My hedge trading - page 2

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hi

hi robp

incredible he can say it it one sentence...great

its maybe a talent or maybe we are so stupid...could also be..gg

regards

lodol

 
robp:
If the eurchf is turning up, he's buying both pairs. One hedges the other since they are highly negatively correlated. And then he adds in on retracements.

Wow, that was easy .

What does he use to determine if EUR/CHF is turning up and does he ever go short?

 

From his explanation, it sounds like he's just using the appearance of the 3s from the 3 level zz semaphor, but he has more on his chart. And the zz repaints a lot.

But this is the kind of method where being exact is unnecessary. For example, divide your total position into several segments. Enter both on the first appearance of 3, and then add to it every x pips until you build your full position.

I'm curious to know what level of x he is using to add on and where he is taking profit. Sounds like he also goes short as well, which depending on how long you're in, could cause some swap damage if you're in for a very long time.

Dreamliner:
Wow, that was easy . What does he use to determine if EUR/CHF is turning up and does he ever go short?
 

Please Clarify

This strategy is still unclear, I agree with Robp on the swap, however he is using minilots and it is unclear if he even shorts the pairs (his trades are all long orders in the picture). It is very important to know this because EURUSD has one of the highest negative swap for short orders, and all his charts are Daily (look at order open date and current chart date) meaning it's not an intraday strategy, swap will definitely be in effect here.

The reason he has a 1:1.5 or 1:2 ratio for E/U and U/C is that the pip value for each currency pair is not equal. e.g. 0.1 lot on E/U is $1 but on U/C it's $0.80. The ratio helps balance the hedge more effectively. How he determines which ratio to use is unclear.

Reference to his picture. For both a Long E/U and U/C order to be in profit at the same time is prove of de-correlation at that point of time and can be seen as a trend (or divergence in this case) in EURCHF, thus turning point is not as important as the trend itself. The same can be said for losses on both pairs (excluding initial spread). You'll be banking on the -98% correlation of the E/U and U/C, and that the -2% will not put both pairs in losses.

Teldon, could you lay out your strategy for us step-by-step. Thanks.

1) Open 3 Charts (EURUSD/USDCHF/EURCHF)

2) TF for all Charts: Daily

3) Long E/U and U/C when E/C: ? Ratio:?

4) Short E/U amd U/C when E/C: ? Ratio:?

5) If signal reverses as indicated how do you manage to profit?

6) If signal continues and indicator repaints to another level, is that the next level you mentioned to add orders? Add how much more lots? Add to profiting pair only or both pairs?

7) You mentioned 3 levels to gain substantial profit from market correction how would the hedged pairs profit?

8)Considering all 3 levels are Long orders, when do you exit? When signal finally reverse?

9) Understand no Stoploss and TP?

Thanks

 
robp:

But this is the kind of method where being exact is unnecessary.

I'm curious to know what level of x he is using to add on and where he is taking profit. Sounds like he also goes short as well, which depending on how long you're in, could cause some swap damage if you're in for a very long time.

You can get a good visual of this hedge when you examine a spread chart. Use NetDania (free). Overlay USD/CHF on the EUR/USD chart and reduce all to line charts. When the two lines are furthest apart, start the hedge; when they meet up, liquidate the positions and wait for the next opportunity. or, trade "against" the hedge in the direction of the pushover. (momentum)

 
lynx:
You can get a good visual of this hedge when you examine a spread chart. Use NetDania (free). Overlay USD/CHF on the EUR/USD chart and reduce all to line charts. When the two lines are furthest apart, start the hedge; when they meet up, liquidate the positions and wait for the next opportunity. or, trade "against" the hedge in the direction of the pushover. (momentum)

The problem is those charts resize themselves, so that what was once a huge gap becomes a very tiny gap in comparison to what it is now and you have a huge drawdown on your hands.

 

pls more detail for intry point

i'm absolutetly interesting this method.

please more explain for how to find entry point of both pairs.

thanks

 

Teldon is no doubt no longer trading this method, or he would have posted here. Probably another one down the tubes.

 

EA Coding

Hi,

Can you help me on this ?

I have a new EA that need you to code. (as usual provide me all setable mode and some lock profit or breakeven).

This EA must hide from Broker. I need a pass word in order to set this EA, Is it possible.

EA name: TopBest (only for time frame M15 to H4, for all currency pair).

(for both mini and standard account).

TopBest Chart setting: refer to attached picture - Chart 1

a. Moving average (Blue) - 9

b. Moving average (Red) - 24

Open Trading position: -

1. Open position - must match with below indicators

a. MA 9 (Blue) must cross above MA 24 (Red) - only buy position.

b. MA 9 (blue) must cross below MA 24 (Red) - only sell position.

