Three Pairs Hedging

JPY had a major shift last week and it tilted all my rings to the point of no return, in fact to major unrecoverable floating loss. The EA needs a max spread option also or it buys when spread is 20 or more i think. Besides that the drawdown was a little too high for me, and if the EA buys "blind" at the wrong time (despite the currency strength indi) you end up with a bunch of rings spinning with no profit. I think Electric Savant indicated that this thread is a gift you can take plenty away from though thanks to all the awesome contributors. having said all that I am still staying tuned.

Hi guys and gals,

I've put another 80 hours or so into the EA and hope to release it Monday or Tuesday. There's only a certain amount of testing that I can do on weekends (without live data). Whether all of this work has potential to make us money remains to be seen. But, I'm happy to share the EA as we go.

Unfortunately, this isn't the only EA that I'm working on.... so development doesn't go as fast as I (or you) would like.

The new work on the EA is in the area of avoiding certain trades and/or quitting certain trades early, regardless of whether they are in profit or loss situation.

I have seen some questions along the lines of "why doesn't the EA have a check for maximum spread?". Well.... it does... and always has done so.

More later...

aha! i should have known that with your skill and expertise you would have addressed that. I just saw no indication that a max-spread was in effect. thanks.

It more like....all the golddiggers bailed and only the serious folk are left.

That is the point I was making in post #711.
You were short in USD/JPY and went up past 98.00 .
Like I mentioned, the 3 trades will not be in profit unless the usd/jpy drops below 95.95 egain.. and does not matter how the other 2
interact.

The max spread thing is not going to help the logic.
Chuck has worked hard to code this, but all come down to figure out the direction of the un-balance .. and that is on "1" pair.
But trying to figure the direction of 1 pair is the normal trading quest. And if anybody finds it... no point in trading the 3.

J.

Using a non-ecn type of dealer that cheats actually gives this system an edge...hehe....beat them at their own game.

As promised, here is an update to the EA I created for this thread I am attaching a zip file containing the EA, an indicator and a DLL. The DLL sends a fake tick to the EA once every second to make sure we don't miss opportunities in the pairs we are trading when ticks slow down in the chart pair.

I don't have the time right now to explain what's new in this version. I've been running it on six demo accounts and six live accounts since the markets opened three hours ago. The results look good, but we've been here before!!

Give it a whirl on demo only and we can discuss performance before I get into what's new.

Try it with the default parameters.

The EA goes in the experts folder, the indicator in the indicator folder and the DLL in the library folder.

Attache the EA to ANY chart, but EURUSD M15 is recommended.

This thread are golden just tweak here and there, and I am sure you'll get profit! but the idea of hedge are basically by removing dangerous enviroment into reasonable risk! cause if I were fisherman why should bother about excitement by fishing in the ocean! maybe one time I am lucky enough to get TUNA! but what if a whale struck my boat and risking my life! fishing in the ocean only GOD knows, what we'll got next time! lol but if we fishing on our backyard pools, I am sure we already know what we'll got, but of course we get no excitement and limitation of Fish


anyway thank you cash4u2 for this thread it really change my Trading POV. I really appreciates Good share and have a nice day to all

I don't see the advantage. Sure, they can post mispriced quotes, but if the dealer is a cheater, then what is stopping it from cheating on the fills or worse on withdrawal? No, I think the answer to a cheating dealer was correctly deduced by the NORAD computer Joshua at the end of War Games and I think it applies in this case.

high ping on my connection is causing a delay so as profit pops up my system starts to close the orders, but then the profit dips down so by the time all 3 are finally closed it is at a loss.

Thanks for the update Chuck. I will put this on demo and see how she goes.
Cheers,
Len

Ran the EA on PS demo this week with default settings. Only a very few wins but mostly losses.
Seems to close in losses.

Exactly the same for me

Why would this work?

I thought this idea was dismissed many posts ago.

I am still running the EA OOTB settings on PS demo again this week with default settings.
And still mostly all losses.
Any suggestions about adjusting the settings?

Im trying all the settings with no SL, no direction, etc. Im entering the trades manually by watching 2 demo accounts one with bbs and one with ssb. when the account gets -50 profit i type BBS or SSB in Chuck's EA , and if minimum spread permits, it will open the set. if profit decreases by$10 or $20 then add a set. i just have not seen it close yet so if it does then ill tell you.

possible ways to close-

1. a single set T/P per individual set (current method)
2. global close TP (of multiple sets of same pairs or correlating pairs and close when all are in profit)
3. single set trailing profit lock
4. a set partial take profit by steps
5. a basket trail of the whole basket to a global close
6. basket partial takeprofit in steps to global profit lock at +50 and trailing profit lock per set after that. The trailing profit lock per set at +50 would mean when the triangular set profit hits +50 (or basket total profit hits X% of equity) then the basket sets are unbound and can keep individually going higher profit, but in case you have a basket of some different correlating pairs in there, they can close differently but the profit is protected. (this is what i think would be most profitable, edit, and now that i think about it, why not unbound EVERY pair and let each pair have its own profit lock, why couldnt some just skyrocket, why stop them by closing the whole set or whole basket?)

Although the rings can shift forever with the sunday gap etc, and take your money, they oscillate asymetrically, such as price jumps up and down as it moves from -90 or so to +60 or so, it goes from -90 to +$60 and you have 4 or 5 sets open, or more, of the same sets (like cash4u2 methos of adding sets as profit goes negative) then if you can track and predict the profit movement and can afford the drawdown then it might be do able if you watch out for the rings diverging forever.

which leads me to one more thing, cash4u2 wanted a lot size (risk) based on money managemnet options of "I would have preferred to have automatic Lot size (calculated by percentage of free margin) and automatic TP (calculated by percentage of equity). " just throwing that out there.

May 1 2013
I am still running the EA OOTB settings on PS demo this week with default settings.

And hardly any wins at all.

I did some checking again and found the following;
These TRADES showed some wins and some losses while all the others showed losses only.
This is for this past week.

EURUSD/USDCHF/EURCHF 10 TRADES 4 WINS 6 LOSSES
1.06, 0.58, -0.07, 0.92, -0.26, -0.09, -1.38, 0.27, -1.48, -0.26 TOTAL= -0.71

EURGBP/EURCHF/GBPCHF 7 TRADES 3 WINS 4 LOSSES
1.14, -0.13, -0.46, 0.99, -0.48, -0.65, 0.48 TOTAL = 0.89

GBPUSD/USDCHF/GBPCHF 11 TRADES 5 WINS 6 LOSSES
1.48, 1.21, -0.31, -0.40, -0.35, -0.39, 0.94, -0.59, 0.25, -1.81, 0.37 TOTAL = 0.40

This week was very bad.
No wins to speak of.

Still looking for the light at the end of the tunnel.

I'm glad to find this thread with so many experienced contributors. I've been trading this method for some time and think that the best basket pairs for this strategy are EC,EU,UC ; BBS or SSB. The reason is minimum drawdown compared to other baskets because in the long term spread chart for this basket has smoothest shift. I've an indicator which tells me price spread of the basket. In my view, the best strategy could be a grid trade with this basket because the price variations are not huge and long term shifts in basket price value is minimum and smooth. If somebody could develop a grid EA which opens both BBS and SSB grids at predefined movements in basket price and take profit levels; we can have a winner. Each opened basket should have different magic number to close separately after reaching the basket take profit level. No. of grids should not be too many, should be limited to approx 10, so that risk is minimized. Let me know what you think about it.