Hedge Calculator

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Hi! I'm here to share with you a story about a trader journey in search for the holy grail. And also intruduce you to a powerful hedge calculator, incase you haven't heard of it.

June last year, a biker friend of mine who is a chief mechanic of our motorcycle association learned that I was engaging in forex trading, it just so happened that he is also trading forex part time. He excitedly intruduced me to use the hedge calculator he bought from the web. I looked at it, it was just a sheet of excel file with a tag price of $199. I didn't gave any comment but at the back of my mind, I'm laughing at him. "you've been scammed, stupid!" I rather buy EA on ebay with that kind of price. What a motorcycle mechanic know about FX trading anyway? We all know that to be an expert in forex trading takes years of experience, glued to the platform learning every swing. If he is a banker with degree in finance, I might give it a second thought.

Months has past. I've been paying EA on ebay worth more than $199, cherry picking free EAs from site to site, forward testing lots of methodologies from mouteki, sidus, vegas, fozzy to named a few. I even develope my own trading strategy, but hard to code it into an EA and eats a lot of time trading it manually..... I gave up on it.

I use to cruise to the country side with my bikers buddy every weekends. But due to my new found urge of finding the holy grail, I'm stuck in between the keyboard and chair even on weekends.

On one fine sunday morning, I took a break and went cruising with the gang. To my surprize, our chief mechanic is now riding on his new Harley (still wearing the same old stinky rugged pair of leather pants). He just use to owned a rusty custom chopper made out of junk, now on a brand new Harley with full accesories. I asked him in a sarcastic manner, "Did you robbed a bank?" laughing answered me. "No, I earned it from trading forex using the hedge calculator that I told you".

Ouch! I felt like I was hit by a truck, thrown to the other side of the highway and run crossed by a speeding car. rolled down the cliff.

Some lessons learned that day. Never under-estimate anybody. Sometimes, what we are looking for is already in front of our nose, we just to blind to see it. We often take the lesson the hard way.

The hedge calculator is created by a group of elite traders together with their hired mathematicians. The company is True North if I remember it right. I'm using it right now, and gaining pips slowly but surely.

I attached a history statement and screenshot (a little distort compared to the actual) of a simple hedge calculator that change the life of a motorcycle mechanic and hope mine as while.

Take it for what its worth.

I've been receiving lots of PMs asking where to contact the company or how to pay for the calculator. Here's there email address: true_north@email.com that's true underscore north at email.com

 

What is web site for this calculator?

 

can you tell us more about this company ?

Can even find their web site in google

 

This calculator really isn't that complicated to replicate. I'm working on a similar hedging technique that I will be sharing here when ready, but regardless, it's simple ratios between pairs.

Edit: and I highly doubt that it was made by elite traders.. anyone with high school math (or less?) could replicate this. Since it looks like there may be interest, I am considering making a replicate. Would you guys like that?

 

can u post website mines has an error

 

Hi all,

I haven't been around here for awhile, but someone pointed this thread out to me. Atonix is right, the math for this is not all that complicated. Try doing a search on 'hedge ratio.'

BW

 

I've done google search with the key words hedge ratio, formula, equation, correlation, as suggested by bwilhite. But none of the formulas (Sharpe, Black-Scholes, Delta, Optimal formula) I found is relevant to the computations we are looking for, even if it does, it is not for an average mathematician to compute it. If it were that easy... no one will pay a monthly subscription fee for Freedomrocks, forexforsmarties, forex-assistant. Hope someone can point me to the right web site to get the right computation.

Atonix, If its not too much to ask. Can you post the formula here? Spliting ratios between pairs is easy, but what I like to know is how they add the correlation coefficient ratio to their computation and what (time) period do they use.

I'll pay a visit directly to the person who recommended that hedge calculator to our chief mechanic (Fred), and see if I can get some answers to your questions. Be back later. Ciao!

 

thanx you very much atonix a lot of research went into this one

(hedge master)

 

Atonix, Thanks for sharing your thoughts. It helps a lot for novice traders to understand how those 2 major pairs related to the crossed pair. I'm already aware of that, even the True North's "instruction of use" ask us to use EUR/CHF as a barometer to enter trades. Those system are just simply carry trading the EUR/CHF pair, the reason I see/think why they have to split it in 2 is so that you can still buy low and sell high on their respective pairs from time to time, which hardly can be done if you were just buying the eur/chf pair.

The website I'm using to check the correlation ratio is http://www.mataf.net/en/analysis-correlation_MarketVsMarket.htm

It has correlation rates computed down to hourly ratio.

Like I've said, parity of 2 currency pairs lot is easy, I do have my formula for that. I tested the formula along side with the True North and Freedomrocks, the lot allocation is slight similar with few fraction lot difference. But the trade results give more profit and accuracy using the True North and FR computation. This is the reason why I think that correlation ratio need to be conjunct with the lot parity formula.

Not that I doubt you. But can you share us the same exact formula Freedomrocks is using? maybe we can brainstorm it a little further so we can come up with a better system here. What do you think?

I'm also looking forward to the release of your system. Good luck!

 

Atonix,

I had never really looked at the idea of hedging but am intereested in learning about it. Are you saying that there is no way for a hedging system to work?

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