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Three pairs hedging/Renko

  • #101
  • Jan 12, 2012 7:24pm Jan 12, 2012 7:24pm
Quoting zznbrm
I have yet to see a system that cannot be tested in MT4 using tick data - including multiple symbol (basket) systems like this one. You just need to think outside-the-box a little bit.

In fact, I will go as far as to say you can backtest any system using just about any programming language. It's simply a question of how technically strong you are and how much effort you want to put into it.
I agree. It's that effort part that is the problem! I don't really want to put in too much effort only to find the strategy is no good.

I could download the Dukascopy data, convert it to renko and output as a csv file by modifying the renko script, and then change my EA to read the CSV file instead of the MT4 history. By the time I figure out how to do that I think I'll be able to learn enough JForex to do it more elegantly with their API. After all, with renko charting included in the API, the strategy itself is very simple.
  • #102
  • Jan 12, 2012 7:31pm Jan 12, 2012 7:31pm
Quoting jeuro
IF someone here offer to code the “TOOL” needed to execute trades just for “this” system, and also offer to open a new thread (after He/She post here) to deal with all the tech issues. I will write a basic pdf of what is required and PM it to that member. Then everybody can knock themselves off doing all kind of forward test they want .. just keep this thread clean from all that

Deal?
Any volunteers?

.
No thanks, like yourself, I don't want to turn into an IP support desk!
  • #103
  • Edited 8:16am Jan 13, 2012 1:21am | Edited 8:16am
how about EC move up 500 pips , if you open trade EC every move up 5 pips that mean u open 100 times EC and floating (this system like averaging system). in each trade have multiplier range loss (5 pips) right??? this is one of the sample if the the trade doesn't close or ur trade didn't touch ur TP:
1st trade = -500
2nd trade = -495
3rd trade = -490
4th trade = -485
.....
.....
99th trade = -5
100th trade = 0
accumulate the the all floating loss, even UC and EU having profit result cannot be equated with floating EC i think .....
u get profit with this sistem because EC on trend down (from desember to januari)....sorry for my bad english, i just wanna share my opinion
  • #104
  • Jan 13, 2012 1:26am Jan 13, 2012 1:26am
Quoting jeuro
already realized that I posted in the wrong place. I should have seek a more technical inclined forum, or category.
.
You may at any time apply for moving the thread into right place. Just contact FF admins, and that's it.
  • #105
  • Jan 13, 2012 8:08am Jan 13, 2012 8:08am
Quoting marokz
how about EC move up 500 pips , if you open trade EC every move up 5 pips that mean u open 100 times EC and floating (this system like averaging system). in each trade have multiplier range loss (5 pips) right??? this is one of the sample if the the trade doesn't close or ur trade didn't touch ur TP:
1st trade = -500
2nd trade = -495
3rd trade = -490
4th trade = -485
.....
.....
99th trade = -5
100th trade = 0
accumulate the the all floating loss, even UC and EU having profit cannot equated i think .....
u get profit with this sistem because EC...

Hello Maroks, thanks for your opinion.

You are right, the system has a risk factor. No risk no profit possible.
But the math is not that simple. I mean, it is easy to calculate how many pips in dd the E/C would have if we open X entries every Y pips... but that not all needed to obtain a proper evaluation. We also would need the timing and configuration the other 2 pairs behave to keep the equation E/U*U/C=E/C.

I believe the E/C trend is not the factor that bringing profit to the system. I believe it is the timing/secuence and configuration of the 3 pair , using a defined number of pips, in this case accomplished by using renko.

On September 6, 2011, with the Swiss intervention.. in 4 hours E/C moved 1120 pips up, E/U 241 pips up and U/C 725 pips up.

It is almost impossible, mathematically, to come up with a real figure of how much the system would have lose or win. Because we would need to go tick by tick and analyzing each entry for all 3 pairs, renko execution etc. If I want to be optimistic and brain watch myself thinking that because
E/C is a shorter renko then the other pairs , I would not get any E/C execution and a better change to get fill only with winner in the other 2 . But I am conservative. I am assuming I would lose money. ..How much? Up to me, right? That is I suggested in post #2.. placing a X % max DD to Close All. How often we get those extremes? Not much right?

