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Three Pairs Hedging

  • #321
  • Edited 8:33am Mar 15, 2011 8:20am | Edited 8:33am
thank for your answer.

Presently' i put 2 basket's on demo: 1° with egal lot size and the 2° with the " adjust lot size" all of them is.... winning...
it is better to try and to see than to put some negatice comments WITHOUT any proof...

Thank

A question: how do you close your trades^ manually or you use the EA @ close trades after account profit reached... and if you use this EA can you tell me how do you do that^
  • #322
  • Mar 15, 2011 8:35am Mar 15, 2011 8:35am
I love these comments about negative posts not including "proof". That is laughable!

There are at least 3 backtest indicators that clearly show the trouble spots of this strategy. The mathematics also clearly shows how a basket can get into drawdown for months/years.

Try the following basket at various times during the past 4 years. You will get into some serious drawdown (if not a blown account depending on your risk levels) on multiple occasions.

EURCHF (Buy)
EURUSD (Sell)
USDCHF (Sell)

I see the negative comments as very constructive criticism of a system that is just a little too simple to "guarantee" profits.
  • #323
  • Mar 15, 2011 8:43am Mar 15, 2011 8:43am
Quoting liberty55
it is better to try and to see than to put some negatice comments WITHOUT any proof...

Thank
You previously stated that you read the thread. You either didn't read it or didn't understand it. Proof was provided by me as well as others of what this "strategy" is really doing. I provided the math to prove it. This is nothing more than creating a synthetic pair through exposure differences of three pair. If that synthetic goes against you for the next month then you'll be sitting on a loss for a month. There is no secret here. It's just a directional trade while paying extra spread and sometimes more interest. The problem is that the concepts of exposure and synthetic pair creation is over the heads of most people in this thread and just because you all don't understand those concepts does not invalidate them and make this work. No one is saying this can't turn a profit. Only that is can take a loss just as easy. People here would be better off taking the time that they are testing this with and using that time instead to try to understand the aforementioned concepts. You'll probably view this post as negative, so be it. I have provided mathematical proof of what this is doing, and ignoring it because you don't understand it won't change the facts.
  • #324
  • Mar 15, 2011 8:51am Mar 15, 2011 8:51am
Quoting xrizx
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.
i tried this ea, great work.
who can modify, please change avaraging system become martiangle.

when 1st Batch (total 3 pair) = -20 pip, will make another Batch with open position 2x Lot of first Batch.

Exsample :

Batch I
Buy EUR/USD = 1 Lot
Buy USD/CHF = 1 Lot
Sell EUR/CHF =1 Lot

Then total pip from Batch I ( 3 pair ) = -20 pip

will come through another Batch
Batch II
Buy EUR/USD = 2 Lot
Buy USD/CHF = 2 Lot
Sell EUR/CHF =2 Lot

Then total pip from Batch II ( 3 pair ) = -20 pip

will come through another Batch
Batch III
Buy EUR/USD = 4 Lot
Buy USD/CHF = 4 Lot
Sell EUR/CHF =4 Lot

Etc...

But..
If Batch III ( Total 3 pair) , reach= + 20 pip, All Batch ( Batch I, Batch II & Batch III will Close All , Certainly totally become Profit
  • #325
  • Mar 15, 2011 9:13am Mar 15, 2011 9:13am
my goal is not to insult anybody and I am sorry if i did that but when I said no proof I think about a backtesting to proof that or a print screen for the bad results... for the positive results I saw a print screen. Also I never said if this will be good in long term but if you take 1%/ day.... may be it is will a great strategy...

it is all.
  • #326
  • Mar 15, 2011 1:19pm Mar 15, 2011 1:19pm
I read most of the thread and found that many EAs have been posted here. But many of them have lacks.
Hedging strategy 4 pairs does only trade sometimes
New hedging EA doesn't have any settings regarding the currencies.
And so on.
So I thought, I'd just post the EA I found on my computer.
It works very good with the exception of the change between BBS and SSB. so maybe some programmer can modify the EA in a way, which enables it to change back and forth between BBS and SSB.
Attached File(s)
File Type: mq4 HedgeTrader Orginal.mq4   6 KB | 1,353 downloads
  • #327
  • Mar 15, 2011 2:40pm Mar 15, 2011 2:40pm
Quoting Lonestar
You previously stated that you read the thread. You either didn't read it or didn't understand it. Proof was provided by me as well as others of what this "strategy" is really doing. I provided the math to prove it. This is nothing more than creating a synthetic pair through exposure differences of three pair. If that synthetic goes against you for the next month then you'll be sitting on a loss for a month. There is no secret here. It's just a directional trade while paying extra spread and sometimes more interest. The problem is that the concepts...
if you understand better than other people so why you are here and see all the comments to see what is going on,isnt better to save your time and do another thing on other trading system to give advice to others,if you are not interested just live this system.
thanks
  • #328
  • Mar 15, 2011 2:57pm Mar 15, 2011 2:57pm
Quoting zznbrm
I love these comments about negative posts not including "proof". That is laughable!

