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Three Pairs Hedging

  • #701
  • Apr 3, 2013 1:41pm Apr 3, 2013 1:41pm
Quoting brucech
Chuck, I think the key still lies in using the strengths and weaknesses of the EUR, USD, and JPY in choosing BBS or SSB of the Tri-Hedge of EURUSD, USDJPY, EURJPY. So consideration of strength and weakness of the currencies and the timing of that entry is important. Bruce
That's EXACTLY what AutoDirection does. Rather than trade BBS or SSB (as coded in the early versions), AutoDirection calls an indicator to determine strength and weakness of each currency (EUR, USD, JPY, etc.). Using that information, it then decides whether to use BBS or SSB (or not trade that set for a while).

So, you are right and the logic is already there.
  • #702
  • Apr 3, 2013 4:52pm Apr 3, 2013 4:52pm
Hi Chuck I have sent you a pm about 3 days ago did you get it?

cheers
Ian
Making money is easy,losing money is easier
  • #703
  • Apr 3, 2013 6:04pm Apr 3, 2013 6:04pm
Thanks to those of you you realised that my post #697 was total nonsense and you were polite enough not to tell me so. It wasn't an April's Fool joke. It was meant to be serious. But, I now realise that it has nothing to do with reality. Each of the sets are ALREADY in balance, except for a slight exposure to two currencies. So, my trying to keep the total of all sets in balance was a waste of time.... at least the way that I did it. If anything, I need to balance the residual exposure and I wasn't doing that. As to why it performed as well as it did.... just luck that convinced me I was on the right path.

Back to the drawing board.... and just that much smarter as a result.

I can also say, with reasonable confidence, that the logic I added for AutoDirection was also suffering from the same naivety.

We'll get there in the end. Where has the volatility gone?
  • #704
  • Apr 4, 2013 1:16am Apr 4, 2013 1:16am
placed 9 trades. closed in profit each 3 pairs.
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one 3 pairs in running, so far in the direction.
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patient....
  • #705
  • Apr 4, 2013 2:28am Apr 4, 2013 2:28am
from negative (cos 3 pairs' spreads) to positive
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patient....
  • #706
  • Apr 5, 2013 1:17am Apr 5, 2013 1:17am
Quoting johntan
from negative (cos 3 pairs' spreads) to positive {image}
closed positive 37pips.
patient....
  • #707
  • Apr 5, 2013 1:22am Apr 5, 2013 1:22am
here we go another demo trades.
starting with -9pip (spread).
targeting at least 20 pips which controlling by EA or close next trading day.
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patient....
  • #708
  • Apr 5, 2013 1:25am Apr 5, 2013 1:25am
from negative -9 pip (spread) to positive takes minutes only.
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patient....
  • #709
  • Apr 5, 2013 1:28am Apr 5, 2013 1:28am
It's in demo... try with real data and you have some surprise..
  • #710
  • Apr 6, 2013 5:26pm Apr 6, 2013 5:26pm
Quoting surfeur
It's in demo... try with real data and you have some surprise..
There wouldn't be any surprises if the trend is according to the balance of the RING.

Y.
  • #711
  • Apr 7, 2013 1:14am Apr 7, 2013 1:14am
Quoting crossy
There wouldn't be any surprises if the trend is according to the balance of the RING. Y.
You are right.
In this case your net position is short USD/JPY 0,00292 lot.

You recovered the spreads because the USD/JPY had a drop from 96.31 to 95.95 (36 pips)
But if you left the trades open until close, you are in the negative again as the USD/JPY went up to 97.50

The only way you would be in the positive is if the USD/JPY drop to 95.95 again.

J.
  • #712
  • Apr 9, 2013 4:51am Apr 9, 2013 4:51am
Quoting jeuro
You are right. In this case your net position is short USD/JPY 0,00292 lot. You recovered the spreads because the USD/JPY had a drop from 96.31 to 95.95 (36 pips) But if you left the trades open until close, you are in the negative again as the USD/JPY went up to 97.50 The only way you would be in the positive is if the USD/JPY drop to 95.95 again. J.
if we calculate lot sizes that are closer to perfect balance, would that allow this system to avoid the major shifts in the market that cause the ring to tilt such as happened with JPY this week?

can the EA automatically calculate lot size for this or maybe we could just type in the lot sizes for each pair of the ring?
  • #713
  • Apr 9, 2013 6:01am Apr 9, 2013 6:01am
Quoting c3p0
if we calculate lot sizes that are closer to perfect balance, would that allow this system to avoid the major shifts in the market that cause the ring to tilt such as happened with JPY this week? can the EA automatically calculate lot size for this or maybe we could just type in the lot sizes for each pair of the ring?

