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Hedge and Correlation Strategy

  • #2,081
  • Feb 1, 2011 3:15pm Feb 1, 2011 3:15pm
sqaulou thanks for this EA which seems to follow the rules very well. Could you have all the pairs executed from one chart rather than having to open huge amounts of charts? I'm thinking of my poor CPU.

Quoting squalou
Shift(1) means the trades will open/close only at new bar open based on the stoch diff of the closed bar.

Current shift(0) ensures that trade are taken/closed when the stoch diff hits the limit, even if it does not stay there and bounces;
You will indeed visually see that the EA may have taken the trade although the stoch yellow line looks like not having reached the limit, but it actually did, and you're in (or out) as per the rules.

We can explore both possibillities and see how each would perform.

EDIT: I added an input to select...
TRADE FOR SWAP
  • #2,082
  • Feb 1, 2011 3:24pm Feb 1, 2011 3:24pm
Quoting smjones
A nice little side effect of this version is that there are not many pairs to look at that meet the criteria, at any given time, so the window to display them can be quite small.
I have been testing this version for a couple of days and I think the most I saw was about 8 or 10 pairs at the same time. But, you don't really need to see the ones that do not meet the criteria that you set, as you would not trade them anyway.
So basically we don't even need a chart setup, we can just watch this with the indicator, and when it whistles at us, we pull the charts up. NICE.
  • #2,083
  • Feb 1, 2011 3:32pm Feb 1, 2011 3:32pm
Quoting monarch
So basically we don't even need a chart setup, we can just watch this with the indicator, and when it whistles at us, we pull the charts up. NICE.
LOL, That's what DL asked me to do a few days ago. I hope it is what was requested. I cannot think of anything else to put in there, or make it easier to read. Only the pairs that qualify will be shown and when they are, you will get an alert and an email if you have those inputs turned on.
  • #2,084
  • Feb 1, 2011 4:24pm Feb 1, 2011 4:24pm
Quoting smjones
LOL, That's what DL asked me to do a few days ago. I hope it is what was requested. I cannot think of anything else to put in there, or make it easier to read. Only the pairs that qualify will be shown and when they are, you will get an alert and an email if you have those inputs turned on.
Wow, awesome!

Now I will have to trade the signal.... that will come after some more confidence is built on the smaller lots I am using.

Thanks a bunch...
  • #2,085
  • Feb 1, 2011 4:32pm Feb 1, 2011 4:32pm
Hey just like to say great system have been following for a couple of weeks nw and its looking promising.

Just a quick question sorry if it's obvious but it's not to me http://www.forexfactory.com/images/icons/icon11.gif
what would be an acceptible spread to use on a 30 min time frame for tradable correlation 1.6.
The default is set to 10 but it only shows up 2 or 3 pairs at the best of times,
so basically i want to know what is a low spread for a 30 min time frame. 25?
or does the spread stay the same over all time frames.
  • #2,086
  • Feb 1, 2011 5:16pm Feb 1, 2011 5:16pm
Quoting cgldsmth
sqaulou thanks for this EA which seems to follow the rules very well. Could you have all the pairs executed from one chart rather than having to open huge amounts of charts? I'm thinking of my poor CPU.
Steve's EA is the multi-pair bot, and also has correlation threshold levels built-in, and some more features like emergency stop, spread checking.

I worked on Roundrock's EA as a basis to experiment some code changes on my side, while Steve was getting the multi-pair EA developped.
Roundrock's EA was simple enough to allow quick and light logic changes.
For instance, i added drawing vertical lines on the current chart for each trade it takes, each line showing comments on the trades themselves:
just move your mouse over the blue/red lines and see what the popup information box tells you -- i find that pretty handy to visually see the trades and analyse them in a snap.
That is not possible with a multi-pair EA by definition.
For the time being, i shall keep the EA single-pair (well, single-dual-pair!) to keep it simple.
Steve gets his releases out so fast that i can hardly follow them, and i would be merging my changes several times a day...
When things cool down, we might just bring the best of both into a unique EA why not...

Sq
  • #2,087
  • Feb 1, 2011 6:08pm Feb 1, 2011 6:08pm
Quoting smjones
This is a new version of the Tradable Correlations table that has many new features. It has alerts, sorts, filters, adjustable time frames, adjustable alerting and adjustable email alerts. It has the stochastic difference and the combined spreads (in pips), not pipetts and a few more things.