There are at least 3 backtest indicators that clearly show the trouble spots of this strategy. The mathematics also clearly shows how a basket can get into drawdown for months/years.

Try the following basket at various times during the past 4 years. You will get into some serious drawdown (if not a blown account depending on your risk levels) on multiple occasions.

EURCHF (Buy)
EURUSD (Sell)
USDCHF (Sell)

I see the negative comments as very...


Good-day,
If you can study those charts very well,you will discover that there is an invisible balancing in the market.I think it is better to test the strategy than to presume.
  • #329
  • Mar 15, 2011 3:03pm Mar 15, 2011 3:03pm
Quoting cash4u2
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
Good-day cash,
Please how did u do the calculation above.
  • #330
  • Mar 15, 2011 4:12pm Mar 15, 2011 4:12pm
Quoting oluwadare
Good-day cash,
Please how did u do the calculation above.

Hello oluwadare,
the Tick_value is a special feature. Tick-Value.mq4
When Tick_value is attached to the single charts of e.g. EURUSD – USDCHF – EURCHF, it will show the current tick value.

e.g.
EURUSD = 1.000 or 10.0000
USDCHF = 1.0802 or 10.8026
EURCHF = 1.0802 or 10.8026

As you can see, the tick value for USDCHF and EURCHF are the same and also higher than the EURUSD
So, when Tick_value = true, the lots would be, depending on account balance, 1.00 lots for USDCHF and EURCHF and 1.08 lots for EURUSD
Or 0.10 lots for USDCHF and EURCHF and 0.11 lots for EURUSD


Or just another example:
EURUSD = 1.000 or 10.0000
USDJPY = 1.2152 or 12.1521
EURJPY = 1.2152 or 12.1521

Here the lotsize for EUSUSD has to be about 22% (here 21,52%) higher.
So, lots would be, depending on account balance, 1.00 lots for USDJPY and EURJPY and 1.22 lots for EURUSD
Or 0.10 lots for for USDJPY and EURJPY and 0.12 lots for EURUSD

The Tick_value is always an about thing, and can not be used with the exact amount, especially on the lower lotsizes.
  • #331
  • Mar 15, 2011 4:36pm Mar 15, 2011 4:36pm
I found this in my toolbox. Put the indicator on one chart. It shows tick value and ATR. You can have up to 14 pairs. If you want to se only 3 currency pairs, put them on top as the 3 first one and change NumPairs to 3
Attached File(s)
File Type: mq4 Weighed_ATRMulty.mq4   5 KB | 1,128 downloads
  • #332
  • Mar 15, 2011 4:48pm Mar 15, 2011 4:48pm
Quoting persia
if you understand better than other people so why you are here and see all the comments to see what is going on,isnt better to save your time and do another thing on other trading system to give advice to others,if you are not interested just live this system.
thanks
Your absolutely right. You don't get it. The proof has been provided several times. Try to understand it because you, and others, clearly don't. And I am not the only one saying this. I am posting here to help people understand better but that's proving futile because people either don't want to understand or can't. Since this thread is still going on, I vote for the latter. I just don't want people to think this is some kind of risk free arb as some have said because its not. It's just a difficult and costly way to place a single directional trade. But if you and the others want to trade with your head in the sand, have at it, waste your time and money. Bye.
  • #333
  • Mar 15, 2011 5:37pm Mar 15, 2011 5:37pm
Quoting Lonestar
Your absolutely right. You don't get it. The proof has been provided several times. Try to understand it because you, and others, clearly don't. And I am not the only one saying this. I am posting here to help people understand better but that's proving futile because people either don't want to understand or can't. Since this thread is still going on, I vote for the latter. I just don't want people to think this is some kind of risk free arb as some have said because its not. It's just a difficult and costly way to place a single directional trade....
bye dear isacc newton!!!!!!!
  • #334
  • Mar 15, 2011 6:03pm Mar 15, 2011 6:03pm
Quoting Lonestar
Your absolutely right. You don't get it. The proof has been provided several times. Try to understand it because you, and others, clearly don't. And I am not the only one saying this. I am posting here to help people understand better but that's proving futile because people either don't want to understand or can't. Since this thread is still going on, I vote for the latter. I just don't want people to think this is some kind of risk free arb as some have said because its not. It's just a difficult and costly way to place a single directional trade....
Listen to the man, he knows what he is talking about. Think about it for a minute. Putting on a basket and thinking, as I have seen stated, that "eventually" it will come into profit is dangerous and reckless thinking. And now the posts of doubling up if it doesnt go your way, is even worse.

