E2u: a simple hedge-trading EA by Steve Hopwood

SERIOUS WARNING

1. Most Forex traders lose all their money.
2. Using the robot posted here in trading Forex does not guarantee success.
3. Trading this robot could lead to serious financial loss. There is every chance of this happening - visit E2u's profile page and see what he lists as his occupation.

Sorry to start yet another thread guys, but some of us have been having some fun with the trading method. This thread will go one of two ways: wealth and riches or crash and burn. There will be no middle path. This method will either be fantastic or catastrophic.


Here is what I understand of E2u's method:

 

1. take a trade in any direction. No stop loss; take profit 10 pips
2. if the trade goes bad by 20 pips, hedge in the opposite direction at 10 times the size of the original trade
3. if the hedge and the original reach breakeven, close the pair
4. if the market moves back in favour of the initial trade and it hits its tp, then hedge the hedge at 17 times the original lot size
5. after that, each hedge is itself hedged at 1.7 times the previous lot size, at each -20 that the market moves against it. Terrifying.

I did a rough adaptation of BWB to try this out - this is what we have been playing with. The code is dreadful and unreliable, and so is unsuitable for anything other than entertainment.

If this method is to reach live accounts then we need more than is offered by BWB's adaptation, so I have coded this single-chart ea instead. We can discuss the extra features as time passes, if this method proves to have legs.

It does include two filters to at least try to send the trade off in the right direction:

 

1. a D1 Rsi(20). E2u will send a buy if the value is >=55, and a sell if <= 45. It will sit out if the value is in between these two numbers.
2. a maximum spread filter to stop trading pairs will silly spreads.

The big question is, what do we do when the initial trade (1) is hedged (2), then closes at tp, then the hedge is hedged (3) but the pair never achieve breakeven as the market moves back in favour of (2)? A 'line in the sand', perhaps? We shall see.

DO NOT USE THIS EA ON LIVE ACCOUNTS. IT IS LETHAL AND WILL BLOW YOUR ACCOUNT. IT IS EXPERIMENTAL.
Martingale trading (where you take out successively higher trade lots the further against you a trade goes) is lethal unless you have huge accounts and trade tiny initial lot sizes. I am seriously worried that the inexperienced may be tempted to use this robot live after a couple of weeks lucky trading on demo. I have added code to prevent it being used on live accounts and take the abnormal step of releasing only the compiled code so that the more inventive cannot get around this restriction.





This is not one of those you-must-read-all-to-understand threads. If the method survives, the thread will grow; just read this post, make sure you understand the trading method and skip to the end. If the method turns out to be crash-and-burn, then I will close the thread.

So, download E2u and pop it on a few demo charts; tf does not matter. Have fun.


http://cdn.forexfactory.com/images/s...m/big_grin.gif
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Traders familiar with my work need read no further.


Posting restrictions
I have restricted the ability to post in this thread to: traders with at least 1 voucher; and traders on my 'buddy' list. I have done this because I do not want the thread cluttered with 'newbie' questions about the basics. New/inexperienced traders, this is not intended as a direct insult. What I want here is discussion with traders who fully understand what it is they are doing; when you newbs have been around a while, you will come to understand what a difference experience makes to the posts a member writes and shudder at the recollection of some of the questions you asked. I do. http://cdn.forexfactory.com/images/s..._the_floor.gif Go to your profile page; there is a link to the FF page that describes the voucher process.

Do not attempt to get around this by sending me pm's asking for help with your basic problems. Doing so will earn you an automatic ban from all of my threads.

I have set up a partner thread to this one and Nanningbob's at http://www.forexfactory.com/showthre...66#post3948666
Here, you can post the questions that you cannot post here, about anything you need to know. Someone with the knowledge and experience you need will answer. I opened it for Nanningbob traders, but feel free to ask about this robot as well.

Traders/coders with experience who have not yet been vouched for, can get around this restriction be being added to my 'buddy' list; all you have to do is pm me to ask me to do this.

Holly Smokes Steve FF only allows 30 threads in the subscription tab. I'm going to have to lobby Twee to increase it because of you LOL

Steve
I cannot run this robot on my demo cos its ECN/STP. Real nice broker, spread is hardly 2-2.5 pips on G/J too. Doesn't give all pairs but all the main ones are there.
fxcentral.net

Vinesh

p.s. and no requotes.
p.p.s. you shd try the demo.
p.p.p.s. if they are criminals they're really bad ones.
p.p.p.p.s. oops ! don't ban me please. i wrote this after last thread. didn't check it out. sry.

