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Three Pairs Hedging

  • #241
  • Mar 7, 2011 10:02am Mar 7, 2011 10:02am
Quoting bordercat
Please show us or link us to threads that show this is a useless strategy....We are all here to learn and share. Constructive
criticism is welcomed but not comments like that.....
See post #63, #64, #68, among others.
  • #242
  • Mar 7, 2011 12:34pm Mar 7, 2011 12:34pm
Quoting cash4u2
Hi bordercat,
here is a nice tick value indicator, just attach it to the charts of the pairs you want to use for trading and compare the tick value. On my broker the tick value for EURUSD = 1.0000 for USDJPY = 1.2218 and also for EURUSD = 1.2218. You see, the value of the EURUSD is about 22% lower than the other two pairs. So I would suggest to use other pairs with a lower tick value.

Attachment
Quoting zznbrm
See post #63, #64, #68, among others.


Doesnt adjusting the lot size using the tick value indicator fix problem of just being in pair with high spread?
  • #243
  • Mar 7, 2011 1:00pm Mar 7, 2011 1:00pm
Quoting bordercat
Doesnt adjusting the lot size using the tick value indicator fix problem of just being in pair with high spread?
Yes, it helps.
For Tick value of EURUSD = 1.0000, USDJPY = 1.2218 and EURJPY = 1.2218

Depending on the account balance, I then use e.g. 1.00 lot for USDJPY and EURJPY and 1.22 lots for EURUSD.
  • #244
  • Mar 7, 2011 1:47pm Mar 7, 2011 1:47pm
Quoting cash4u2
Yes, it helps.
For Tick value of EURUSD = 1.0000, USDJPY = 1.2218 and EURJPY = 1.2218

Depending on the account balance, I then use e.g. 1.00 lot for USDJPY and EURJPY and 1.22 lots for EURUSD.
Hmm. Let's try that.

[email protected] +1 lot = [+100000EUR, -139720USD]
[email protected] +1 lot = [+100000USD, -8224900JPY]
[email protected] lot = [-100000EUR, +11491830JPY]
Net exposure = 0 EUR, -39720USD, +3266930JPY
Equivalent to -0.4 lots USDJPY

In this example Tick value of xxxUSD=1.0 & xxxJPY=1.2158

So, you use:
[email protected] +1.22 lot = [+122000EUR, -170458USD]
[email protected] +1 lot = [+100000USD, -8224900JPY]
[email protected] lot = [-100000EUR, +11491830JPY]
Net exposure = +22000 EUR, -70458USD, +3266930JPY
Equivalent to -0.4 lots USDJPY & +0.22 lots EURUSD

You've increased your exposure.
  • #245
  • Mar 7, 2011 1:51pm Mar 7, 2011 1:51pm
Quoting euclid
Hmm. Let's try that.

[email protected] +1 lot = [+100000EUR, -139720USD]
[email protected] +1 lot = [+100000USD, -8224900JPY]
[email protected]...
I do not know why you are always showing your complicated calculations.
You already mentioned that this is not working. So why do you keep on posting here over and over again?

But it seems that your smart calculations do not bring you any profits either, otherwise you would not waste your time on this thread!
  • #246
  • Mar 7, 2011 2:41pm Mar 7, 2011 2:41pm
Quoting cash4u2
I do not know why you are always showing your complicated calculations.
You already mentioned that this is not working. So why do you keep on posting here over and over again?

But it seems that your smart calculations do not bring you any profits either, otherwise you would not waste your time on this thread!
His "smart" calculations are not trying to produce profits. He is trying to tell you what you are doing is trading 1 pair using 3. Google forex exposure and read up on it. No one is trying to bash your thread. If you feel this method is very profitable than use it. What he is pointing out is you are actually just trading USD/JPY, so what ever that pair does will mirror you profit or loss. And yes you can put on the trade and wait for it to come to profit at some point. But what if it doesnt? then what do you do?
  • #247
  • Mar 7, 2011 3:45pm Mar 7, 2011 3:45pm
There is no gain in criticism.Before you can say a strategy is not profitable you must have used it for 1-3months.

Don't forget that it is better to trade without losses and to make10-20% monthly than to try to make 10-20% daily and end up blowing up your account.

I have used this strategy on an account with 10sets of 3pairs in the last 3 trading days and I am already profitable on 3sets. As I see each set go into losses I see it come back into profit,it is simply logical.

You can even manage you risk by edging each basket in case of CATASTROPHE IN THE MARKET.You simply BBS and SSB the basket.For example.
GBPUSD = Buy
USDCHF = Buy
GBPCHF = Sell
and
GBPUSD = Sell
USDCHF = Sell
GBPCHF = Buy
with same lot and have atleast 20-30% free margin.As you close each trade in profit you enter in same direction again to be on hedge.

The system is Profitable-You need Patience to enjoy it.I like it because I do less thinking and still in profit.Presently in profit on 2 basket.

Thank you.
Dare
  • #248
  • Mar 7, 2011 3:50pm Mar 7, 2011 3:50pm
Quoting cash4u2
I do not know why you are always showing your complicated calculations.
You already mentioned that this is not working. So why do you keep on posting here over and over again?

But it seems that your smart calculations do not bring you any profits either, otherwise you would not waste your time on this thread!
Maybe you should try to learn rather then give out false information.
  • #249
  • Mar 7, 2011 5:23pm Mar 7, 2011 5:23pm
Quoting oluwadare

You can even manage you risk by edging each basket in case of CATASTROPHE IN THE MARKET.You simply BBS and SSB the basket.For example.
GBPUSD = Buy
USDCHF = Buy
GBPCHF = Sell
and
GBPUSD = Sell
USDCHF = Sell
GBPCHF = Buy
with same lot and have atleast 20-30% free margin.As you close each trade in profit you enter in same direction again to be on hedge.

