Hedge saved you, who will save Hedge ? - page 10

 

Now it's okay ! So it's an account with a leverage 1/200, deposit 10 000, I lose a lot with the commissions but that's the only hedging account I have. 

Maxlot isn't yet jailbroken, entries are still random. Losses seems to be well depreciated, and the marginstop out/call risk seems also to be avoided : it's the essential.

Plenty of trading system are much more profitable than this hedging one, but as far as I know it's good for hedging, so if you're just looking for profitability don't lose your time there around.

It's inspired of the well know SureFire strategy coming with a recovery zone of 300 pts, this one's 25 pts, it has been customized to suit my needs and educated with DAX, it's made of basics algebra equations, a lot of rigor and logic - there's no really a secret ingredients to perform so.

Well, likely everything's been said. 

 
Icham Aidibe:

Hi,

I was "playing" with hedging to explore possibilities : it's very tempting, since it allows purely & simply to recover from a bad position taken. 

The risk of these strategies is well-known : lot management. Comes ALWAYS a point, where the margin is stressed, the logical solution being to accept & cut losses, often with bigger losses than normal if you retried many times.

Is there any way to get out of a failed hedge ?   Have you ever seen such a method that could limit damages made by a failed hedged deal ? Overbidding ad vitam aeternam is definitively not the solution.

Hello,


I suggest to get out of a failed hedging trade by placing a pending order in the direction of the failed trade.

 
  • Buy EURUSD 0.1 @ 1.24753
  • ReBuy EURUSD 1 @ 1.24553

There's only 200 points to recover.

  • Average price with a pending order of 1 lot : 1,24571
  • Average price with a pending order of 0.5 lot : 1.24586

In the two cases you just increase your chance to close positively & earlier your positions (edit : even not 100 points won), but if it's still not going in the right direction, you're also candidate for a bigger loss. 

I think that averaging is interesting when you're already in the right direction, to increase profit, don't you ?

 
Eleni Anna Branou:

Do you imply that Martingale EAs are successful Marco?

It's not Martingale it's more like a stack of filters that will allow the positions to follow a pattern, and when they get outside of the pattern they will be eliminated.

 
Icham Aidibe:
  • Buy EURUSD 0.1 @ 1.24753
  • ReBuy EURUSD 1 @ 1.24553

There's only 200 points to recover.

  • Average price with a pending order of 1 lot : 1,24571
  • Average price with a pending order of 0.5 lot : 1.24586

In the two cases you just increase your chance to close positively & earlier your positions (edit : even not 100 points won), but if it's still not going in the right direction, you're also candidate for a bigger loss. 

I think that averaging is interesting when you're already in the right direction, to increase profit, don't you ?

By extrapolating using same prices but the minlot size (0.01) & the maxlot size (500 to be generous) : 

0.01*1.24753 + 500*1.24553 / 500.01 = 1,24553

One should learn to accept to fail a trade, or to change his mind.

Funny.

 
Ok I just discovered the scientific mode with parenthesis in calc.exe :p
 

In this new version, margin management has been greatly improved,it allows now a drastic reduction of the required initial deposit : from 10000USD, to 100USD.

For those joining the thread, we're still talking of the same thing : 


 

It looks like curve fitted are you sure it's not acting on the tick algo in stead of price movement.

Have you tried bar open only ?

 
Marco vd Heijden:

It looks like curve fitted are you sure it's not acting on the tick algo in stead of price movement.

Have you tried bar open only ?

Sure it is ticked. In such case, from the opening of the huge bar to the opening of the following bar the whole situation change, and since the tester returns only the opening price I even don't have time to place the hedge order.

It's not curve-fitted, here's EURUSD on another broker (Metaquotes with no commission) I still manage to do it with my broker with the commissions - lots increasing's from an order to another is still disproportionate : 

You see with my broker it doesn't hedge it well, I'm missing some points, I can't figure where : 

so I pretend the commissions because it's the only difference with MetaQuotes, even spreads are alike.

Well .. it works too (test not over) but I have to increase the zone size to drown points I'm losing without know which exactly ... 

edit : it seems that metaquote's eurusd is now 1 with no commissions, it seems to me at first that it was 4-5. So it may be due to that, I'll have to increase the zone for the forex, because there's no brokers with a spread 1 and no commissions :)

 
I believe the best way to trade is to come up with a rock solid system that does well over time, no real value is added by hedging, hedging just means you don't believe in your system entry point.
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