I also included a doc and also a pdf (if you don't have Word) that explains it.

I hope you enjoy it. So now you need not be distracted with pairs you do not want to see, that do not meet the criteria you set.

Thanks so much for this indicator.

Would you be able to add a flag, so if set to true it will alert only if the correlation goes goes past the PositiveAbove/NegativeBelow limits AND the Stoch Diff goes above StochThreshold?

TIA!
  • #2,088
  • Feb 1, 2011 6:24pm Feb 1, 2011 6:24pm
Quoting the-game
Thanks so much for this indicator.

Would you be able to add a flag, so if set to true it will alert only if the correlation goes goes past the PositiveAbove/NegativeBelow limits AND the Stoch Diff goes above StochThreshold?

TIA!
Please read the PDF I included. It already can do this. I am not considering anymore changes, as I have other obligations to get. sorry.
  • #2,089
  • Feb 1, 2011 6:33pm Feb 1, 2011 6:33pm
I don't know if this was addressed. Where do I put my e-mail address so I may receive the alert?
  • #2,090
  • Feb 1, 2011 6:46pm Feb 1, 2011 6:46pm
Quoting smjones
Please read the PDF I included. It already can do this. I am not considering anymore changes, as I have other obligations to get. sorry.
Okay, I'll have a go at it then Thanks for your generousity!
  • #2,091
  • Feb 1, 2011 6:46pm Feb 1, 2011 6:46pm
Quoting smjones
This is a new version of the Tradable Correlations table that has many new features. It has alerts, sorts, filters, adjustable time frames, adjustable alerting and adjustable email alerts. It has the stochastic difference and the combined spreads (in pips), not pipetts and a few more things.

I also included a doc and also a pdf (if you don't have Word) that explains it.

I hope you enjoy it. So now you need not be distracted with pairs you do not want to see, that do not meet the criteria you set.
Vah, great indicator to have with all options. I am using this for :

1) Steve multi pair EA ( I test this EA in 5 min so, your indi has been set to 5 min in order to choose right positive co related with less spread pairs )
2) Squalau' s Single pair set EA ( I use this EA in 30 min so i use your indi for selection of pairs )
3) My manual trading, of cource your indi has been spot on to tell me which pair to trade.

Thanks a lot.
Intraday only.
  • #2,092
  • Feb 1, 2011 7:37pm Feb 1, 2011 7:37pm
Something I posted on the EA thread, might be useful
  • #2,093
  • Feb 1, 2011 8:24pm Feb 1, 2011 8:24pm
i modified the scots indi to add **** against the pairs that goes past 80 stoch diff. i disable alerts and use this instead. its easy to see which pairs have crossed 80 with this ***** marks

on higher TF, we are going to stay longer in the trade and hence more DD. i am watching EURUSD/USDCHF on H4 and its > 75-80 since last 4 days, meanwhile it gave me 80 pips profit multiple times within that range. even though stoch diff came down by 10 points, the pips have gone down by 80. it can go up also and stay > 90 for longer than your account/patience can sustain. watch prev charts and you will know what i mean. even though this particular set has -ve cor, the observation is same for +ve as well

i agree with averaging at 90 and 100. but a word of caution. averaging on M5 is excellent but on higher TF would add to DD and be prepared and be patience.

always its fun to collect to peanuts on M5 and be happy with 50-70 pips a day with some 12 pairs in watch list. remove crazy pairs like GBPNZD, NZDJPY etc. keep regular , small spread pairs.

i dont take any trades in asia. i am getting more signals at start of US session and sometimes i see similar pairs in 3-4 signals simultaneously. like EA/EU, EJ/EA, EU/EC, EA/EC. if you see here EURO is in all of them, its dangerous to take all of them together, i handpick the best ones (based on sto diff and spread)

as DL mentioned, spread is the KEY to success in this. we have to add 4 times the spread, so be careful. 2 on buy and 2 on sell. your broker must be happy if not you

i will select few good pairs for M15, M30 for testing
  • #2,094
  • Feb 1, 2011 8:28pm Feb 1, 2011 8:28pm
roundrock: or you can just set PosAlertOn = true and ShowOnlyCandS = true... and voila! You've got your alert for correlation exceeding and stoch diff exceeding
  • #2,095
  • Feb 1, 2011 8:53pm Feb 1, 2011 8:53pm
I don't understand how you get "80 pips profit multiple times" with EURUSD/USDCHF while the difference stays above 80%. How are you trading this?