The system is Profitable-You need Patience to enjoy it.I like it because I do less thinking and still in profit.Presently in profit on 2 basket.

Thank you.
Dare
You are joking right??

If you take profit on one the other will have an equal loss. If you re-enter same thing happens again. All you will do is bleed you acct to death with swap and spread cost.

Its been a long day, someone please correct me if Im wrong. Maybe Im not seeing something here.

Its been a long day maybe I dont understand
  • #250
  • Mar 7, 2011 5:41pm Mar 7, 2011 5:41pm
Quoting thorn
You are joking right??

If you take profit on one the other will have an equal loss. If you re-enter same thing happens again. All you will do is bleed you acct to death with swap and spread cost.

Its been a long day, someone please correct me if Im wrong. Maybe Im not seeing something here.

Its been a long day maybe I dont understand
You are correct. But don't waste your time trying to explain it to these people. I have tried til I was blue in face. Some people just don't listen and are too stubborn to learn. They'll just accuse you of not understanding even when the maths are right in front them. Someone early in the thread actually with charts tracked the basket of pairs against the synthetic it creates and showed it tracks exactly. The math and proof from charts have been laid out but you can't force someone to learn.
  • #251
  • Mar 7, 2011 5:54pm Mar 7, 2011 5:54pm
Quoting euclid
Hmm. Let's try that.

[email protected] +1 lot = [+100000EUR, -139720USD]
[email protected] +1 lot = [+100000USD, -8224900JPY]
[email protected] lot = [-100000EUR, +11491830JPY]
Net exposure =...
i think you dont want to involve to a positive discussion at all,if is not suite to you just try another thing,trust me it workssssssssssssssssssssssssssssssss!
dont disturbe us with nonsense math.
regards
  • #252
  • Mar 7, 2011 6:03pm Mar 7, 2011 6:03pm
Quoting SkyzerFX
And consider to have smaller TP, for lot size 1 lot use like 40-50$ because sometimes it could hit 50$ few times than go to +$80 and then go back

to Loss, better grab smaller profit more often..

And for this exact reasons ( small gains ) and correlation offsets, smart traders make millions day in day out in forex.

Remember, pairs do go out of alignment and then get back in the groove. You just fill the gap and take your pidly 10 pips and run.

Every week I get atleast 2 or three runs like that, for the last three years I am doing forex...............
  • #253
  • Mar 7, 2011 6:04pm Mar 7, 2011 6:04pm
the only thing that works here is that this system will RIP OFF YOUR FACE.


there is no edge.




Quoting persia
i think you dont want to involve to a positive discussion at all,if is not suite to you just try another thing,trust me it workssssssssssssssssssssssssssssssss!
dont disturbe us with nonsense math.
regards
Follow the Trend, thats all
  • #254
  • Mar 7, 2011 6:35pm Mar 7, 2011 6:35pm
Quoting euclid
Hmm. Let's try that.

[email protected] +1 lot = [+100000EUR, -139720USD]
[email protected] +1 lot = [+100000USD, -8224900JPY]
[email protected]...
This Math is correct, but Cash method also profitable, why?
if you only trade USDJPY, if lost you just have 1 opportunity pair bounce back, if use 3 pair, if lost you have 3 opportunity pairs to bounce back, when 1 appear you can close profit the 2 others.
Still, to analyze bounce we need technical or fundamental.
  • #255
  • Mar 7, 2011 6:45pm Mar 7, 2011 6:45pm
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.
Here's a quote of something I said on page 5. I predicted about 100 pages and we're now on 17. Any bets if we make it to 100? I will even lay odds for you.
  • #256
  • Mar 7, 2011 7:59pm Mar 7, 2011 7:59pm
hohoho, dude, you are really positive.

must be a strong believer, that's a good thing.

Quoting persia
i think you dont want to involve to a positive discussion at all,if is not suite to you just try another thing,trust me it workssssssssssssssssssssssssssssssss!
dont disturbe us with nonsense math.
regards
  • #257
  • Edited 8:53pm Mar 7, 2011 8:12pm | Edited 8:53pm
Ok starting to see the math here so in a eju basket on BBS

Buy 1 lot EU
Buy 1.4 lot UJ
Sell 1 lot EJ

Since we buy in USD are not buying enough USD to match Euro....the difference the is the EU. If EU is trading at 1.5000 then we buy 1.5 lot of UJ and we buy 1.3 lot of UJ is EU is trading at 1.3000

Make sense Lonestar and euclid?


b-cat
  • #258
  • Mar 7, 2011 10:54pm Mar 7, 2011 10:54pm
Two of my 3pairs Basket basketed me with $60;lot 0.1=Profit $10 and lot 0.5=Profit $50.
  • #259
  • Mar 7, 2011 11:44pm Mar 7, 2011 11:44pm
Quoting oluwadare
Two of my 3pairs Basket basketed me with $60;lot 0.1=Profit $10 and lot 0.5=Profit $50.
Yes, we can
  • #260
  • Mar 8, 2011 9:07am Mar 8, 2011 9:07am
SELL-EURUSD
SELL-USDCHF
BUY-EURCHF

I just made another $10 on 0.1 lot and $50 on 0.5lot.I think this is a good basket.
Also made $5 on 0.1 lot using:
SELL-EURGBP
SELL-GBPUSD
BUY-EURUS

I said earlier that I opened 10 set of 3pairs, 5 out of the 10 is all ready closed on profit apart from the ones on which I used 0.5lot.

My job now is just to take profit.

Thank you cash4u2
God Bless You.
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