Hedge Trading #1 - EUR & CHF

English

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This is a new hedge trading system that i've found in another forum. The purpose of this trading system is not to collect swap points but to take advantage of market correlation and de-correlation. So, the purpose is to collect pips.

How to use:

- Open EUR/CHF chart in H1 or H4

- Insert the indicator at EUR/CHF

- if the number is +0.25, sell EUR/usd and sell usd/CHF. The minimum is +0.2

- If the number is -0.25, buy EUR/usd and buy usd/CHF. The minimum is -0.2

- If we sell at +0.25 and the indicator goes up to +0.45 sell another EUR/usd and sell usd/CHF. Vice versa for buy.

- If the indicator still goes up to +0.65 sell another EUR/usd and sell usd/CHF. Vice versa for buy.

- If still moving then just wait don't add another position. Normally the most extreme is +0.5 or -0.5

- Liquid all position when the EUR/CHF indicator is close to 0.0. Sometimes the profit is big, sometimes small. The purpose is to avoid losses.

Indonesian

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Ini ada trading system hedge baru yg aku temu di forum tetangga. Berbeda dengan trading system swap, trading system ini tujuannya bukan untuk swap tapi untuk mengambil keuntungan dari korelasi dan de-korelasi market. Jadi tujuannya untuk mengumpulkan pips.

Cara Pakai:

- Buka chart EUR/CHF di H1 atau H4

- Masukkan indicator di EUR/CHF

- Kalo angkanya +0.25 pasang sell EUR/usd dan sell usd/CHF. Minimal angkanya +0.2

- Kalo angkanya -0.25 pasang buy EUR/usd dan buy usd/CHF. Minimal angkanya -0.2

- Misal angkanya +0.25, kita sell, trus angkanya ke +0.45 maka sell lagi EUR/usd dan sell usd/CHF. Begitu juga sebaliknya untuk buy.

- Jika masih ke +0.65 maka sell lagi EUR/usd dan sell usd/CHF. Begitu juga sebaliknya untuk sell.

- Jika masih bergerak maka tunggu saja, jangan nambah posisi lagi. Biasanya paling extreme hanya +0.5 atau -0.5.

- Liquid semua posisi jika angka indicator di EUR/CHF sudah mendekati 0.0 Kadang profitnya besar, kadang kecil. Tujuannya semoga tidak ada yg minus.

Regards,

Re: Hedge Trading #1 - EUR & CHF

English

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Ops, forgot to write the lot number. Each time when buying or selling EUR/usd and usd/CHF you have to use 1:1.5 lot size.

e.g.

- Buy 1 lot EUR/usd and buy 1.5 lot usd/CHF

- Buy 2 lot EUR/usd and buy 3 lot usd/CHF

- Sell 2 lot EUR/usd and sell 3 lot usd/CHF

Indonesian

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Ups, lupa kasih tau jumlah lotnya. Tiap kali buy/sell EUR/usd dan usd/CHF jumlah lotnya harus 1:1.5

Contoh:

- Buy 1 lot EUR/usd and buy 1.5 lot usd/CHF

- Buy 2 lot EUR/usd and buy 3 lot usd/CHF

- Sell 2 lot EUR/usd and sell 3 lot usd/CHF

Regards,

Re: Hedge Trading #1 - EUR & CHF

Aduh, ga sabaran nunggunya.

Sudah beberapa hari pas indicator kena ke +-0.2xx aku lg ga online (tidur,dll)

Akhirnya indicator ke +0.18xx aku coba di demo:

- sell 2 lot eur/usd 1.5685

- sell 3 lot usd/chf 1.0376

- waktu menunjukkan 25 july 2008 8:47 wib (gmt+7)

Angkanya blom ke 0.2xx seh, cuman uda ga sabaran nunggunya. Kita liat hasilnya nanti.

Re: Hedge Trading #1 - EUR & CHF

Akhirnya indicator ke +0.21xx

- Sell 2 lot eur/usd 1.5688

- sell 3 lot usd/chf 1.0376

- entry time 25 july 2008 8:58 wib (gmt+7)

Jadi ada 2 pasang, kita liat hasilnya dua2nya nanti. Aku bukanya di 2 acc yg beda, jadi bisa tau hasilnya dua2nya.

Regards,

Re: Hedge Trading #1 - EUR & CHF

Duh,

Pas jumat hari itu juga indicatornya sempet turun mendekati 0.00 tp aku uda tidur. :(

Akhirnya ke floating trus. Pas hari sabtu (libur) seh total -$170an kl ga slah inget.

Pas hari senin juga ada kesempatan liquid tp pas lg ga liat chart. Akhirnya kelewat sampai hari ini, slasa 29 July 2008. Indicator malah naik lagi, jadinya -$500an.

