It's fine, and i feel so fun when i can share maybe some usefull idea for all friends in this forum. Maybe someday we can find some strong strategy to break the wall of forex market.
Hedge strategy is the one of the most popular strategy but i dont know how to do this was. When i'm think about this strategy, there is was some peoples to do this first and still doing this strategy. Maybe some Bigboy doing this too,...i don't know,...let's try at least.
For anybody want to try, i'll share the EA,...(Thanks to Vixen Girl or Phoenix for helping me get the EA)
Remember, Don't expect quick profit by only one Day. Sometime it's need a week to reach the prefered profit.
Although it's not imposible we get profit in just one day but this strategy basicly is a hedge system that collecting swap every day and try to stealing pips while volatile market.
I Use mini account on interbankfx,...just attach to the gbp/usd or Euro/usd chart on any TF you want
Default lot = 1 lot mini size
Default TP=30 mean sum of total profit goal is +30
notice: you will see minus in profit more often (but usually very low) than positive cus once you see positive, that is the bonus.
hi! this is my first post in this forum. sorry for my english.
im using hedge in marketiva on eur and, in 5 months, and i increase my acc in ~750%. but homo hedge is very dangerous. In last days, i started to build my own EA. its finished and now im forward testing it. In some weeks, i will start a thread and put the results.
Your system looks good, but my question is: what is the correlated pairs with seemed volatility and where i can get positive swap interest in two currencies?
some days ago i got an eamil from a hedg founds club that offers siganls for hetro pair hedging.i saw the statments and it looked good to me.the idea behind this method is "Comtroling the market by the market"
we choose two pairs, one high volatile and the other less.(GBPUSD and URUSD).we do our entry in the higher volatile pair and istead of sl we use an opposite position in less volatile pair(EURUSD)we never close any hedg positions in loss, all must be close on profit.As i see in the attached performances in the site(http://www.fx-hedgefunds.com/modules/tinyd1/) some of positions have been opened for a month.any way they trade base on the corelation and so on.i developed an EA based on this concept(special thx to shadowwz who coded it for me).it does the entries based on silver trend signal and ATRStop indicator as a filter and no sl.
NO_Trades=how many traes(couple positions)can be open toghether[Def.=3]
net_profit =when each couple positions(opened at the same date and time) be in net_profit(in pips) the EA closes the positions.[30-50 pips suggested]
net_loss=the same story as above but for loss in pips.
so those are the most important prop. tha need to be checked.i have no clue what time frame is the best but i think H4 would be the first option.at the end i share the Ea for forward test and more developement.
any comment are apperciated.
P.S:The EA should ttached only on GBPUSD chart.
due to harry system his volatile pair is GBPUSD
and the long swap of GBPUSD is -0.49 (ie.)
but at the same time the short swap of EURUSD is +0.72
even you can not get positive pips from them for a day
you still get swap of 0.72-0.49 = 0.23 anyway and every-each-day they float along
this is his win-win system , cos he will never close both orders when in minus profit
but when they give you a positive profit of , ie. +10 , and you floated them for 3 days then you will get the total profit of
10+ (0.23*3) = 10.69
hope this clear
hmm what about GBPCHF/long and GBPUSD/short both are in profit swap
but i don't know how volatile they are
and what about this indocator
but i don't know how to use it
anyone know pls help
Thanks my friend....
The concept of hedging in forex is as old as forex itself. I followed many different threads on other forums where people tried in vain to make it work. All beginners are very attracted to it because at first sight it seems to make sense. Unfortunately long term it simply doesn't work, no matter if you use the same pair or 2 highly correlated pairs. I am not going to talk about using the same pair, because you seem to be interested mostly in using 2 different pairs.
When you go short gbpusd and long eurusd at the same moment you are in fact playing a long eurgbp. If the eurgbp trends higher, obviously you can close both your positions with an overall profit at some point. But if the eurgbp falls, your so called "hedged" positions are in fact losing money. No matter if the dollar is strong or weak, your equity curve is descending. You cannot close both positions at the same time, because it would be a loss. If you close only the one in profit (let's say the eurusd long is in profit), what happens if the dollar keeps falling? Your other position, the short gbpusd will lead to a bigger loss than the win generated by eurusd you just closed. If you close the loser thinking that you let your winner run, maybe the opposite happens - the trend stops, and your winner becomes a loser too.
So the point is that you do not know when to close one of the 2 hedged positions you have open and let the other one run. And you can close them both at the same time in profit only if eurgbp is moving in the desired direction. But if you are so sure that eurgbp will move in a certain direction, then you can just play that pair from the start, and not pay the spread twice.
I have done serious testing using this strategy 1 year ago and studied some mathematical models and my conclusion is that hedging only works when the market is in a range. For example the last few weeks would have been good as you can keep collecting profits from all those up-down-up-down moves of the dollar. But when a trending move starts the hedging strategy is a loser (the same thing happens with strategies like grid trading or expert advisors like Firebird). Of course, you don't have to believe me... you can keep trying and see it for yourself.
I agree with every word you said!
Plaese look at these hedging strategies that I found in strategybuilderfx:
I have been trying on demo account the so called "GMT Package Hedge" but with a 2.2 ratio: buy 1 lot of GBP/JPY and sell 2.2 lots of CHF/JPY.
So far it is giving profit but you need to be patient since some times you have to wait more than a week for trades to turn into positive balance
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