Hedging - page 2

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chandra100:
How to hedge in mt5 trading mechanism ?

MT5 has different Trade and Order Management System as compared to MT4. In MT4, you can BUY and SELL the same pair and each trade is a separate trade, Whereas in MT5, it will be considered one. You can check it yourself on demo and see what happens. 

 

:p 

 
trade across multiple currencies... e.g sell EURGBP, sell GBPUSD, buy EURUSD.
  nice idea for cross pairs. but for major pairs ?

   A nice utility you can find here:  Simple Hedge Panel 

   Otherwise, I can recommend this article:  A Virtual Order Manager to track orders within the position-centric MetaTrader 5 environment

A Virtual Order Manager to track orders within the position-centric MetaTrader 5 environment
A Virtual Order Manager to track orders within the position-centric MetaTrader 5 environment
  • 2010.05.13
  • Paul
  • www.mql5.com
This class library can be added to an MetaTrader 5 Expert Advisor to enable it to be written with an order-centric approach broadly similar to MetaTrader 4, in comparison to the position-based approach of MetaTrader 5. It does this by keeping track of virtual orders at the MetaTrader 5 client terminal, while maintaining a protective broker stop for each position for disaster protection.
 
chandra100: nice idea for cross pairs. but for major pairs ?

Here's a link which explains Synthetic_Pairs. The cross_pairs hedges the major_pairs and the majors_pairs hedges the crosses. You can lock_them in a triangle if you trade all_3_pairs. Example: if you Buy_GbpUsd......and Buy_UsdJpy. This gives you the net-effect of Buying_GbpJpy. <==This covers creating a Synthetic_Pair. To lock/hedge GbpJpy, just Sell_GbpJpy in addition to your earlier two positions.

Use Synthetic_Pair if for example you want to trade GbpJpy but the spread is too_high. If trading the two_other pairs gives you a lower spread, then use that instead.

Triangular Arbitrage is useful for Locking(hedging) or Scalping_Arbitrage(not recommended). I personally would use it for diversification by varying the lot_sizes.

Creating Synthetic Pairs
Creating Synthetic Pairs
  • www.babypips.com
Sometimes institutional traders can’t trade certain currency crosses because they trade in such high volume that there isn’t enough liquidity to execute their order. In order to execute their desired trade, they have to create a “synthetic pair”. Let’s say that an institutional trader wants to buy GBP/JPY but can’t because there isn’t enough...
 
chandra100:
Hedging like that makes no sense. Why opening extra lots in the opposite direction and paying extra spread? Close the trade partially instead.
 
I think hedging like that is a bad trading habit which will kill your account sooner or later.
 
luenbo:
I think hedging like that is a bad trading habit which will kill your account sooner or later.
It would be great if some could explain a good way to create hegding.
 
angevoyageur:
It would be great if some could explain a good way to create hegding.
We have a problem in the UK with Box blight so a good alternative is Box leaved Holly,  as it is a Holly it does not suffer from Box blight and will re-grow from woody stems . . .  so this creates a very good hedge  
Box blight / Royal Horticultural Society
Box blight / Royal Horticultural Society
  • apps.rhs.org.uk
Hold any commercially sourced plants in isolation for at least three weeks to confirm they are free of infection before planting out. Commercial nurseries may use fungicides which suppress but do not kill the fungus and this isolation technique will allow time for any suppressed disease to become visible. If the disease does break out, remove...
 
RaptorUK:
We have a problem in the UK with Box blight so a good alternative is Box leaved Holly,  as it is a Holly it does not suffer from Box blight and will re-grow from woody stems . . .  so this creates a very good hedge  
Sorry but I don't understand your joke :-(
 
angevoyageur:
Sorry but I don't understand your joke :-(

https://en.wikipedia.org/wiki/Hedge    I'll get my coat  

Hedge - Wikipedia, the free encyclopedia
Hedge - Wikipedia, the free encyclopedia
  • en.wikipedia.org
The examples and perspective in this article deal primarily with the United Kingdom and do not represent a worldwide view of the subject. (August 2012) A hedge or hedgerow is a line of closely spaced shrubs and tree species, planted and trained to form a barrier or to mark the boundary of an area. Hedges used to separate a road from adjoining...
 
angevoyageur: It would be great if some could explain a good way to create hegding.
  • I'll take the bait ... ;) (by hedging I'm guessing you're asking about locking)
  • If mql5 allowed hedging, someone could trade more than one signal on the same symbol.
  • Example shows hedging as a system design tool which offers some flexibility.
  • Me trying to explain how-to profit from hedging is like...
  • Me trying to explain how-to profit from non-hedging... this becomes pointless.
  • Like buy_low and sell_high for non-hedging. vs
  • Close sell or buy when profitable for hedging.
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