
  • Sep 7, 2009 4:46am Sep 7, 2009 4:46am
Thanx Dreamliner for this method, I have been reading this thread and it seems very interesting.
I see that you guys don't have an way to look back the history, so I recoded the Overlaychart indi into one that only shows the last overlay price, so no more repainting. I renamed it StaticOverlay.
I added an option bUseAutoCorr, if this is turned on then it would pick to mirror the other chart or not if the pairs are pos of neg correlated (the same currency must be in both pairs)

Also made this indi, Multi_Pair_Profit , it will show the combined profit for different pairs. Just to give you an quick example about the format, sSymbols = "EURUSD,0,EURCHF,1,USDCHF,0" would translate into buy EU (0 is buy and 1 is an sell), sell EC and buy UC. you can add pairs or remove them, just keep the format the same ("Symbol,Type")
Attached File(s)
File Type: mq4 Multi_Pair_Profit.mq4   6 KB | 775 downloads
File Type: mq4 StaticOverlay.mq4   6 KB | 867 downloads
  • #963
  • Sep 7, 2009 5:17am Sep 7, 2009 5:17am
Quoting T.E.Lawrence
New trade:

Attachment

Current open positions:

GBP/USD short x1
GBP/CHF long x1
I've just closed that trade - +27 pips.
  • #964
  • Sep 7, 2009 5:23am Sep 7, 2009 5:23am
New trade:

Attached Image (click to enlarge)
Click to Enlarge Name: chart2.jpg Size: 130 KB


long gap, should close soon

short gbp/usd x1
long eur/jpy x1
  • #965
  • Sep 7, 2009 6:05am Sep 7, 2009 6:05am
Quoting T.E.Lawrence
New trade:

Attachment

long gap, should close soon

short gbp/usd x1
long eur/jpy x1
Trade closed - +27 pips. Again!

I could wait with these two trades I've posted above, and take bigger profits, but I'm just testing trading these pairs.
  • #966
  • Sep 7, 2009 6:15am Sep 7, 2009 6:15am
I took two trades last thursday (arrows). Right now I am -84 pips on AUDUSD/EURUSD and +5 pips on GBPUSD/EURUSD. I could have closed everything earlier (circle), but I was asleep. I wonder if there is an automated way to close when in profit.

http://i26.tinypic.com/a2q1s4.jpg
  • #967
  • Sep 7, 2009 6:47am Sep 7, 2009 6:47am
Quoting bravester
will you all be there on skype tonight ? I am on and i see a few folks out there but the room seems very silent.
I'm sure will b more active tomorrow. US hloisay today. I know I will b manning the grill all. Will b there tomorrow though
  • #968
  • Sep 7, 2009 6:57am Sep 7, 2009 6:57am
Quoting chamane
I took two trades last thursday (arrows). Right now I am -84 pips on AUDUSD/EURUSD and +5 pips on GBPUSD/EURUSD. I could have closed everything earlier (circle), but I was asleep. I wonder if there is an automated way to close when in profit.

http://i26.tinypic.com/a2q1s4.jpg

Working on getting that coded. Waiting on coder though
  • #969
  • Sep 7, 2009 7:00am Sep 7, 2009 7:00am
Quoting bobfourie
Thanx Dreamliner for this method, I have been reading this thread and it seems very interesting.
I see that you guys don't have an way to look back the history, so I recoded the Overlaychart indi into one that only shows the last overlay price, so no more repainting. I renamed it StaticOverlay.
I added an option bUseAutoCorr, if this is turned on then it would pick to mirror the other chart or not if the pairs are pos of neg correlated (the same currency must be in both pairs)

Also made this indi, Multi_Pair_Profit , it will show the combined...
Thanks a million. These will surely help. Can u make an ea that can close only 2 pairs once that "set" is In profit but leave other trades alone to close once they r in profit. It would Need to close each "set" of trades independantly
  • #970
  • Sep 7, 2009 7:06am Sep 7, 2009 7:06am
Quoting Dreamliner
Greetings,

Using these pairs:

GBP/USD-GBP/CHF
GBP/USD-GBP/JPY
GBP/USD-EUR/JPY
EUR/USD-GBP/USD
EUR/USD-EUR JPY
USD/JPY-EUR/JPY
USD/JPY-GBP/CHF
USD/JPY-GBP/JPY
USD/JPY-EUR/CHF
EUR/JPY-EUR/CHF
EUR/JPY-GBP/JPY
EUR/CHF-GBP/CHF
EUR/CHF-GBP/JPY
GBP/CHF-GBP/JPY
Do you think Pairs have to be correlated some what???

