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Three Pairs Hedging

  • #301
  • Mar 12, 2011 11:53am Mar 12, 2011 11:53am
I have finally been able to take profit on EUR/USD/JPY basket.It took 4 days.
Attached Image (click to enlarge)
Click to Enlarge Name: balance2.png Size: 16 KB

However I'm still waiting for the second basket. The closest I've been so far with this one was -$100 (spread value). Most of the time it was -$400
Attached Image (click to enlarge)
Click to Enlarge Name: balance1.jpg Size: 31 KB
  • #302
  • Mar 12, 2011 12:14pm Mar 12, 2011 12:14pm
And here is a small description of my trade. The chart shows EUR/JPY
Attached Image (click to enlarge)
Click to Enlarge Name: eur-usd-jpy.PNG Size: 73 KB


Beacuse it was BBS basket
EUR/USD - buy
USD/JPY - buy
EUR/JPY - sell

I wonder how big would be my DD at (point B), if I opened it at (point A).
Would other pairs ( EUR-USD, USD-JPY) would compensate so my DD wouldn't be bigger than 100 pips.
Attached Image (click to enlarge)
Click to Enlarge Name: eur-usd-jpy1.png Size: 74 KB


Thanks for any comments
  • #303
  • Mar 12, 2011 4:04pm Mar 12, 2011 4:04pm
Quoting cash4u2
Thank you very much for your kind words, oluwadare.
I am glad to read, that the number of happy people is growing on this thread.

Anyway, we need a better Expert Advisor than those we had already.
I told you that I have contacted two coders, to help to create an EA, with which it is possible to trade both directions, bbs and ssb on a single basket (three pairs). The problem is the first one does not answer and the second one wanted money to code it, but did not tell me how much he/she wanted to code it and pulled the coding offer back.

So if...

Nice explanation. But just one question. Approx. how much time that tick value remains same? I mean is it like correlation of pairs?
  • #304
  • Mar 12, 2011 5:39pm Mar 12, 2011 5:39pm
Quoting kinect
And here is a small description of my trade. The chart shows EUR/JPY
Attachment

Beacuse it was BBS basket
EUR/USD - buy
USD/JPY - buy
EUR/JPY - sell

I wonder how big would be my DD at (point B), if I opened it at (point A).
Would other pairs ( EUR-USD, USD-JPY) would compensate so my DD wouldn't be bigger than 100 pips.
Attachment

Thanks for any comments
OK, here is my comment..you posted the chart for eur/jpy, but you should be looking at usd/jpy, thats where you got your profit.

Since I can see you use oanda as your broker, do this little experiment..In one of your sub accounts (demo of course) that has no other active trades, put on a fictional bbs trade for e/u u/j e/j. once done go to top of screen and click the tab "exposure". What do you see? (hint:one will be nil, one short,one long).

Do the same thing for the pairs that are in your basket that is still running.
Once you know what your exposure to each currency is, you will then know what has to happen for the basket to profit.
  • #305
  • Mar 13, 2011 11:42am Mar 13, 2011 11:42am
Hi Cash,

Normally for these cases, we can't back test, however do you have backtest or real live results for couple of weeks to see if the method really profitting?

I've been using hedging and correlation stratefy from by Dreamliner, been using that for couple of weeks, sometimes good and sometimes are bad, however if you stay on with the pairs with enough cash flow for sure there will be a turning point back to profits. This methood only uses positive correlated pairs with only 2 pairs. Only issue with this is you might have to wait 1hr-1 day or 3 mths or more to see profits.

I'm not sure if your method would have similar impact as you are trading with 3 pairs.

Please let me know if theres any results.

Adious....
  • #306
  • Mar 13, 2011 3:33pm Mar 13, 2011 3:33pm
Quoting fortheex
Normally for these cases, we can't back test, however do you have backtest or real live results for couple of weeks to see if the method really profitting?
This is actually one of the easier strategies to backtest. With tick data, it is a little challenging. But for regular MT4 timeframes, it is very easy to get a general idea of the basket performance. squalou posted an indicator for this purpose. I have not used his indicator (I used my own)...but I'm sure it is very well done.

