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Hedge and Correlation Strategy

  • #2,581
  • Feb 11, 2011 6:55am Feb 11, 2011 6:55am
Quoting josch
Zr-fx,

you meant by 'enter again' at 90%, that you'll scale-in/average with another size?

josch
Yes this is something Roundrock suggested. Same size. As I said this is experimental and may back fire. Essentially what I have done is after the EA enters the trades at 85%, if I see things going back up and the gap widening I set the same EA to enter at 90% (and modify the magic number by adding a 0). In this case if goes back up it takes another trade. As I said I have only done this once, and it worked by getting me out of all four trades at BE. But I can easily imagine a situation where the loss may double if it continues to go against us so this certainly is not something we should continue doing again and again otherwise it becomes Martingale and will blow up the account.

Perhaps a maximum of 2 further entries; original at 85, then at 90 and 95?! Not sure about this so have to test. At least this way we are limiting ourselves, also forcing closure at 10% (or 5%) means we have to take the loss and not let it escalate.

I would not advise anyone doing this unless they know the risk.
  • #2,582
  • Feb 11, 2011 6:55am Feb 11, 2011 6:55am
To all testing ...

would be interesting to hear about max DD, using the Hedge with adding positions or not. Still using demo last week at feb 08, I was a bit surprised, that I get a 200- and the pair comes back to profit. Although have to mention,

1. it was no triple (EURCHF x GBPCAD) / using M5
2. EURCHF ranging about 2 hrs in OS level
3. adding 2nd pos. at 97% (29- PIPs)
4. adding 3rd pos. at 82% (110- PIPs)
5. max DD was 200- at (still) 92%
6. EA close 1st at 25-
7. manually closed 2nd at 18+ and 3rd at 54+

But - this is imo nothing you can write into a program. Human observation and intervention is absolutely necessary.

And - if you get growing confidence, that the max. correlating pairs trying to come home, it's not so irritating.

Any other little 'horror-stories'?

josch
trading is war - life is simple
  • #2,583
  • Feb 11, 2011 6:57am Feb 11, 2011 6:57am
Quoting Zr-fx
Yes this is something Roundrock suggested ....

Just wrote my last post together with your publishing.

josch
trading is war - life is simple
  • #2,584
  • Feb 11, 2011 7:14am Feb 11, 2011 7:14am
is it possible single EA make three enteries at 85%,90% and 95% on same chart ?
  • #2,585
  • Feb 11, 2011 7:23am Feb 11, 2011 7:23am
Guys

Is the 'Stoch Diff 2 Pair EAsq' closing trades at the set $ value?

I don't think it is. I am not using the latest version though.

Thanks
  • #2,586
  • Feb 11, 2011 7:30am Feb 11, 2011 7:30am
hi guys,

what about this idea.

for example yesterday there was big GBP news and big USD news.

what an EA / indicator should do if possible. i dont know if it is possible. but just suggest. when stoch and correlation conditions are met have it do like this.

EA / indicator should look a day ahead what the news is.

if it sees that a day consist of first GBP news and then USD news. then only send buy or sell alarm to open GBP pairs that do not have USd in them. since 2 hours later USd news is coming up.

so for example GBPAUD paired with GBPJPY is valid. 2 pair pounds.

if USd news hit. only open pairs like for example EURUSD together with CADUSD, but never EURUSD together with EURJPY for example. so never single pairs of the news that is hit. always 2 pairs!

what do you think?
  • #2,587
  • Feb 11, 2011 7:56am Feb 11, 2011 7:56am
Quoting Zr-fx
Guys

Is the 'Stoch Diff 2 Pair EAsq' closing trades at the set $ value?

I don't think it is. I am not using the latest version though.

Thanks
It closes in cash profit. I set 50 $ cash profit in 1 hr in one platform and 30 $ cash profit in another platform. EA working well in both platforms and taking cash profit. The key here you should exit some trades going opposite, so i set 40 % exit and cash profit.
Intraday only.
  • #2,588
  • Feb 11, 2011 8:32am Feb 11, 2011 8:32am
Quoting squalou
you have probably put the indicator in the /experts folder (that's where EAs only should be).
Move it to /experts/indicators instead.

sq
escuse me but I dont' understand !

I put this ea ....Equity Graph Go HomeV2.mq4 in folder expert without indicator but I need also of your ea in folder for backtest ?

history is ok, I have not indicators in foder expert and not ea in folder indicators !
  • #2,589
  • Feb 11, 2011 9:07am Feb 11, 2011 9:07am
Quoting wallstreet03
escuse me but I dont' understand !

I put this ea ....Equity Graph Go HomeV2.mq4 in folder expert without indicator but I need also of your ea in folder for backtest ?

history is ok, I have not indicators in foder expert and not ea in folder indicators !
is it hard to understand the difference between EA and indi ? if thats the case, pl dont bother about using it
  • #2,590
  • Feb 11, 2011 9:20am Feb 11, 2011 9:20am
Quoting roundrock
is it hard to understand the difference between EA and indi ? if thats the case, pl dont bother about using it
I understand the difference ! but this file is a ea

Equity Graph Go HomeV2.mq4 and if I do backtest I have error


2011.02.11 16:20:56 2011.01.03 00:00 Equity Graph Go HomeV2 EURUSD,M5: SetIndexBuffer function must be called from custom indicator only
  • #2,591
  • Feb 11, 2011 9:29am Feb 11, 2011 9:29am
Quoting wallstreet03
I understand the difference ! but this file is a ea

Equity Graph Go HomeV2.mq4 and if I do backtest I have error


2011.02.11 16:20:56 2011.01.03 00:00 Equity Graph Go HomeV2 EURUSD,M5: SetIndexBuffer function must be called from custom indicator only
this is not EA. this is indi
  • #2,592
  • Feb 11, 2011 9:34am Feb 11, 2011 9:34am
Quoting roundrock
this is not EA. this is indi
ok ! now is clear ! but now how do I backtest with indicator ?
  • #2,593
  • Feb 11, 2011 10:28am Feb 11, 2011 10:28am
Quoting squalou
Here is a version with Risk percent input.

