How to hedge orders within a single strategy in forex - General

[Deleted] 2009.06.03 12:44 #51

mladen:
cut> .. (might be useful, who knows, maybe our learning capacities did not go subzero yet...) :

I'll just not comment your statement on my learning capabilities (witch I consider just normal, nothing on comparison to some geniuses hanghing around here, of course).

I immediately apologize for my bad English. It is not my mother language and this is probably the reason why I cannot expose my point clearly.

I'll try again.

I never, NEVER, said that I use to hedge orders within a single strategy. I never do that.

Talking about a single strategy, I pefectly agree with you and your friend at FF.

But things might get a little bit more complicated when thing are not limited to playing around with a sigle strategy.

My concern is about the fact that I belive that the way to consistently (in the sense to have a gain in an appropiate period of time with the lowest possible drawdown) make profit in a market like forex with automated trading is running a set of different, solid strategies that could eventually trade the same cross, at the same moment, in different direction. (nobody here has the "holy grail", isn't it? If you do, please let us share your knowledge and you will have our gratitude forever).

I already made a simple example, not simple or clear enough probably.

Let me propose it again using eas tested in the elite section.

Imagine to have Indus long 2 lots on eurusd and, ON THE SAME ACCOUNT, sbs short 2 lots on the same pair, Gold warrior long 1 lot again on eurusd and a 5m scalper short 1 lot same pair.

The result without hedging capabilities is 0 lots on eur usd. FLAT!

I think that you agree with me that those four ea use very different approach, very different sl, very different tp, etc etc., AND, you will never know witch one is trading the right way.

How do you think you can manage a situation like this?

If you have indus working on highter time frames (thus needing space to breethe) and the 5m scalper working the opposite side on a 20-30 pips retracement, what exactly would you do? close the position flat? Or, maybe, reopen the position paying double the spread ones the 5m scalper has done its job? What if the 5m scalper was trading a false signal? Take the loss and reopen the indus position payng double the spread?

There must be something I can't understand with my limited learning capabilities. Please enlighten me with your skills and wisdom, I would very much appreciate that.

I'm not that dumb to not change my mind if I'm proven wrong. More I would be very happy becouse I can stop warring about the new mt5 to come.

I do not pretend that you have to agree with my basket approach to forex trading.

It is a "investment" approach, not a "get rich overnight" junk.

Personally, I think that all those "2 pip, asian session, 1:400 leverage, ipermartingale" scalpers are just ridiculus. No broker on the face of this earth will ever allow such kind of trading. And sooner or later (the sooner one can imagine) they will live you without your shirt.

I want to build a properly engeneered set of eas, working togheter on the same account, each of them trading on their own. I can't do that without the possibility to handle each order on its own, without netting them.

I could think to trade an acoount for each strategy, or splitting the accout in two in order to have long order on one account and short orders on the other. It can be done, but if you have a variable money management system managing risk and position sizing basing its decisions on the position, on free margin etc. it just make things overcomplicated.

I hope, with my limited capabilities, to have reached the goal to make my point clear. I would love to learn something more documented from you and your friends at FF or everywere else, then a just "how stupid you people are while I am so learned and wise" statement.

Regards

Rob

Sharing Forex Trading E-books Which of the following Buy Gbp/Usd and Sell

ndgreat 2009.06.03 13:19 #52

New to Forex

Hello House, pls I'm new to Forex Trading, I would appreciate any tips and or informations that will aid me.

Thanks.

Mladen Rakic 2009.06.03 16:42 #53

...

aurigafx, the statement that I made that "maybe our learning capacities did not go subzero yet..." has nothing to do with anybody particular and any particular post. Also, flaming on a thread that, for now, is just a future projection, is not constructive at all.

_______________________________

We still did not see anything more than a couple of pictures of MT5 and yet, somehow, the greatest contra argument against it somehow became the "no hedging" rule, which, in the end, has nothing to do with MT5.

