Currency Pairs Hedge EA System Discussion (MQ4 EA included)

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quakr
36
quakr  

Hi Guys,

The attached indicators was not made by me, It was created by a fellow called SwingMan.

When I first stumble upon these two indicators, I was very excited seeing these.

So I decided to write an EA to see if these two indicators can help me generate some extra incomes

while Im asleep.

The basic ideas of the EA was that when the HedgeRange between the two pairs reached 400(Adjustable)

It will instantly enter two orders (direction will be depended by the Indicator).

Lot size for these two orders sometimes will be the same sometimes not, it all depends on the contract size or market value for each currency pair.

Eg.

AUDUSD = 10.00 x 1.03423 = 10.3423

NZDUSD = 10.00 x 0.79808 = 7.9808 (difference 29.58%)

AUDUSD = 10.00 x 1.03423 = 10.3423

NZDUSD = 12.96 x 0.79808 = 10.3431 (difference 0.007%)

I'm trying to make my trades go in the same ratio once they merge. So I will gain profit everytime they merge regardless of which way they move.

Increase Positions

Average loss per 0.1 lots before increase position

It means that another set of orders will enter when the average loss per 0.1 lots has reached (which is -20 adjustable)

I also used martingale when increase those positions.

Eg.

1st set

GBP/CHF @ 0.1 lots

EUR/CHF @ 0.12 lots

2nd set

GBP/CHF @ 0.2 lots

EUR/CHF @ 0.23 lots

3rd set

GBP/CHF @ 0.4 lots

EUR/CHF @ 0.52 lots

you get the idea...

I didnt really set a limit to how many orders it will increase though. (well.. its 100sets)

the reason why I use martingale here is because I dont really want to exit when the range

goes back to zero, I tried this, Its just too unstable. Therefore by using martingale, if the pair

merges alittle bit, I will start making money!

Exit strategy

The only exit strategy I use was that if the average winning $ per 0.1 lot was reached, all orders will be closed.

(which was $10 also adjustable)

I have fixed the currency to GBP/CHF and EUR/CHF, feel free to test it for other currencies if you know how

to modify the codes.

The timeframe is M5.

By The way, Yes, these two indicators repaints, but It doesnt matter, because we dont need the datas from the past, this EA works on the latest bar only.

I think thats it for now, please feel free to comments on anything and play around with the codes.

Lets see if we can find the holy grail from this system!

Thank you all for your time.

Johnny

PS.

The settings for indicators is

SubSymbol EURCHF

Pair_Mirroing -1

Period_Range 205

others are default.

Ps2. Special thanks to Swingman.

PLEASE NOTE THAT YOU NEED NeutralHedge osc_v3.4.ex4 in order for EA to work!!!

arbus
24
arbus  

Hi Quakr,

Good Stuff!

I am trading a similar hedging system.

Mine uses a quite different entry, but it is similar.

A couple of things I have found that work better are.

1. use a multiplier, but not martingale.

I add x pips to the next order.

eg. 0.01 0.02 0.03 0.04

or 0.1 0.2 0.3 0.4

2. use a variable take profit.

eg. 1st tp 5, 2nd tp 10, 3rd tp 18, 4th tp 27,etc

I also make it trailing.

3. I use a trailing step on my indicator.

eg indicator says"OPEN" start trailing step. If price keeps moving away from you dont open until step is hit. If price moves the opposite direction(straight backwards) cancel or reset the "OPEN" status

This is insurance in-case of a large movement in the market.

quakr
36
quakr  
arbus:
Hi Quakr,

Good Stuff!

I am trading a similar hedging system.

Mine uses a quite different entry, but it is similar.

A couple of things I have found that work better are.

1. use a multiplier, but not martingale.

I add x pips to the next order.

eg. 0.01 0.02 0.03 0.04

or 0.1 0.2 0.3 0.4

2. use a variable take profit.

eg. 1st tp 5, 2nd tp 10, 3rd tp 18, 4th tp 27,etc

I also make it trailing.

3. I use a trailing step on my indicator.

eg indicator says"OPEN" start trailing step. If price keeps moving away from you dont open until step is hit. If price moves the opposite direction(straight backwards) cancel or reset the "OPEN" status

This is insurance in-case of a large movement in the market.

I've realised that it is just nearly impossible to make money during large movement in the market.

I've made $300 last night with AUDUSD and NZDAUD, I think AUD and NZD are a better pair over EUR and GBP

the volatility is much smaller.

Arbus, what is your entry rule? what indicators are you using?

quakr
36
quakr  

Hi Guys,

The attached indicators was not made by me, It was created by a fellow called SwingMan.

When I first stumble upon these two indicators, I was very excited seeing these.

So I decided to write an EA to see if these two indicators can help me generate some extra incomes

while Im asleep.

The basic ideas of the EA was that when the HedgeRange between the two pairs reached 400(Adjustable)

It will instantly enter two orders (direction will be depended by the Indicator).