Karena pasangnya sell dua2nya swap totalnya jadi -$52 dari jumat sampai slasa ini.

Kayaknya seh sistem ini lebih cocok dipakai-kan dengan robot. Soalnya benar2 cape nunggunya oi.

Ada yg lain yg pernah nge-test? Hasilnya gimana?

Regards,

Re: Hedge Trading #1 - EUR & CHF

Tebing terakhir adalah kesempatan terakhir bagi bull unjuk gigi, karena cukup dekat. Namun meskipun demikian, yang kita liat 3 top candle tsb bertengger sebagai resistance. Apa yg terjadi, anda sudah memiliki jawabannya.

Re: Hedge Trading #1 - EUR & CHF

Hi,

Here is another one indi for the same strategy.

Enjoy

Re: Hedge Trading #1 - EUR & CHF

any EA made for this yet?

will read FF thread

Re: Hedge Trading #1 - EUR & CHF

Many thanks for this indi. Soeme qucik backtest show this works !

Re: Hedge Trading #1 - EUR & CHF

I checked the logic:

The indicator (posted by William) is deviding the actual bar close value by yesterday D1 close value and minus 100 from it. So if the current price is 1.2000 and yesterday close was 1.3000. 1.2000/1.3000 is 92%. 92-100 is -8%. This means that we cross the zero line when price goes above or under yesterday close.

Find attached mod of first indi. You can put it on other chart to see EURCHF line.

Re: Hedge Trading #1 - EUR & CHF

24.8.09, that was a beautiful correction from a value of around 2 just to the zero line :)

Re: Hedge Trading #1 - EUR & CHF

I checked the logic:

The indicator (posted by William) is deviding the actual bar close value by yesterday D1 close value and minus 100 from it. So if the current price is 1.2000 and yesterday close was 1.3000. 1.2000/1.3000 is 92%. 92-100 is -8%. This means that we cross the zero line when price goes above or under yesterday close.

Find attached mod of first indi. You can put it on other chart to see EURCHF line.

If we can put this indicator onto EURUSD and USDCHF charts, we can make an EA easily. Is that right?

Re: Hedge Trading #1 - EUR & CHF

The Vision EA trades 2 different currencies with the EA only on 1 chart. I don't know for sure, but I think it's possible to put the EA on EurChf chart and have it trade the EurUsd and UsdChf - you just can't back test - you'll get an order send error when back testing - live trading might be a different case.

Otherwise, you could use global variables - saving the values to global variables from one EA on the EurChf chart and reading the global variable values with another EA to trade on the EurUsd and UsdChf charts.

Re: Hedge Trading #1 - EUR & CHF

The Vision EA trades 2 different currencies with the EA only on 1 chart. I don't know for sure, but I think it's possible to put the EA on EurChf chart and have it trade the EurUsd and UsdChf - you just can't back test - you'll get an order send error when back testing - live trading might be a different case.

 

Otherwise, you could use global variables - saving the values to global variables from one EA on the EurChf chart and reading the global variable values with another EA to trade on the EurUsd and UsdChf charts.

I think the easiest way is to make two EAs. One is for EURUSD, and one is for USDCHF. Let them run seperately, and then we can manually add the result. I am not sure my understanding is right or not.

Re: Hedge Trading #1 - EUR & CHF

two EAs could be used to test out the idea.

if it is then proved to be a good one ; they could be combined into the one quite easily.

...if only i had the skillz.

Re: Hedge Trading #1 - EUR & CHF

if you want i give you spieler pivot with history

Re: Hedge Trading #1 - EUR & CHF

if you want i give you spieler pivot with history

hi cbot,

would you please share it here?

tnx :)>-

Re: Hedge Trading #1 - EUR & CHF

Mates,

Can one kind soul collect tree attached files from the first page of the thread and upload them into 4shared?

And yes, EA can be easily programmed to be attached to any pair chart and to trade on a certain timeframe with many currencies and the pair it attached can be not traded at all. This is easily possible through hard writing which symbol to trade and to trade only once new candle is opened. Here is one example to trade only once in 30 min (should be in start function of EA):

int start()

{

if(iTime(Symbol(),PERIOD_M30,0)==old_bar) return(0);

Re: Hedge Trading #1 - EUR & CHF

You can find all indis and EA in f0r3xf4ct0ry . com / showthread.php?t=95721. Just be aware that it is much safer to trade EURCHF instead of two majors.

Re: Hedge Trading #1 - EUR & CHF

You can find all indis and EA in f0r3xf4ct0ry . com / showthread.php?t=95721. Just be aware that it is much safer to trade EURCHF instead of two majors.

Thanks! Nice thread with 180 pages )

Btw, guys, have any of you ever tried to forward test this strategy, any "demo" wins / losses already?

