hedge trading in currency means you bought one currency in one broker and sold one currency in another broker so the balance still the same no profit or no losses , purpose of this hedging is to collect swap. all currency used should be correlated means if one currency is up other must be going down.
Forex Indicators Collection
U can not hedge now after 15,May,2009 in all the NFA regulated brokers.
New Hedge profit System
Can someone help me write something like this?
An interchangeable hedge trading Expert Advisor that will do several things SYSTEMATICALLY:
1. Enter trades for EUR/USD and USD/CHF at the same time
2. Close out the terminal once these two trades make an X amount of dollars in profit NET [one will be negative and the other positive since this is a hedge in the same direction for both]
3. Once closing out profitably, ask again whether or not I want to enter another hedge [manual confirm] but SYSTEMATICALLY re-enter a hedge if I do not check manual confirm in the settings
This goes on indefinitely as long as profits are reached consistently whereby the model will open another hedging trade for both currency pairs AT THE SAME TIME and close with an X profit and re-enter if the user defines this as systematic or ask the user whether or not he wants to enter
as we all know one of the highest, if not the highest correlation in FX
is found in EUR USD and USD CHF (negative 97% correlation).
Is there a way to measure the deviation between the 2 pairs, maybe an indicator.
So let`s say I enter one unit short in EUR / USD and at the exact same time
one unit short in USD CHF
I would be more ore less market neutral ( at least if it was a perfect hedge).
But since the correlation is not perfect and deviates from time to time
I need to measure how much max drawdown this 2 positions could create.
I would really appreciate your help.
What is Forex Hedge?
Forex hedging means fiddling in the Forex market. It basically involves a trader plunging his risk in forex trading. Hedging does not eradicate risks but decreases the subdued result on the finances. It is a defensive strategy that shields the investments of the traders and diminishes the risks, thereby increasing their chances of survival in the trade. But it is also true that hedging will protect the investments of a trader to a certain degree only. For example, hedging that is practiced by businesses dealing internationally. By making the most of a forex hedge, a forex trader that is long a foreign currency pair, can protect themselves from shortcomings of risk associated with their trading and the trader that is short of a foreign currency pair, can protect himself against upside risk.
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how can I hedge my USD investments
Hello and greetings
supposed my home currency is EUR and I want to invest in a PAMM (managed forex account) in USD. The investment is lets say 1000 USD. How can I mitigate (hedge) the USD currency exchange risk ?
I assume I have to go short the USD. How can I do this in instaforex ? Sell 1000 usd? or could I easyily go long in a currency ETF ?
Help with hedging strategy!
I'm totally newbie in MT4 compiling, thus i'm seeking for some help.
I'm trying to implemente a strategy whose logic is as follows (i've found the following article on a website, it's not my homeworking) ;-):
1. Open a position in any direction you like.
Example: Buy 0.1 lots at 1.9830. A few seconds after placing your Buy order, place a Sell Stop order
for 0.3 lots at 1.9800.
2 - If the TP at 1.9860 is not reached, and the price goes down and reaches the SL or TP at 1.9770.
Then, you have a profit of 30 pips because the Sell Stop had become an active Sell Order (Short) earlier
in the move at 0.3 lots.
3 - But if the TP and SL at 1.9770 are not reached and the price goes up again, you have to put a Buy
Stop order in place at 1.9830 in anticipation of a rise. At the time the Sell Stop was reached and became
an active order to Sell 0.3 lots, you have to immediately place a Buy Stop order for 0.6
lots at 1.9830.
4 - If the price goes up and hits the SL or TP at 1.9860, then you also have a profit of 30 pips!
5 - If the price goes down again without reaching any TP, then continue anticipating with a Sell Stop
order for 1.2 lots, then a Buy Stop order for 2.4 lots, etc... Continue this sequence until you make a
profit. Lots: 0.1, 0.3, 0.6, 1.2, 2.4, 4.8, 9.6, 19.2 and 38.4.
6 - In this example, I've used a 30/60/30 configuration (TP 30 pips, SL 60 pips and Hedging Distance
of 30 pips). You can also try 15/30/15, 60/120/60. Also, you can try to maximize profits by testing
30/60/15 or 60/120/30 configurations.
7- this strategy works best when the market is moving up or down.
Now, this is the logic. I've been trying this on manual trades on EURUS GBPUSD and USDJPY since 10 days now and i must say it's working pretty good so far. The worste series went up to three bouncings on EURUSD (started with 1 lot, then 3, 6 and 12 lots - then it closes on gain with the 12 lots - this has happened twice so far). But I must say i placed initial orders irrespective of watching market conditions (this is to say that if you are a little bit more cautious in placing your initial orders you might end up with even less risks).
The piece of strategy i wrote was a boilerplate of a possible strategy resembling the logic above.
I think that a perfect strategy should foresee:
1) Starting on given time of the date (when market is moving);
2) Placing the first 1 lot order: buy or stop, following the trend;
2.1) eventually, linking the orders to some indicator (momentum or similars);
3) when the first order is placed, contextually placing EL or ESorder on 30 pips distance with 3 lots;
4) if the first order is closed in gain, removing the EL or ESorder previously placed and restart the strategy; or
5) if the 3 lots EL or ES order is triggered, placing new ES or EL order on 30 pips distance with 6 lots;
6) if the 3 lots order is closed in gain, removing all the ES or EL pending orders and restart the strategy; or
7) if the 6 lots ES or EL order is triggered, placing new ES or EL order on 30 pips distance with 12 lots;
8) if the 6 lots order is closed in gain, removing all the ES or EL pending orders and restart the strategy; or
9) if the 6 lots ES or EL order is triggered, placing new ES or EL order on 30 pips distance with 24 lots;
and so on...
One other possibility could be not placing ES or EL limit orders, instead heding the position on reaching the stop loss of the opened pending trade. This way, though, if system crashes, if are not "covered" in case of losses, since it has to check the open position on a tick-by-tick basis...
This is it, any clue?
thanks to all
Perfect smart hedge
HI Friends, How do I open multiple
simultaneous orders at the same time on
the same pair and close all the them at
the same time?
open 5 buy and 5 sell at 1:00 (server
BUY1 - TP 10 - SL 10
BUY2 - TP 20 - SL 20
BUY3 - TP 30 - SL 30 - TS - 30
BUY4 - TP 40 - SL 30 - TS - 30
BUY5 - TP 50 - SL 30 - TS - 30
SELL1 - TP 10 - SL 10
SELL2 - TP 20 - SL 20
SELL3 - TP 30 - SL 30 - TS - 30
SELL4 - TP 40 - SL 30 - TS - 30
SELL5 - TP 50 - SL 30 - TS - 30
CLOSE ALL 12:00 (server time)
Max spread = 3 pips
Lot (all same) = 0.1
*HourToOpenOrders = 1:00
*HourToCloseOrders = 12:00
*Levels (above example is 5 levels)
*Gaps ( above example is 10 pips)
*Trailing Stop ( above example is 30 pips)
*UseSound = True (sound on every TP)
*NameFileSound = "alert.wav";
Hope some of the gurus can help me.
Really i cant find out!!!!!!