I'm also trying the indicator Basket Profit 2 Pairs Sq on Alpari and works well.
Make sure to compile Pair 1 and Pair 2 in settings.
Make sure to compile Pair 1 and Pair 2 in settings.
Correlation + Momentum Strategy? 6 replies
MT4 MTF Correlation table and Correlation oscillator indicators 155 replies
InsomiaFX Correlation Double Hedge EA 66 replies
Looking for EA for Correlation Strategy 6 replies
Hedge strategy (not a hedge fund) 13 replies
DislikedI was just wondering what the chart based on minute, hourly or daily values? Thanks again for the indi!Ignored
DislikedJust fyi gang.. I have done a statistical test using R on EURUSD and GBPUSD.. and the results are that these pairs are not cointegrated. Thus doing this type of hedge pair trading strategy will not work on these two currency pairs. It only works sometimes because EURGBP is range bound right now and essentially your using the stochastics indicator on EURGBP as the decision maker to trade and when it's ranging you profit!Ignored
Dislikedyou are right, many pairs moves the same way
because they are positivly correlated,
like EURUSD and GBPUSD which basically moves in the same direction,
but there is many that are negativly correlated aswell
check out EURUSD and USDRUBIgnored
DislikedHi RT - I just noticed DreamL said you had coded an EA and I am currently looking for it. Can you tell me the name please ?
I am currently trading this but I need an EA to close individual pairs when in profit. Sometimes a pair comes into profit just for a short time and then decouples again. If not watching you miss the profit and have to wait. This really limits the number of trades you can have open because unless you TP when available your DD can begin to climb.Ignored
Dislikedoh did he say that? Im sorry then he must have been missinformed,
all I did was posted a indicator in here if that is what you mean,
you can find it on the previous page btw,
I trade this manually, what time frame are you using?Ignored
DislikedYes, Post 1. I found three EA's but haven't looked in them yet. Currently I am trading 5 minute charts but have really only started it this week. I am using a slightly different system from Traders Lab. I have 90 correlated pairs displayed but don't yet know how effective some of them may be. It does though, I think, pay to monitor all and not limit oneself. Problem as I mentioned is if too many open trades it becomes a pain. Don't think I can use MPTA but yet to fully check it out.
Cheers.Ignored
Dislikedthe drawdown in this system can be really huge,
thats just a part of the system and something you should expect.
you must have big stones to be able to run this system,
and be calm when your DD is about 200 bux or more.
you should be prepared to even addon more.
I trade only live, no demos
it will return to profit eventually.
I trade on 15M and I only have one trade
I think 5 min might be too short,
anyway I have been most sucsessful on 15 min
I think you will get a little more room there to exit trades
I like to trade the pairs that mirrors eachother...Ignored
DislikedUmm, yeah ! This is one reason I am looking at multiple positions/pairs, is to spread the TP points and so limit the DD - that's my thinking. I only get into pairs that show a good history of returning. I know past history does not guarantee future history but then again, past history is the best predictor of future history - so really, we are damned if we do and damned if we don't. Just have to manage it and if not going as expected maybe hedge directly or with another "co-integrated" pair. I don't use US brokers so hedging is not a problem....Ignored
DislikedI like your idea about using several pairs hedging,
also it will nullify the margin,
it's probably a good idea, it will netrualize the position as long as it goes against you, you could just use the same pairs the oposite direction,
then you'll be kinda flat in the market, I experimented with this before,
I found that when I "thought" the market would go against me and I hedged, a minute or so afterwards it started to go in my direction again, so now I got loss on the hedge trade also I think if we could develop some entry rules for exactly...Ignored
DislikedI started trading a strategy very close to this about 2 months ago so you might find it useful if I tell you how I trade it...Ignored
DislikedYou might note my comment about wishing for an EA to close my multiple positions .Ignored
DislikedHi Altos
I can help you with the EA so long as it is not to time consuming, what would the EA need to do?Ignored