- added RiskPerCent input: adjust LotSize to % of FreeMargin;
- added MaxLots to limit LotSize;


Other mods :

'Remember my small remark about the "Pair2" label that i had created with the "Basket Profit 2 Pairs sq.mq4" indicator ?
Saying that it would be for future use...

Here is its other use now:

- when "Pair2" input is left empty, the EA will set it to the "Pair2" Label object it finds on the chart: that's the upper-right corner purple Label.

So,...
Squalou :

Trading with your EA on many pairs in hourly chart. EA doing great. I set cash profit for exit and as well as 40 % stoc exit. I have noticed that with the exit strategy i mentioned, the winning trades are more compared to loosers. So, for trades going opposite direction, it is better to exit at some pips with loss.Is there a s/l option in this EA ? If so how to set ? Thanks.
Intraday only.
  • #2,594
  • Feb 11, 2011 10:49am Feb 11, 2011 10:49am
Quoting wallstreet03
ok ! now is clear ! but now how do I backtest with indicator ?
Put it on any chart you like with your backtasting timeframe. fill in your prefered settings.

after that you see a blue line in an indicator-window. this is your backtest result. set UseTimelessGrapth to TRUE and the blue line looks like in the strategytester. if set to FALSE it shows the equity in conjunction with the signals
  • #2,595
  • Feb 11, 2011 11:02am Feb 11, 2011 11:02am
Quoting Mediator
Put it on any chart you like with your backtasting timeframe. fill in your prefered settings.

after that you see a blue line in an indicator-window. this is your backtest result. set UseTimelessGrapth to TRUE and the blue line looks like in the strategytester. if set to FALSE it shows the equity in conjunction with the signals

ok ok ! thank you ! :-) but i have not a report wuth all trades !
  • #2,596
  • Feb 11, 2011 11:28am Feb 11, 2011 11:28am
Quoting navk
It closes in cash profit. I set 50 $ cash profit in 1 hr in one platform and 30 $ cash profit in another platform. EA working well in both platforms and taking cash profit. The key here you should exit some trades going opposite, so i set 40 % exit and cash profit.
Mine is certainly not closing at the defined cash profit in the variable 'Profit Target'. It is only closing at 10%. I shall try the latest version.
  • #2,597
  • Edited 1:32pm Feb 11, 2011 11:48am | Edited 1:32pm
Right, I've closed shop for the day. I think I left a few pips behind but things started jumping around so I decided to close with a total week pip count of 96 pips, which, given the 160 pip loss at the beginning of the week, is a reasonable result. Not brilliant, but reasonable.

This brings total growth since starting the test last week to 4.14% and 350 pips.

Looking forward to another week of testing.

Z
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  • #2,598
  • Feb 11, 2011 12:22pm Feb 11, 2011 12:22pm
Quoting navk
Squalou :

Trading with your EA on many pairs in hourly chart. EA doing great. I set cash profit for exit and as well as 40 % stoc exit. I have noticed that with the exit strategy i mentioned, the winning trades are more compared to loosers. So, for trades going opposite direction, it is better to exit at some pips with loss.Is there a s/l option in this EA ? If so how to set ? Thanks.
Here is a version with CashStopLoss input: trades will close when DD reaches this amount of cash;

(CashStopLoss is >=0, however the EA displays the maxDD as a negative value).

Caution: the SL cash amount includes the cost of opening the trades (as soon as you open the trades, you are instantly in DD of the cost of the trades).
However it does NOT count the cost of closing.
So you should have this in mind when setting the CashStopLoss amount.


Sq
Attached File(s)
File Type: mq4 Stoch Diff 2 Pair EAsq 2011.02.11.mq4   22 KB | 737 downloads
  • #2,599
  • Feb 11, 2011 12:26pm Feb 11, 2011 12:26pm
Squalou :

Pl read my earlier post regarding your EA. Also if there is option for entry at ( 80, 90 and 95 % ) would be better. In case of an adding lots, the exit would have to be averaged so that a total cash profit is acihved. Sorry to trouble you by giving info bits and pieces.
Intraday only.
  • #2,600
  • Feb 11, 2011 12:37pm Feb 11, 2011 12:37pm
Quoting navk
Squalou :

Pl read my earlier post regarding your EA. Also if there is option for entry at ( 80, 90 and 95 % ) would be better. In case of an adding lots, the exit would have to be averaged so that a total cash profit is acihved. Sorry to trouble you by giving info bits and pieces.
I thought CashStopLoss was what you were looking for...

If not, then please explain again.

Quote
"option for entry at ( 80, 90 and 95 % ) ":

A 3-levels re-entry option, is that the idea ?

Sq
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