Try to understand what lonestar said about a synthetic pair. That is what this strategy is doing. Now if you can figure out what synthetic pair you have created, pull up the chart for that pair and your basket profit/loss will coincide with what that pair is doing.

For example a basket of BBS for eur/usd-usd/jpy-eur/jpy creates a usd/jpy short trade. So if usd/jpy drops in price, your basket can profit. Now since that pair has been trending down last few days, if you had a bbs you probably closed in profit. But what if you had SSB in same basket? you would be in drawdown, hoping it comes back.

With some common sense, understanding of what you are actually doing, and risk management this strategy probably can be traded well, just like any other.

For the poster asking to see a print screen of proof, well we have seen print screen of closed trades in profit. I would also like to see those same posters show their open baskets and any drawdown associated with it. Print screens of closed trades is like looking at an iceberg, if you get my drift.
  • #335
  • Mar 15, 2011 8:03pm Mar 15, 2011 8:03pm
Quoting thorn
Listen to the man, he knows what he is talking about. Think about it for a minute. Putting on a basket and thinking, as I have seen stated, that "eventually" it will come into profit is dangerous and reckless thinking. And now the posts of doubling up if it doesnt go your way, is even worse.

Try to understand what lonestar said about a synthetic pair. That is what this strategy is doing. Now if you can figure out what synthetic pair you have created, pull up the chart for that pair and your basket profit/loss will coincide with what that pair...
try to understand!!!!! what is your point,again $1800 total profit since 2/18/2011 until now is not enough for you guys to see the profit in a simple
way.
  • #336
  • Mar 15, 2011 9:15pm Mar 15, 2011 9:15pm
After a week I started seeing some profit on my GBP/USD/CHF basket.
Yesterday It was + $60, today +700. Right now it's floating around $500.
I decided not to close it, as I want to run it for a while, and observe what the biggest DD and profit it can reach.
During past week I saw DD -$800 (80 pips) and profit $770 ( 70 pips).
At the point when my BBS basket rich max. DD, than it went the opposite, all the way to the $700 profit. Now let say that at the max DD, I opened SSB basket. It means that right now I would be down around $1500.
IMO it's not a good idea to double your lot size after every 20 pips loss.
That's why I would like to know what is the biggest DD, I should expect...??

Attached Image (click to enlarge)
Click to Enlarge Name: balance 3.jpg Size: 33 KB
  • #337
  • Mar 16, 2011 4:17am Mar 16, 2011 4:17am
Quoting iwan_cpd1
i tried this ea, great work.
who can modify, please change avaraging system become martiangle.

when 1st Batch (total 3 pair) = -20 pip, will make another Batch with open position 2x Lot of first Batch.

Exsample :

Batch I
Buy EUR/USD = 1 Lot
Buy USD/CHF = 1 Lot
Sell EUR/CHF...
=================================

For complete My idea, here attached in excel, please who can make EA
Attached File(s)
File Type: xls HOLY MARTI HEDGE.xls   33 KB | 1,411 downloads
  • #338
  • Mar 16, 2011 5:28am Mar 16, 2011 5:28am
are we 3 pairs hedged by opening 3 trades the same size each (f.ex. 1 lot each)? example (not taking ask/bid into consideration):

eurusd = 1,3976 (long eur, short usd)
eurgbp = 0,8686 (short eur, long gbp)
gbpusd = 1,6095 (short gbp, long usd)

first trade: long eurusd = 100,000 eur equals 139760 usd
second trade: short eurgbp = 100,000eur equals 86860 gbp
third trade: short gbpusd = 100,000 gbp equals 160950 usd

It seems we are not hedged !! shouldn't we buy and sell eur, gbp and usd equally?
third trade: short gbpusd = 86,860 gpb equals 139760 usd

eurusd 1 lot, eurgbp 1 lot and gbpusd 0,86 lot (size of the third trade is determined by the current gbpusd exchange rate)

please advise if I make any mistakes
  • #339
  • Mar 16, 2011 5:36am Mar 16, 2011 5:36am
Quoting thorn
For example a basket of BBS for eur/usd-usd/jpy-eur/jpy creates a usd/jpy short trade. So if usd/jpy drops in price, your basket can profit. Now since that pair has been trending down last few days, if you had a bbs you probably closed in profit. But what if you had SSB in same basket? you would be in drawdown, hoping it comes back.
You are right. Look at the profit chart of BBS Basket gbpusd, usdchf and gbpchf. It is inverse of usdchf. In effect when usdchf moves down BBS makes profit and vice versa. Either you can trade basket or single pair.
Attached Image (click to enlarge)
Click to Enlarge Name: uch.gif Size: 15 KB
"Put all your efforts in becoming effortless"
  • #340
  • Mar 16, 2011 1:48pm Mar 16, 2011 1:48pm
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
in my opinion:

gu - 1 lot
uc - 1,6 lot
gc - 1 lot
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