"No loss" recovery hedging system - page 14

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Voicu Gabriel
9
Voicu Gabriel  

anyone knows how to use this platform on autopilot?

Marco vd Heijden
Moderator
13328
Marco vd Heijden  
Voicu Gabriel:

anyone knows how to use this platform on autopilot?

Is that a serious question or are you just joking ?

klomiskis
12
klomiskis  
I tried a similar strategy with the broker <Deleted>. It would seem nothing complicated, but I am grateful to the guys from the support who helped in many matters.
Marco vd Heijden
Moderator
13328
Marco vd Heijden  
klomiskis:
I tried a similar strategy with the broker <Deleted>. It would seem nothing complicated, but I am grateful to the guys from the support who helped in many matters.

What strategy exactly ? 

Nelson Wanyama
958
Nelson Wanyama  
Chris:

Question: Would you be willing to trade any system or strategy you want on your $10000 account and turn every trade you take into a win trade (of $200 or $20) or a breakeven trade and have only a small theoretical chance of losing let's say $600 in worst case scenario?

Some traders would probably say no, if your answer to this question is also NO, then have a nice day;) If your answer is YES or MAYBE, then before you will jump out of your seat thinking you just found a holly grail of trading, please read carefully all stuff below and download and test a demo version of my newest EA, because it might also work for you!

So everything started with the following simple question:

"Is it possible to design a recovery system that is using a smart hedging mechanism able to "beat" the forex market? - and also your broker "

Apparently and surprisingly the answer to that question is YES*.

(*= of course only under certain conditions)

So to prove the statement above, I've coded an EA that is using "back-and-forth" hedging mechanism (it's NOT a martingale system), which I'll explain in the pdf manual. This trading technique is probably not new and maybe it is also discussed many times on this forum. However, I couldn't find any EA for it so I've coded my own.

Thus, just for the illustration let's say you have just entered a "sell" trade and you are now waiting to see what will happen next. Let's think about this situation for a moment. For sure we cannot predict the upcoming market events with a 100% accuracy. Then what can we say regarding the future market direction? Unless you are an extremely experienced trader, the answer is of course: not so much! However, the one and the only one peace of reliable information, that we have at that moment, is that the market will eventually go "up" or "down" w.r.t. the current price level. It can take a day, a week or even a month but the market will move up or down, simply because it has to!

We can take this one peace of reliable information and use it to our advantage. And here is how:

At any point in time, any price level we can open a "buy" or "sell" position and add several new positions by anticipating to new market movements. Thus, when the first trade is a "sell" order and market moves several pips in the opposite direction (up), then we could open a new "buy" position, and vice-versa. While doing this back-and-forth hedging we could also calculate the new Lot size required to cover for our previously opened trade(s) at our original TakeProfit, but ALSO at our original StopLoss level! By doing some simple mathematical calculations we can easily discover that the Lot sizes of our new recovery trades are not necessary always bigger than the previous ones. This is so much better than a martingale system which will just blow up your Lot sizes just within a few trades.

Of course there are some constrains, w.r.t this trading methodology. For example we need to make sure our open trades will not eat up our freemargin, which we will use to open new trades in case of market direction change. So this automatically means (unless you have a $100000 account) that we need to trade only with small lot sizes, e.g.: using mini lots (0.1 of standard Lot size) but also not to small e.g.: micro lots (0.01 Lot size) because of calculation errors that are introduced by the "MODE_MINLOT and MODE_LOTSTEP" restrictions. Furthermore our account size needs to be large enough to be able to cover for some equity dips and the required margin. Our StopLoss and TakeProfit levels need to be carefully chosen to minimize the resulting recovery lot sizes. We also need to make sure the system can survive several recovery attempts, when market will be ranging. (The wise recommendation for ranging condition is to exit at the best price and take some small losses). Furthermore, we need to add some on-the-fly correction for our spreads, slippages and swaps and commissions. To help the system a little bit we will also add a BreakEven with a TrailingStopLoss mechanism and will also automatically close all positions when our pre-set ForceTakeProfit target is hit.

Nevertheless, this type of trading could have some potential for success when positions are opened manually or according to a proven trading system. How about the risks involved in this kind of trading? It depends on several factors like: account size vs lot size, spreads and slippages, selected recovery levels, etc. As I said before the most important is to avoid ranging markets and assuring our account has sufficient FreeMargin for opening new trades. Otherwise the system will not be able to recover and it will take a loss. The only way to find out the limits of this system is to play

with it and adapt the parameters according to desired trading behavior. Please try it first on your demo account or in strategy tester (99% modelling only!) When the settings are properly chosen you will see, that it is really very very hard to lose money with this system.

