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Hedge and Correlation Strategy

  • #1,581
  • Jan 26, 2011 12:56pm Jan 26, 2011 12:56pm
Quoting navk
Calliou : What i noticed untill now, if you enter at let us say 50 % and the gap increses, never mind as long as you have enough margin to withstand. Finally you close in little profit. We have to test all conditions.
Yes, you are right, if gap increases, I have wait (only 30 trades tested) and ALWAYS the profit has arrived.

Sure, enter at 80% and exit at 20% works, itīs safer, but it not happens frecuently so as I want more trades, I enter at 50-60%, each time and for now 100% wins. Max DD was 40 pips, and what I want to optimize is TP for closure, 10 pips works but maybe 20 pips too, I have to test more.

Anyway, thanks again Dreamliner and Smjones, it looks really promising.
  • #1,582
  • Jan 26, 2011 1:02pm Jan 26, 2011 1:02pm
You guys are amazing, with all your profits! Goodness!

Anyway, I am feeling much better about this strategy now that we have Scott's indicators. I'm trading every entry at 80% and closing at 50%. Several trades, all profitable.

By the way, just a couple of points here:

First, I am "vouching" for SMJones now; he has given so much of his time and has contributed greatly to this method with free indicators and suggestions. Anytime somebody gives of themselves like this they deserve to be recognized (vouched for).

Secondly, if you want to get more people in here testing, all you need to do is give this thread a higher star rating and it will attract more people to test with us.

Quoting Caillou
Yes, you are right, if gap increases, I have wait (only 30 trades tested) and ALWAYS the profit has arrived.

Sure, enter at 80% and exit at 20% works, itīs safer, but it not happens frecuently so as I want more trades, I enter at 50-60%, each time and for now 100% wins. Max DD was 40 pips, and what I want to optimize is TP for closure, 10 pips works but maybe 20 pips too, I have to test more.

Anyway, thanks again Dreamliner and Smjones, it looks really promising.
  • #1,583
  • Jan 26, 2011 1:08pm Jan 26, 2011 1:08pm
Quoting Dreamliner
You guys are amazing, with all your profits! Goodness!

Anyway, I am feeling much better about this strategy now that we have Scott's indicators. I'm trading every entry at 80% and closing at 50%. Several trades, all profitable.

By the way, just a couple of points here:

First, I am "vouching" for SMJones now; he has given so much of his time and has contributed greatly to this method with free indicators and suggestions. Anytime somebody gives of themselves like this they deserve to be recognized (vouched for).

Secondly, if you want to...
Yes, Scottīs indicators are extremely useful and your system is really intelligent......
  • #1,584
  • Jan 26, 2011 1:12pm Jan 26, 2011 1:12pm
Caillou,

Would you be able to post your set file to close every pair at 10 pips of profit? There are so many options on this EA I don't know where to begin.

Quoting Caillou
Since we are trading positive correlated pairs, I think the most important is to enter trades when an unbalanced situation arrives for the couple of pairs. After that, sooner or later, the market must get this situation balanced (in theory).

Today I made 15 trades (all winners) on M1, I enter each time the Stoch Difference reaches the 60%, and I enter a new couple of trades each time a difference reaches this level. So sometimes the basket has 2, 4, or 6 trades.

I exit when the MPTM (EA) closes all trades at a fixed quantity of pips (for example...
  • #1,585
  • Jan 26, 2011 1:17pm Jan 26, 2011 1:17pm
Quoting Caillou
Yes, you are right, if gap increases, I have wait (only 30 trades tested) and ALWAYS the profit has arrived.

Sure, enter at 80% and exit at 20% works, itīs safer, but it not happens frecuently so as I want more trades, I enter at 50-60%, each time and for now 100% wins. Max DD was 40 pips, and what I want to optimize is TP for closure, 10 pips works but maybe 20 pips too, I have to test more.

Anyway, thanks again Dreamliner and Smjones, it looks really promising.
You said positive corelation. The following pairs seem to have positive corelation :

aud/usd - euro/usd
aud/usd - nzd/usd
aud/usd - gbp/usd
euro/usd - euro/jpy
euro/usd - nzd/usd
gbp/usd- nzd/usd
gbp/usd-euro/usd

Any other pairs?

Do you trade in one minute ?
Intraday only.
  • #1,586
  • Jan 26, 2011 1:25pm Jan 26, 2011 1:25pm
Roundrock :

Your EA has been working well. It has taken three trades on euro/usd and usd/chf. First trade 11pips second trade 36 pips third trade 30 pips. But at times it takes trades on same pair, that is on usd/cHf sell and buy.

If this hitch is resolved we will have a great EA.
Intraday only.
  • #1,587
  • Jan 26, 2011 1:34pm Jan 26, 2011 1:34pm
Great contribution from smjones and dreamliners. Keep it up.
Intraday only.
  • #1,588
  • Jan 26, 2011 1:38pm Jan 26, 2011 1:38pm
3 trades in the past 30 minutes; all 3 of them successful. Only 12 pips for all 3 though. Oh well, positive pips are positive pips.
  • #1,589
  • Jan 26, 2011 2:15pm Jan 26, 2011 2:15pm
Quoting Dreamliner
Caillou,

Would you be able to post your set file to close every pair at 10 pips of profit? There are so many options on this EA I don't know where to begin.
Sorry, I said 10 pips, I want to say 10.-$, but it is the same. In MPTM EA, all settings default and I change only this:

Global Order Closure Settings
Global Order Closure Enable: True
Profit in Dollars: True
Dollar Profit: 10 (or whatever you want)

The EA will close all open trades when global result is 10.-$.......
  • #1,590
  • Jan 26, 2011 2:18pm Jan 26, 2011 2:18pm
Quoting navk
You said positive corelation. The following pairs seem to have positive corelation :

aud/usd - euro/usd
aud/usd - nzd/usd
aud/usd - gbp/usd
euro/usd - euro/jpy
euro/usd - nzd/usd
gbp/usd- nzd/usd
gbp/usd-euro/usd

Any other pairs?

Do you trade in one minute ?
Yes, one minute. I look in mataf.net pairs with a daily correlation above 75%, normally 14 pairs......
  • #1,591
  • Jan 26, 2011 2:22pm Jan 26, 2011 2:22pm
I've seen a "PairRelationship" indicator on some screenshots but haven't seen the actual indicator posted in the thread. Is it around somewhere?
You are in a maze of twisty little passages, all alike.
  • #1,592
  • Jan 26, 2011 2:29pm Jan 26, 2011 2:29pm
smjones,

thank you for picking up my thoughts. Results of 'no sleeping' but 'developing ea' are really great. Think this thread has to get upgraded rating - done here.

Sorry, smjones, not able to give voucher yet (by member status), but small compensation:

josch
trading is war - life is simple
  • #1,593
  • Jan 26, 2011 3:24pm Jan 26, 2011 3:24pm
Quoting stevegee58
I've seen a "PairRelationship" indicator on some screenshots but haven't seen the actual indicator posted in the thread. Is it around somewhere?
Steve,

the PairRelationship is included with ea OffChartPrice, see http://www.forexfactory.com/showpost...postcount=1565

josch
trading is war - life is simple
  • #1,594
  • Edited 4:17pm Jan 26, 2011 3:41pm | Edited 4:17pm
Quoting josch
Steve,

the PairRelationship is included with ea OffChartPrice, see http://www.forexfactory.com/showpost...postcount=1565

josch
I downloaded the OffChartPrice indicator but I'm still not finding the PairRelationship.
You are in a maze of twisty little passages, all alike.
  • #1,595
  • Jan 26, 2011 3:50pm Jan 26, 2011 3:50pm
Also, I do believe we can exploit the negatively correlated pairs with this indicator also. If I understand right, Scott put an "invert first pair" and an "invert second pair" in the indicator, so that if we inverted either the first or the second pair it would display just like all the positively correlated pairs and we could trade them the same way.

I'd like Scott to verify this before I say this is exactly true, and he is having some nerve right now in sleeping while we are all hard at work. OK OK he deserves a good night's sleep after all he has done for us here!

Quoting Caillou
Yes, one minute. I look in mataf.net pairs with a daily correlation above 75%, normally 14 pairs......
  • #1,596
  • Jan 26, 2011 3:52pm Jan 26, 2011 3:52pm
I'm vouching for you Josch.

Quoting josch
Steve,

the PairRelationship is included with ea OffChartPrice, see http://www.forexfactory.com/showpost...postcount=1565

josch
  • #1,597
  • Jan 26, 2011 4:03pm Jan 26, 2011 4:03pm
Quoting Dreamliner
Also, I do believe we can exploit the negatively correlated pairs with this indicator also. If I understand right, Scott put an "invert first pair" and an "invert second pair" in the indicator, so that if we inverted either the first or the second pair it would display just like all the positively correlated pairs and we could trade them the same way.

I'd like Scott to verify this before I say this is exactly true, and he is having some nerve right now in sleeping while we are all hard at work. OK OK he deserves a good night's sleep after...

Yes, in this way we could have much more opportunities......
  • #1,598
  • Jan 26, 2011 4:46pm Jan 26, 2011 4:46pm
Quoting Dreamliner
I'm vouching for you Josch.
Dreamliner,

thank you!
At the time, I'm able to do so, I'll remember, that you earned one for starting this thread too.

josch
trading is war - life is simple
  • #1,599
  • Jan 26, 2011 4:46pm Jan 26, 2011 4:46pm
Quoting josch
Steve,

the PairRelationship is included with ea OffChartPrice, see http://www.forexfactory.com/showpost...postcount=1565

josch
That is just a little test indicator that I posted as Pair difference in pips test2 I'll go back and delete it and rename it and upload it here. I did not think anyone was interested in it. LOL
Attached File(s)
File Type: mq4 PairRelationshipForTwoPairs.mq4   2 KB | 1,577 downloads
  • #1,600
  • Jan 26, 2011 4:50pm Jan 26, 2011 4:50pm
Quoting Dreamliner
Also, I do believe we can exploit the negatively correlated pairs with this indicator also. If I understand right, Scott put an "invert first pair" and an "invert second pair" in the indicator, so that if we inverted either the first or the second pair it would display just like all the positively correlated pairs and we could trade them the same way.

I'd like Scott to verify this before I say this is exactly true, and he is having some nerve right now in sleeping while we are all hard at work. OK OK he deserves a good night's sleep after all...
Yes, you can invert either or both of the Stochastic lines with the invert tab.

Also, I noticed that the Alert is set for the current bar. so if the diff goes above 80 and comes back down it will still set off an alert and email. would you rather it be set one back so the bar will be closed and you will not get alerts for diff that did not close above 80?
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