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Hedge Trading #1 - EUR & CHF


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Re: Hedge Trading #1 - EUR & CHF

 

Another approach:

 

If you know T101 and his bucket trading system ( http://www.mediafire*com/?n12doi20ydg ), then you may know this illustration, too:

Maybe we can begin something with this one at trading EURUSD/USDCHF and other hedgeable pairs.

 

As per my demo acc opened for T101 there is a short trade opportunity for Long EURUSD and Short USDCHF.

Rationale: both pairs are in top half, so we await them moving into bottom half, so we enter opposite direction to indicative entries (if short, we enter long and vice versa).

 

http://i063.radikal.ru/0909/c0/d856da954c9a.gif

 

Just started learning T101 :)

 

Don,

Please confirm my understanding of this trade setup is correct. Signal is weak according to T101 (not wide space between EU and UC), so I'm demoing this trade now to see what happens.

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Re: Hedge Trading #1 - EUR & CHF

 

Please confirm my understanding of this trade setup is correct. Signal is weak according to T101 (not wide space between EU and UC), so I'm demoing this trade now to see what happens.

As I see you have put EURUSD in the sell group and USDCHF in the buy group. But the example above shows the opposite. This is not a problem, but I think you should reverse the rules accordingly (short EU, long UC). I'm not sure, though.

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Re: Hedge Trading #1 - EUR & CHF

 

As I see you have put EURUSD in the sell group and USDCHF in the buy group. But the example above shows the opposite. This is not a problem, but I think you should reverse the rules accordingly (short EU, long UC).

 

Got it, mate, thank you.

Then it would be simplier to enter with EU and UC in the same direction as T101 suggests (short EU and long UC).

 

For my screen setup I just used one of the scrips TradeHedge_IA Setup_v3 provided in the package by Finimej in T101 thread.

I changed this script so now it opens Long EU and Short UC.

http://www.forexsharing.com/252957

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Re: Hedge Trading #1 - EUR & CHF

 

Finimej is trading this method in a different way, using a common graph and Fibo.

I'll also try it but with the original tools. Now I am checking the average spreads on Alpari UK in order to get the picture what pairs are the best for this bucket thing.

 

Since introducing the "flexible spreads" there is a big rumble at Alpari. I have just made an EA that checks all their 29 pair's spread (weekly min/max/avg) on a demo and a live account, then prints the table to the screen and saves it in a file daily (just in case). I'll get a more clear picture by end of Friday. But I can tell you safely: it was rather a tricky price (spread) increase than a "generous" decrease or optimization. X-(

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Re: Hedge Trading #1 - EUR & CHF

 

Hi there,

 

Found this indicators few days ago. As far as I can see they can be used in calculation for our opening lot size

ratio, because its very hard to predict who will be the winner; EUR/USD or USD/CHF, in this hedging game.

So far those indis are showing a good results in collaboration with *2-Play-EURCHF-Trade* indi. and up until now

they are showing pretty well the winning pair.

 

This indis goes on eur/usd OR usd/chf chart - any time frame.

 

Enjoy

 

http://www.4shared.com/file/132857203/f96712e9/NeutralHedge.html

 

http://i31.tinypic.com/33e2y5h.gif

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Re: Hedge Trading #1 - EUR & CHF

 

I added the money management function to the 2 pairs market order script, so you can use it with not only fix lots, but with risk percentage based on your account balance as well. You need to set the risk percentages for the 2 pairs separately.

If you set the risk percentage 2 for the first pair and 2 for the second pair, then the worst case loss will be 2+2=4 percentage of your account balance if both pairs hit the stop loss.

 

Enjoy

 

2PairsMarketOrdersWithTP-SLandMM.mq4[/attachment:3j2480b7]

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Re: Hedge Trading #1 - EUR & CHF

 

if i missed the indicator to buy/sell will i get into big drawdown trouble?

 

no, that's the idea of the system. is to trade two currencies, so even under extreme conditions any drawdown should only be moderate.

"It is inconceivable that anyone will divulge a truly effective get-rich scheme for the price of a book."

Victor Niederhoffer (1943–), US hedge fund manager and statistician

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Re: Hedge Trading #1 - EUR & CHF

 

Hello,

 

Thanks to all for this really interesting and creative thread.

 

Here is my little contribution which I hope that will help a bit.

4X-ROX.com offers this indi for $37 for monthly subscription. Don't worry its a full code indicator.

 

This is where you can time your entries and exits much more quickly.

OK, here is how it works. You want to enter long trades ( both pairs: EUR/USD and USD/CHF) just

about the time the thick green lines begin to appears above the zero line. Stay in the trade until

the green lines begin to thin in width, at which time you exit the trade. Enter short trades when

the thick red lines begin to appear below the zero line. Stay in the short trade until the red lines

begin to thin in width, at which time you exit the trade. This same scenario is repeated over and

over.

 

This indi goes on EUR/CHF chart only.

 

http://[email protected]/file/132004321/129bd983/eu_ind.html

 

 

Enjoy

http://i29.tinypic.com/25zmgp5.gif

 

hey guys... I think it is the free indictor SNAKEFORCE.... anyone knows about it? Are they selling a free renamed indi or what?

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Re: Hedge Trading #1 - EUR & CHF

 

Hi there,

 

Yesterday I found this interesting EA from .truenorthfx.com/ and I'm looking for their True North Hedge Calculator.

It will be awesome if someone of you guys are willing to share this calculator. Reviews for this piece of software

are excellent.

 

Sharing this lot size ratio from another forum, I'm just calculate a difference in percentage. Maybe some of you math wizards

can see the possible regularity from the picture (.truenorthfx.com/) which is by the way necessary as an initially input at

the EA.

 

equity balance: $5000

leverage: 400:1

account size: mini

margin risk: 5%

 

Results:

Freedomrocks

EUR/USD= 4.19

USD/CHF= 4.36 (+4,05%)

 

True North

EUR/USD= 4.21

USD/CHF= 4.37 (+3,80%)

 

http://www.4shared.com/file/133625497/af116f54/Inverse_Hedge.html

 

Regards

http://i35.tinypic.com/2dv95kj.gif

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