No correlation here what so ever

EUR/CHF-GBP/JPY
GBP/CHF-GBP/JPY
EUR/USD-EUR JPY

And on and on

Only

EUR/USD-GBP/USD

If USD goes down then EU pair moves up and GU moves up as well

Other pairs have no correlation

Perhaps

EURUSD-USDCHF also correlated, but in appositive direction.
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  • #971
  • Sep 7, 2009 7:07am Sep 7, 2009 7:07am
Just closed GBPUSD/EURUSD with +22 pips.
  • #972
  • Sep 7, 2009 7:13am Sep 7, 2009 7:13am
How to place both pairs on the charts? Clicking on "Instruments"
But whatever I'm choosing another Chart First ones getting closed


Ohh, ok, see now,,, Right mouse click on chart and there in the menu "Overlay"..

WOW I see that's looking good.
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  • #973
  • Sep 7, 2009 7:25am Sep 7, 2009 7:25am
Great Table, thank you!
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  • #974
  • Sep 7, 2009 7:26am Sep 7, 2009 7:26am
Quoting bobfourie
Thanx Dreamliner for this method, I have been reading this thread and it seems very interesting.
......
Also made this indi, Multi_Pair_Profit , it will show the combined profit for different pairs. Just to give you an quick example about the format, sSymbols = "EURUSD,0,EURCHF,1,USDCHF,0" would translate into buy EU (0 is buy and 1 is an sell), sell EC and buy UC. you can add pairs or remove them, just keep the format the same ("Symbol,Type")
Bob,
Thanks for these indicators.
Would it be possible to have another movable line just like you have for the starting point(entry), but this one would be for the ending point(exit)?
That would make is easier to check past history.

Thanks.
Bruce
  • #975
  • Sep 7, 2009 7:39am Sep 7, 2009 7:39am
Quoting brucech
Bob,
Thanks for these indicators.
Would it be possible to have another movable line just like you have for the starting point(entry), but this one would be for the ending point(exit)?
That would make is easier to check past history.

Thanks.
Bruce
Sorry Bob,

Been playing with it some more....And It looks ok...I just needed to adjust the "0" and "1" where I wanted to start it....

So it's working alright for me after all to check back history....
Thanks.

Bruce
  • #976
  • Sep 7, 2009 7:53am Sep 7, 2009 7:53am
As for now the only problem i see is a time frame..

I was looking in M30 TF first and then switch to H1 TF and it's

totally different picture.. The pair which was on top on M30 TF now on the

bottom in H1,

Strange.. We also have to figure out in what TF that strategy is the best.
Viewer Discretion Advised: Shall we shag now or should we shag later? :-)
  • #977
  • Sep 7, 2009 8:06am Sep 7, 2009 8:06am
Quoting SkyzerFX
As for now the only problem i see is a time frame..

I was looking in M30 TF first and then switch to H1 TF and it's

totally different picture.. The pair which was on top on M30 TF now on the

bottom in H1,

Strange.. We also have to figure out in what TF that strategy is the best.
I have never had a problem with it. To me it's like looking at 2 different candles- make your candles red and green. Now go to 1 min Latest candle is green. It might red on 5 and 30. And green on daily. In other words it's might give a short entry on hour and long on 30 min. Every system out

there has this same issue. It's like getting a better entry
  • #978
  • Edited 9:23am Sep 7, 2009 8:14am | Edited 9:23am
Quoting jtmoore007
Thanks a million. These will surely help. Can u make an ea that can close only 2 pairs once that "set" is In profit but leave other trades alone to close once they r in profit. It would Need to close each "set" of trades independantly
I made an quick ea for ye, just test it a bit before going live(just to make sure there isn't errors). Since you will be opening orders manually there wont be an way to identify orders (like with an magic #), so you wont be able to have trades with overlapping curr pairs. I also haven't bring lot sizing into play since it does not seem any body are using different lots sizes at the moment.
The selection is simple "Symbol1,Symbol2|Symbol1,Symbol2"
etc
sPairs = "EURUSD,USDCHF|USDJPY,EURJPY"; Will pair up EU and UC, UJ and EJ will be the other pair.
and of course the corresponding required pip wins for there pair
sPips = "10,5";
so close EU/UC pair with 10 profit and 5 pip profit for EJ/UJ
Attached File(s)
File Type: mq4 PairClose.mq4   3 KB | 444 downloads
File Type: mq4 MyLib.mq4   88 KB | 427 downloads
  • #979
  • Sep 7, 2009 8:17am Sep 7, 2009 8:17am
Sorry, forget to attach my library file for the ea
Attached File(s)
File Type: mq4 MyLib.mq4   88 KB | 357 downloads
  • #980
  • Sep 7, 2009 8:32am Sep 7, 2009 8:32am
Bob,

Does the Multi_Pair_Profit indi represent one full lot of each currency? I assume that it does, but I just want to make sure...

Thanks for sharing these indis....

Brian
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