Three pairs hedging/Renko

I know the reason that Jeuro had so good result. Check the charts in january 2012. It was time that E/C was consolidating and going down from 1,21 to 1,2. Becasue all the income is from E/C the result was excellent.

If we had a pair wich is still consolidating in about 100pip range it would be great but it is not real.

Now on - I think that basket EU/GU/EG is good choince because most of the time EG is consolidating. When we make two baskets like jeuro and kinghigh wrote that will lower the DD. The hole clue is to calculate which renko box size on which pair is best and also tp/sl for each hedging pair.

About the backtesting. It is possible to do that. The new meta trader 5 can backtest multicurencys at once - so tralling the profit of the basket is possible, (secondary problem is how to test multicurency renko ) Jforex platfom from dukascopy bank can do it also. The only problem is that most of ea`s are in mt4 and its not that simple to encode them to work with mt5.

Last question, which pair have You tested ?

I tested the EU/GU/EG. I had a look at the EU/CHF/USD but found that there is such a strong correlation that there was not a lot of scope to make profit.

I have no SL or TP per pair but rather for the whole basket. I have also used multiple Renko box sizes. I have kept them as small as possible to enable the system to trade more so that I can see the dynamics. I have noticed that the equation GU * EG = EU is not always true and this gives me hope as there is a bias and this is where it is possible to make money. What I am also looking at is to see how large this bias is and use it as an entry point in conjunction with the renko to determine if a BBS or a SSB would be more profitable.

I am sure of one thing and that this is not a copy paste make money system.

@jeuro

Can you post your updated rules if you are still using this system?
I am not asking you to give me your whole system, just tell me final settings you are using for the 3 pairs like Ranko Box size, TP, SL and any other you have?

@Jeuro

"If you freeze prices in your screen.... you will see that the price of GBP/USD multiplied by the price of EUR/GBP , it it "ALWAYS" equal to the price of EUR/USD."

Have you got other "established equations" ?

Interesting...
Thanks a lot

Tomcat

I have backtest this method with JForex/Dukascopy and i haven't any good result with differents setup...

Hello Every one.

I comeback once in a while to this thread. I mention again the concept of the price equation is still valid. But I improved some
key element for triggering. Like I said before I went live with 6 real accounts around June last year and all accounts are performing
as expected. The only difference with my back tests is last year the prices have moved a lot less then previous years so
the profits are also reduced in % . If price does not move, the system idle as I use a very conservative setting.

Like Animal20 mentions in post 160 the reason I left my own thread was because I did not find members that wanted to contribute
nor work and just wanted everything ready. Things do not change much here in FF, so I still hold that position. I still contribute in general
subjects but never again with any strategy. Also I do no intent to start posting any details of my work . But just some general answers to Tomcat98
Animal20 and Surfeur that seem to be working in same line of thinking

Animal20.
The consolidation of any pairs should not influence anything as the main concept is doing all calculations around the price equation.
Once you work the number, the only thing that remain is not to use small grids. That is too dangerous... not because the numbers don't
work, but because in case of spikes we always face the possibility of order not being filled and the math could be mess up.

Tomcat
There is some 500+ price equations, ... Is not hard to find them. All pairs that are use attempting to do triangular
arbitration have equation in them. (because is possible to do "perfect hedge" with them) Also equations are found in 4, 5, 6 and more pairs... so, this is an infinite work. Now I am working with with a very good team full time and doing a lot more good things in less time.

Surfeur
Do not give up. You will find it.

J.

hi jeuro

i am using the system , i have an ea placed on every cross of the ring ....but " the key elements for triggering the entry " that you mentioned made me think about the strategy again .
so by the the time you share concepts and methods which are these new rules you improved ?

Hi Jeuro,
Still around ? I just took 2 hour to browse through your thread and code the strategy in MQL5...

Hi

I am fairly new to this site and wanted to get people's thoughts on Renkos

I want to buy a system and feel that Renkos make the charts easier to read...

Hi Jeuro,

Thanks for your thread. I am currently running a demo to test starting 22 Jan this year. So far up 7% with up to 4% drawdown. I have stuck with your original pip size of 11,11,5. I am using 0.02 lots per currency on a $500 demo account.

