HedgeEA - page 36
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kokas you must check this system , you will get a lot of ideas to improve the system , the have 15 day trial to use their software.
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Dont have one!
try this one http://www.freedomrocks.com/23596
this was post on post#214
In order to ensure your sponsor gets proper credit, we require this form to be called with a valid ID from one of our representatives. The main website URL you're accessing should look something like this:
www.FreedomRocks.com/XXXX (where XXXX is the ID of the person who sent you)
Dont have one!https://www.freedomrocks.com/signup.aspx?id=23596&type=C&trial=Y
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Fractals.
LOL I'm geologist, and my area on university was fractals. I believe that this is the solution for forex trading, but I'm not ready to code fractals on mq4. I have the theory, but not the necessary knowledge to code it... then I have to wait!
They already have fractal indicators and EAs coded on MT4!! it just depends on how you use them.
Perfect Ratio
i agree with you ,if we could do what mikhail suggest on post #224 the system will be perfect. Stevensign do you have a spread sheet in execl with the calculation that you make to get the perfect ratio?
Sorry, I don't have an excel spreadsheet that does this, I just do it in the MT4 code, I'm still working on optimizing and incorporating "Equalization" lots. This may not be required if frequent Cash Grabs are taken since you will then recalculate all the ratios again based upon your new entry prices.
Ratios
I'm really heavy into math so here it goes. I'm not big on correlation, IMHO this can be misleading. (I am a big believer in Bollinger Bands on cross pairs but that will be a later post if there is interest).
I believe the ratios should be based on two main factors. First, normalize the lots so 1 PIP is the same value, then second, normalize for range. I use Interbank FX and others that are similar. In my example I will use the GBP/USD and USDCHF. 1 mini lot of GBPUSD is $1 per PIP. This is independant of the price of GBPUSD. The PIP value of 1 lot of USDCHF depends on price. If USDCHF is 1.200 each PIP is 1/1.2 = $0.83. To normalize multiply the lots by the price.
so 1.20 lots at a price of 1.200 equals $1 per PIP.
So to normalize on price, if the USDCHF is 1.200 use 1.00 lot of GBPUSD and 1.20 lots of USDCHF.
Now let's normalize on range. This can be daily, weekly, monthly, or whatever you want depending on the strategy you're using.
I've written indicators and EAs to show this but basically you want to determine the range of movement for the currency. One way to do this is is to take the difference between a 200 SMA on the high and a 200 SMA on the low of each currency pair, this will show the average daily range. You will get different results if you do this on daily candles or 4 hour candles or 15 minute candles.
I'll simplifiy for daily candles. the GBPUSD has a daily range of about 120 PIPs, the USDCHF has a range of 90 PIPs. So, on average, when the GBPUSD goes up 120 PIPs the USDCHF goes down 90 PIPs.
The ratio of 90/120 = 0.75.
So now multiply the 1.00 lots of the GBPUSD by 0.75 to get 0.75 lots.
The final trade for this example is 0.75 lots GBPUSD and 1.20 lots of USDCHF.
this results in a ratio of 0.75/1.2 = 0.625 for the GBPUSD / USDCHF pairs.
This will allow you to stay in the trade as long as possible and collect interest or cash grabs.
In a previous post about three pages ago, someone mentioned about adjusting the the trade in as 3:5 ratio. this is a great idea.
I've written advanced EAs based on my comments that automatically account for lot size, accounts size, etc.
I'll post more if there is interest.
I want suggestions to improve entry points.
I'm working on improvements to exit points.
This strategy is amazing!
"Balance" and correlation
Just a quick, if not convoluted, question. As we all know, a large part of the profit from this EA (and other carry-type trades), comes from closing the positions when the combined profit reaches some TP point. The reason for this profit is that the pairs aren't perfectly correlated, and they can become "out of balance". Lets call this "out of balance" situation the "net profit/Loss", or net "P/L".
Ok, here's the question:
Does anyone know if the is a relationship between the net P/L and the correlationbetween the pairs? We would certainly want to enter the trade at some optimum time - when would this be? Does the net P/L relate to the correlation, and if so, what is the relationship? I would like to use the correlation indicator to optimize my entry. The indicator is embedded in the EA, but nobody seems to know how to use it optimally, or even at all.
To echo what another poster suggested (not sure if in this thread), it would be useful to have an indicator added that would show the net P/L.
Just a thought.
Thanks.
