Sorry Madscalp, but if you refer to the Baket Profit 3 pairs indy this is not mine but of Squalou, moreover I'm not able to modify the indy, my base knowledge on Metaquote is not so good....
BTW I'm working hard to the new thread..see you soon there
"If you want something go down, let it go up first" Lao-Tzu
The shape of the hedge monitor would parallel the movement of USDCHF, not EURCHF.
I cannot. I do not see how you could possibly get profit from simultaneously buying and selling 1 lot of EC.
IMO, your current system cannot be profitable in the long run (or the short run for that matter).
You may want to consider the Phantom threads. They seem to be making some progress with basket trading.
Good luck with your trading!
Ignored
ZZNBRM, Actually you can be quite profitable buying and selling the same currency at the same time. I've been doing it myself on a live account for the last 6 months and am up 200% If you are going to hedge, you cannot have a 20 pip take profit! You need to take profit at a minimum 100 + pips. You need to clear out your trades when you do come in to profit and start over. You also need to establish at what point you will bail on all your trades if the your pair start trending. Just my 2cents.
Joined Jan 2008
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Status: French Trader
|895 Posts
My thought is totally different.
I need the indicator described above in a demo.
When this indy is OK, on another chart I trigger BBS or SSB according the indy.
Then I take profit if EquityProfitPercent (Equity/Balance) is reaching 2 or 3 % or more ...no hedge...
If for example the BBS loses 2 or 3 % , I trigger again a BBS to wait the profit of both BBS.
Idem for SSB...
Of course, it's just an idea. If I can get this indy and if the results are good, I open a new thread since there is no hedge.
ZZNBRM, Actually you can be quite profitable buying and selling the same currency at the same time. I've been doing it myself on a live account for the last 6 months and am up 200% If you are going to hedge, you cannot have a 20 pip take profit! You need to take profit at a minimum 100 + pips. You need to clear out your trades when you do come in to profit and start over. You also need to establish at what point you will bail on all your trades if the your pair start trending. Just my 2cents.
this is nothing new. what was originally said by the OP is not the real arb. it's trend trading the same currency one way but paying spread 3 times and that is not risk free.
the trading that the others and I have read about know what this is....it's arbitrage. and you don't have to do just triangles. linear, four ring, five ring. etc.
you think an mt broker, or ANY RETAIL BROKER is fast enough to let you open and close 3 trades all at once? my vps at THE QUICKEST is 43 ms...you need AT LEAST half of that to arb right and 1 mil USD on the reuters or icap to do it. just learn to trend trade and build up your account then do it over there on the institutional side because that's where you best bet of doing this is. either that or try to find a broker who'd let you do 2 broker arb without them finding out. but they'll know once you turned 10,000 into 600k in about 10 days lol
it has been tried but this person would not say which brokers he used. this is is his statement and he disconnected the demo once he knew it does work and exist.
I mean, would you say ANYTHING TO ANYBODY if you knew this edge...what the hell, i would not tell ANYONE lol
one day...one day for me!
WARNING..the attached file is not mine but the results speak for themselves as to where brokers are weak at. they'd probably kick you out after a while though most likely.
this is nothing new. what was originally said by the OP is not the real arb. it's trend trading the same currency one way but paying spread 3 times and that is not risk free.
the trading that the others and I have read about know what this is....it's arbitrage. and you don't have to do just triangles. linear, four ring, five ring. etc.
you think an mt broker, or ANY RETAIL BROKER is fast enough to let you open and close 3 trades all at once. my vps at THE QUICKEST is 43 ms...you need AT LEAST half of that to arb right and 1 mil USD on...
Joined Apr 2007
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Status: Gettin' kick in the nutz every day!
|835 Posts
How do you determine what is a ring and what isn't? I've seen a few different ideas on this.
ie. Forex is fractions.
a/b, b/c, a/c. A ring. EUR/USD, USD/CHF, EUR/CHF. Or, a/b * b/c = a/c. EUR/USD * USD/CHF = EUR/CHF. Now, how do you trade this, BUY BUY SELL, BUY SELL SELL, etc.
I get the looking for trends for those pairs. But what is the correct direction? And take a look at http://kreslik.com/forums/viewtopic.php?p=56803. The post by Capella. The post that Hazelj180 was talking about. Is this the approach? What exactly was the approach?
I see this as being possible, as long as you take the code "outside" of MT. Like a DLL or even Excel, if you want complicated computations to make the determination and don't want to DLL it.
So im trying to work out a 3-way hedge that will make a regular income on the swap
ok so it involves going short on USD/MXN, MXN/JPY and long on USD/JPY, therefore creating a 3-way hedge
pip values in USD per lot are as follows (if my calculations are correct)
USD/MXN = 0.7185
USD/JPY = 12.9863
MXN/JPY = 32.3632
Swap values at 1/10/2011 from Alpari UK are as follows
USD/MXN = +82 units per lot
USD/JPY = -0.4 units per lot
MXN/JPY = -0.7 units per lot
so if we ratio these pip values and put on trades as follows
USD/MXN short 45 lots
USD/JPY long 2.5 lots
MXN/JPY short 1 lot
each pip movement in any direction on any currency pair should be of equal value in USD
and the overall position should remain at the original negative value relative to the spread on each currency pair + or - some variation in spreads
Current Spreads are as follows
USD/MXN = 32.7 pips
USD/JPY = 2.2 pips
MXN/JPY = 40.52 pips
Using the ratio of lot sizes to maintain an equal pip value, each pip = USD$32.36 or close enough
Therefore inital position would be -$2440.59 and stay there throughout the open positions, + or - some variation in spreads
The margin needed to trade a total of 48.5 lots at 500:1 = $9700, plus the margin to cover the spread(say $2500) = $12,200. so i think you could safely say $20,000 should be enough to cover the widening spreads should they occur
first day of trade, lets say a monday,
USD/MXN 45 lots = 3690 units, 369 pips x 0.7185 = $265.13
USD/JPY 2.5 lots = -1 unit, -0.1 pip x 12.9863 = -$1.30
MXN/JPY 1 lot = -0.7 unit, -0.07pip x 32.3632 = -$2.27
Total swap = $261.56, with a floating position of -$2179.03 and margin used $9700.
total equity = $17,820.97
at the end of week one, 6 more swaps (wed x3)
USD/MXN $265.13 x 6 = $1590.78
USD/JPY -$1.30 x 6 = -$7.80
MXN/JPY -$2.27 x 6 = -$13.62
total swap = $1569.36 with a floating position of -$609.67 and margin used $9700.
total equity = $19,390.33 almost covering the loss on open positions already
and so on, this is assuming no dramatic changes in pip values, i would imagine this would need to be monitored regularly and update lots sizes accordingly. also assuming swap values remain, this would need to be monitored regularly also.
By end of week 2 should start making money
Does anybody have any idea if this might work in practise? it seems to work in theory
me too, count me in
