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  • #381
  • Edited 1:03am Mar 17, 2012 12:47am | Edited 1:03am
what I took from your old post was:

you hedged a losing trade and when the USA session was over and the pair was ranging, you tried to recoup the loss for that day.
out comes the 4H chart and in the next 4hr period you close the buy part of the hedge with a sell order at the top price of the previous 4H bar and will close out the sell side of the hedge with a buy order at the bottom of the 4H bar.
if that wouldn`t cover your loss completely, you would also have another order in, the size of that one dependent on the balance of the hedge loss.

that`s how I picked it up, but might be completely off.

another question:
you said: when on hedge demo you could place orders much larger than if hedging is not possible.
if hedging, could you give me a clue as to the size of an order if leverage = 100:1,
trading 4 pairs per $ 1,000 account size?

thank you
  • #382
  • Mar 17, 2012 1:26am Mar 17, 2012 1:26am
Quoting yonnie
what I took from your old post was:

you hedged a losing trade and when the USA session was over and the pair was ranging, you tried to recoup the loss for that day.
out comes the 4H chart and in the next 4hr period you close the buy part of the hedge with a sell order at the top price of the previous 4H bar and will close out the sell side of the hedge with a buy order at the bottom of the 4H bar.
if that wouldn`t cover your loss completely, you would also have another order in, the size of that one dependent on the balance of the hedge loss....
OK lets say you are at 4 lot, even numbers makes hedging math easier. you are 100 down. If release your hedge and all you want is break even. subtract the profit, lets say 50 pips you would set your trade at 4 lot and would need 25 pips to break even. present trade +25 profit trade +50 losing trade now at -75

Let us say you want to keep your profit and you are down -100 then at 4. you need +50 to break even, lot 6 +33 to break even and lot 8 plus 25 to break even. I think. So that would be the strategy and the math. You can correct my math if I am wrong, I dont have my calculator with me.
  • #383
  • Mar 17, 2012 3:46pm Mar 17, 2012 3:46pm
  •  hansnl
  • | Joined May 2007 | Status: don't get shot trade small lots | 83 Posts
Quoting George Adams
Here is a current example. In this case price and 3MA have broken past the BB. The current range is 39 and 14 day is 49, so we are greater than 75% on the day. Now, you just wait for price to break back thru the BB. Right now that would be >0.8453. I will update when the trade would be executed.

George

Hi George, I like your ATR approach but I'm a lousy programmer would you mind share a piece of code or PM me with some details.
I suppose you set up a 7e variable with takes care of the ATR and implement that in the buy and sell condition.


double Var1 = iBands(NULL, PERIOD_H1, 20, 2, 0, PRICE_CLOSE, MODE_UPPER, Current + 0);//PAIR, PERIODH1, MA period, Deviation, shift
//double Var2 = iBands(NULL, PERIOD_H4, 20, 2, 0, PRICE_HIGH, MODE_UPPER, Current + 0);
double Var3 = iBands(NULL, PERIOD_H1, 20, 2, 0, PRICE_CLOSE, MODE_LOWER, Current + 0);
//double Var4 = iBands(NULL, PERIOD_H4, 20, 1, 0, PRICE_LOW, MODE_LOWER, Current + 1);
double Var5 = iMA(NULL, PERIOD_H1, 3, 0, MODE_LWMA, PRICE_HIGH, Current + 0);
double Var6 = iMA(NULL, PERIOD_H1, 3, 0, MODE_LWMA, PRICE_LOW, Current + 0);

I would let the original CTR run, and simultaneously run the modified ATR CTR in a second window .
Both on a live account and study the different outcomes.

Please PM me if you think the modification is not ready enough for publication here.

And thanks for sharing your template, so nice for me eyes..

regards Hans..
  • #384
  • Edited 3:31pm Mar 21, 2012 3:17pm | Edited 3:31pm
after much consideration I decided to trade AUD/NZD exclusively, because this pair bounces up and down the most.

I will place a hedging trade if a trade has a 100 pip loss and learn the art of unhedging over time.

