HedgeEA - page 60

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bonechair
8
bonechair  

Correlation

The correlation on GBPJPY CHFJPY is set on higher that 0.75

Is this the right correlation to use for those pairs? Anybody know the right numbers to use or how to calculate it?

Great EA by the way.

bonechair
8
bonechair  

nvm found this:

Currency correlation | Mataf.net

I was also wondering what would happen if you entered only when the pairs were out of balance? ie. GBPJPY is at the bottom of BB and CHFJPY at the top of the BB. When they moving in opposite direction or when correlation is negative. Wouldn't this collect alot of pips because they would be coming together again?

toddanderson
495
toddanderson  

Auto hedge EA ?

Is their any EA that will do this auto hedge

Whenever I place a market order I want the system to automatically place a pending order as a hedge.

for example:

1. market order:: buy to open @ 2.0800

2. the system automatically place a pending order to SELL STOP @ 2.0780

Thank you

Sergey Golubev
Moderator
110350
Sergey Golubev  

I moved your post to one of the hedge EA (look at the first post).

The other EAs:

https://www.mql5.com/en/forum/trading_systems

https://www.mql5.com/en/forum/trading_systems

https://www.mql5.com/en/forum/176095

HedgExpert_v1 (elite section).

Hedge: elite section thread with discussion and EAs.

https://www.mql5.com/en/forum/trading_systems

https://www.mql5.com/en/forum/175750

kokas
503
kokas  

Anyone still using or testing this one?

bugaboo171
14
bugaboo171  

As mentioned in the earlier posts. If you 'hedge' two currencies, you are in fact trading the currencies that you haven't cancelled out. i.e if you buy GBPJPY and sell CHFJPY, you are trading GBPCHF. You have just cancelled out the JPY. The swap you earn won't compensate for the big draw downs when the GBPCHF goes the opposite way to which you entered. I've attached an example showing two positions, a buy of GBPJPY and a sell of CHFJPY. As you can see the account balance exactly follows the graph of the GBPCHF. Imho this is a dead end strategy.

Files:
hedging.jpg 166 kb
AZJeff
152
AZJeff  

Hello,

Dead end strategy? Did you look at his groodge ea statement that shows forward test results. They prove you wrong.

Regards,

Jeff

bugaboo171:
As mentioned in the earlier posts. If you 'hedge' two currencies, you are in fact trading the currencies that you haven't cancelled out. i.e if you buy GBPJPY and sell CHFJPY, you are trading GBPCHF. You have just cancelled out the JPY. The swap you earn won't compensate for the big draw downs when the GBPCHF goes the opposite way to which you entered. I've attached an example showing two positions, a buy of GBPJPY and a sell of CHFJPY. As you can see the account balance exactly follows the graph of the GBPCHF. Imho this is a dead end strategy.
bugaboo171
14
bugaboo171  

Hi,

I wasn't meaning to be overly critical. I know a lot of people have put time and effort into this idea, and this is much appreciated. But the fact remains if you buy GBPJPY and sell CHFJPY, you are trading GBPCHF. If you buy EURUSD and buy USDCHF you are trading EURCHF. The three currencies are in a pretty much perfect relationship. If they weren't there would be arb opportunuties. In my above example the ea bought GBPJPY on the 1/8/08 at 2.42 am, at the same time it sold CHFJPY. Apart from gaining on the swap, this is exactly the same as buying GBPCHF at 2.0794. Which was the price of GBPCHF at that time. If GBPCHF rises above that price the ea will make money. If it falls the ea will lose money. If GBPCHF falls below 2.0794 and never returns to that price it will blow your account.

Therefore in this example the two positions opened by the ea were exactly the same as a buy position of GBPCHF. If GBPCHF increases you will make money. If it falls you will lose money. In my example the GBPCHF then fell so my account balance fell in perfect synch with GBPCHF. So now two things could happen, either GBPCHF will go above 2.0794 again, in which case the ea will close at tp. Or GBPCHF will continue to fall, in which case my account balance will continue to drop in line with this. Therefore, what was the point in the GBPJPY and CHFJPY positions? Apart from the swap from GBPJPY, I am in fact buying GBPCHF and hoping for the price to rise. So why not just do that in the first place. If you don't believe me , do what I did , then add an account balance indicator and compare it to the third currency, in my case the GBPCHF.

This thread has been going since 2006, so I'd expect that if it worked long term people would be trading it since then and making money. I'd love for this system to work, but I can't see how it can. So if there's anyone out there who has been doing this and can point out the flaws in my logic I'd love to hear from them. Otherwise, thanks to all the contributers, I've learnt a lot from this thread. Your time and effort is much appreciated.

kokas
503
kokas  

Sure we understand what you mean, but can you please go here and see how we turned this question:

Groodge main thread.

bugaboo171
14
bugaboo171  

Hi,

Thanks Kokas, I'll take a look. Using a grid looks interesting. Thanks for all the hard work you've put into this.

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