So, here we are ..“ you Think” that “UC and EU having profit cannot equated “ “and the system gets profits because EC on trend down”

“I think” UC and EU can equate, due the “normal trend” (ups and down) market behavior, regardless of the overall E/C trend.

Problem is, neither of us can prove each wrong (mathematically) in our thinking.

I am sure (but not worth it) you could show me the system lossing if E/C moves up 500 pips, Starting from 1.2776-0.9468- 1.2096 creating your own sequence of price action while maintaining E/U*U/C=E/C.

But I am sure (but not worth it) I could show you how much I would win with same E/C 500 up. Creating my own sequence.

Therefore, main goal would be to find long range “sequential” relations between the 3 and Only Back-tests can show us that.

I hope that HELP ALL to understand the underlying fundamental of the concept.

.
  • #106
  • Jan 13, 2012 8:47am Jan 13, 2012 8:47am
not swiss intervention what i mean. but how about a positif trend will be gained on EC slowly up movement in two month. for now this is okay, but if the euro have a bright in this year ....ur account will take more damaged...even 1000 pips from EU and 1000 pips from UC take the profit can't covering minus floating from EC.....dont said if i never warn u......
  • #107
  • Jan 13, 2012 8:48am Jan 13, 2012 8:48am
In the meantime, are u still using this strategy now?

If so, are the results the same as last time?

Thank you
  • #108
  • Edited 10:13am Jan 13, 2012 9:45am | Edited 10:13am
Quoting jeuro
William.

I tough you had op out of this thread.

It is sad you have chosen to insult my character or my integrity to “perhaps” obtain
what you want. That is actually a real bad strategy. It does not work.

You have mention about FF members “contributing” and “selfishness” .. thats all you have done in this thread.

Don’t you understand that all FF member can go and read all your 16 post? .. and realized how
“you” come out regarding the 2 things you appeal to?

I believe that providing tools to “trade” a system that has “potential!” but...
Dear Jeuro,

First, I have no "strategy."

Second, your character is evident by your actions.

Third, I have no idea what "2 things" that you think appeal to me.

Last, and most revealing, is this pious comment,

"I believe that providing tools to “trade” a system that has “potential!” but has not been fully tested for long periods is irresponsible. That is what marketers do as their job... If that is selfishness .. I am guilty."

Really? You have no problem providing the trading system that has not been proven. You only have a problem providing the tools to properly trade that system. How hypocritical.

And hiding behind the idea that somehow you are above sharing this tool because you are not a "marketer", is just silly. Marketers sell their tools. No one is asking you to do that.

Your explanation, or lack of one, cannot hide this one fact: Only you have the tools to trade this system. You refuse to share them, yet you expect this community to help you "test" your system. You are using us. And, as much as this makes you uncomfortable, that is selfish.

William
may you find what you seek and trade what you find
  • #109
  • Jan 13, 2012 11:17am Jan 13, 2012 11:17am
Jeuro

Just trying to understand what you are doing here

EU UCH ECH renko chart M3 TF
Renko blocks 11 11 5
TP 15 SL 15 on EU UCH TP7 on ECH no SL

Here is where I need understanding

Open a buy when renko UP Only on EU and UCH
WHEN RENKO UP Sell only on ECH

IF EU is up and I buy . . . but UCH is Red I wait or Do I need UCH to be blue too
Then I sell ECH when UP but what if ECU is not up


OPTION 1

Open orders WHEN EACH ONE IS UP
or

OPTION 2

Open orders WHEN THEY ALL ARE UP AT SAME TIME

Thanks
  • #110
  • Jan 13, 2012 2:25pm Jan 13, 2012 2:25pm
This is my last post . I am moving on.


I presented a system, presented a very short forward test results, gave all the details, and explained fundamental logic as best I could. I believe is a good system.

It seems nothing else productive to discuss here. There is no settings other then given, no indicator, just plain price action with precise rules in renko charts.

I imagine, some will take it and do something with it.

I Contributed a little, take nothing.

Thanks.

.
  • #111
  • Jan 13, 2012 2:31pm Jan 13, 2012 2:31pm
Jeuro

Please confirm my last post please
  • #112
  • Jan 14, 2012 8:08am Jan 14, 2012 8:08am
Quoting tarrini65
from post http://www.forexfactory.com/showthre...96#post5267296

Example using EUR/USD, USD/CHF , EUR/CHF.

