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Three Pairs Hedging

  • #261
  • Mar 8, 2011 11:26am Mar 8, 2011 11:26am
Quoting oluwadare
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.
First, youare welcome, oluwadare.
And thank you for your kind words.

I am now trying to find someone who will create a better EA than those, which are already posted here.

If I can not find someone on this forum, I will try to use freelancer.
I do have a complete description how the EA should look like and what it is supposed to do.

As soon as I do have this EA, I will send a PM to all kind members of this thread, with a link, where this EA can be downloaded.

All the best to you
  • #262
  • Mar 8, 2011 11:38am Mar 8, 2011 11:38am
I have a Three Pair with the GBPUSD that's been taking a long time to close the basket in profit - no big deal since I'm trading very tiny lots @ 1 cent...

Anyhow - I just manually added to the GBPCHF sell position to offset the basket and see if with my manual trading strategies I can gain some more... I won on my first 2 basket trades...

MdF
  • #263
  • Mar 8, 2011 11:47am Mar 8, 2011 11:47am
Quoting bordercat
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
Correct. That basket gives you a very small exposure and small risk. But having hedged out the risk you'll now find you've paid a large spread cost for a very tiny position. But hey, I've got no idea what these guys are trying to achieve. I'm just helping with the maths.
  • #264
  • Edited 4:01pm Mar 8, 2011 1:10pm | Edited 4:01pm
Quoting euclid
Correct. That basket gives you a very small exposure and small risk. But having hedged out the risk you'll now find you've paid a large spread cost for a very tiny position. But hey, I've got no idea what these guys are trying to achieve. I'm just helping with the maths.
euclid,

Think of it like a rubber band.....you can stretch it in many ways but it always comes back to original shape once you let go. Same here....open a basket and wait...news releases or whatever moves the market around. Say something happens that causes the "out of balance" to occur and it may only be for a minute or few seconds then the "close on profit EA" will close it out for you. If it goes against you well then you wait for a news release to send the rubber band stretching the other way or in your favour.
How many times have you watched huge moves in the yen or frank with intervention? Then the other currencies have to correct themselves....they do but meanwhile your stealing just 10-15pips of that inbalance. Meanwhile you're at work,school,sleep or play. I would prefer to open this basket up while all markets are closed so I know I have my "rubber band" relaxed or all prices are stable between each other.
I am not an expert I am just trying to share what I want to do and what I think this thread is all about.

b-cat
  • #265
  • Mar 8, 2011 1:28pm Mar 8, 2011 1:28pm
Quoting cash4u2
First, youare welcome, oluwadare.
And thank you for your kind words.

I am now trying to find someone who will create a better EA than those, which are already posted here.

If I can not find someone on this forum, I will try to use freelancer.
I do have a complete description how the EA should look like and what it is supposed to do.

As soon as I do have this EA, I will send a PM to all kind members of this thread, with a link, where this EA can be downloaded.

All the best to you
you are the best man,yes we can,we can make money in forex without any hassle,i want to say thank you for all you have done in advance,god bless you.
regards
  • #266
  • Mar 8, 2011 1:45pm Mar 8, 2011 1:45pm
Hello cash4u2

Well i have missed lot from this thread as i was busy in some personal work. If you remember i am who stated BBS and SSb strategy in this thread.

I want to know what modifications has been done afters? Is this strategy profitable?
  • #267
  • Mar 9, 2011 2:41am Mar 9, 2011 2:41am
Quoting TheSnowman
I haven't read all this thread yet, but so far I see USD-CHF, EUR-CHF & EUR-USD are mentioned recently.

Looks like on Thursday, you could do a BUY - BUY - BUY and be ahead; did anyone notice that?
You mentioned the movement on the 3rd march.
Here is what I got with:

EURUSD sell
USDCHF sell
EURCHF buy

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  • #268
  • Mar 9, 2011 4:27am Mar 9, 2011 4:27am
I'm intrigued why this is working. Just closed a profitable basket in my demo a/c. Common wisdom suggests we will make loss equivalent to the total spreads on three pairs.

Please look at the theory section of this link: http://codebase.mql4.com/6245 I think what we are doing is conceptually similar.

Thanks,
Tibmas
  • #269
  • Mar 9, 2011 6:26am Mar 9, 2011 6:26am
This works by creating a synthetic pair (gbpusd / usdchf).

If we open three trades (gbpchf - sell, gbpusd - buy, usdchf - buy) then we are hedging gbpchf with the synthetic pair (gbpusd / usdchf).

Imagine that you have opened a long position on a currency pair with one broker and a short position on the same pair with another broker (same lot sizes). The feeds from both brokers are different, hence although we are fully hedged there is a small window of opportunity where because of different feeds we can make a small profit by closing both the positions at the same time.