Lot size for these two orders sometimes will be the same sometimes not, it all depends on the contract size or market value for each currency pair.

Eg.

AUDUSD = 10.00 x 1.03423 = 10.3423

NZDUSD = 10.00 x 0.79808 = 7.9808 (difference 29.58%)

AUDUSD = 10.00 x 1.03423 = 10.3423

NZDUSD = 12.96 x 0.79808 = 10.3431 (difference 0.007%)

I'm trying to make my trades go in the same ratio once they merge. So I will gain profit everytime they merge regardless of which way they move.

Increase Positions

Average loss per 0.1 lots before increase position

It means that another set of orders will enter when the average loss per 0.1 lots has reached (which is -20 adjustable)

I also used martingale when increase those positions.

Eg.

1st set

GBP/CHF @ 0.1 lots

EUR/CHF @ 0.12 lots

2nd set

GBP/CHF @ 0.2 lots

EUR/CHF @ 0.23 lots

3rd set

GBP/CHF @ 0.4 lots

EUR/CHF @ 0.52 lots

you get the idea...

I didnt really set a limit to how many orders it will increase though. (well.. its 100sets)

the reason why I use martingale here is because I dont really want to exit when the range

goes back to zero, I tried this, Its just too unstable. Therefore by using martingale, if the pair

merges alittle bit, I will start making money!

Exit strategy

The only exit strategy I use was that if the average winning $ per 0.1 lot was reached, all orders will be closed.

(which was $10 also adjustable)

I have fixed the currency to GBP/CHF and EUR/CHF, feel free to test it for other currencies if you know how

to modify the codes.

The timeframe is M5.

By The way, Yes, these two indicators repaints, but It doesnt matter, because we dont need the datas from the past, this EA works on the latest bar only.

I think thats it for now, please feel free to comments on anything and play around with the codes.

Lets see if we can find the holy grail from this system!

Thank you all for your time.

Johnny

PS.

The settings for indicators is

SubSymbol EURCHF

Pair_Mirroing -1

Period_Range 205

others are default.

Ps2. Special thanks to Swingman.

Please note that you have to have NeutralHedge osc_v3.4.ex4 in your indicator folder in order for this EA

to work!

Weird.. I was trying to Edit my thread... then suddenly the post was all gone... ><

arbus
24
arbus  

I did quite a bit of experiment with different indicators.

My indicator now is more of a grid system - After x pips wait for a small pullback then open.

This with a trailing function I find is pretty good at finding Support/resistance levels.

The problem I had with using straight indicators was that the pairs moved too erratically. Even correlated pairs can move against you greatly.

I am now using multiple currencies. - reason for this is to try to smooth things out as much as possible. If one pairs makes a big move in the wrong direction, it's impact isnt as great.

I also found trying to find the perfect hedge was not the answer for me either. I try to pick pairs that move together, but I dont expect them to cross constantly.

arbus
24
arbus  

By the way here is a test I was running. It is just 1 version I have been testing.

I am still working on ways to make the system more profitable and safer, which i am having success with.

I am currently testing it running in a trickle down system.

eg. running multiple versions as long as the free margin is high.

If the free margin is down a bit, stop opening all hedges until it is high again.

Idea is that the hedges will eventually all close. Some will close quick and some might take longer..

quakr
36
quakr  

This is a system that I started to test on the 4th of Nov.

AUDUSD/NZDUSD and GBPUSD/EURUSD

starting capital is $3000.

starting lots is 0.01.

Position size increase with Martingale.

have a look~

I think pairs ends with JPY or CHF doesnt really suits to trade in this style.

eg. GBPJPY / EURJPY or GBPCHF/EURCHF

arbus
24
arbus  

Pairs with low spread might perform best?

EURUSD

USDCHF

Maybe? Although Euro might be a bit unpredictable at the moment.

I know it is early days, but your latest pairs have gone straight into profit. That's a good sign.

quakr
36
quakr  

I have modified the EA so all the new positions enter after the 1st set will be trade in the right direction instead of a fixed direction(long or short) the same as 1st set, so now... all new positions added later will all be in our favour.

I've also changed the currency pair to AUDUSD / NZDUSD

arbus
24
arbus  

Hi Quakr, I tried exactly the same idea, having each trade based on an indicator, trading in the correct direction.

I had too many reversals and it wasnt pretty.

If you keep trading in the same direction you started eventually you have to close. The problem is you dont know how long it will take and how far apart they will drift before reversing.

I know my system is a bit different, but because I dont use an indicator to set the direction I can trade in both directions at the same time. The thing I found with this is that often both direction orders will close at similar times. They might sit there for hours and do nothing, but then close quickly. It happens when the markets are a bit volatile and jumpy.

quakr
36
quakr  

I think I need a Stop Loss strategy...

any idea?

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