Hedge saved you, who will save Hedge ? - page 4

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Ahmad Zuhairdi Noh
5577
Ahmad Zuhairdi Noh  
Icham Aidibe:

Spread, commission, swap, all of that can be planned.

There's a very popular strategy called recovery zone, which is finally the natural way to handle hedging & make profit.

Here's a scheme : 

The point being that until it touches a tp, the upper one or the lower one, lots are constantly increasing. 

By watching at this image, do you have any idea ? 

Hmm..

I've created an EA for this technique before. You need a correct value for recovery area. If the area is too big, you will take a loooooonnngggg time to close just this trade (not good for a scalper like me). It just wasting your time. If the area is too small. You end up opening too many trades during a ranging market thus creating "a dragon" who will bring doom to your account in one blast if you don't take care of it. 

Well, your initial question.

  • Is hedging is good?

My thought is; if you open "Buy" and "Sell" at the same times for every trade. You need to face a winning and losing trade each of the time but if you open only one trade at a time (either buy or sell), you might face winning trade or you might face losing trade. There is a huge difference in that. 

  • But what if you hedge only on a losing trade?

Well, that's what I did currently. Then, I will give up the losing trade if the indicator confirms a reversal. Follow by increasing a lot for the winning trade to recover the previous losing trade. 

I'm experimenting a lot of technique right now and I can assure you, the technique on this picture has a big possibility to destroy your account, I've tried it before.

I don't know if I'm answering your question but good luck. :)

Sergey Golubev
Moderator
105173
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 

Hedge Discussion

  1. Interesting discussion about Hedge Calculation - the thread
  2. 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

  1. Break Through The Strategy Tester Limit On Testing Hedge EA
  2. The Basic of Coding A Hedge Expert Advisor
  3. What about Hedging Daily?
  4. Bi-Directional Trading and Hedging of Positions in MetaTrader 5 Using the HedgeTerminal Panel, Part 1 
  5. Bi-Directional Trading and Hedging of Positions in MetaTrader 5 Using the HedgeTerminal API, Part 2 
  6. Universal Expert Advisor: Pending Orders and Hedging Support (Part 5) 
  7. Universal Expert Advisor: A Custom Trailing Stop (Part 6)

Icham Aidibe
11186
Icham Aidibe  
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 

Hedge Discussion

  1. Interesting discussion about Hedge Calculation - the thread
  2. 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

  1. Break Through The Strategy Tester Limit On Testing Hedge EA
  2. The Basic of Coding A Hedge Expert Advisor
  3. What about Hedging Daily?
  4. Bi-Directional Trading and Hedging of Positions in MetaTrader 5 Using the HedgeTerminal Panel, Part 1 
  5. Bi-Directional Trading and Hedging of Positions in MetaTrader 5 Using the HedgeTerminal API, Part 2 
  6. Universal Expert Advisor: Pending Orders and Hedging Support (Part 5) 
  7. Universal Expert Advisor: A Custom Trailing Stop (Part 6)

Ahmad Zuhairdi Noh:

Hmm..

I've created an EA for this technique before. You need a correct value for recovery area. If the area is too big, you will take a loooooonnngggg time to close just this trade (not good for a scalper like me). It just wasting your time. If the area is too small. You end up opening too many trades during a ranging market thus creating "a dragon" who will bring doom to your account in one blast if you don't take care of it. 

Well, your initial question.

  • Is hedging is good?

My thought is; if you open "Buy" and "Sell" at the same times for every trade. You need to face a winning and losing trade each of the time but if you open only one trade at a time (either buy or sell), you might face winning trade or you might face losing trade. There is a huge difference in that. 

  • But what if you hedge only on a losing trade?

Well, that's what I did currently. Then, I will give up the losing trade if the indicator confirms a reversal. Follow by increasing a lot for the winning trade to recover the previous losing trade. 

I'm experimenting a lot of technique right now and I can assure you, the technique on this picture has a big possibility to destroy your account, I've tried it before.

I don't know if I'm answering your question but good luck. :)

Thank you Serguey.

Thank you Ahmad.

Actually I'm really "playing" with. Hedging is this kind of mythical strategies, everybody talks of but I've never seen it well-done - so I'm giving a try - let's say as a challenge. 

You're true about the recovery zone, it should to be wisely defined ; I'm using this picture as a scheme to visualize the "scene", since I started it's no longer the exact same pattern.

I wish I'll find my way thru hedging, thanks for taking time to answer :)

Dua Yong Rew
5421
Dua Yong Rew  
Icham Aidibe:
How would you average 2 positions of different type like : buy 0.1 + sell 0.3 ??? 

You can average out a buy buy. A sell sell. A buy sell.

And yes, you might need to play with lot size

Icham Aidibe
11186
Icham Aidibe  
Dua Yong Rew:

You can average out a buy buy. A sell sell. A buy sell.

And yes, you might need to play with lot size

I never used to closeby a position. 

May you clarify it please, a buy 0.5 closed by a sell 0.3 ---> buy 0.2

but in term of profit, does it mean : buy 0.5 + sell 0.3 = 0$ + buy 0.2 ? 

2018.02.17 12:17:09.189 2018.01.02 18:47:43   CTrade::OrderSend: close position #5 by #6 [invalid order] <----- :/
Dua Yong Rew
5421
Dua Yong Rew  
Icham Aidibe:

I never used to closeby a position. 

May you clarify it please, a buy 0.5 closed by a sell 0.3 ---> buy 0.2

but in term of profit, does it mean : buy 0.5 + sell 0.3 = 0$ + buy 0.2 ? 

You can close everything if it's in net profit. You can try other combination. It's all possible.

In trading, most important is controlling risk.

Icham Aidibe
11186
Icham Aidibe  

stable, finally. For sure it can be improved, but hedging is particularly difficult to implement, it'll take more time !

thanks guys for your assistance ! 

Dua Yong Rew
5421
Dua Yong Rew  
Icham Aidibe:

stable, finally. For sure it can be improved, but hedging is particularly difficult to implement, it'll take more time !

thanks guys for your assistance ! 

well done. so what have you implemented in your EA?

Icham Aidibe
11186
Icham Aidibe  
Dua Yong Rew:

well done. so what have you implemented in your EA?

For now I've only made some money management arrangement.

There's an unavoidable correlation to be aware of : distance in pips - lot size - margin - loss risk.

Here's 01.2017-today for a better idea of actual EA stability, as you can see ! 


It's a popular strategy because the win rate is high, but in brut profit it's not that *great* due to margin constraints - on the other hand it can work with any instrument... anyway, it's now ok from 2016 - 2018 on eurusd! 

On the other hand, it's a pretty versatile strategy with capabilities we're discovering together :

Futures Indexes - CAC40 : 

Futures Indexes - NASDAQ : it seems it's even better with indexes ... 

DAX : won't suit no martingale/hedging, margin's immediately stressed 

etc ... as a quick overview. 

EDIT : EURUSD, MT4, quickly done, well done.

Icham Aidibe
11186
Icham Aidibe  

I don't like at all this strategy.

It requires a high deposit, a low risk to be able to recover from a losing deal and it can take a whole day to - while by just losing 2% directly, the following hour you're back - winning but finally not profitable and damnly dangerous, even with a low risk.

I strongly advise against, but none of you care eh? :/

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