By creating the synthetic pair we are simulating two different feeds for the synthetic pair and the natural pair. I think this strategy will work best for very small profit targets and can be repeated multiple times during a trading session.

thanks
Tibmas
  • #270
  • Edited 4:38pm Mar 9, 2011 9:37am | Edited 4:38pm
Quoting bordercat
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
Ok I think I have the perfect hedge....1 unit of EU 1.4 unit of UJ and short 1 unit of EJ

Problem is Im stuck at -6 pips and -12 pips for over 24hrs....kinda think I will be there a long time. Its like buying AND selling 1 lot of eu at same time...big winner....broker. Before when I was "stuck" it would drop to over 40 pips down(30 over the spread) before it came back for a win.
Getting a sinking feeling that this wont work like our "math" friends have said and we are just shorting UJ with high spread. The fact its working for some people is the market is going in their favour...doesnt mean the system works.....
I will let it run for a bit and see if the "rubberband" effect might still work but I will limit my exposure.

It was fun investigating and I learned something and didnt lose any real dollars....about 5 bucks from a micro account.

B-cat
  • #271
  • Mar 9, 2011 10:36am Mar 9, 2011 10:36am
after 8 days, I FINALLY see a positive profit on long EUR/USD, USD/CAD, and short EUR/CAD. Maybe I should monitor it 2 hours after I open the position to see if profit exists in a short period of time?
is 8 days too slow to gain? medium term investment for sure gain.
  • #272
  • Mar 9, 2011 10:57am Mar 9, 2011 10:57am
Quoting imnicetoyou
after 8 days, I FINALLY see a positive profit on long EUR/USD, USD/CAD, and short EUR/CAD. Maybe I should monitor it 2 hours after I open the position to see if profit exists in a short period of time?
is 8 days too slow to gain? medium term investment for sure gain.
Hi imnicetoyou,
sometimes, when we have opened the trades, the trend is going towards the negative direction and it takes a bit longer to turn into profit. But as you see, patience is the key for this kind of trading ;-)
  • #273
  • Mar 9, 2011 12:44pm Mar 9, 2011 12:44pm
Expected=profit
perfect strategy, compliment cash!!!
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  • #274
  • Mar 9, 2011 1:55pm Mar 9, 2011 1:55pm
Quoting iuri76
Expected=profit
perfect strategy, compliment cash!!!
Hi iuri76,
welcome to this thread.
And thank you for your kind words.

I have contacted two coders on this forum to create a special EA for "Three Pairs Hedging". I will post here as soon as there are news about this EA.

Attached Image (click to enlarge)
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cash4u2
  • #275
  • Mar 9, 2011 3:43pm Mar 9, 2011 3:43pm
Good-day cash4u,
Please how do upload your trade report from the trading plateform. I use meta trader but I couldn't upload it. Kindly assist.
And good to let you know that I made more dollars yesterday.
  • #276
  • Mar 9, 2011 4:37pm Mar 9, 2011 4:37pm
Hello cash

I decided to give your method a try. I opened two baskets, both are BBS (GBP/USD/CHF) and (EUR/USD/JPY). I'm still waiting to cash them in.
I opened the first basket on March 7 at 9:18pm. Since then, I've never seen this basket even close to BE. Yesterday it droped around -60 pips and I was thinking not to close it, but did BBS again. Today it came back to -15 pips (that's where you made profit).
It looks that if you guess correctly either do BBS or SSB you will be in + in 2 hours otherwise you have to be patient. In you statement in the first post I saw that one trade was held for 10 days. Thats why I'm sitting tight right waiting for the best moment to close it.
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  • #277
  • Mar 9, 2011 7:51pm Mar 9, 2011 7:51pm
Quoting oluwadare
Good-day cash4u,
Please how do upload your trade report from the trading plateform. I use meta trader but I couldn't upload it. Kindly assist.
And good to let you know that I made more dollars yesterday.
Attached Image (click to enlarge)
Click to Enlarge Name: 10-03-2011 02-48-22.jpg Size: 78 KB
  • #278
  • Mar 10, 2011 8:38am Mar 10, 2011 8:38am
Good-day Cash4u2,
Thank you for your response. I noticed that whenever I screenshot it is the whole trading terminal that is screen shoted.
Kindly put me through on how to screenshot the trades only from the trading terminal.

Thank you.
  • #279
  • Mar 10, 2011 9:50am Mar 10, 2011 9:50am
Quoting oluwadare
Good-day Cash4u2,
Thank you for your response. I noticed that whenever I screenshot it is the whole trading terminal that is screen shoted.
Kindly put me through on how to screenshot the trades only from the trading terminal.

Thank you.
Hi oluwadare,
maybe this little freeware tool can help you.
http://www.webtree.ca/newlife/printkey_info.htm
or
http://www.picpick.org/download

cash4u2
  • #280
  • Mar 10, 2011 11:09am Mar 10, 2011 11:09am
Quoting cash4u2
Hi iuri76,
welcome to this thread.
And thank you for your kind words.

I have contacted two coders on this forum to create a special EA for "Three Pairs Hedging". I will post here as soon as there are news about this EA.

Attachment

cash4u2
Hi Guys, I have EA for this system, Created By Awank
Profit$ = 10; //Close When Profit $10
Loss$ = -20; //Create Another Batch (averaging) when Loss -$20, if you dont want to averaging, set this number with huge number.
Attached File(s)
File Type: mq4 MyHedge.mq4   6 KB | 1,594 downloads
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