Quoting roundrock
i modified the scots indi to add **** against the pairs that goes past 80 stoch diff. i disable alerts and use this instead. its easy to see which pairs have crossed 80 with this ***** marks

on higher TF, we are going to stay longer in the trade and hence more DD. i am watching EURUSD/USDCHF on H4 and its > 75-80 since last 4 days, meanwhile it gave me 80 pips profit multiple times within that range. even though stoch diff came down by 10 points, the pips have gone down by 80. it can go up also and stay > 90 for longer than your account/patience...
  • #2,096
  • Feb 1, 2011 9:12pm Feb 1, 2011 9:12pm
Quoting Dreamliner
I don't understand how you get "80 pips profit multiple times" with EURUSD/USDCHF while the difference stays above 80%. How are you trading this?
it doesnt stay > 80 all the time, it fluctuates between 80-65 and i enter at 80 and wait for a pip gain of 60-70 and exit, and re-enter at 80 and exit at pipgain

what i mean is H4 gives multiple opportunities for entry/exit even though the sto diff doesnt come down to 50.

otoh, i get a DD of 70-100 pips when the sto diff goes to 85-90. so be careful

on H4 , you need more patiance
  • #2,097
  • Feb 1, 2011 9:18pm Feb 1, 2011 9:18pm
I know you are an experienced trader and are well aware of the risks of this kind of trading; basically you are counter-trend trading and doing so at twice the risk of going with only 1 pair. This to me quadruples the risk. Just one of these trades that gets away from you can wipe your account very fast. I know you know this, just wanting to make sure any newbies are aware of it also.

By the way, if I ever did consider trading negative correlated pairs again (my wounds have still not healed from the last time I tried) I would wait until the difference came down from 80 to 50 and get in and out at either 20 for a profit, or 80 for a loss. That's just me, we're all different.

Quoting roundrock
it doesnt stay > 80 all the time, it fluctuates between 80-65 and i enter at 80 and wait for a pip gain of 60-70 and exit, and re-enter at 80 and exit at pipgain

what i mean is H4 gives multiple opportunities for entry/exit even though the sto diff doesnt come down to 50.

otoh, i get a DD of 70-100 pips when the sto diff goes to 85-90. so be careful

on H4 , you need more patiance
  • #2,098
  • Feb 1, 2011 9:44pm Feb 1, 2011 9:44pm
Quoting roundrock
it doesnt stay > 80 all the time, it fluctuates between 80-65 and i enter at 80 and wait for a pip gain of 60-70 and exit, and re-enter at 80 and exit at pipgain

what i mean is H4 gives multiple opportunities for entry/exit even though the sto diff doesnt come down to 50.

otoh, i get a DD of 70-100 pips when the sto diff goes to 85-90. so be careful

on H4 , you need more patiance

EURUSD and USDCHF no longer have the negative correlation they once had. They are only slightly negative. They used to be 90%
across the board.

Trading them is like picking two pairs at random to trade.

If you've made money trading them you have been lucky.

I don't see any way to trade negative correlations with this system.

They don't fit the rules.

Unlike positive pairs, negative pairs should stay separated. They should spend most of their time around 80.

The anomaly is when they come together. That is when you should trade them. The problem is you don't know which one to buy and which one to sell. It's a crap shoot.

I would stay away from them using this method.
  • #2,099
  • Feb 1, 2011 11:59pm Feb 1, 2011 11:59pm
Quoting smjones
This is a new version of the Tradable Correlations table that has many new features. It has alerts, sorts, filters, adjustable time frames, adjustable alerting and adjustable email alerts. It has the stochastic difference and the combined spreads (in pips), not pipetts and a few more things....
Perfect, thanks SMJ
  • #2,100
  • Feb 2, 2011 4:17am Feb 2, 2011 4:17am
I am loving this! It is handling itself very well. I was a bit concerned when with the GBP news about 40 minutes ago a number of trades where taken by the EAs all at once and immediately went negative but it handled itself well and the built in hedging worked well. So far the demo account is up 1.38% since starting on Monday with Max DD 0.46%. This I can live with. I interfered once to close a trade than showed a nice profit before Stoch reached 50% apart from that it is all on autopilot.

Results are published here: http://www.mt4i.com/users/zr-fx-gh/stats
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