There are multiple "flavors" of lot sizing this type of 3 pair hedging: equal lot sizes for each pair; weighted lot sizes based upon the quote currency; weighted lot sizes based upon tick value; etc. Backtesting gives a great feel for how the different lot sizing methods affect the basket performance and which pair is the dominant pair of the basket. You can also see the trouble spots (baskets in drawdown indefinitely) and why they occur.

Let me know if you have trouble with squalou's indicator and I'll post mine for you to try.
  • #307
  • Mar 13, 2011 10:24pm Mar 13, 2011 10:24pm
Quoting zznbrm
This is actually one of the easier strategies to backtest. With tick data, it is a little challenging. But for regular MT4 timeframes, it is very easy to get a general idea of the basket performance. squalou posted an indicator for this purpose. I have not used his indicator (I used my own)...but I'm sure it is very well done.

There are multiple "flavors" of lot sizing this type of 3 pair hedging: equal lot sizes for each pair; weighted lot sizes based upon the quote currency; weighted lot sizes based upon tick value; etc. Backtesting gives...

Hi.. is there anyway possible for you to attach yours and sq's and add the input comparison of yours to Sq's one.

Thanks in advances.
Adious...
  • #308
  • Mar 14, 2011 8:04am Mar 14, 2011 8:04am
Quoting cash4u2
Could someone add a magic number to both EAs?
The 1. one is for buy - buy - sell on GBPUSD - USDCHF - GBPCHF
The 2. one is for sell - sell - buy on GBPUSD - USDCHF - GBPCHF

Attachment

Attachment

I would like to open trades right after attaching both EAs on the charts, but they do not open trades and are waiting for something. Maybe s.o. can check this too.
I already tried both ea, together. but why, not close , after profit target reached.
  • #309
  • Mar 14, 2011 8:17am Mar 14, 2011 8:17am
hello,i booked $1778 since 2/18/2011 until now with this simple and yet great strategy.
  • #310
  • Mar 14, 2011 9:22am Mar 14, 2011 9:22am
Quoting fortheex
Hi.. is there anyway possible for you to attach yours and sq's and add the input comparison of yours to Sq's one.
Attach to any chart. Profit numbers deviate slightly from Squalou's indicator...I think we calculate profit a little differently.

Screenshot shows 3 variations of lot sizing.

Parameters
-------------------------------------------
Set "edtOpen" to your basket open time.
Set "estrPair", "edblLots", "edblSpreadPips", "estrDir" per your strategy.

To attach the indicator multiple times on the same chart...make sure "estrId" is a unique value.
Attached Image (click to enlarge)
Click to Enlarge Name: usdchf.gif Size: 30 KB
Attached File(s)
File Type: mq4 3PairHedgeProfit.mq4   12 KB | 1,808 downloads
  • #311
  • Mar 14, 2011 12:59pm Mar 14, 2011 12:59pm
Quoting oluwadare
Good-day Cash,
This system is pulling dollars. Thank you a Billion times for this strategy.I believe you are God sent, because you are a Blessing.

Attachment

God Bless you cash4u2.
Nice results! How are you deciding whether SSB or BBS is best? Or are you always just opening the same trades?
  • #312
  • Mar 14, 2011 1:19pm Mar 14, 2011 1:19pm
system is good, sooner or later it musts bring some profits.

BUT there is one thing that comes to my mind - how to know if today I should play BBS or SSB ? Let's say I have basket: EG, GU, EU .
5 days ago I opened BBS basket and SSB basket in the same time. The BBS basket gave me profit the same day, but for SSB profit I had to wait 5 days. It confirms that good choice (BBS or SSB) is the most important thing in this strategy. Of course I can shot like a moron and wait a week for profit with blocked money but wouldn't be great to close every basket every day ?

