HedgeMasterSlave

Correlated Pair Hedging

Two active trading pairs run simultaneously:

• PAR1: GBPUSD / EURGBP (negative correlation −0.88, slave trades same direction)

• PAR3: USDCHF / USDCAD (positive correlation +0.78, slave trades opposite direction)

The hedge structure means when the market moves against PAR1, PAR3 often moves in a compensating direction — reducing combined drawdown compared to running either pair alone.

Margin Decay Engine

The most critical safety feature. When margin level drops below a configurable threshold (default 350%), the EA automatically reduces the largest open position by a small percentage every 2 minutes until margin recovers. This was triggered 44 times during the March 2020 COVID crash — and the account survived intact. If you set this to low, or you dont have enough deposit, there is not time for the system to kick in and start the deleveraging sequence.

Without the Decay Engine, the same test showed the equity going negative, blowing up the account. With it, the 2020 year closed in profit with $80,000 (cent) deposit.

Correlation Filter (PAR3)

Before opening a new PAR3 trade, the EA checks the D1 correlation between USDCHF and USDCAD. If correlation has weakened below the threshold, the entry is blocked — protecting against periods when the hedge relationship breaks down.

Backtesting confirmed that enabling this filter on PAR3 reduced drawdown from 33% to 29.7% while simultaneously increasing profit — an unusual result where better risk management also improved returns.

Slave Partial Close

At configurable martingale levels, the EA automatically closes 100% of the slave position while the master remains open. This locks in the slave's accumulated profit before the trade exits — adding a meaningful secondary profit stream on top of the main trail close.

Over the 2020–2026 backtest, partial closes generated an additional $76,000 in PAR1 profit alone (8 closes averaging $9,500 each).