HedgeEA - page 17
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When I try to compile, I have 3 errors :
ExpertName 'variable expected'
ExpertName 'comma expected4
timeFrame 'variable not defined'
Here what I have on my MetaEditor :
extern string ExpertName = "HedgeEA V.5.4";
string GenerateComment(string ExpertName, int Magic, int timeFrame)
return (StringConcatenate(ExpertName, "-", Magic, "-", timeFrame));
What is wrong. My account is Interbank.
Thanks in advance.
Sorry for my post.
I have seen it was fixed.
All is now OK.
Here is chart on current unbalance. Notice how the gbp/jpy has broker out of the lower range but chf/jpy remains in the lower range. That is the unbalanced that brought the latest win. This would be a very bad point to enter a new hedge I belive.
Looks like chf/jpy will probly move up out of the lower range and gbp/jpy will draw back a little while they find there balancing point. That will be my entry when it finds the balance again.
Dave
Hey all,
I know I was here a couple of weeks ago...I've been watching the thread but working on other things. Anyway, I have some information you might find useful. In order to calculate the correct ratio, here's what we need to do:
I'll use David's most recently posted charts, just as an example. If GBP/JPY is at 224.20 and CHF/JPY is at 94.10 then. Let's say we want to go short GBP/JPY and long CHF/JPY (more on that in next post). If we go short 100K GBP/JPY then we end up long 100,000*224.20=22,420,000 JPY. If we wanted to neutralize our JPY, then we would go long 238K on CHF/JPY 22,420,00JPY/94.10=238,257. If we just went long 100K CHF/JPY, then we'd have 100,000*94.10=9,410,00 JPY, leaving us long 2,147,900 JPY. Maybe this is okay with us though.
The thing that always gets to me about this is that we are ending up short GBP and long CHF, so why not just trade GBP/CHF? (and I certainly wouldn't go long CHF in that pair right now)
Hey all,
I know I was here a couple of weeks ago...I've been watching the thread but working on other things. Anyway, I have some information you might find useful. In order to calculate the correct ratio, here's what we need to do:
I'll use David's most recently posted charts, just as an example. If GBP/JPY is at 224.20 and CHF/JPY is at 94.10 then. Let's say we want to go short GBP/JPY and long CHF/JPY (more on that in next post). If we go short 100K GBP/JPY then we end up long 100,000*224.20=22,420,000 JPY. If we wanted to neutralize our JPY, then we would go long 238K on CHF/JPY 22,420,00JPY/94.10=238,257. If we just went long 100K CHF/JPY, then we'd have 100,000*94.10=9,410,00 JPY, leaving us long 2,147,900 JPY. Maybe this is okay with us though.
The thing that always gets to me about this is that we are ending up short GBP and long CHF, so why not just trade GBP/CHF? (and I certainly wouldn't go long CHF in that pair right now)I imagine there are several possibilities on using this ea and hedging method on lots of different pair combinations. any one is more than welcome to do forward test on any pairs they want to.
If another set of pairs works out to be more profitable on pips and swap rate than cool.
But I am sticking with gbp/jpy and chf/jpy. Because its working.
But the more forward testing from a variety of pairs the better.
Dave
convergence-divergence
Maybe you all already know this, but there are two ways to trade correlation, convergence and divergence. If two assets are close together and we expect them to move apart, then we trade divergence. I believe, from looking at the posted statements, that this is the method being used in this EA. So David calls it "balanced" and says that right now is not a good time to open up a position. If we reversed the logic, however, which is basically what I did in my previous post, then we could make money as the two came back into balance with each other, this is trading divergence. In the stock market this is called pair trading, btw. It's actually quite difficult to find good information on it.
Now that I'm thinking...could we trade divergence going out and as we get further and further out we start to trade convergence. Taking profit going out and profit coming back in? Hmmm....
BW
But I am sticking with gbp/jpy and chf/jpy. Because its working.
But the more forward testing from a variety of pairs the better.
DaveI didn't mean to trade GBP/CHF with this methodolgy, just pointing out that we kinda already are...
Maybe you all already know this, but there are two ways to trade correlation, convergence and divergence. If two assets are close together and we expect them to move apart, then we trade divergence. I believe, from looking at the posted statements, that this is the method being used in this EA. So David calls it "balanced" and says that right now is not a good time to open up a position. If we reversed the logic, however, which is basically what I did in my previous post, then we could make money as the two came back into balance with each other, this is trading divergence. In the stock market this is called pair trading, btw. It's actually quite difficult to find good information on it.
Now that I'm thinking...could we trade divergence going out and as we get further and further out we start to trade convergence. Taking profit going out and profit coming back in? Hmmm....
BWtrue, as long as you don't care if the swap on a high intrest pair(gbp/jpy) is working against you. If it takes several days to balance out you can lose alot on the swap, and make it harder to achieve the pip goal.
true, as long as you don't care if the swap on a high intrest pair(gbp/jpy) is working against you. If it takes several days to balance out you can lose alot on the swap, and make it harder to achieve the pip goal.
Agreed. What if we took pairs that neither paid nor received a lot of interest and then used those instead? Maybe like USD/CHF and EUR/USD? Also, if we opened up divergence trades when correlation was very strong, and then also opened convergence trades as correlation became out of line, then we'd pay less interest so maybe we stay with GBP/JPY and CHF/JPY.
If I understand the origins of this EA, which I could be wrong, it was originally built upon the idea of collecting interest and then hedging our risk, so what I'm proposing would change the character of the strategy. Maybe a further exploration later.
Agreed. What if we took pairs that neither paid nor received a lot of interest and then used those instead? Maybe like USD/CHF and EUR/USD? Also, if we opened up divergence trades when correlation was very strong, and then also opened convergence trades as correlation became out of line, then we'd pay less interest so maybe we stay with GBP/JPY and CHF/JPY. If I understand the origins of this EA, which I could be wrong, it was originally built upon the idea of collecting interest and then hedging our risk, so what I'm proposing would change the character of the strategy. Maybe a further exploration later.
exactly. The main part is getting high interest rate. On a 50$ position(1 mini lot) I got 10% interest last week.
I am gonna set use swap false. That way the interest will be in addition to, but not part of the 50 pip goal. So wins will be 50 pips + what ever interest encored while waiting.
I belive a good reason for sticking to gbp/jpy is the up trend it is in. I can post a chart showing the high probability that the bull trend in gbp/jpy has only begun and will remain bullish for a long long time. So constant long positions will become profits with little to no chance of a major down trend in the next few years. Just look at the monthly gbp/jpy.
The CHF pairs usually trend sideways as there pulled back and forth by all the other pairs.
You see the out of balance chart I posted...well you can wait for it to be out of balance on the opposite direction and place the entrys in, set to auto trade, and take profit when it balances back out and allow immediate re-entry at the balance point. Then set autotrade false. That way you can get 2 back to back entrys.
I will sharpen this stradigy as I watch the ea and price action over a month. Right now its just based on 1 week of observation.
But chart analysis and entrys are my strong suit.
dave