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Three Pairs Hedging

  • #121
  • Feb 8, 2011 6:34am Feb 8, 2011 6:34am
Other than coding new ea for 2 baskets with magic number, there is another way..

Existing ea can be modified for 6 pairs. So just find out perfectly correlated baskets.
ie if basket B1 is perfectly +ve correlated with basket B2 then open BBS (for B1) and BBS (for B2)
or
if basket B1 is perfectly -ve correlated with basket B2 then open BBS (for B1) and SSB (for B2)

Correctly if I am wrong!
  • #122
  • Feb 8, 2011 6:58am Feb 8, 2011 6:58am
Quoting Password
Other than coding new ea for 2 baskets with magic number, there is another way..

Existing ea can be modified for 6 pairs. So just find out perfectly correlated baskets.
ie if basket B1 is perfectly +ve correlated with basket B2 then open BBS (for B1) and BBS (for B2)
or
if basket B1 is perfectly -ve correlated with basket B2 then open BBS (for B1) and SSB (for B2)

Correctly if I am wrong!
That is a totally different method of trading.

Search the Trading Systems section for:

Basket 14
Confirm 14
Phantom 6 <-- I think you will be interested in this one!
Art Phantom (3 pairs)
  • #123
  • Feb 8, 2011 7:06am Feb 8, 2011 7:06am
Quoting Lonestar
The funny part is going to be when no one believes what we're saying until this thread goes about 100 pages and about 12 ea's and indicators to prove it versus just thinking and trying to understand what others are saying and not getting caught up in the hype.

And...here we go.
  • #124
  • Feb 8, 2011 7:21am Feb 8, 2011 7:21am
Lonestar,

I appreciate you giving us fair warning, but just let us have our fun for now.

You must be interested if you keep posting on this thread.
  • #125
  • Feb 8, 2011 7:40am Feb 8, 2011 7:40am
Quoting the-game
Lonestar,

I appreciate you giving us fair warning, but just let us have our fun for now.

You must be interested if you keep posting on this thread.
Yeah...interested in helping people better understand and have them not waste their time so they can make progress and not spin their wheels rehashing nonsense. This is like someone getting into their vehicle and a passerby points out to them that they have four flat tires. They thank the passerby then get into the vehicle and try to drive off wondering what the funny noises are and why they are having trouble driving. Have fun.
  • #126
  • Feb 8, 2011 8:17am Feb 8, 2011 8:17am
Quoting Lonestar
This method accomplishes nothing except placing a trade on usd/chf and...
Okay, let me understand this post.

How did you get "approx 6100 units short u/c exposure with no gbp exposure whatsoever"?

I'm actually being serious when I say that I'm trying to understand
  • #127
  • Feb 8, 2011 8:19am Feb 8, 2011 8:19am
I am sharing my results for last 20hrs. It closed 3 baskets
Lot size = 1.0
Profit target = $20
Attached Image (click to enlarge)
Click to Enlarge Name: untitled.JPG Size: 139 KB
  • #128
  • Feb 8, 2011 9:00am Feb 8, 2011 9:00am
Quoting the-game
Okay, let me understand this post.

How did you get "approx 6100 units short u/c exposure with no gbp exposure whatsoever"?

I'm actually being serious when I say that I'm trying to understand
buy 10000 gbp/usd = long 10000 gbp/ short 16050 usd
sell 10000 gbp/chf = short 10000 gbp/ long 15352 chf (16050 usd)
buy 10000 usd/chf = long 10000 usd/ short 9559 chf (10000 usd)

gbp: 10000 long and short cancels each other out. No exposure.
usd: 16050 short and 10000 long leaves 6050 short usd exposure
chf: 15352 long and 9559 short leaves 5793 long (which is approx 6050 long usd)

So we are left with appox 6050 short usd/5793 long chf (6050 in usd terms) which is about 6050 units of short usd/chf exposure. Everything is approximate cause rates were changing as I was typing.

So just place the short u/c trade and save yourself some spread and margin.
  • #129
  • Feb 8, 2011 9:52am Feb 8, 2011 9:52am
I am trying it on Demo account. But struck at the loss of equivalent to the total spread. I am curious how do you guys make profit when the spreads for 3 pairs add together is quite sizable...

Any enlightened guys care to answer?
  • #130
  • Feb 8, 2011 10:00am Feb 8, 2011 10:00am
http://i55.tinypic.com/2ewmdxu.gif

This chart shows the maximum profit and maximum draw down for a Sell Sell Buy. The purple line is the current P/L.

The draw down would be profit for a Buy Buy Sell.

Either way, you can exit with a profit.

