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Three Pairs Hedging

  • #581
  • Mar 19, 2013 4:18pm Mar 19, 2013 4:18pm
Quoting ramack
I sure don't!

I don't use MT4 much, but I'll DL your EA and give it a try. Thanks for putting the time in for the EA. The key to this type of hedge is to unhedge it in the traders favor. I've been running one manually for the past several months with multiple triangles, but recently dropped down to one triangle so I could focus on how they cycle and how to correctly(most of the time, ha) speculate the combined direction for the triangle. It does work despite those who as you have put, think this thread rubbish.

Chuck, not sure if you know this...
The statement about the US clients able to hedge is not true. There is a least one broker & bank that allow this.
  • #582
  • Mar 19, 2013 4:23pm Mar 19, 2013 4:23pm
Quoting jeuro
I have been backtesting this type of multi-pairs for a long time.
Sorry but I have to repeat that by trading a BSS , a SSB or both, it does not make money.

Using equal lots, the hedge is imperfect, therefore you are trading a small un-balance portion of the trio.
Profit or losses come from that.

If you trade both ways, your are fully hedge, pay a lot of spredas and makes/loss nothing after that.

If you trade both and close one leg once in profits and wait for the other to retrace, it would be
the same to do it with the small portion of ONE...
I agree with this, however, a believe with a 3 pair ring that it will only move so far in pips establishing a trading range unlike trading 1 pair were it could move a substantial amount. I downloaded some price data on 3 pairs and plan to crunch some numbers over the weekend.
  • #583
  • Mar 19, 2013 4:29pm Mar 19, 2013 4:29pm
Quoting ChuckNZ
Hi Brian and others. A small request first. Thanks, Brian, for letting me know your name. I have a problem addressing someone as "xyztrader" or similar. As to my request, I think it would be a nice touch if people put their names (even a fake name, if necessary) at the end their posts. Mine should be obvous (it's not NZ) from my user name. Just a small request.... I won't waste your time mentioning it again.

I hope anyone trialing TriangularHedge is making money. I have a new version (that I'll post later) that has the ability to...

Please post a detailed report. I have a very small profit in closed trades since yesterday.
  • #584
  • Mar 19, 2013 4:57pm Mar 19, 2013 4:57pm
Quoting txfxtrader
The statement about the US clients able to hedge is not true. There is a least one broker & bank that allow this.
Then it is my understanding that they are breaking the law. Would you mind disclosing those entities? I'm not defending or an advocate the NFA or CFCT, just curious. Because I was in a fund whose broker closed the mgr down citing NFA and CFCT violations. PM me with the info.
Rich
  • #585
  • Mar 19, 2013 5:07pm Mar 19, 2013 5:07pm
I'd like more info on setting it up as well. As I had mentioned in an earlier post, I typically don't use MT4 nor it's EAs. So I'm sure I'm not doing something to set it up properly. I did load it, compile etc. It's been running most of the day, but have not had any trades open or close.

Initially I only want to use the EU GB US trio, so do I manually go into the .mq4 file change the current set1 to these three then compile again?
Rich

Edited later. For some reason the EA was getting removed from the charts, so I'm not sure how long today it's actually been running. I opened charts for GB CH US and they have been sticking in the charts, so I'll let it run over night.
  • #586
  • Mar 19, 2013 5:57pm Mar 19, 2013 5:57pm
Quoting ramack
I'd like more info on setting it up as well. As I had mentioned in an earlier post, I typically don't use MT4 nor it's EAs. So I'm sure I'm not doing something to set it up properly. I did load it, compile etc. It's been running most of the day, but have not had any trades open or close.

Initially I only want to use the EU GB US trio, so do I manually go into the .mq4 file change the current set1 to these three then compile again?
Rich

Edited later. For some reason the EA was getting removed from the charts, so I'm not sure how long today it's...

Sorry... some times I forget to mention things that are obvious to me and, perhaps, not obvious to others.

