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Hedge and Correlation Strategy

  • #1,001
  • Sep 7, 2009 9:07pm Sep 7, 2009 9:07pm
Quoting jeffreytp
Need script to open trades (sets), using magic #.
why, just to make it quicker?? This is perfect and working great!! Only other thing that would b nice is email alerts for closed trades but this guy has done this for free so I'm not gonna ask any more from him. Scripts would b nice but it would have to b ea so it could manage trade. It is quick enough once u get used to I would think
  • #1,002
  • Sep 7, 2009 9:17pm Sep 7, 2009 9:17pm
Quoting jtmoore007
why, just to make it quicker?? This is perfect and working great!! Only other thing that would b nice is email alerts for closed trades but this guy has done this for free so I'm not gonna ask any more from him. Scripts would b nice but it would have to b ea so it could manage trade. It is quick enough once u get used to I would think
Sorry to ask stupid question...do I have to drag the ea to each chart for each pair?

and does it close out both trades when the overall profit is reached (1 lot in picture example above)?
  • #1,003
  • Sep 7, 2009 9:18pm Sep 7, 2009 9:18pm
Quoting bobfourie
Here you go, if you find an error or 2 just let me know.
The external variable sPairs should be in the format "Symbol1,Type" where type is an 0 for buy and 1 for sell. Same as the multi profit indi. TP/SL are in dollar amount, I know it works fine with an standard acc but could not test it on a mini.
So far so good! 1 thing I noticed is that u either have to have a chart open for each pair or I got a requote or something. Because I was testing to see if overlapping pair feature worked and told it to open new set. I had 1 chart open and the other not. The pair that I had chart opened opened the trade but the one I didn't have a chart open didn't open the side of the trade. So maybe u have to have chart open to open the trade. If requote problem then this needs to b addressed because the ea needs to force the trade open no matter about slippage or requote and it DEF needs to close no matter if requote or slippage. I would hate for ea to only close 1/2 of the trade for this would defeat our purpose of opening the trade the way we Do. So if u don't mind, look into that.

Other than that. Works Great. Overlapping pair closed exactly as intended!! Hit tp on both sets at diff times and it closed the "right" overlapped pair the correct way

GREAT JOB!!!! Thanks a ton for this

I'm sure I speak for all when I say we REALLY appreciate this!!!
  • #1,004
  • Sep 7, 2009 9:20pm Sep 7, 2009 9:20pm
Quoting 2+2=4ex
Sorry to ask stupid question...do I have to drag the ea to each chart for each pair?

and does it close out both trades when the overall profit is reached (1 lot in picture example above)?


NO don't do that. Only put on 1 chart. If u put on two it will open 2 trades!!!!!

As soon as profit reached it will close both trades of the "set". No worries there. As long as the requote problem I just spoke about is addressed. See above post
  • #1,005
  • Sep 7, 2009 9:38pm Sep 7, 2009 9:38pm
Quoting jtmoore007
NO don't do that. Only put on 1 chart. If u put on two it will open 2 trades!!!!!

As soon as profit reached it will close both trades of the "set". No worries there. As long as the requote problem I just spoke about is addressed. See above post
okay. Am I supposed to see the overlapping on the chart? How do I know where the pa for both stand in relation to the tp set?
  • #1,006
  • Sep 7, 2009 9:46pm Sep 7, 2009 9:46pm
1st Trade of Live Account:

Attached Image (click to enlarge)
Click to Enlarge Name: Profit #1.jpg Size: 48 KB
  • #1,007
  • Sep 7, 2009 10:00pm Sep 7, 2009 10:00pm
Quoting 2+2=4ex
okay. Am I supposed to see the overlapping on the chart? How do I know where the pa for both stand in relation to the tp set?
No will not see overlapping on chart. Tp is set to what u feel comfortable with. You can calc where pa will b at your take prof but will have to do it manually and it will depend on what u set as tp
  • #1,008
  • Sep 7, 2009 10:01pm Sep 7, 2009 10:01pm
Quoting jeffreytp
1st Trade of Live Account:

Attachment
Congrats keepit up!!
  • #1,009
  • Sep 7, 2009 10:17pm Sep 7, 2009 10:17pm
okay, I don't see both trades...only one. I saw 2 closed trades in the photo posted.
  • #1,010
  • Sep 7, 2009 10:28pm Sep 7, 2009 10:28pm
Quoting 2+2=4ex
okay, I don't see both trades...only one. I saw 2 closed trades in the photo posted.
It is two in pic because two trades is 1 "set". That is 1 trades with two diff pairs
  • #1,011
  • Sep 7, 2009 10:30pm Sep 7, 2009 10:30pm
Am I supposed to put tp in dollar amount.
  • #1,012
  • Sep 7, 2009 10:50pm Sep 7, 2009 10:50pm
Quoting 2+2=4ex
Am I supposed to put tp in dollar amount.
Yes.
  • #1,013
  • Sep 7, 2009 10:53pm Sep 7, 2009 10:53pm
I hope to see more people in the skype chat tomorrow. I will start around US session open. Chat went great last week. Really seems to help out getting everyones input n real time.

If u need help getting to chat pm me and I'll b glad to help out
  • #1,014
  • Sep 7, 2009 11:25pm Sep 7, 2009 11:25pm
Quoting T.E.Lawrence
Hey Dreamliner,

don't you think gbp/usd & gbp/chf are not much correlated? daily correlation of 63.7 could be dangerous: with that small correlation one pair can stay at the same level and other pair can go up or down hundreds pips. With high correlated pairs usually both pairs are going same ways with short times of de-correlation (gaps) and of course there's hedging. With lower correlation, hedging could be less efficient.

I don't know - it's first time I trade with those pairs, we'll see.
Actually, i find these pairs very well correlated. On mataf.net , change the Number of points to 100 and you will see that the correlation is > 85 % on hourly and daily, so they look like a good pair to me. By default the No of points is 50 on mataf.net , so an a hourly chart that hardly covers the last 2 days, changing to 100 atleast covers the bars from the last 1 week on an hourly scale.
  • #1,015
  • Sep 7, 2009 11:47pm Sep 7, 2009 11:47pm
Quoting tasciy
it gave GU buy / EU sell signal then pairs crosses again and gave 30pips.

http://img32.imageshack.us/img32/3356/indicatorler.png


I am so salivating over the prospect of using this indicator. Tasciy , would you be kind enough to share this, thanks.
  • #1,016
  • Edited 12:45am Sep 8, 2009 12:16am | Edited 12:45am
i finally found the MT4 overlay indicator here if anyone is interested:


http://www.forexfactory.com/showpost...20&postcount=2
  • #1,017
  • Sep 8, 2009 12:49am Sep 8, 2009 12:49am
Quoting bravester
Actually, i find these pairs very well correlated. On mataf.net , change the Number of points to 100 and you will see that the correlation is > 85 % on hourly and daily, so they look like a good pair to me. By default the No of points is 50 on mataf.net , so an a hourly chart that hardly covers the last 2 days, changing to 100 atleast covers the bars from the last 1 week on an hourly scale.
Thanks a lot! Great Tip!
  • #1,018
  • Sep 8, 2009 12:58am Sep 8, 2009 12:58am
New day, new trade:

Attached Image (click to enlarge)
Click to Enlarge Name: chart3.jpg Size: 140 KB


bought 10K of USD/JPY
sold 10K of EUR/CHF
  • #1,019
  • Sep 8, 2009 1:29am Sep 8, 2009 1:29am
As you can see in my above post I'm trading right now USD/JPY / EUR/CHF. I've just checked the correlation:

1h: 75.8 - positive correlation
Daily: -25.6 - negative correlation !!!

???

Isn't something wrong here? It looks like in short term there's a pretty good correlation, but what if trade goes for a few days? According to the rules we shouldn't trade these pairs when we look at the daily correlation.

P.S.

Wait!!!

What I wrote above was based on 100 points set in mataf.net. When I checked default value of 50 points, the correlations are: 1H: 22.5, Daily: 76.9.
So here's an additional question: to set 100 points in mataf.net or just leave the value by default?
  • #1,020
  • Sep 8, 2009 2:27am Sep 8, 2009 2:27am
This is what you should be afraid of:

Attached Image (click to enlarge)
Click to Enlarge Name: chart4.jpg Size: 135 KB


Check my previous chart and you'll see that then everything looked ok. But now - suddenly the gap is getting bigger and bigger. This kind of action can result in a margin call, if you put too much money in one trade. So that's a good idea, of Dreamliner, that we should enter with 1/5 of overall sum we'd like to put in a trade, and then, we can add whenever gap widens.
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