HedgeEA - page 12
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For this pair it must be 0.
Anyone testing eurchf/gbpchf ?
This is another profitable pair acording to some users:
Pair 1 : eurchf (Short)
Pair 2 : gbpchf (Long)
Ratio: 1.5
Correlation = ???
Bollinger = (N/A)
Setting hedge
hi ,
i am testing hegde 5.7 on gbpjpy m1,
what do you think about :
"extern bool UseCorrelation = false; "
if i setting usecorrelation to true, is more sure ?
thank you
giapel
I ran the EA and had a look at the code and maybe it's my mistake but I think that some things are surprising.
So, just to be sure, it is how I see the EA works:
-it opens simultenaously 2 positions in the correlated pairs
-it closes when the total profit for the 2 positions has reached a certain target.
-the ratio for the lot sizes between the 2 pairs is fixed: idea: shouldn't be better to have it variable depending on the current prices (for instance currently the ratio is ot 1.8 but more 2.2)
- The direction of the trades is fixed. idea: wouldn't it better to takefor instance the direction of a slow MA to give kind of direction
For me the most confusing is that both positions are closed and opened at the same time. In such a case instead of using GBPJPY and CHFJPY, why not use GBPCHF directly it will cost only 1 spread instead of 2.
In my opinon hedging is usually not used like that. It is used to hedge a pair for which an order has been send before to limit the loss.
Am I wrong or did I misundertood the EA code?
has to be long GBPJPY to harvest the swap. the hedge short (CHFJPY) allows a loss of pips to be lessened while the swaps mount up. In this way, eventually the profit target should be reached.
One concern is a sustained downward trend in the GBPJPY pair and that's where having plenty margin comes in.
I like this EA but it is definitley a slow steady burner rather than get-rich fast.
well done all the developers and keep it up.
In my opinion you will get more swap with GBPCHF than (GBPJPY - CHFJPY).
to hedge CHFJPY is a protection for the moves against JPY but if GBPCHF moves it doesn't protect anything; Exactly like GBPCHF.
Hello,
how could i investigate the optimal "Ratio" between two pairs? Is it just a matter of experience or there are any fundamental things i have to know? Should i take pairs with high or low correlation for this EA? Hope these "Beginner" questions not peeving you.
Hedging could be very complex in practical application. So i try to learn a little bit more every day...
thx for your replies
regards,
David
I speak for myself I'm learning too everyday
Thanks for your reply Kokas. I've readed this pdf document very well 3 times. But i even dont know why you choose a ratio of 1.8 between gbpjpy / chfjpy. I thought i have to set the ratio in a way that as example a 1 pip move in both pairs represents the same $ amount.
Ok, I'm going to try to get more documentation on this..
I think as you thats why, if you read some posts back, I've posted a function to calculate the value of one pip in dollars. That was my idea, but this does not make much sense, because the price of dollar moves too...
Well, I'm going to dig on it, and I will post some info asap