1. If you run this EA, I strongly suggest that you run it on a EURUSD chart, as that pair is usually the most active. Timeframe DOES NOT matter. You only need to have one chart open.

2. You need to have all possible pairs that this EA is going to trade appearing in the MarketWatch list.

3. You may need to increase MaxSpread for each set, depending on your broker. The EA displays the maximum spreads it is seeing for each set. That will guide you in setting MaxSpread. Of course, spreads vary during the day, depending on which markets are open and which markets each broker caters to.

I'm testing the version with "SmartEntry" now. The positions it takes are doing much better than trading without this new feature. I will release the latest version later today.... when I know it is rock solid.

As for people who say this approach can't make money, I don't really wish to debate it. Sets only get closed when they are in profit by $100 per full lot. It's Wednesday here and, since Monday, it's closed 42 sets, all in profit. I currently have a MaxDD of 35 pips for five sets. The EA just relies on the pairs in each set wandering up and down. Drawdowns (per set) have not exceeded 15 pips (once I got all the bugs out). I remain sceptical, but can't argue with results. Rather than shoot holes in the concept, try it. If it doesn't make money for you, I'll refund twice the cost of the EA.
  • #587
  • Mar 19, 2013 6:22pm Mar 19, 2013 6:22pm
Hey no problem Chuck. I do the same.

I had done 1 and 2. I changed the MaxSpread to 5, Sets to 2. Changed verbose to true., then saved the *.set

Where does the EA display the spread? I've just been eye-ballin' it from the MW window.
Rich
  • #588
  • Mar 19, 2013 6:33pm Mar 19, 2013 6:33pm
Quoting ramack
Hey no problem Chuck. I do the same.

I had done 1 and 2. I changed the MaxSpread to 5, Sets to 2. Changed verbose to true., then saved the *.set

Where does the EA display the spread? I've just been eye-ballin' it from the MW window.
Rich
The EA displays a lot of info (using Comment function) in the upper left-hand corner of the screen. It shows this for all eight sets, even if you aren't trading them all. Part of the display is the worst spread for each set.

If you aren't getting this display, there may be some clues in the expert log?
  • #589
  • Mar 19, 2013 7:19pm Mar 19, 2013 7:19pm
Yeah, I didn't have the EA comment turned on. Turned off the confirmation so it's running on auto. Thanks Chuck!
Rich
  • #590
  • Mar 19, 2013 7:58pm Mar 19, 2013 7:58pm
I downloaded version .008 but it won't go on my charts. I also downlaoded the dll for the librairies folder. Has he taken it away? Thanks, Paris
  • #591
  • Mar 19, 2013 8:02pm Mar 19, 2013 8:02pm
Quoting Paris Hilton
I downloaded version .008 but it won't go on my charts. I also downlaoded the dll for the librairies folder. Has he taken it away? Thanks, Paris
No such thing as "won't go on the charts". What does that mean?

There is no "DLL". There's a library file (OrderReliable_120204) that goes in the "include" folder.... not the library folder.

I haven't taken anything away.

Frustration!!
  • #592
  • Edited 9:40pm Mar 19, 2013 8:14pm | Edited 9:40pm
Quoting ChuckNZ
No such thing as "won't go on the charts". What does that mean?

There is no "DLL". There's a library file (OrderReliable_120204) that goes in the "include" folder.... not the library folder.

I haven't taken anything away.

Frustration!!
Hey Chuck, those 2 sets i opened this morning both started at $-10.00 each, but slowely diverged to where one is $-30.00 and the other is $+10.00 now. ill watch and see where it goes.
  • #593
  • Mar 19, 2013 8:16pm Mar 19, 2013 8:16pm
Quoting ChuckNZ
No such thing as "won't go on the charts". What does that mean?

There is no "DLL". There's a library file (OrderReliable_120204) that goes in the "include" folder.... not the library folder.

I haven't taken anything away.

Frustration!!