Hi c3p0.
That is the fallacy of the system.
The more you adjust the lots, to a point that could be a perfect hedge. Then will be no profits nor loss ever.
No point in pay spreads for nothing.

If the lots are not perfectly balanced, then you are trading a small net position. But what is the point
to trade all 3 pairs when is cheaper to trade the net position by itself. That is the case of Johntan
he is trading short 0.00292 usd/yen. It is not possible to trade that lot in a mt4 broker, but if he want trade that small
he could get a nano account and he could. With better results because he would be saving spreads.



J.
  • #714
  • Apr 9, 2013 7:04am Apr 9, 2013 7:04am
Quite intuitive...I agree...


Quoting crossy
There wouldn't be any surprises if the trend is according to the balance of the RING. Y.
  • #715
  • Edited 7:23am Apr 9, 2013 7:06am | Edited 7:23am
Perhaps imbalances can be well...the dog wagging the tail? Maybe the condition of these rings and the pause between the entries could be indicative of where they are at in their circle. Let the market tell you where it is and perhaps where the probability or weight of the direction of the players. Your not looking for 100%...you just need enough to not cause attention to yourself when perfectly trading. There is no guessing with this sort of trading, but the cirlces within the various pair, eventhough they may be imbalanced can be indicative and be an aid to locate where the least resistance is. I predict that if this thread evolves there will be some discoveries made that you guys really should not know (because you will be quite dangerous)..

Remember in Forex there are the "haves" and the "have-nots". Be quiet and trade well in this Forex Fraud.

ES

P.S. I do not know how many of you guys know how valuable this tool that ChuckNZ has shared. But I thank him for it. It is not necessarily a trading EA...but it can be used as a tremendous tool for the real trading to commence. If a few upgrades are offered...well take the gift and shut up.

Quoting jeuro
Hi c3p0. That is the fallacy of the system. The more you adjust the lots, to a point that could be a perfect hedge. Then will be no profits nor loss ever. No point in pay spreads for nothing. If the lots are not perfectly balanced, then you are trading a small net position. But what is the point to trade all 3 pairs when is cheaper to trade the net position by itself. That is the case of Johntan he is trading short 0.00292 usd/yen. It is not possible to trade that lot in a mt4 broker, but if he want trade that small he could get a nano account and...
  • #716
  • Apr 9, 2013 7:30am Apr 9, 2013 7:30am
I used to trade alongside a trader who had several screens up. He was watching various pair combinations that he configured on his bloomy. He spent more time on those screens with meaningful wiggly lines than his trading screen. When he placed a trade he knew the direction 100% of the time. When to enter and when to exit optimally was the remaining battle.

Imagine that 50% of the work done...it is just to figure out how to get the most out of the "lack of resistance". (also pay attention to the opening of the equity markets throughout the world and where they want to take the direction. Hint: The rings will really be moving then.



ES
  • #717
  • Apr 9, 2013 7:37am Apr 9, 2013 7:37am
One more thing and then I got to stop....Pay attention to the input "pause after profit"....try five hours...

ES

Good trading to the community of Forex Gamblers. Maybe you can prove them wrong.
  • #718
  • Apr 9, 2013 8:24pm Apr 9, 2013 8:24pm
Of course you can't hedge all of your exposure and still make money. Unless we are talking about true arbitrage.

You can hedge relative to the statistical relationships between the pairs though.
  • #719
  • Apr 9, 2013 9:59pm Apr 9, 2013 9:59pm
I am new to hedging. I have some questions. Please anybody who can answer?

1. When we open three positions in three different pairs, do we have to attach EA on each chart or only one chart?

2. Which broker is good to offer reasonable spread?

Thanks in advance
Love for all; Hatred for none.
  • #720
  • Apr 13, 2013 11:49am Apr 13, 2013 11:49am
where did everybody go? I thought this was coming together quite nicely....
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