I can guess why did they choose this solution they are going to use (it is practically impossible to control hedging if it is not built in on a low level) but that solution is far from being unique

The learning part from that statement came from a conversation with a friend of mine. Our conclusion to the "no hedge" rule (NFA for now, but we all know that when the flood starts, it reaches almost everywhere) was : "So what, all we have to do is to learn to make smarter systems and smarter EAs". This way (without any practical experience whatsoever) it resembles a bit to "crying out : wolf" case. Lets wait until we have some experience (I mean all of us, including me too) and then point out some solutions

_______________________________

I, for one, am not going to give up trading just because some new rules are invented. If I stepped back on every little difficulty that came along in my life, I would not do almost anything interesting in it.

The "war" is going on and I do not intend to surrender that easy

_______________________________

PS: "my FF friends"? You obviously are not in current with my "informal" status at FF

regards

mladen

Live Testing reports Big changes for MT4, Very slow calculation time

[Deleted] 2009.06.03 17:02 #54

Flaming is never constructive at all.

I apologize if I got you wrong and eventually over reacted.

Still, the complaining on hedging is not clearly on NFA decision (we cannot do anything about it, can we?) but on the fact that mt5 is banning hedging completely, NFA on no NFA, and all brokers will surely switch to mt5 as soon as it will be avolilable, I bet on this. And this just buders me "a little" given the approach to automated trading I tried to explain and that I'm hardly implementing since years (still a long way to go to reach my goal and soon I'll have to change everthing . Can I be a little annoyed? ).

Talking about giving up trading, I'm not thinking about it at all. I'm trading from 1996 and trading for a living since 2000 (with all evidence with some success if I'm still alive ).

On forex, I always used hedging to "work on" a long term position in the sense I tried to explain. If I'm on a weekly position, I always try to optimize it trading short term retracement letting the weekly position untuched. So far so good.

Even on future trading I've separate account for position trading and short term/intraday trading (no hedging allowed there!).

You are right, absolutely. We will find the way around this problem.

I myself just have to become a better coder. Never said or even thought to give up or surraunder.

As for your "informal" status at FF, no, I'm not aware of it. I used that expression ironically becouse of your quoting some ff member.

By the way, I was just trying to express my opinion on the matter, nothing else.

Everything is ok for me and I'm still interested in your opinion on my approach, whatever it is.

Regards

Rob

Globis forex Does the Grail exist? A better way to

prasxz 2009.06.03 22:32 #55

hi

ndgreat:
Hello House, pls I'm new to Forex Trading, I would appreciate any tips and or informations that will aid me. Thanks.

Welcome to this great forum, you can find what you need to know about fx here or ask to other member

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Forex Indicators Collection

nmx 2009.06.04 04:54 #56

mudar 2009.06.04 06:45 #57

aurigafx:
As far as I can see from the order management shown, there won't be possible to hedge orders anymore.

Also running different eas could result in a complete mess.

Just imagine if you have an ea working on a daily strategy and another working on the same pair on 5m timeframe. On a retracemen of d1 the 5m will close the position (if of the same size).

Am I getting it right?

If so, that's another great gift to brokers (witch are mt clients)!!!

(only 4 images allowed!)

code a litle bit more and use magic numbers

[Deleted] 2009.06.04 06:55 #58

mudar:
code a litle bit more and use magic numbers

??????????

mudar 2009.06.04 11:34 #59

jet:
Point me to a third party verified forex trading strategy with several years of live track record and shut me up. People like to think that forex trading is simple, but it is hardest. Stocks and futures are easier because you have skewed statistics to one side. Anyway, I would love to be proven wrong. PLEASE prove me wrong. The only one I know of is the 2007 MT4 championship winner. His strategy quite complicated. He says this himself in his interview.

Hey man ! if you are not making profit and forex is super hard for you, it does not mean is the same for all of us !

mudar 2009.06.04 11:50 #60

aurigafx:
Flaming is never constructive at all.