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Hedge and Correlation Strategy

  • #2,441
  • Feb 8, 2011 9:48am Feb 8, 2011 9:48am
My entry has always been 90 all these days. After the entry i failed to notice whether the stoc diff went above 90, but there was always a chance it could go up above 90.

So hereafter i am going to set up entry at 95 and i will watch.
Intraday only.
  • #2,442
  • Feb 8, 2011 9:52am Feb 8, 2011 9:52am
Quoting navk
My entry has always been 90 all these days. After the entry i failed to notice whether the stoc diff went above 90, but there was always a chance it could go up above 90.

So hereafter i am going to set up entry at 95 and i will watch.
My Systems are all at trigger 95 currently with three EURCHF .....pairs and I have all same DD a as you lot which is approx 210 $ as I write
it was a big move by CHF
  • #2,443
  • Feb 8, 2011 9:55am Feb 8, 2011 9:55am
I have tried to open a new trade every time when the differense is above 85 but now it seems not a good idea. I am glad that am try it with a cent account.
  • #2,444
  • Feb 8, 2011 10:09am Feb 8, 2011 10:09am
Quoting navk
My entry has always been 90 all these days. After the entry i failed to notice whether the stoc diff went above 90, but there was always a chance it could go up above 90.

So hereafter i am going to set up entry at 95 and i will watch.
Just closed EUR/CHF-GBP/CAD: -12 pips at 20%, not bad after all.

The problem is that if you enter at 95, it could go to 98, 99, 100 and stay there for a long time, and DD will come again ..........

Maybe we have to think in some additional filter, I have tested The-Game trend filter posted in Steveīs thread but I have not found good results with that. Maybe we can try this Rsi filter but instead of using a daily TF, maybe 15M since we are trading 5M.

This last trade EUR/CHF-GBP/CAD would not be opened with this filter....
  • #2,445
  • Feb 8, 2011 10:10am Feb 8, 2011 10:10am
Not all trades will be in profit. Some will go big DD and finish with loss. As long as the overall equity is going up, one should be happy. Nothing is a perfect system in forex. No guarantee all trades will be in profit.

Let us see how the big DD is going to be handled by our exit criteria.
Intraday only.
  • #2,446
  • Feb 8, 2011 10:13am Feb 8, 2011 10:13am
Quoting navk
Not all trades will be in profit. Some will go big DD and finish with loss. As long as the overall equity is going up, one should be happy. Nothing is a perfect system in forex. No guarantee all trades will be in profit.

Let us see how the big DD is going to be handled by our exit criteria.
Totally agree, but we have to check this loss, we have to get a decent R:R......
  • #2,447
  • Feb 8, 2011 10:14am Feb 8, 2011 10:14am
I had 5 open trades in the early US session and DD was 400 pips. Now two trades got closed with small profit. Balance three trades with 158 pips DD.
Intraday only.
  • #2,448
  • Feb 8, 2011 10:19am Feb 8, 2011 10:19am
Quoting navk
I had 5 open trades in the early US session and DD was 400 pips. Now two trades got closed with small profit. Balance three trades with 158 pips DD.
Yes......
  • #2,449
  • Feb 8, 2011 10:21am Feb 8, 2011 10:21am
400 DD on 5000 $ a/c is not even 10 %, in some other systems, we have come across DD more than 10 % and lived with it.
Intraday only.
  • #2,450
  • Feb 8, 2011 10:25am Feb 8, 2011 10:25am
Quoting navk
400 DD on 5000 $ a/c is not even 10 %, in some other systems, we have come across DD more than 10 % and lived with it.

Yes, I remember this, with this system DD is much more comfortable. Time will tell us what to do, itīs extremely early to know, we have to test, test, test....
  • #2,451
  • Feb 8, 2011 10:26am Feb 8, 2011 10:26am
Quoting navk
My entry has always been 90 all these days. After the entry i failed to notice whether the stoc diff went above 90, but there was always a chance it could go up above 90.

So hereafter i am going to set up entry at 95 and i will watch.
Before changing the entry we should try to find out if 95% will really improve things or will it cut the number of trades dramatically.

About the current trades, seeing that EURCHF-GBPCAD stoch diff was dropping quickly there was still a big DD on the set, I dropped the exit to 10%. It has just closed with -3.5 pips after a big move up by GC. I have moved the other 2 to 10%.

So I could not resist interfering at the end!

I will need to review this more closely. Perhaps we need to dynamically manage the exit point based on the action. Or just set it at 10%?!

So, so far -11.1 pips (-Ģ8.5). Two down, two to go.
  • #2,452
  • Feb 8, 2011 10:39am Feb 8, 2011 10:39am
When the DD is has gone up, i will definitely change the exit strategy.

With some profit i will get out and i will not hesitate to change the exit strategy to 5 % exit. In addition Exit by pips strategy ! The pairs we trade are positively co related so loss trades should be minimum. we have to watch out for more days as cailou said.
Intraday only.
  • #2,453
  • Feb 8, 2011 10:51am Feb 8, 2011 10:51am
This EUR/CHF-GBP/CAD closed at 10% would finished at BE instead at -12 pips at 20%. Maybe entry at 90% exit at 10% give us more distance for recovery in case of DD without adding too much risk.....
  • #2,454
  • Feb 8, 2011 10:58am Feb 8, 2011 10:58am
Quoting Caillou
This EUR/CHF-GBP/CAD closed at 10% would finished at BE instead at -12 pips at 20%. Maybe entry at 90% exit at 10% give us more distance for recovery in case of DD without adding too much risk.....
Yes it would be interesting to see if this would indeed make a positive difference on all trades. One of the issues is that visual back testing of the Stoch Diff graph does no always show peaks if they happen for a very short time but I suppose these cases will not be too many.

Current DD is now -170 pips. I am guessing that if both pairs stay flat now or move in the same direction then after a while the Stoch Diff will drop to ~0 with the DD staying the same?!
  • #2,455
  • Feb 8, 2011 11:00am Feb 8, 2011 11:00am
Quoting Zr-fx
Yes it would be interesting to see if this would indeed make a positive difference on all trades. One of the issues is that visual back testing of the Stoch Diff graph does no always show peaks if they happen for a very short time but I suppose these cases will not be too many.

Current DD is now -170 pips. I am guessing that if both pairs stay flat now or move in the same direction then after a while the Stoch Diff will drop to ~0 with the DD staying the same?!
Letīs see.....
  • #2,456
  • Feb 8, 2011 11:06am Feb 8, 2011 11:06am
is anybody steel holding eurchf-gbpjpy?
  • #2,457
  • Feb 8, 2011 11:11am Feb 8, 2011 11:11am
Do you guys/girls trade multiple currencies?

Averaged 360 pips a day last week.
  • #2,458
  • Feb 8, 2011 11:14am Feb 8, 2011 11:14am
Quoting A95h
is anybody steel holding eurchf-gbpjpy?

Yes, me, now at -82 pips DD, Diff Stoch at 66%, will close at 10%
  • #2,459
  • Feb 8, 2011 11:19am Feb 8, 2011 11:19am
Quoting Caillou
Yes, me, now at -82 pips DD, Diff Stoch at 66%, will close at 10%
Cailou : I am planning to avoid trading quad pairs in the futue as these pairs get into huge DD at times.
Intraday only.
  • #2,460
  • Feb 8, 2011 11:20am Feb 8, 2011 11:20am
Quoting Caillou
Yes, me, now at -82 pips DD, Diff Stoch at 66%, will close at 10%
Almost the same here.
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