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Hedge and Correlation Strategy

  • #1,541
  • Jan 25, 2011 9:40pm Jan 25, 2011 9:40pm
Quoting roundrock
here is a very basic EA that opens trades when diff > 80 and closes when < 20, you can choose your own pairs, stoch settings...

pl note there is no stoploss, takeprofit

i didnt understand when to exit. right now it exits when diff < 20
Thabks a lot yar.

I shall test and post results.
Intraday only.
  • #1,542
  • Jan 25, 2011 10:31pm Jan 25, 2011 10:31pm
Quoting navk
Thabks a lot yar.

I shall test and post results.
just now i uploaded the EA again, pl take latest
  • #1,543
  • Jan 25, 2011 10:35pm Jan 25, 2011 10:35pm
Quoting roundrock
just now i uploaded the EA again, pl take latest
OK noted.
Intraday only.
  • #1,544
  • Jan 25, 2011 11:25pm Jan 25, 2011 11:25pm
Round rock,

I loaded the EA in euro/usd 5 min chart. The pairs i chose eurousd and usdchf.

The EA placed two orders sell and buy in usdchf and di not place order in eurousd. Can you check this. thanks.
Intraday only.
  • #1,545
  • Jan 26, 2011 2:00am Jan 26, 2011 2:00am
Quoting navk
Round rock,

I loaded the EA in euro/usd 5 min chart. The pairs i chose eurousd and usdchf.

The EA placed two orders sell and buy in usdchf and di not place order in eurousd. Can you check this. thanks.
are you sure u took the latest ? pl check the timestamp. better take the latest again
  • #1,546
  • Jan 26, 2011 2:35am Jan 26, 2011 2:35am
Quoting peje
I have certain doubts about usage of stochastic as proper indicator for entry/exit of this strategy.
Right now (aprox 1:00PM ) the indicator covered a quick way between 30-80 and in reality it is just few pips what can be tens of pips or more next time.
There is really needed a fixed price overlaying chart what is not easy as I understood.
Maybe you are right, but we have to test it in order to be sure.....
  • #1,547
  • Edited 6:18am Jan 26, 2011 5:56am | Edited 6:18am
Quoting josch
SMJones,

with 'largest range' I meant the highest price of chart 1 to lowest price of overlaying chart 2. I think, this is nothing you can calculate. It's the decision, you have to make to exec your trade, if you are suspecting, it's the best range. Nonetheless upper price may get higher despite the stoch is already at ie 85 and distance to lower will grow. Which will bring your trade -initially- in red territory.

josch
Ok josch, I have thought about your statement here over night and I think I have a solution. I have written an indicator that tracks the price of two currency pairs, but it divides each pair's median value by it's smallest point value for it's significant digits to arrive at an integer value for each pair. This solves the scale problem. Then it takes the the current value for each pair expressed in integer form and subtracts the last integer value and then accumulates that value, for each of the two pairs. This way the two lines are scaled to each other and comparable.
the actual value on the right of the indicator is not important. What the indicator is showing is the relationship between the two pairs.

Note, the overlay of the USDCHF is not a part of the indicator, I just put it on to show accuracy.

Just like my other indicator the first input for FirstSymbol is blank. You can type any currency you want, do not use extensions. If it is left blank, it will use the chart symbol.

Perhaps this may help you.
Attached Image (click to enlarge)
Click to Enlarge Name: pair diff.gif Size: 21 KB
Attached File(s)
File Type: mq4 Pair Difference In Pips.mq4   3 KB | 1,813 downloads
  • #1,548
  • Jan 26, 2011 6:16am Jan 26, 2011 6:16am
A most interesting discussion happening here lately. I use a lot of visual correlation in my trading.

A stupid question...should I start at post #1?

