3 pairs Hedging system really profit or not?

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I study correlation pairs and hedge strategy.

2 pairs hedges are difficult to get profit.

Does 3 pairs hedge system really work or not?

example USDCHF EURUSD EURCHF BUY BUY SELL / SELL SELL BUY

Please suggest me some useful hedge system.I want to code it as EA.

 
Your "Hedge" smells like arbitrage. To be honest, hedging is correlated very much to market correlation.

You would always need to put in the most anti cyclic pairs. But don't forget about your account currency, which you would also need to hedge.

On the other hand, if you are focused on hedging profits instead of taking them, you would build a chain of dependency.

When carefully managed, this can "leverage" your profits at the end of a chain, almost like a whip.

But and this makes it quite complex, you need to take into account swaps/commissions and spreads. So it's a question of volume and time, more than the price change itself.

At least as a viewpoint, because this is way not everything around such "institutional concepts"
 
LONNV:

I study correlation pairs and hedge strategy.

2 pairs hedges are difficult to get profit.

Does 3 pairs hedge system really work or not?

example USDCHF EURUSD EURCHF BUY BUY SELL / SELL SELL BUY

Please suggest me some useful hedge system.I want to code it as EA.

I can say it still works. I have made EAs for this strategy. In sideway market, you will see no profit but if the market trends, then you will see profit.

 

I am not going to disappoint anyone with motivation to achieve their goals. I am just trying to explain how difficult the situation can be.

1. Less liquid markets offer higher spread and trading fees. So if you are trading on those instruments you will need a big enough deviation in price to take advantage of. On the other hand even if that deviation occurs low liquidity is a trouble for you to take positions.

2. Highly liquid markets are pretty rare to offer arbitrage opportunities and even if that occurs there are people with better performing hardware/software facilities out there to take advantage of that before you even become aware.

 
Like this, you will not be profitable. One step forward and two steps back.....maybe 3 back if you account for volatility sessions
 
Maybe it still works, but it seems the profit potential is also small, maybe you can try it on a demo account first
 

The 3X hedge system provides safer profits because it is a difficult formula. Correct programming can boggle the mind of a person. Therefore, the subject often remains unfinished on the internet. It is the most interesting puzzle in Forex.

3xtable

BUY-BUY-SELL

3x

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