HedgeEA - page 30

 

the first pair is the base.

so if you choose 1 lot and 1.8 ratio the first pair will be 1 lot and the second will be 1.8 lot.

i hope this will help.

bodshyipmonitor:
Anyway, I posted sometime ago but no one answer.

Can someone please explain to me on how to calculate the ratio? What divided what?

gbpjpy and chfjpy ratio is 1.8...

how does we get this 1.8 value.

someone please help...
 

well, thats not really my question..

how do we derive the ratio 1.8?

i read thru the hedge_ea code.. is it the fucntion that calculate the cost of 1 PIP in USD for currency 1 / currency 2?

or maybe i should put the question why do we need to put 1.8 lots for every 1 lot of 1st currency?

 

i don't think that there is any calculation how the got this ratio , other pairs need other ratio so the best way to know what the best ratio is to test several demos and see for yourself what ratio is the most consistent.

bodshyipmonitor:
well, thats not really my question..

how do we derive the ratio 1.8?

i read thru the hedge_ea code.. is it the fucntion that calculate the cost of 1 PIP in USD for currency 1 / currency 2?

or maybe i should put the question why do we need to put 1.8 lots for every 1 lot of 1st currency?
 

I guess i know !

bodshyipmonitor:
well, thats not really my question..

how do we derive the ratio 1.8?

i read thru the hedge_ea code.. is it the fucntion that calculate the cost of 1 PIP in USD for currency 1 / currency 2?

or maybe i should put the question why do we need to put 1.8 lots for every 1 lot of 1st currency?

Ok i am not sure but this is what i think.

U know that u sell CHFJPY to compensate the GBPJPY so :

Let's take a real quote i saw a few minute ago.

GBPJPY : 232.92 / 233.02

CHFJPY : 97.19 / 97.26

U buy one lot of GBPJPY so in reality :

u buy 100 000 GBP

u sell 23 292 000 (which is 232.92 x 100 000) JPY

If u sell one lot of CHFJPY in reality :

u sell 100 000 CHF

u buy 9 726 000 (which is 97.26 x 100 000) JPY

SO IN ORDER TO HAVE 1 LOT OF GBP/CHF U HAVE TO TAKE OUT JPY

This is how u do :

23 292 000 / 9 726 000 = ABOUT 2,4.

So in my example u have to buy 1 lot GBPJPY and 2,4 lot CHFJPY.

This is how the ratio is calculated i guess.

 

Well, if that is the case, it seems like we are buying GBP and selling CHF..

so we can get the ratio straight away looking at the GBP/CHF Price?

GBPCHF 2.3929 2.3938 which is around 2.4

 

But from my demo account and the script,

i think the ratio is gotten from calculating 1 pip of each currency in USD.

 
bodshyipmonitor:
But from my demo account and the script, i think the ratio is gotten from calculating 1 pip of each currency in USD.

I don't think cause at this moment the 2 pairs are 8.43 USD by pip.

http://www.mataf.net/analyse-valeurpip.htm

 

but the ratio i am using 1.8 which is default with the EA.

should i change to 2.4?

 
bodshyipmonitor:
but the ratio i am using 1.8 which is default with the EA. should i change to 2.4?

Lol ! I really don't know !

I only explained how a ratio can be calculated but of course having another ratio can be usefull sometimes (when the profit of GBPJPY pair is bigger than the loss of CHFJPY) or making problems (when the loss of GBPJPY is bigger than the profit of CHFJPY).

Usually hedging is use not in order to have profit with the hedge but to avoid too much drawdowns.

 

I do not know how this ratios is calculated. The AutoRatio in fact uses the real cost in USD but as I said before I do not know the algorithm used to obtain the ratio, so if anyone knows, please post and I will update the EA.

Reason: