Discussing the article: "Modified Grid-Hedge EA in MQL5 (Part I): Making a Simple Hedge EA"

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Check out the new article: Modified Grid-Hedge EA in MQL5 (Part I): Making a Simple Hedge EA.

We will be creating a simple hedge EA as a base for our more advanced Grid-Hedge EA, which will be a mixture of classic grid and classic hedge strategies. By the end of this article, you will know how to create a simple hedge strategy, and you will also get to know what people say about whether this strategy is truly 100% profitable.

Are you looking to dive into the world of trading with Expert Advisors (EAs) but keep bumping into this line - "No dangerous Hedging/Grid/Martingale used"? You might wonder what's all the fuss about these strategies. Why do people keep saying they're risky, and what's the real deal behind these claims? Maybe you're even thinking, "Hey, can we tweak these strategies to make them safer?" Plus, why do traders bother with these strategies in the first place? What's good and bad about them? If these thoughts have crossed your mind, you're in the right place. Your search for answers is about to end.

We'll start by creating a simple hedge Expert Advisor. Think of it as the first step towards our bigger project - a Grid-Hedge Expert Advisor. This will be a cool mix of the classic grid and hedge strategies. By the end of this article, you'll know how to whip up a basic hedge strategy and get the lowdown on whether this strategy is as profitable as some say.

But we're not stopping there. Throughout this series, we'll explore these strategies inside out. We'll figure out what works, what doesn’t, and how we can mix and match to make something even better. Our goal? To see if we can take these traditional strategies, give them a fresh twist, and use them to make some solid profit with automated trading. So, stick with me, and let's find out together!

Author: Kailash Bai Mina

 
Excellent article, thank you very much. I can't wait for the second part as I am myself a coder and about to code a hedging system, but different strategy. Thank you for your work and sharing !
 
DidMa #:
Excellent article, thank you very much. I can't wait for the second part as I am myself a coder and about to code a hedging system, but different strategy. Thank you for your work and sharing !

I am glad my article have helped you and you are looking forward to next part, I am working on it and will post as soon as possible.

Regards.

 

Very nice approach. Clear and concise.

Regards.

 
Awesome Work @Kailash Bai Mina. I have tried to use an automated strategy that analyzes the market structure to determine the initial Position. I will love to share it with you here but I won't be ahead of my self. When will you post on this pleaseeeee??????
 
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Check out the new article: Modified Grid-Hedge EA in MQL5 (Part I): Making a Simple Hedge EA.

Author: Kailash Bai Mina


Isn't this considered martingale?
 
Dominik Egert #:
Isn't this considered martingale?

Yes, It is. But this is only the first part, the main idea is to minimize the risk in this approach that's being covered in further articles and still in progress.

 
It's horrible how do you know that such a turnaround trading approach is a hedge???
Do you know the meaning of the word hedge?
What are you hedging with?
Can you explain it here?

The lot sizes in the first table, rows 13 and 14 are wrong.

Second column, check......

You are deeply mistaken here - the described trading flip model is not, as you write.
classic hedging strategy....

 
Roman Shiredchenko #:
It's horrible how do you know that such a turnaround trading approach is a hedge???
Do you know the meaning of the word hedge?
What are you hedging with?
Can you explain it here?

The lot sizes in the first table, rows 13 and 14 are wrong.

Second column, check......

You are deeply mistaken here - the described trading flip model is not, as you write.
classic hedging strategy....

We are hedging orders again orders. Hedge order may be of different lot sizes to make us profit.

And Yes I made a typo on row 13, it should be 81.92 rather than 80.92 but it doesn't really matter as long as you understand the point.

Also, Just in case I am wrong in naming the strategy, that also doesn't matter as long as you understand the strategy in depth and hopefully get profit with it.

 
Kailash Bai Mina #:
Do you know the meaning of the word hedge?
What do you hedge with?
Can you explain it here?

The lot sizes in the first table, rows 13 and 14, are incorrect.

Second column, check......

Here you are deeply mistaken - the described trading flip model is not as you write.
classic hedging strategy....

We hedge orders with orders again. The hedging order can be of different lot sizes to ensure we make a profit.

And yes, I made a typo in line 13, it should be 81.92 not 80.92, but it doesn't matter as long as you get the point.

Also, just in case I got the strategy name wrong, it doesn't matter either, as long as you understand the strategy thoroughly and hopefully make a profit with it.

What matters is that you are misleading the public with wrong interpretations.
First understand the topic yourself - then broadcast it to the public with articles. Imho.

What you propose is a usual reversal trading system based on capital management martingale. There is no hedge here and cannot be - it is a trend trading system. It shows good results with trends - the sizes of which are higher than the overturn channel.
Such trading systems have already been repeatedly discussed on the forum - for example, the Avalanche thread https://www.mql5.com/ru/forum/124482. Why and avalanche - because the volume of the position increases avalanche-like - accordingly, the profit is possible and can be - but the drain too.
There is no hedge in this approach. And you yourself do not understand the subject - you give wrong information to the public and mislead novice speculators.
I understand the essence. I myself have martingale-based overturn robots in the codebase here and in the market, so I understand the topic very well.

 

Hedging - opening an opposite position on another market, but not on the same symbol. If a euro/dollar position is opened, it can be hedged with gold, for example.

And this is partial locking (lock), a strategy that leads to 100% killing of the account in the long term

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