LSM Portfolio Hedge Pairs EA
To be an effective trader, understanding your entire portfolio's sensitivity to market volatility is important. This is particularly so when trading forex. Because currencies are priced in pairs, no single pair trades completely independent of the others. Once you are aware of these correlations and how they change, you can use them control your overall portfolio's exposure.
Major Currency: USD/EUR/JPY/GBP/CHF/CAD/AUD/NZD
Currency Pairs: 28
Correlation is a statistical measure of how two variables relate to one another. The greater
the correlation coefficient, the more closely aligned they are.
A positive correlation means that the values of two variables move in the same direction, negative correlation means they move in opposite directions.
In Forex markets, correlation is used to predict which currency pair rates are likely to move in tandem.
Negatively correlated currencies can also be utilized for hedging purposes.
Correlation coefficient is moving between Positive coefficient and Negative coefficient by weekly, monthly, yearly followed by market conditions.
LSM Portfolio Hedge Pairs EA
is a fully automated Algorithm Expert Advisor, which is developed based on Negatively correlated currency pairs.
EA1: strategic settings
Strategic_ABC: strategic_01/Negative correlation Convergence
strategic_02/Negative correlation Divergence
AtrTF: average true range timeframe
AtrRange: atr range
i_CorTF: correlation calculated time frame
i_CorRange: correlation calculated range
i_Cor_High: correlation coefficient high limit
i_Cor_Low: correlation coefficient low limit
i_Spr_High: spread high limit between correlated currency pairs
i_Spr_Low: spread low limit between correlated currency pairs
EA2: Risk Management Settings
0.01lot/$1,000: Low risk
0.02lot/$1,000: Medium risk
0.03lot/$1,000: High risk
Maximum Open Positions: limit open positions(recommended max portfolio open position is 8)
Maximum Spread Points: position will not open when currency spread is high(low liquidity market)
EA3: Close Hedge Pairs PnL Settings
Hedge Pairs Close at Profit: true/false
TakeProfit: set TP for correlated currency pairs
Hedge Pairs Close at Loss: true/false
StopLoss: set SL for correlated currency pairs
EA4: Close All Hedge Pairs PnL Settings
Close All Hedge Pairs by Profit: true/false
Profit by % of Balance: set TP for all correlated currency pairs
Close All Hedge Pairs by Loss: true/false
Loss by % of balance: set SL for all correlated currency pairs
EA5: Trading Hours Settings
GMT offset: local gmt
Trading Hour Begin: positions can be start to open
Trading Hour End: no positions can be open after this hour
# How to install EA & How it works: please see presentation video!
Delete Strategic_03: PCR Convergence
Delete Strategic_04: PCR Divergence
Add Strategic_04: Positive Correlation Divergence