I am not using any indicators. I am using a 7 pip take profit on the EURCHF but the EURUSD and USDCHF I am not using a TP or SL, instead I am using a Breakeven stoploss after 15 pips.

Also I am limiting the orders on each currency to 3 orders initially, then increasing the orders at the end of the day(if in drawdown).

So far I have only tested short on EURCHF and long on the other two.

If you read this would you mind giving me an update on your progress?

Haha you guys are funny.

Could You PM me ? I can test multipair currency strategy in mt4, also test renko in 99% tick data quality. I could help in the project that You have described on stevehopwood forum.

Regards

Hi Jeuro,
i'm going to ask you a question that has nothing to do with this thread, so sorry to everyone for that, but i do not know how to contact you.
I saw a post of yours, on april, about predicting the price in forex in which you talked about a math. formula.
Yesterday i recalled of it and i tried some calculations on eur-usd on a daily close, but i've found that many times the result doesn't match, so maybe i'm wrong somehow.
Can you please explain that formula?
thks

Hi Jeuro!
Thank you very much for your system! Very interesting and promising in my opinion!
I do not speak English, but well understood the essence of tactics using a translator!
Do not pay attention to people who do not want to delve into the essence and spend their time testing and wish to have it all and still do nothing!
Good luck and profit!

Hi Jeuro
i´m i huge fan of this strategy form Cash4u in fact i us it all the time in a real account.
I was looking your improvement and seems verry good i was wondering if anybody can built an ea based on this improvvement sow i can post the results on real account.


Tanlyou verry much Cash and Jeuro.!

Last month onwards have been using this excellent strategy with the following calculator, just enter the first order price and u will know about the price of next 3 pending orders, Cheers

A little epilogue:

The thread has been wasted on finding currency rings instead of trying to find out what to do with them. By now, it should be clear that fully hedged (i.e. implying risk free and therefore profit-less) rings can be formed from anything that is traded in relative pricings / spreads. What Jeuro has identified and FXEZ described in their respective posts, is the possibility of profits through uni-directional, pair-per-ring independent entries/exits maintaining a "natural" rather than a perfect hedge. The entries are hereby not predictive but rather follow a directional momentum, visualized by renko bars for example.

This is where it gets interesting: you might remember 7Bit's snowball showing us the power of linear losses versus exponential gains. You might also be aware that the renko bars/directional momentum grid space can be equalized across the currency pairs through the correct lot sizes - e.g. base lot size in account currency multiplied with EURUSD 0.93, EURGBP 0.93, GBPUSD 0.81 (see perfect hedge) allowing for the same absolute bar size/grid space across all three pairs. Now you add those things together with a trade manager that tracks accrued losses (from ongoing stop losses hit per pair) and floating profits (from the pyramiding of orders of pairs already being in trends) and you might have found a way around the quest of being right...

Cheers

P.S. the report reflects the activity of approximately 1 day showing you the balance behavior / see also 7Bit's simulations. You see the linear drawdowns and the exponential recoveries. The risk settings are as follows: 0.005 lots per 1,000 at 1:100 leverage (i.e. 0.13 for 5,000 at 1:500), 10 pip (re-)entry space and global profit closure at 1% across the pairs EURUSD, EURGBP and GBPUSD.

Logic of this strategy is wrong from very beginning. Just wondering why very few peoples realized it. There's no guaranty that USDCHF will move exactly -20pips (for a +20pips of EURUSD move). Not even mentioning Swiss-franc like events of 2015.
Even if correlation btw EURUSD & USDCHF reaches 90%+, it wont mirror each-others 100% .

this strategy does not work. as well written Animal20 it was a coincidence that EC EU UC had a positive equity for that period of time.

If we want to create perfect coverage we must use EC = 1 EU = 1 UC = 1.2 BSS or SBB

in this way the equity is always covered.

but if BSS = 0 is like being out of the market. our gain will depend on a possible triple increase.

in this case about this strategy, is same to trade a single pairs with mediating the losses.

.