I found a couple of thingies when I loaded up onto half a dozen charts. The biggest was forgetting to adapt MaxSpreadAllowed to accommodate different digit crims.

Fix in post 1.

Vinesh, there is an ECN input; do you need something else for the STP bit?

No ty

Steeeev, i can't follow your threadopenings : P

i got this right that this is the adaption/expantion of bwb?

I shall try to explain a little more with my bad English.
Hedge the hedge shall continue every 20 pips negative.
If a HH (Hedge the Hedge) goes 20 pips wrong direction the next order will be 0,17x1,7=0.289 for HH
Next will be 0.289x1.7=0.4913 and so on.
Ex. Sell 0.01 then hedge Buy 0.10 Next Hedge the Hedge with Sell 0.17 Then HH with Buy 0.289 Then HH with Sell 0.493

When you calculate the lot size Sell side has 0.01 + 0.17 +0.493= 0.673 lot together.
The Buy side has 0.1 + 0.289= 0.389 lot

If it turns around one more time Buy side has 0.493x1.7=0.838 + 0.389=1.22 lot when Sell side has 0.673 lot.

When you don't close the original order it will build up the lot size on “the right direction” sooner or later and when the BE is reached it close all Hedge trades at the same time. That will happen by automatic and nothing to think about. The ketchup effect….

This EA reminds of the first thread that I followed in FF.

100% Win Math Grid Ea

ur english isn't bad buddy , i've got all of it : )

so this EA is semi-automatic? we need to set trade manually and ea does the rest?

Thanks
No its automatic. Its good if the EA opens trade with logic so you don't need to use the Hedge all the time. Its better to collect the 10 pips.

attached it to chart, frame doesn't matter? no trades so far on Demo, i need to attach RSi onto chart?

does it trade all pairs by dragging it just to one chart or is it necessary to drag it on each chart itself?

thanks...

i'm curious cause no trades are triggered so far

Hehe. I had mis-understood as well. I did not realise this was intended to go beyond three levels of trade.

This calls for a rethink of some of the code; it was based on a maximum of 2 trades open at any one time.

It also prompts a prediction; this method will crash and burn.

time for another thread? :-D

what about BWB now?

When I used the MPTM it did the HH on all HH also by automatic. It kept the DD down because the Buy and Sell was hedging each other all the time.
Maybe this is working also like it is now. I have DD around 200 and it seams to stay there. I'm talking about BWB

I have done an update to the bot, so it will continue to hedge the hedges until either breakeven or breakdown is reached. Post 1.

Hasn't broken down yet in backtesting.

Macman, ready for some serious breaking?

I have been testing E2u on an ecn criminal and noticed that the tp mods were sometimes failing - exactly what the bastards want, I suppose.

Fix in post 1. If your crim is not ecn you don't need the update.

Hi Steve,
I think I'm back to break even now after ,in the middle of the thread change, I updated my BWB basket trader with the last E2u hedge trader update.....I'm almost afraid to leave the house...

whip

Can this be integrated on mptm as a hedge manager per order open?

Maybe partially closing the offending trade, when the hedge after been positive tries to run negative? For example, minimum closing lot for the offending trade is 0.01 and that amounts to $$xxx, so that number is our limit allowed to the hedge to retrace, to closing it positive and reduce our exposure.

Best regards and many pips,

I am not a fan of this kind of system.. i think if you enter a trend, you have had it.

However, the philosophy of this, combind with the beast might be legandary - imagine a trade opened at the 6 lines.. if it goes in your favour, all well and good. However, if it goes against you you can double your position at the next sizes calculation - rather than the 113 method, you'd keep increasing your position until profit.

Reminds of of the blessing EA - but using the sixes indicator (which we know shows a higher probability of trend reversal).

You and me both. It looks suicidal to me. I am wondering whether my original 'misunderstanding' that the maximum of a hedged hedge might be a better way forward, with a 'line in the sand' when the pair really move against us.

Hmmmmmm. I might recover the original code and offer up the choice.

I have been trading The Beast live for about a month now. Recovery trades consistently do their job; they can take a while, but the great thing about them is they give us an exit framework when the sh** has really hit the fan. So, I have no intention of adding martingale-style hedging to TB. Not for now, at least.

Thanks for the thought though. Maybe others will contradict me and demand the implementation of this.