Another way of protecting my trades might be to place a pending buy stop/sell stop orders above and below the range for a run-away trade, probably with a small stop loss.
I will backtest this idea to see if it has any merit.
Anybody already using this idea?

I dont know much about margin and I find it quite confusing.

can anybody tell me the lot size I can trade for a 10k account trading just 1 pair?

thank you
  • #385
  • Mar 22, 2012 3:39am Mar 22, 2012 3:39am
Quoting yonnie
after much consideration I decided to trade AUD/NZD exclusively, because this pair bounces up and down the most.

I will place a hedging trade if a trade has a 100 pip loss and learn the art of unhedging over time.

Another way of protecting my trades might be to place a pending buy stop/sell stop orders above and below the range for a run-away trade, probably with a small stop loss.
I will backtest this idea to see if it has any merit.
Anybody already using this idea?

I dont know much about margin and I find it quite confusing.

can...
The Aud/Nzd has been one of my more profitable pairs over the years. I dont think you can go wrong with. The Chinese economy is slowing down but also maturing (it has affect the AUD a lot the last couple of years) I am hoping it will have less affect on the AUD thereby making he AUD/NZD a more stable pair to trade. Good luck.
  • #386
  • Mar 22, 2012 7:06am Mar 22, 2012 7:06am
thank you Bob, your help is much appreciated
  • #387
  • Mar 22, 2012 3:12pm Mar 22, 2012 3:12pm
still not sure about the lot size if trading only 1 pair with a 10k account.

if trading 12 pairs unhedged 1 penny per $1,000 seems to be the norm.
a lot higher if hedged so maybe at least 0.02 lot per $ 1,000.

trading 1 pair 0.24 lot per $ 1,000 = 2.4 lot per 10k account.

but only after trading this system for a while ofcourse
  • #388
  • Edited 4:24pm Mar 22, 2012 3:51pm | Edited 4:24pm
Quoting yonnie
still not sure about the lot size if trading only 1 pair with a 10k account.

if trading 12 pairs unhedged 1 penny per $1,000 seems to be the norm.
a lot higher if hedged so maybe at least 0.02 lot per $ 1,000.

trading 1 pair 0.24 lot per $ 1,000 = 2.4 lot per 10k account.

but only after trading this system for a while ofcourse
Yonnie, it is crucial that you learn how leverage and margin works. How big you can trade with a $10,000 (or any size) account entirely depends on your margin/leverage rate. (But how big you *should* trade is a different matter altogether!) Anyway, a broker with 50:1 leverage will lend you 50x your margin (account balance) which means the maximum trade size you can open is something less than or equal to 50x your account balance. Similarly, if your account is $10,000, then a leverage rate of 50:1 implies that to open a trade of $10,000, which as an aside is unleveraged (and assuming you can in fact do this subject to lot size minimums and so on), would require 1/50th or 2% margin used (think deposit) to open. So you'll open the $10,000 trade, and $200 of your $10,000 will be held back as deposit against your open trade, leaving the remaining $9,800 free for other trades.

Different brokers/account also have different lot sizes: A standard lot in forex is 100,000 units of currency, a mini lot is usually 10,000 and a micro lot is 1,000 units. You should know what your lot size and minimum trade size is, so that you can calculate the actual number of units and consequent value of your trades.

For example, if you trade 1 standard lot, of say usd/jpy, then you'll have bought (or sold) 100,000 units of USD, priced in Yen. This would mean that on a $10k account you'd be leveraged 10:1 on that position. This is already IMHO a dangerous level of leverage for a single position. Another example, if you trade 1 mini lot of GBP/USD, then it means you buy (or sell) 10,000 units of GBP, or about $15800 worth (assuming a GBP/USD exchange rate of 1.58). On a $10,000 account this is therefore about 1.58x leveraged, which is much safer but still slightly leveraged.

