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Hedge and Correlation Strategy

  • #2,041
  • Feb 1, 2011 8:01am Feb 1, 2011 8:01am
Sir, my name is Ibtisam. I just read about your beautiful “Stochastic Different Pairs 1.4b” indicator. Please tell me from where I can get/download this.
Thanks a million.
  • #2,042
  • Feb 1, 2011 9:16am Feb 1, 2011 9:16am
I raised this very point earlier - maybe squalou can add it to his ea as an option for posuition sizing
Ie get atr for each pair divide 1 into the other ie using below eg 218/99 - 2.2 so base lot ie min lot -4ay 0.01 for usdchf and gbchf -0.02

My 2nd point is should we be blindly taking the 2 trades my simple idea was send signal buy amd sell setup when stoch in place and send orders on say simple ma cross on each pair this would stop for eg a pair staying above 80 and beyond and losing trades

QUOTE=sergen4;4360003]occamsrazors
:......These pairs have very different ATRs, USDCHF is 99 pips and the GBPCHF is 218 pips, so the GBPCHF is moving more than twice as far. If it moves and the GBPCHF side is a loser maybe the USDCHF side pips didn't make up for it. ...;

Hi occamsrazors ,
excellent point you have there I believe,
thats exactly what happened to my earlier trade today (Monday), gbfchf went down too deep for my other usdchf pair to recover the loss and the trade reached to $8.11 loss .[/quote]
  • #2,043
  • Feb 1, 2011 9:19am Feb 1, 2011 9:19am
squalou/roundrock, just curious but does the EA take trades if the correlation dips below 75? I had many charts yesterday that were above 75 and throughout the night have fallen below 75, do we need to close these charts out or will the EA simply ignore them until they reach 75 again?
  • #2,044
  • Feb 1, 2011 9:34am Feb 1, 2011 9:34am
Quoting faze
squalou/roundrock, just curious but does the EA take trades if the correlation dips below 75? I had many charts yesterday that were above 75 and throughout the night have fallen below 75, do we need to close these charts out or will the EA simply ignore them until they reach 75 again?
The EA does not take any consideration on the correlation itself, unlike Steve's GoingHome.
This is left for now to your discretion, when and what pair to run the EA on.

I may add correlation check to the EA with appropriate inputs.

SQ
  • #2,045
  • Feb 1, 2011 9:42am Feb 1, 2011 9:42am
that would be awesome if you could add the correlation check

we could open many charts and let them go.

using your defaults with 10 pip target on around 15 charts, it pulled in just under $250 during the night.
  • #2,046
  • Feb 1, 2011 9:56am Feb 1, 2011 9:56am
Quoting hariusa72
Hi Squalou,

The new ovrlay chart is not plotting. The old one was working perfectly. Any suggestions? Thank you in advance. Thanks for the great thread!

grrrr.... those mangled pair names....
(i see you have GPBUSDm)

Here is a fix for it.

I hope this works...

Sq
Attached File(s)
File Type: mq4 OverLayChart.mq4   11 KB | 802 downloads
  • #2,047
  • Feb 1, 2011 10:00am Feb 1, 2011 10:00am
Quoting faze
that would be awesome if you could add the correlation check

we could open many charts and let them go.

using your defaults with 10 pip target on around 15 charts, it pulled in just under $250 during the night.
cool

Note however that the ProfitTarget is NOT in pips, but in account currency (that would be US $, or Ł, or €).

Sq
  • #2,048
  • Feb 1, 2011 10:12am Feb 1, 2011 10:12am
Quoting ibtisampk
Sir, my name is Ibtisam. I just read about your beautiful “Stochastic Different Pairs 1.4b” indicator. Please tell me from where I can get/download this.
Thanks a million.
Ibtisam,

the latest version you'll find here: http://www.forexfactory.com/showpost.php?p=4356011

josch
trading is war - life is simple
  • #2,049
  • Feb 1, 2011 10:22am Feb 1, 2011 10:22am
i have tried the going home EA and it works great.. thanks to Steve! sry i have to post here, i'm restricted to post in the EA thread. Steve, what do you think to have the EA open/close trades when the stoch difference is confirmed in the previous closed bar? as i'm trading in m5 timeframe, i think its ok to wait till the signal confirmed.

you guys have done great job! love how this thread goes in speed!
  • #2,050
  • Feb 1, 2011 10:28am Feb 1, 2011 10:28am
Quoting squalou
cool

Note however that the ProfitTarget is NOT in pips, but in account currency (that would be US $, or Ł, or €).