Patience is the key.
  • #131
  • Feb 8, 2011 10:16am Feb 8, 2011 10:16am
Quoting tjfxtrader
http://i55.tinypic.com/2ewmdxu.gif

This chart shows the maximum profit and maximum draw down for a Sell Sell Buy. The purple line is the current P/L.
The draw down would be profit for a Buy Buy Sell.
Either way, you can exit with a profit.
Patience is the key.
tjfxtrader, could you upload this indicator?
Do you use it as an entry trigger?
  • #132
  • Feb 8, 2011 11:30am Feb 8, 2011 11:30am
Counterquestion :

How would the

Buy GBPUSD
Buy USDCHF
Sell GBPCHF

basket look like in such a case u mentioned below?


Quoting zznbrm
But what would your

Sell GBPUSD
Sell USDCHF
Buy GBPCHF

basket P/L look like if you opened the trades at any of the green lines on the chart below? Or any number of other "high" points on the chart?
  • #133
  • Feb 8, 2011 11:43am Feb 8, 2011 11:43am
Quoting PipMaxzz
I am trying it on Demo account. But struck at the loss of equivalent to the total spread. I am curious how do you guys make profit when the spreads for 3 pairs add together is quite sizable...

Any enlightened guys care to answer?

I am with Max on this one....I have been stuck at -3 to -12 pips all night on a eu/ej/uj basket. Just trying for a 10 pip gain.

B-cat
  • #134
  • Feb 8, 2011 1:06pm Feb 8, 2011 1:06pm
Quoting Password
I am sharing my results for last 20hrs. It closed 3 baskets
Lot size = 1.0
Profit target = $20
The results look good. However, the $20.00 profit at 1 standard lot traded represents only a profit of 2 pips. This may be the reason why the system appears to be profitable when in fact it is just the minor market inefficencies that we are exploiting.

@PipMaxzz

[/quote]I am trying it on Demo account. But struck at the loss of equivalent to the total spread. I am curious how do you guys make profit when the spreads for 3 pairs add together is quite sizable...

Any enlightened guys care to answer?[/quote]

See above answer.
  • #135
  • Feb 8, 2011 1:10pm Feb 8, 2011 1:10pm
Quoting zznbrm
But what would your

Sell GBPUSD
Sell USDCHF
Buy GBPCHF

basket P/L look like if you opened the trades at any of the green lines on the chart below? Or any number of other "high" points on the chart?
I am sure you can figure that out. Determine the entry price and direction for each pair. Check against current price and calculate the profit loss.
  • #136
  • Feb 8, 2011 1:14pm Feb 8, 2011 1:14pm
Quoting cash4u2
tjfxtrader, could you upload this indicator?
Do you use it as an entry trigger?
Cash:

Check your PMs. The email bounced back.

If you enter the pair, entry price and direction for each pair, the indicator shows the profit/loss, maximum P/L and maximum draw down. It is not an entry trigger.

Cash, according to post #1, don't you start by entering and then reenter immediately after taking profit?

Quote
It did not use any indicator and opened new trades as soon as the previous ones where closed.
  • #137
  • Feb 8, 2011 1:57pm Feb 8, 2011 1:57pm
Quoting tjfxtrader
Cash:

Check your PMs. The email bounced back.

If you enter the pair, entry price and direction for each pair, the indicator shows the profit/loss, maximum P/L and maximum draw down. It is not an entry trigger.

Cash, according to post #1, don't you start by entering and then reenter immediately after taking profit?
Normally yes, but it would be great to have an EA that would do it better than this one. It takes aleays a while until the trades are opened and both have no magic number, to handle their trades separately, when in profit.

Attached File(s)
File Type: mq4 BBS Hedging Strategy .mq4   6 KB | 2,228 downloads


Attached File(s)
File Type: mq4 SSB Hedging Strategy .mq4   6 KB | 1,706 downloads
  • #138
  • Feb 8, 2011 2:03pm Feb 8, 2011 2:03pm
Quoting zznbrm
Just remember folks, "patience is the key". Eventually it will come around.

This system consists of trading 1 pair (with the transaction costs of 3 pairs) using random entries, a small TP, and no SL.

I did not know it could be so simple, I'm going live tomorrow. It can't lose!
Sarcasm does not help here. It is ok, to bring up your opinions, but please do respect each other.

Thank you.
  • #139
  • Feb 8, 2011 2:04pm Feb 8, 2011 2:04pm
Quoting zznbrm
Just remember folks, "patience is the key". Eventually it will come around.

This system consists of trading 1 pair (with the transaction costs of 3 pairs) using random entries, a small TP, and no SL.

I did not know it could be so simple, I'm going live tomorrow. It can't lose!
Interesting interpretation.
  • #140
  • Feb 8, 2011 2:05pm Feb 8, 2011 2:05pm
Quoting cash4u2
Normally yes, but it would be great to have an EA that would do it better than this one. It takes aleays a while until the trades are opened and both have no magic number, to handle their trades separately, when in profit.

Attachment

Attachment
I would never trust an EA with my real money.
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