Below is how TopBest EA work:

Part One setting table chart :

Magic Number :

Accountsmini : false/true (adjustable)

Lot : 0.50 ( " )

Lot Digits : 2 ( " )

Grid Size : 20 (Adjustable) (When turn trend will go to Park 2

Take Profit : 40 ( " )

Stop Loss : 800 ( " )

Trailing Stop : 0 ( " )

Use_Profit Lock : True/False ( " )

Lock TriggerPips : True/False ( " )

Pips To Lock : 0 ( " )

Use_Moving Average_Indicator :

MA : 9 ( " )

MA : 24 ( " )

Show_Comment : True

EA Name : TopBest

Example :

If open buy position; When trend is correct, it should take TP at 40 pips. Immediately after TP taken, we want to choose whether we want to continue to enter buy position or not. Is it possible that we can choose how many time we want it to follow the trend buy and take profit at 40 pips.

When trend go aginst us, Part 2 will come into the picture.

Part Two :

If trend turn against us, we need to add in Grid Size function, but this time we do not want the lot size to double up by itself (eg. Lot size is 0.50 , followed by 1.00, then 2.00 - this is not what I want.)

I want to be able to reset Lot Size/ Grid Size/ TP/ SL. Below show what I mean:

Example One :

Lot size : 0.10

Grid Size : 30

TP : 30

SL : 500

Those above setting is adjustable. When market trend against us by 20pips (Refer to Part One Grid Size setting - 20 Pips) - it should enter another buy position - Lot is only 0.10 not double up become 1.0)

Example Two :

Lot size : 0.30

Grid Size : 40

TP : 30

SL : 500

Note :

a. Above Lot/Grid Size/TP/SL. I want it to repeat 9 times so that I can fill in what I want.

b. Example Two, if TP taken when hit target, but later the market drops, it should re-open buy position - lot 0.30 again.

c. Only when it hit TP at Part 2 - example 1 - The EA will only closed up all position by itself. Then will wait for the next indicator before it can enter new position again.

Hope you can understand what I need, and give me your best price. Thank you and hope to hear from you soon.

Best Regards

Beh David

 
tangocash:
This strategy is still unclear, I agree with Robp on the swap, however he is using minilots and it is unclear if he even shorts the pairs (his trades are all long orders in the picture). It is very important to know this because EURUSD has one of the highest negative swap for short orders, and all his charts are Daily (look at order open date and current chart date) meaning it's not an intraday strategy, swap will definitely be in effect here.

The reason he has a 1:1.5 or 1:2 ratio for E/U and U/C is that the pip value for each currency pair is not equal. e.g. 0.1 lot on E/U is $1 but on U/C it's $0.80. The ratio helps balance the hedge more effectively. How he determines which ratio to use is unclear.

Reference to his picture. For both a Long E/U and U/C order to be in profit at the same time is prove of de-correlation at that point of time and can be seen as a trend (or divergence in this case) in EURCHF, thus turning point is not as important as the trend itself. The same can be said for losses on both pairs (excluding initial spread). You'll be banking on the -98% correlation of the E/U and U/C, and that the -2% will not put both pairs in losses.

Teldon, could you lay out your strategy for us step-by-step. Thanks.

1) Open 3 Charts (EURUSD/USDCHF/EURCHF)

2) TF for all Charts: Daily

3) Long E/U and U/C when E/C: ? Ratio:?

4) Short E/U amd U/C when E/C: ? Ratio:?

5) If signal reverses as indicated how do you manage to profit?

6) If signal continues and indicator repaints to another level, is that the next level you mentioned to add orders? Add how much more lots? Add to profiting pair only or both pairs?

7) You mentioned 3 levels to gain substantial profit from market correction how would the hedged pairs profit?

8)Considering all 3 levels are Long orders, when do you exit? When signal finally reverse?

9) Understand no Stoploss and TP?

Thanks

the ratio is the rate at which the eurchf trades eg if the eurchf is trading at1.47 ...that is the ratio eurusd 1 usdchf 1.5, if eurchf is at 1.64 then eurusd 1 and usdchf 1.6.

if the signal reverses then you can get out at a loss.

But usually you enter on a 1 hr while keeping in the same direction as the daily chart.

If you are deep into the wrong side ...meaning you kept on adding in the wrong direction...this is what you do..... look at the indicators on the negative trades and when you feel that pair will change trend then close all your positive trades on the positive pair and open a trade on the negative pair and wait for it to come back

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