Sorry about that. Thanks to your help I got it working now on my demo account. I appreciate everything . don't you worry! Thanks, Paris
  • #594
  • Mar 20, 2013 1:10am Mar 20, 2013 1:10am
Is there a mathematician amongst you who can give me a hand with something to do with this EA? Someone who really understands the relationships between pair pricing? If so, could you PM me so we can then have a chat via email?

I have worked out how to be a bit more clever about when to enter these trades, but I'm not convinced that I've got it right. Plus, you may be able to steer me in a better direction?

My method appears to be working, but....

Thanks
  • #595
  • Mar 20, 2013 7:02am Mar 20, 2013 7:02am
I started with the EA about 10 hours ago. So far it's closed 1 set with .10 lot sizes there's about an $85 float so far. Paris
  • #596
  • Mar 20, 2013 8:49am Mar 20, 2013 8:49am
Quoting txfxtrader
I agree with this, however, a believe with a 3 pair ring that it will only move so far in pips establishing a trading range unlike trading 1 pair were it could move a substantial amount. I downloaded some price data on 3 pairs and plan to crunch some numbers over the weekend.

Hi txTrader.
It does not matter how many numbers you crush.
Take a look at my post #545 and 548 and FXEZ post #554.

The fact is: Your are entering 3 trades with 0.50 each, but in reality you are trading 1 pair by 0.07.
if that "1" pair moves 500 pips in favor, you make aprox. $350 .
If that "1" pair moves 500 against you, You loss aprx $350

There is no magic in the number. My point is that if you are trading 0.07 in 1 pair,,, why pay the spreads
of 1.50 lots???

You don't need to download any data. Just pick the prices any time from the past (has to be in same tick, for example
choose the price of the close of one specific candle for all 3 pairs. From there, calculate how much you would have in profit or losss at current prices.


J.
  • #597
  • Mar 20, 2013 9:35am Mar 20, 2013 9:35am
Hey,
Letting the EA run overnight using 50K lots and 7 sets my 50K demo acct. balance is up ~$700. Presently my float is -1%.
Rich
  • #598
  • Mar 20, 2013 10:26am Mar 20, 2013 10:26am
Quoting ramack
Hey,
Letting the EA run overnight using 50K lots and 7 sets my 50K demo acct. balance is up ~$700. Presently my float is -1%.
Rich

Almost guarantee that 1 or more of your sets is either missing a pair or entered the wrong way.
Not quite likely that 7 sets X 0.50 in each pair can produce that much profit/loss in 1 night.


You should have 21 trades right?

J.
  • #599
  • Mar 20, 2013 3:48pm Mar 20, 2013 3:48pm
On a $3000 demo account using .10 lots I've now closed 4 sets but the float is getting bigger and bigger. Now the float is about $147.
The problem is with the GBP/JPY pair now down more than 70 pips from that set. that's probably a good set to exclude. Paris
  • #600
  • Mar 20, 2013 4:18pm Mar 20, 2013 4:18pm
Ok, Ill now concede that the EA needs a SL. I just manually shut down a set in each account that had a DD of $400 (for the set of three positions). I didn't like the look of it, so just pulled the plug on that set. Still up over $4,000 per account since Monday, so adding a SL doesn't concern me.

I envisage a simple SL of so many dollars (per full lot) for each set. I'm thinking $200. Of course, it will be a parameter. But any thoughts on where to set it initially?

The losing set had JPY in it. Pairs with JPY in them are not included in my new SmartEntry algorithm (too hard to get my head around it).

There are two members of this group helping me with the SmartEntry logic, so I hope to release it later today, certainly before Monday. I think the additional logic is helping, but waiting to hear from them as to whether it makes any sense.

I'm guessing that no SmartEntry logic would have prevented the large DD for the particular set that beat me up today.

I do have some logic in other EA's that keeps me out of currencies (not pairs) when they are the strongest or weakest out of eight. That would have kept me out of any JPY trades in the last 24 hours and EUR trades for the last 12 hours. But that would probably mean very few trades.

Be careful out there.
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