System bases on some deviations. When EG (from my above pairs) goes up to far while GU and EU stayed then it's good to open SSB and wait for compensation. How to recognize such deviation ? Any ideas ?

ciao
m.
  • #313
  • Edited 8:47pm Mar 14, 2011 5:43pm | Edited 8:47pm
Use this indicator and you know if it is BBS or SSB to go. You need to put the time you want it to calcylate from. Test your ideas… Make an EA of it... but share the Ea to me also


I hade things wrong in the code so if you downloaded it before , download it again
Attached File(s)
File Type: mq4 @[email protected]   30 KB | 1,491 downloads
  • #314
  • Mar 14, 2011 8:14pm Mar 14, 2011 8:14pm
Quoting E2u
Use this indicator and you know if it is BBS or SSB to go. You need to put the time you want it to calcylate from. Test your ideas… Make an EA of it... but share the Ea to me also


I hade things wrong in the code so if you downloaded it before , download it again
E2u, thanks for the indicator.
Can you give some tips how to use it and make the decision easier between BBS or SSB.

thanks in advance.

Attached Image (click to enlarge)
Click to Enlarge Name: screen1.PNG Size: 74 KB
  • #315
  • Mar 15, 2011 1:47am Mar 15, 2011 1:47am
Quoting kinect
E2u, thanks for the indicator.
Can you give some tips how to use it and make the decision easier between BBS or SSB.

thanks in advance.

Attachment
I don't know so much about the indicator. I have only tested it for one day. If You change Long Long Short to Short Short long you se if you get a green or red arrow. Its better to go in the code with the editor because if you change currency pairs from default in the indicator, you need to do it in 2 different place in the beginning of the code.
  • #316
  • Mar 15, 2011 2:40am Mar 15, 2011 2:40am
Hi All,

I'm just wondering on the three pair heding BBS or SSB, is there a possibility to look for a pairs that has positive swap rates, the reason for this is because i thought a way of trading not sure if it would work.

Here it goes:-

I'm currently trading
CHFJPY/EUCHF/EURJPY = BBS and swap rates for eurjpy is -1 while for eurusd is +2and chyjpy show =0 for this time. If i let run overtime without looking at the profit and let say based on your lots triggered and leaving it for 10days of trading, we can let the swaps to grow and hoping the swaps will cover all the BBS and end result for closure will be positive.

Try to digest this and let me know if it works... anyway to make it work with current strategy i need BBS or SSB pairs to either 2 of them to be positive swaprates.

Can anyone know if you have similar setups.

Adious...
  • #317
  • Mar 15, 2011 4:06am Mar 15, 2011 4:06am
thank you Cash to share your strategy.

I read all the thread, some comments are positive, some negative... I thing the best way for each of us is to try this strategy before to write any comments.... and if some comments will be witten.... just to put some proofs of that. Something you did some mistakes and it is only when you shared the results that you find the mistake.

I decided to try this just because some of us put some positive results in this thread and the others that said : it is not good.. don't put any proof of that...

finally, with a demo... no need to expose somme fund to verify if the strategy is good or not...

question: when you choose a basket; do you take BBS or SSB for this basket or you take BBS and SSB
  • #318
  • Mar 15, 2011 4:20am Mar 15, 2011 4:20am
Hi Cash, I took the gu,gc,uc Basket I put the tick vakue on each chart

an I have gu = 1.000
uc = 1.085
gc = 1.085

Is it mean to adjust lot size and the same way of the tick value:

Lot 1,0 for gu, 1.085 for uc and 1.085 for gc??

thank
  • #319
  • Mar 15, 2011 7:26am Mar 15, 2011 7:26am
Quoting liberty55
Hi Cash, I took the gu,gc,uc Basket I put the tick vakue on each chart

an I have gu = 1.000
uc = 1.085
gc = 1.085

Is it mean to adjust lot size and the same way of the tick value:

Lot 1,0 for gu, 1.085 for uc and 1.085 for gc??

thank
Hi, if yoou want to use tick_value, you have to do it:

gu = 1.09 lots (rounded from 1.085)
uc = 1.00
gc = 1.00

All the best
cash4u2
  • #320
  • Mar 15, 2011 7:47am Mar 15, 2011 7:47am
Hi folks, is there any indicator for mt4 that calculate FPI and shows FPI extremes? I follow all the posts and I still do have problems with differentiating when and whether it should be SSB or BBS. I am testing the attached EA's and trying to understand the whole concept of it. Usage of mutual inefficiencies of FX quotes must be the simplest and least risky strategy. how do u find whether to trade BBS or SSB? is there anyone who trades manually? luck
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