These 3 pairs would make an impeccable (perfect) hedge "IF" mt4 or mt4 broker would allow decimal lots size
like 0.21025451. but they don’t, therefore we can use a fix equal lot for all 3 pairs, say 0.30 and here is were we use the renko chart to compensate for the UN-impeccable hedge and take advantage of the fact that EUR/USD and USD/CHF are negative correlated (not always) and that
[i]EUR/USD*USD/CHF=EUR/CHF...
In placing the orders, are the first set of order 20 pips and 7 pips from the current price for all the pairs? Thanks
  • #113
  • Edited 12:49pm Jan 15, 2012 11:56am | Edited 12:49pm
I will try this starting tonight asian open see how it goes
I am using MPTM with only the save shirt of -$100
I am using Close on profit ea with a global +$2.00 equity close all
but recycle for next batch

I have EU TP/SL =15 UC TP/SL=15 EC TP=7 SL=0
I have Renko 11/11/5 with the indi Spacelines set to the Renko blocks just
so these old eyes can see the numbers better

Open .03 lot when bar closes up EU/UC buy only EC sell only
I had some pendings but this will be like a grid and will not do that
(might try it and see lol )
Attached Image (click to enlarge)
Click to Enlarge Name: un.jpg Size: 216 KB
Attached File(s)
File Type: mq4 Close_on_Profit.mq4   3 KB | 528 downloads
File Type: mq4 SpacedLines.mq4   5 KB | 491 downloads
  • #114
  • Jan 16, 2012 7:48pm Jan 16, 2012 7:48pm
There is absolutely no edge in trading this three pair hedge using Renko charts.

You still have risks and a very big one when the market is trending in one direction only for EC.

If you combine this strategy with a good over-bought/over-sold indicator and a good correlation algorithm, plus a good strong S/R indicator, then there may be an edge to it.

But, again, it would be a completely different strategy when taking into S/R levels, Correlation, and over-bought/over-sold indicators into consideration. I can prove that it would have a huge edge and an excellent Risk/Reward ratio in the long term and a smooth equity curve.

That would be a new thread with a name like "Multi-Pair Hedging with S/R levels and Correlations".
  • #115
  • Feb 13, 2012 9:11am Feb 13, 2012 9:11am
if the market trends only in one direction for E / C, wont this strategy keep building positions in the direction of the trend?

I am confused..........

thanx
  • #116
  • Mar 29, 2012 3:50pm Mar 29, 2012 3:50pm
Hey Guys,

i think coding an EA for this concept is not a big problem for a good coder.

I ll put together an overview- pdf and post it over at steve's forum. Perhaps some of the coders there might show some interest.

I hope u don't mind Jeuro

tex
  • #117
  • Mar 30, 2012 11:15am Mar 30, 2012 11:15am
I dont mind at all.
But best would be to have it code for Jforex .. or at least mt5, to be able to backtest. I already trade the sytem in mt4.

The system works quite well, it may need minor adjustments. Every little variation that I try still makes money. But growing old doing forwards tests.
J.
.
  • #118
  • Mar 30, 2012 11:45am Mar 30, 2012 11:45am
Wouldn't it be better to just go with one pair with renko? If you get your system down pat then you can also trade larger position since less margin will be occupied by other hedged pairs.
  • #119
  • Mar 30, 2012 12:09pm Mar 30, 2012 12:09pm
Not really, trading one pairs is just one pair and does not hedge with anything.
So, need to be traded in a ring of 3 pairs, were an equation between the 3 prices is found.

Anyway... I was gone from the thread but noticed mentioning coding it.
But because I am already trading it in auto in mt4 , would be more profitable to code it into a platform that we could backtest it. That was the main purpose of posting the strategy here in the first place.

J.
.
  • #120
  • Mar 30, 2012 2:39pm Mar 30, 2012 2:39pm
Hey Jeuro!

Seems like that thread failed to make the fine tune to that system,,,

But its my very Curiosity to know the fate of that system,,,,,infact i've tried to tweak n modify that system over the last month & it's yielding so promising results on live account...

Still using this system or something else?

Thanks in advance
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