Cheers
CanuckCT
  • #1,549
  • Edited 4:47pm Jan 26, 2011 6:34am | Edited 4:47pm
And here is another that shows the actual relationship between the two pairs, the second pair is subtracted from the first pair. So if it is going up that would mean the gap between them is widening

That's about it for me on this.
Attached Image (click to enlarge)
Click to Enlarge Name: pair diff.gif Size: 23 KB
  • #1,550
  • Jan 26, 2011 6:41am Jan 26, 2011 6:41am
Scott,

Can you please post the chart overlay indicator?

Thank you,
PC
  • #1,551
  • Jan 26, 2011 6:47am Jan 26, 2011 6:47am
If you guys like spread trading, you may want to take a look at the futures market. I am currently long 1 (3/11) contract & short 1 (4/11) contract of crude oil. You can clearly see the upper/lower range on the 1 hr time frame for the past few days.
Attached Image (click to enlarge)
Click to Enlarge Name: Crude oil spread.jpg Size: 608 KB
  • #1,552
  • Jan 26, 2011 6:59am Jan 26, 2011 6:59am
Quoting Pip Chaser
Scott,

Can you please post the chart overlay indicator?

Thank you,
PC
Compliance
Attached File(s)
File Type: mq4 OverLayChart.mq4   9 KB | 1,339 downloads
  • #1,553
  • Jan 26, 2011 7:01am Jan 26, 2011 7:01am
Scott, this is an amazing indicator, but not sure how to use it (my problem, not yours). For instance, with the stoch we open trades at 80% and close them at 50% or less. Do you have any suggestions on how to use this indicator?

Quoting smjones
And here is another that shows the actual relationship between the two pairs, the second pair is subtracted from the first pair. So if it is going up that would mean the gap between them is widening

That's about it for me on this.
  • #1,554
  • Jan 26, 2011 7:03am Jan 26, 2011 7:03am
Quoting Dreamliner
Scott, this is an amazing indicator, but not sure how to use it (my problem, not yours). For instance, with the stoch we open trades at 80% and close them at 50% or less. Do you have any suggestions on how to use this indicator?

Not a clue. Just answering a post by josch. He wanted a way of seeing the two pairs without any scaling errors when the window changes. This does that.
  • #1,555
  • Jan 26, 2011 7:31am Jan 26, 2011 7:31am
lol got it!

Quoting smjones
Not a clue. Just answering a post by josch. He wanted a way of seeing the two pairs without any scaling errors when the window changes. This does that.
  • #1,556
  • Jan 26, 2011 7:41am Jan 26, 2011 7:41am
Quoting Dreamliner
lol got it!
Well, you could draw a trend line on the Relationship chart and Sell the EURUSD and Buy the USDCHF when the line broke to the down side. and then stay in the trade until it breaks the trend line to the upside.
Attached Image (click to enlarge)
Click to Enlarge Name: pair diff.gif Size: 29 KB
  • #1,557
  • Jan 26, 2011 8:10am Jan 26, 2011 8:10am
I may be on to something here. LOL
Attached Image (click to enlarge)
Click to Enlarge Name: pair diff.gif Size: 29 KB
  • #1,558
  • Jan 26, 2011 8:22am Jan 26, 2011 8:22am
Quoting CanuckCT
A most interesting discussion happening here lately. I use a lot of visual correlation in my trading.

A stupid question...should I start at post #1?

Cheers
CanuckCT
You don't read it all. another party has just started right here..
  • #1,559
  • Jan 26, 2011 8:27am Jan 26, 2011 8:27am
And another. LOL I think you guys get the idea and I'm tired. See ya
Attached Image (click to enlarge)
Click to Enlarge Name: pair diff.gif Size: 31 KB
  • #1,560
  • Jan 26, 2011 8:28am Jan 26, 2011 8:28am
Quoting smjones
And here is another that shows the actual relationship between the two pairs, the second pair is subtracted from the first pair. So if it is going up that would mean the gap between them is widening

That's about it for me on this.

This is what should be precise compared to stochastic. Let's test it.
Is "Pair Difference In Pips.mq4" redundant in case of "test2" version?
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