Again, do not overleverage, ensure you understand your nominal (effective) leverage of your open positions against your account balance.
  • #389
  • Mar 22, 2012 4:46pm Mar 22, 2012 4:46pm
Quoting nanningbob
Of course the key to hedging is undoing the hedge. I think 10.0 gives good signal as to when to undo it. Because I am in the USA I cant hedge anymore so I am not as proficient at it as I wish I could be. I would prefer taking a hedge over a big loss though. Hedge allows me to take a time out and plan a strategy.
that allows hedging for US clients. I think opposing positions will show in trade window, while the,"net," position is held on their server, or some such....If anyone is interested, I'll dig a bit and get the details... Pippo
Vincit qui se vincit.
  • #390
  • Mar 22, 2012 5:42pm Mar 22, 2012 5:42pm
Quoting Pippopotamus
that allows hedging for US clients. I think opposing positions will show in trade window, while the,"net," position is held on their server, or some such....If anyone is interested, I'll dig a bit and get the details... Pippo
FXDD is where, from England?
  • #391
  • Mar 22, 2012 6:11pm Mar 22, 2012 6:11pm
They are US company with a company in Malta. but I have an account with FXDD MALTA, they are same as other criminals.
Kind regards
  • #392
  • Mar 23, 2012 11:29pm Mar 23, 2012 11:29pm
Quoting astral77
They are US company with a company in Malta. but I have an account with FXDD MALTA, they are same as other criminals.
Kind regards
Well, since I manually do most of my own SL and profits and trade small enough they cant margin me out. Criminals really cant hurt me. I did a company out of Singapore once on another guys account and their margin wipeout program actually took price below 00.00 to a negative number to cause a margin call. Interesting stuff in the foreign markets.
  • #393
  • Mar 25, 2012 11:20pm Mar 25, 2012 11:20pm
wonder if it makes a difference if a broker has a trading desk or not.

brokers like Gomarkets do not have a trading desk and being regulated in Aussie would that not be safer?
  • #394
  • Mar 26, 2012 9:01am Mar 26, 2012 9:01am
Quoting yonnie
wonder if it makes a difference if a broker has a trading desk or not.

brokers like Gomarkets do not have a trading desk and being regulated in Aussie would that not be safer?
The last I checked GoMarkets does not take US citizens neither does IBFX in Australia.
  • #395
  • Mar 27, 2012 5:50pm Mar 27, 2012 5:50pm
A note from Steve Hopwood's thread:


Important......just got this from a coder i know...."Metaquotes (the publisher and developer of Metatrader 4) just released a new build, 418. Unfortunately, they decided to change the main logic behind Metatrader 4's programming language, without notifying any of the developers'................so be careful of any update especially 416 to 418..it just might cause you ea's and indicators to not work any more.
  • #396
  • Mar 30, 2012 12:46pm Mar 30, 2012 12:46pm
Hi Bob,

Greetings from Singapore! I’m new to your strategies, and have read the booklets and all 27 pages of this thread. I think you have written the booklets with your older followers in mind. Your older followers will have no problem comprehending what u are trying to say, but for new follower like me, it will take time and patience to decipher your “not so easily understood” systems.

Though daunting, I am determined to surmount the obstacles bit by bit. Hope u can help me with that. I got very jealous of the kind of returns that u all are chalking up and I don’t want to be left out of the excitement

For a start, I would like to concentrate on H1 range trading before I move to others. Unfortunately there is no write up on range trading in your NB10.0D booklet. This is what I gathered here and there from this thread :

Buy Setup

When 3MA goes under lower Bollinger band 1.0 deviation, EA will enter a buy.

EA will take profit when 3MA goes above upper Bollinger band 1.0 deviation.

If position goes into a negative 100 pips, manually perform a recovery by going to the 4 hour chart and wait for candle to close above both 3MA and Bollinger upper band 1.0 deviation and enter another buy position to average down. Close both positions when the summation of both position shows a break even.

Is my understanding correct? Any part wrong?

More Questions :

1)From what I understand, this EA cannot be left totally on its own. When a position goes into red, we need to babysit and manually try to get ourselves out of the bad position using recovery. Most of the time, u post forward testing performance. But Post 363, Passerby performed a back test. Did he use a SL instead of recovery? I couldn’t visualize how to back test the baby sitting steps. If we want to fully automate this EA, and we are compelled to install a SL, what would be an appropriate SL?
2)Is the BB standard deviation supposed to be 1 or 2. You indicated 1 instead of 2 in your booklet, but I saw some people using 2. If I am not wrong, George Adams is using 2.