Link to this EA:

coensiorecoveryeav01.ex4

Link to the manual:

coensiorecoveryeav01.pdf

Greets,

Chris

Very similar to my own. Only mine is simpler, but faces similar problems. I read this post a long time ago. I'm glad it is still active.

Michael Yu
4139
Michael Yu  
Felipe Ponce Aragon:

I must clarify that YES, there is a way to develop a hedging EA that will have a reasonable maximum drawdown in all history of a pair (since 1993) and trade on open bar (accurate backtesting), and never have a margin call, and always close trades in profit, zero loss, or minimal, almost zero, loss and is NOT a scalper and will trade in real market just like it trades in backtest (on new bar only). Yes, it's possible. It just requires thinking and thinking... and teamwork. I should add faith, it does need some sort of miracle too and a strong love for the neighbor. 


I totally agree with you.  It takes many years of trails and errors to reach that point.  You just have to try every possible strategies you can come up with.

tradeteam247
85
tradeteam247  

thanks mate. would like to trial it. is there a link to the EA?

Sergey Golubev
Moderator
116833
Sergey Golubev  
Hedge EAs/Tools


EAs

  1. HedgExpert EA thread and updated version here
  2. HedgeEA thread 
  3. Hedge: thread with discussion and EAs
  4. 10point3 Hedge thread
  5. EES Hedger - Take the other side of the trade - the thread  

CodeBase

  1. Hedging_Zone_Recovery_Area - expert for MetaTrader 4
  2. Hedge any positions - expert for MetaTrader 5  
  3. EMA Cross Contest Hedged - expert for MetaTrader 5
  4. Multicurrency hedge example EA (overlay hedge) - expert for MetaTrader 4  
  5. Simplest Hedging EA ever - expert for MetaTrader 5  
  6. EA Hedge Average - expert for MetaTrader 4  
  7. Profit Counter - expert for MetaTrader 4  
  8. Simple Hedge Panel - expert for MetaTrader 5  
  9. Order-Tool "Hedger" - expert for MetaTrader 4  
  10. Triangle Hedge - expert for MetaTrader 5  
  11. Hedge Expert Advisor - expert for MetaTrader 4  
  12. Simplest Hedging EA ever - expert for MetaTrader 4  
  13. SMA MultiHedge - expert for MetaTrader 4  
  14. EMA Cross Contest Hedged - expert for MetaTrader 4  
  15. Corelation - indicator for MetaTrader 4  
  16. Hedge Script - script for MetaTrader 4

Hedge Discussion

  1. Interesting discussion about Hedge Calculation - the thread
  2. lets discuss a bit about hedging strategy - the discussion thread
  3. Question on Hedging thread

Hedge Trading Systems:

  1. MA over Equity-Indicator for Hedge Trading - the thread
  2. Low-Risk Hedge (Arbitrage) Trading Methodology - the thread
  3. 100% hedging system with two brokers - the thread
  4. simple hedging system - the thread 

The articles

Break Through The Strategy Tester Limit On Testing Hedge EA

The Basic of Coding A Hedge Expert Advisor

What about Hedging Daily?

Bi-Directional Trading and Hedging of Positions in MetaTrader 5 Using the HedgeTerminal Panel, Part 1 

Bi-Directional Trading and Hedging of Positions in MetaTrader 5 Using the HedgeTerminal API, Part 2 

Universal Expert Advisor: Pending Orders and Hedging Support (Part 5) 

Universal Expert Advisor: A Custom Trailing Stop (Part 6)

Rafael Grecco
503
Rafael Grecco  

In my opinion every "no loss hedgind system" will eventually fail. It will reach a point where it can't recover.

There are two ways to make money with such system:

- Be very lucky and never reach that point - it could take 1 week or 10 years, who knows... But if you withdraw money from the account often you could make more money than you lose.

- Limit how much money your strategy can lose (set a maximum DD% for example), but your EA strategy should be very good to make enough money make to compensate the loss.

Nelson Wanyama
958
Nelson Wanyama  
Rafael Grecco:

In my opinion every "no loss hedgind system" will eventually fail. It will reach a point where it can't recover.

There are two ways to make money with such system:

- Be very lucky and never reach that point - it could take 1 week or 10 years, who knows... But if you withdraw money from the account often you could make more money than you lose.

- Limit how much money your strategy can lose (set a maximum DD% for example), but your EA strategy should be very good to make enough money make to compensate the loss.

Only if used exclusively as a system in its own. Hedge has a good property of recovering losses. A good system should have a different strategy that can utilize hedge once in a while, when chances of win are high, and a quick recovery is necessary. 

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