Re: Hedge Trading #1 - EUR & CHF

- Buy 1 lot EUR/usd and buy 1.5 lot usd/CHF

In fact is rather dynamic. At the moment you are looking for something like 1 lot EURUSD and 1,386 lot USDCHF

Re: Hedge Trading #1 - EUR & CHF

 

Btw, guys, have any of you ever tried to forward test this strategy, any "demo" wins / losses already?

hi

i'm using it for 2 weeks, so far so good, sometimes huge profit and sometimes a little loss...

i use 1 lot EURUSD & 1.4 lot USDCHF.

sometimes personally close positions in profit before it reach zero line (last hours of NY session)

:)>-

Re: Hedge Trading #1 - EUR & CHF

Thanks! Nice thread with 180 pages )

 

Btw, guys, have any of you ever tried to forward test this strategy, any "demo" wins / losses already?

Use ff attachment feature on the right top of the first post, grab latest files and you should be fine ;) EA needs some improvement but can be profitable as long as EURCHF stays flat.

Re: Hedge Trading #1 - EUR & CHF

EURUSD / USDCHF is the most stable hedge pairs on Forex. Not failsafe, however. So, you don't want just put the indicator or EA on "ANY" other pairs. This technique works best with these two pairs only. Of course, there are other hedgeable pairs, but these two are the most stable.

Yesterday I have ran a little 24 hours test to show this hedge-thing to someone, especially the swap-earning part.

I have put together a little EA that opened two buy positions at once with 0.1 lot (on both pairs, I did not bother with multiply the one by 1.5). The EA was ran and continuously registered the biggest loss and biggest win during the test period. The biggest "loss" (or rather drawdown) was -15.52 dollars and the biggest profit was 28.63 dollars. There were negative and positive periods continuously during the test.

The most noticeable and positive thing was what I call "calmness". I did not closed the pairs at profit, since I wanted to run the whole thing for 24 hours. But there was quite a few occassions where I could stop the thing with a nice profit. 2, 5, 8, 15, even 20, 25 dollars could be earned many times. And the whole thing ran without the stress and nail biting of "normal" scalping. I say with 0.1 lot you can earn 3-4 times 2-20 dollars a day with this. Or even more. Finally I have closed the test positions with a nice +15.74 dollars profit (this was not the aim, however).

Of course, if you keep the BUY positions overnight then you also earn swap, too. In my case the USDCHF earned 0.02 and the EURUSD earned 0.01 pips.

However, if you're after swap, then there are more suitable pairs.

For example (and this is valid for Alpari UK, since I don't know about the others) if you're SELLing EURAUD then you could earn +1.160 pips of swap. You can hedge this pair with SELLing AUDCHF. In this case you'll have to pay -0.750 as swap, but the balance is 1160-750 = +0.410! (Remember, I have earned 0.03 overall with EURUSD/USDCHF)

Another example for earning the swap is SELLing EURNZD (+1.170) and SELLing NZDUSD (-0.440). The balance will be +0.730 . However, this is not a perfect hedge, you have to watch out more often on these.

Another issue is the spread. If you're after swap, then you have to keep it longer in order to avoid your swap profits being eaten up by the spread (x2).

I'll try this tonight, anyway. :)

And I'm trying to write an EA for this technique (hedge-scalping) because it looks very promising. I'm also thinking on some newsfiltering to avoid negative off-hedge situations. I guess the news can hurt badly for this way of trading.

Re: Hedge Trading #1 - EUR & CHF

I'll try this tonight, anyway. :)

And I'm trying to write an EA for this technique (hedge-scalping) because it looks very promising. I'm also thinking on some newsfiltering to avoid negative off-hedge situations. I guess the news can hurt badly for this way of trading.

Mate, good to hear this. This indeed sounds nice to have few green pips earned at silence night.

Below are some snippets which may ease your work on EA.

http://www.4shared.com/file/131470374/88bdca85/SampleNewsAvoidance.html

And this on is EA which closed all trades if profit or loss in $$ is reached.

http://www.4shared.com/file/131470389/7194aaf7/e-CloseByLossOrProfit.html

So we can open manually two hedged positions and put this baby on any M1 chart, set $10 as profit trigger and some big trigger for loss (if 0 loss it closes all trades immediately after their opening) and tomorrow morning we can see if this works well.

And this nice indi can be used to track what was the best performance of our hedged trade (it has use magic setting for counting profit/loss of opened trades).

http://www.4shared.com/file/131473750/a85a6b2c/_FXRM_Open_trade_History.html

And this script can be used for opening trades with certain magic, because we can't open trades in MT4 manually with magic number.

http://www.4shared.com/file/131474399/e7ed0ce1/HandOpen.html

I'm going to try this tactics now. Tomorrow will post first results.