Doug
Hedge indicator
Just a quick, if not convoluted, question. As we all know, a large part of the profit from this EA (and other carry-type trades), comes from closing the positions when the combined profit reaches some TP point. The reason for this profit is that the pairs aren't perfectly correlated, and they can become "out of balance". Lets call this "out of balance" situation the "net profit/Loss", or net "P/L".
Ok, here's the question:
Does anyone know if the is a relationship between the net P/L and the correlationbetween the pairs? We would certainly want to enter the trade at some optimum time - when would this be? Does the net P/L relate to the correlation, and if so, what is the relationship? I would like to use the correlation indicator to optimize my entry. The indicator is embedded in the EA, but nobody seems to know how to use it optimally, or even at all.
To echo what another poster suggested (not sure if in this thread), it would be useful to have an indicator added that would show the net P/L.
Just a thought.
Thanks.
DougI've attached a hedge indicator that I wrote for the http://www.freedomrocks.com/23596 currency pairs.
It reads out in dollars profit or loss based on your entry point.
This is an update to the indicator I attached in post #214.
IMHO, correlation may be best used to determine what percent of your account you can put in the trade. As correlation approaches +1 or -1 you have less risk and may be able to stay in the hedge position longer and use more of your account while collecting interest (swap).
As correlation aproaches 0 (i.e.no correlation) that means you have a 50/50 chance of the hedge going in your favor OR going against you. This can provide more opportunies for cash grabs but you can't use as much of your account.
The default settings in the EA allow a range of 0.8 to 1. My guess is that if correlation is close to 1 expect less net profit (i.e. take cash grabs sooner) but you can use more of your account. There may be a relationship between correlation, number of lots, and profit for cash grab.
Actually you may end up with a cash grab at a fixed percentage profit, since higher correlation may allow more lots but a lower PIP profit target and lower correlation may allow fewer lots but a larger PIP target.
That's my two cents, I could be wrong.
Please feel free to correct any errors in my logic. Let's get this correlation thing nailed down!
How does the indicator work, is there any instructions on how to use it?
I've attached a hedge indicator that I wrote for the http://www.freedomrocks.com/23596 currency pairs.
It reads out in dollars profit or loss based on your entry point.
This is an update to the indicator I attached in post #214.
IMHO, correlation may be best used to determine what percent of your account you can put in the trade. As correlation approaches +1 or -1 you have less risk and may be able to stay in the hedge position longer and use more of your account while collecting interest (swap).
As correlation aproaches 0 (i.e.no correlation) that means you have a 50/50 chance of the hedge going in your favor OR going against you. This can provide more opportunies for cash grabs but you can't use as much of your account.
The default settings in the EA allow a range of 0.8 to 1. My guess is that if correlation is close to 1 expect less net profit (i.e. take cash grabs sooner) but you can use more of your account. There may be a relationship between correlation, number of lots, and profit for cash grab.
Actually you may end up with a cash grab at a fixed percentage profit, since higher correlation may allow more lots but a lower PIP profit target and lower correlation may allow fewer lots but a larger PIP target.
That's my two cents, I could be wrong.
Please feel free to correct any errors in my logic. Let's get this correlation thing nailed down!I've attached a hedge indicator that I wrote for the http://www.freedomrocks.com/23596 currency pairs.
It reads out in dollars profit or loss based on your entry point.
This is an update to the indicator I attached in post #214.
IMHO, correlation may be best used to determine what percent of your account you can put in the trade. As correlation approaches +1 or -1 you have less risk and may be able to stay in the hedge position longer and use more of your account while collecting interest (swap).
As correlation aproaches 0 (i.e.no correlation) that means you have a 50/50 chance of the hedge going in your favor OR going against you. This can provide more opportunies for cash grabs but you can't use as much of your account.
The default settings in the EA allow a range of 0.8 to 1. My guess is that if correlation is close to 1 expect less net profit (i.e. take cash grabs sooner) but you can use more of your account. There may be a relationship between correlation, number of lots, and profit for cash grab.
Actually you may end up with a cash grab at a fixed percentage profit, since higher correlation may allow more lots but a lower PIP profit target and lower correlation may allow fewer lots but a larger PIP target.
That's my two cents, I could be wrong.
Please feel free to correct any errors in my logic. Let's get this correlation thing nailed down!I did try out FreedomRocks Trial before.
I notice they have a calculator for calculating the number of lots to be enter by entering the prices of the currency pairs.
You have any idea, how its being calculated?