Sq
I was under the assumption it is pips. Thanks.
Intraday only.
  • #2,051
  • Feb 1, 2011 11:46am Feb 1, 2011 11:46am
Great system. I have been trying this system on a demo for last 3 days. total profit 620 pips.

Basically I wait until diff is 80, then take the trade. If it goes to 90 add another contract and finally if it goes to dif of 100 add another contract.

Close position if it is in profit or wait until diff comes to 50

Will probably go live next week

Thanks Dreamliner for this great system.
Attached Image (click to enlarge)
Click to Enlarge Name: renko trade dream.gif Size: 44 KB
  • #2,052
  • Feb 1, 2011 11:57am Feb 1, 2011 11:57am
Quoting ES Trader
Great system. I have been trying this system on a demo for last 3 days. total profit 620 pips.

Basically I wait until diff is 80, then take the trade. If it goes to 90 add another contract and finally if it goes to dif of 100 add another contract.

Close position if it is in profit or wait until diff comes to 50

Will probably go live next week

Thanks Dreamliner for this great system.
Good to see another encouraging post. Which pairs you normally trade witht this strategy ?
Intraday only.
  • #2,053
  • Feb 1, 2011 12:01pm Feb 1, 2011 12:01pm
Quoting navk
Good to see another encouraging post. Which pairs you normally trade witht this strategy ?
Any pair that has 80 or more correlation, but not ones with enormous spreads
  • #2,054
  • Feb 1, 2011 12:03pm Feb 1, 2011 12:03pm
Quoting ES Trader
Any pair that has 80 or more correlation, but not ones with enormous spreads
Here is indicator showing the spread and correlation
Attached Image (click to enlarge)
Click to Enlarge Name: renko trade dream1.gif Size: 30 KB
  • #2,055
  • Feb 1, 2011 12:06pm Feb 1, 2011 12:06pm
I also have not been trading currencies with Negative correlation.

May be I will try it out sometime
  • #2,056
  • Feb 1, 2011 12:10pm Feb 1, 2011 12:10pm
Quoting ES Trader
Great system. I have been trying this system on a demo for last 3 days. total profit 620 pips.

Basically I wait until diff is 80, then take the trade. If it goes to 90 add another contract and finally if it goes to dif of 100 add another contract.

Close position if it is in profit or wait until diff comes to 50

Will probably go live next week

Thanks Dreamliner for this great system.

Have you been using the 30min timeframe on these pairs ?
  • #2,057
  • Feb 1, 2011 12:12pm Feb 1, 2011 12:12pm
Quoting globalinvest
Have you been using the 30min timeframe on these pairs ?
yes
  • #2,058
  • Feb 1, 2011 12:18pm Feb 1, 2011 12:18pm
Quoting ES Trader
yes
Hi, ES.. why did you choose 30min ?.. I think everybody is now trying it on 5min ?
  • #2,059
  • Feb 1, 2011 12:18pm Feb 1, 2011 12:18pm
Quoting ES Trader
Here is indicator showing the spread and correlation
Your indi shows many positive corelated pairs. My indicator shows only 19 pais. Which version of tradeble corelation indi you are using ?

I am using version 1.5
Intraday only.
  • #2,060
  • Feb 1, 2011 12:23pm Feb 1, 2011 12:23pm
Quoting Kruspe
Hi, ES.. why did you choose 30min ?.. I think everybody is now trying it on 5min ?
Two Reason:

Tried 5 min, but I did not have good result .

Dreamliner seem to be using 30 min with good success. My experience has been the same.

I have a feeling the higher the time frame the larger the draw down likely to be, but still may work out at the end.
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