Hope u can clear my doubts. Thanks!!
  • #397
  • Mar 31, 2012 1:14pm Mar 31, 2012 1:14pm
Quoting Nipponho
Hi Bob,

Greetings from Singapore! I’m new to your strategies, and have read the booklets and all 27 pages of this thread. I think you have written the booklets with your older followers in mind. Your older followers will have no problem comprehending what u are trying to say, but for new follower like me, it will take time and patience to decipher your “not so easily understood” systems.

Though daunting, I am determined to surmount the obstacles bit by bit. Hope u can help me with that. I got very jealous of the kind of returns that u all...
I see your questions and will try to get to them tomorrow. Sorry.
  • #398
  • Mar 31, 2012 2:32pm Mar 31, 2012 2:32pm
Hi Bob, please take your time, slowly. I will patiently wait. Good things ($$$$) are worth waiting for U took 5 years to produce 10.0, sure i can wait for 5 days to use it. Good night.
  • #399
  • Apr 1, 2012 8:58pm Apr 1, 2012 8:58pm
Hi Bob,

Greetings from Singapore! I’m new to your strategies, and have read the booklets and all 27 pages of this thread. I think you have written the booklets with your older followers in mind. Your older followers will have no problem comprehending what u are trying to say, but for new follower like me, it will take time and patience to decipher your “not so easily understood” systems.

Though daunting, I am determined to surmount the obstacles bit by bit. Hope u can help me with that. I got very jealous of the kind of returns that u all are chalking up and I don’t want to be left out of the excitement

For a start, I would like to concentrate on H1 range trading before I move to others. Unfortunately there is no write up on range trading in your NB10.0D booklet. This is what I gathered here and there from this thread :

Buy Setup

When 3MA goes under lower Bollinger band 1.0 deviation, EA will enter a buy.

EA will take profit when 3MA goes above upper Bollinger band 1.0 deviation.

If position goes into a negative 100 pips, manually perform a recovery by going to the 4 hour chart and wait for candle to close above both 3MA and Bollinger upper band 1.0 deviation and enter another buy position to average down. Close both positions when the summation of both position shows a break even.

Is my understanding correct? Any part wrong?

Yes that is correct, however, I now use the daily chart and the 10.1 system for all my recoveries instead of the 4H chart.

More Questions :

1) From what I understand, this EA cannot be left totally on its own. When a position goes into red, we need to babysit and manually try to get ourselves out of the bad position using recovery. Most of the time, u post forward testing performance. But Post 363, Passerby performed a back test. Did he use a SL instead of recovery? I couldn’t visualize how to back test the baby sitting steps. If we want to fully automate this EA, and we are compelled to install a SL, what would be an appropriate SL?

It is hard to backtest this because I will use recovery. you can backtest using a SL but to me SL are flexible depending on fundamentals. If I know a strong fundamental is working I dont trade this method. For example I stopped last fall with the Euro news. I still think you can trade this with certain non volatile pairs like the aud/nzd gbp/cad etc. I am not at this time using the method though because the Euro zones difficulties. Greece, Portugal, Spain, Italy, Ireland, and then French banks could be in deep doo doo at any time. I do not wish this but I recognize that instability can hit the market at any time.
2) Is the BB standard deviation supposed to be 1 or 2. You indicated 1 instead of 2 in your booklet, but I saw some people using 2. If I am not wrong, George Adams is using 2.

I am not at home and will need to get back to you on this one.

Hope u can clear my doubts. Thanks!!
  • #400
  • Apr 2, 2012 2:13am Apr 2, 2012 2:13am
Hi Bob,

Thanks for providing some enlightenment! Based on my very limited MT4 knowledge, I found it puzzling how they could backtest the recovery part which requires human judgement. But I remember seeing a recovery EA somewhere. The next time I see it, I will copy the link and post it here and we can figure out how they do it. I will be most glad to be proven wrong, because that means we can automate the whole range trading strategy, or at least with minimal babysitting or human intervention , isn’t that wonderful?

I will start demoing soon. Please post more on range trading when u are free. Have a good day!
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