System to hedge every major dollar pair for profit / low DD
- #282
- Edited 9:15am May 24, 2012 9:04am | Edited 9:15am
May be I win or I die
I think the goal now is to find out what are the best cointegrated pairs.
For me (for sure) is GBPUSD-EURUSD. It works like a clock...
But it is very important with 2 pair not to fail the entry... entry is the key (I know it's very obvious but still very important).
With more pairs I think it's better to choose a even number of pairs (4-6-8) not more...
Also my advice trading 4/6 pairs is to open half lots, if the basket goes wrong very bad, open the other half in the same direction. This seems to work fine with me.
What do you think boys (and girls)????
--- nothing to say ---
- #284
- May 24, 2012 9:22am May 24, 2012 9:22am
- | Commercial User | Joined Aug 2011 | 1,121 Posts
I hope you'll win...
I think the goal now is to find out what are the best cointegrated pairs.
For me now (for sure) is GBPUSD-EURUSD. It works like a clock...
But it is very important with 2 pair not to fail the entry... entry is the key (I know it's very obvious but still very important).
With more pairs I think it's better to choose a even number of pairs (4-6-8) not more...
Also my advice trading 4/6 pairs is to open half lots, if the basket goes wrong very bad, open the other half in the same direction. This seems to work fine...
Did we figure how to enter the trade yet?
In my mind it seems we still toss coin to decide which direction to go. We know EU and GU go the same direction and decide long EU . Why would we short GU to limit the profit? I understand hedge. If we want to limit loss, just trade small...
Hedge is like "Wide diversification is only required when investors do not understand what they are doing." Warren Buffet.
Please help me I don't understand the logic here.
Follow me to the Promised Land
I hope you'll win...
I think the goal now is to find out what are the best cointegrated pairs.
For me (for sure) is GBPUSD-EURUSD. It works like a clock...
But it is very important with 2 pair not to fail the entry... entry is the key (I know it's very obvious but still very important).
With more pairs I think it's better to choose a even number of pairs (4-6-8) not more...
Also my advice trading 4/6 pairs is to open half lots, if the basket goes wrong very bad, open the other half in the same direction. This seems to work fine with...
please all be sure not confused about cointegrated and correlated. these are very different meanings.
a correlation between EU and GU exist because of their fundamental mostly equal economics. both have the US economics inside and the european economic within the eurozone. this is why they are correlated. But to be cointegrated they have to be a system in its self. hmm please read wikipedia pages about it. i'm not able to explain it well.
cointegrated are the north-hemissphere and south-hemissphere seasons, but the temperatures could correlating but it is not a must.
- #286
- May 24, 2012 9:38am May 24, 2012 9:38am
- | Commercial User | Joined Aug 2011 | 1,121 Posts
Follow me to the Promised Land
- #287
- Edited 11:26am May 24, 2012 9:48am | Edited 11:26am
only quoting as example (don't take it personal please):
please all be sure not confused about cointegrated and correlated. these are very different meanings.
I'm here to learn, not to teach
The meaning of what I wrote is to find out what PAIRS suited better this strategy. For scalping (as mentioned) is GBPUSD-EURUSD...
I'd like to know what other members are doing... that was the meaning.
Your experience is very appreciate and welcomed
--- nothing to say ---
- #288
- May 24, 2012 11:18am May 24, 2012 11:18am
- Joined Mar 2008 | Status: Cointegrated Member | 621 Posts
Please see post 1 i updated yesterday. You take the hedge as listed if price is below the mean, which in this case it is.
a few more easy money trades like this and i can retire ahhhhhhhhh freee money!!!!!!!!!
Ok, won't get ahad of myself, but im beaming if this can be repeated steadily.
which method are you following? I thought you should sell one and buy the other and here you bought both of them why?
Skype: heliosphan187
- #293
- Edited 1:36pm May 24, 2012 1:22pm | Edited 1:36pm
- Joined Oct 2005 | Status: Pip Slappa Extrordinaire | 1,013 Posts
You are in a maze of twisty little passages, all alike.
- #296
- May 24, 2012 2:49pm May 24, 2012 2:49pm
- Joined Oct 2005 | Status: Pip Slappa Extrordinaire | 1,013 Posts
You are in a maze of twisty little passages, all alike.
Yes I have it setup both ways so not sure so frustrating.Pretty good with mt4 and able to modify code a little but never used this R stuff so this is over my head.
#define RPATH "C
rogram FilesRR-2.15.0bini386Rterm.exe --no-save"#define RDEBUG 0
I set RDEBUG to "0" and it worked...don't know if it really makes a diff. or not but........
piphunter74
- #299
- May 24, 2012 3:21pm May 24, 2012 3:21pm
- Joined Oct 2005 | Status: Pip Slappa Extrordinaire | 1,013 Posts
You are in a maze of twisty little passages, all alike.