Have so much to read and respond to, for now please see this statement.
Attached File(s)
DetailedStatement2.pdf
668 KB
|
633 downloads
Skype: heliosphan187
Overlay in MetaTrader 23 replies
Overlay 2 replies
Futures and Forex charting package with overlay 0 replies
Overlay Indicators - I've seen this lots of times but..... 3 replies
Histogram Overlay 1 reply
Dislikeda couple of months ago, I've coded a few multi currency (hedging) EAs under MT5 to check whether this kind of trading could lead to a longterm edge or not.
The short summary of my results is: NOT
I've tried dozens of combinations of correlated/uncorrelated pairs with whatever entry criterions you can imagine, averaging up/down, martingaling, trading short/long only, fixed single TP, fixed basket TP and what not
I always got into a situation during backtest where you, if traded live, never would have gone through the DD and instead pulled the rip...Ignored
Dislikeda couple of months ago, I've coded a few multi currency (hedging) EAs under MT5 to check whether this kind of trading could lead to a longterm edge or not.
The short summary of my results is: NOTIgnored
Dislikedif you look at Dirtybrown's last account statement, all those open trades are orphan trades, some are just single pair, others were opened and never came to TP, probably opened in wrong directions...
It may be true about EG going down, but dirtybrown's first account statement looks different than the rest in that it has trades going the other way that profited, too????Ignored
DislikedHave so much to read and respond to, for now please see this statement.Ignored
Dislikedit was actually my belief that this kind of "hedge" EA should not work. but that babypips thread really confuses me so that i think maybe i give it a try.
that babypips thread does seem to have a few traders who have high rate of profitable trades (both direction).
i'm trying to code something to simulate that. when done, will post here.Ignored
DislikedThat is why I don't need a stop loss, because the pairs will always come back to correlation, and revert to meanIgnored
DislikedThe whole point of stat arb/pairs trading is the expectation that one of the pairs loses, but the other profits more, so net profit...the pairs are entered at a gap and then they can go up, down sideways, whatever with no change in bottom line P/L, the only thing that makes the DD is the widening of the gap, and so the profit is always reached when the gap closes. That is why I don't need a stop loss, because the pairs will always come back to correlation, and revert to mean, also...in 1 min TF, and since no SL, no losses, ever! It's unbelievable!...Ignored
DislikedHi, pipster, with all due respect, i have exact opposite view. the correlation could be gone, and forever gone. hence the DD could be more and more and never recover.
1st thing is that we need to admit it is actually trading EURGBP, if anyone can prove me it is NOT, I'll be so grateful and award him $100 thru paypal.
2nd thing is that looking at EURGBP, as you said, if eur is doomed, then it goes down all the way, then all "buy eurusd sell gbpusd" positions will sink to bottomless hole too.Ignored
DislikedI believe this EA can perform very good if the currency pair are highly correlation, the reason why we have large DD recently, because EU and GU are not in highly correlation.
please see this correlation chart in difference period.
http://fxtrade.oanda.com/analysis/currency-correlation
http://www.forexticket.co.uk/en/tools/01-01-correlation
I found there are 2 set pair they are highly correlation.
1. AUDUSD/NZDUSD (almost over 90% in 1 week over to 1 year period)
2. EURUSD/USDCHF (it is negative correlation but have highly...Ignored
DislikedFor those who want see multi pair in 1 chart, you can use FXCM trading station, then open a chart and you can add other currency in a single chart, very easy and fast. you can open a demo in FXCM.Ignored
DislikedThanks for that Paul!
I am not finding the demo account link on their site thou - it would seem that you can only open a $50 micro account?Ignored