HedgeEA - page 40
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
does any one hedge the GBP\USD USD\JPY? I'M DRAWDOWN this hedge for $2000 .
I hedge GBPUSD / USDJPY and I'm down about $1500 from yesterday. There were some pretty big moves which went against us. I wonder what we can do to prevent or offset large moves like this? It seems that the correlation loosens during these periods, lessening the psuedo hedge we set up.
Doug
Best correlation
For functioning the correlations well must be the best possible one (nearly +1 or -1). Example: (EUR/USD; USD/CHF) -89 while (AUD/USD; AUD/JPY) +45 no good .
Attention also the correlation runs and medium term differs much.
Table correlation: www.mataf.net/analyse-correlation.htm
to continue your good work, bye!
it' s not just correlation though, the swap rate is crucial.
Exact
Exact, both are needed. All depends on the ratio risks/ profit. (GBP/USD; USD/JPY) is very interesting on this level.
i try to look at www.mataf.net/analyse-correlation.htm and i didn't see there the correlation of AUD/USD; AUD/JPY.
For functioning the correlations well must be the best possible one (nearly +1 or -1). Example: (EUR/USD; USD/CHF) -89 while (AUD/USD; AUD/JPY) +45 no good .
Attention also the correlation runs and medium term differs much.
Table correlation: www.mataf.net/analyse-correlation.htm
to continue your good work, bye!Here
Difficult to copy the table. In the table 20 days.
20 Days
USD-JPY GBP-USD USD-CHF USD-CAD AUD-USD ↑
USD-SGD 33- 43- 15- 53- 85-
EUR-CAD 20+ 28+ 00+ 61+ 83+
USD-CZK 35- 53- 16- 32- 75-
XAU-USD 43- 64+ 57- 13- 68+
USD-HUF 14- 66- 07+ 19- 62-
EUR-DKK 09- 21+ 11- 01- 59+
EUR-PLN 26+ 14+ 11+ 27+ 59+
EUR-NOK 69+ 10+ 59+ 71+ 56+
NZD-USD 82+ 02- 69+ 81+ 54+
USD-SEK 45+ 80- 66+ 38+ 49-
EUR-USD 74+ 89- 52- 48+ 37-
USD-DKK 74+ 74- 89+ 52+ 47-
AUD-JPY 93+ 16- 80+ 85+ 45+
I'm sorry I can't release the source code yet. I'm working on this indicator with a team of people. It contains some concepts and code that are proprietary right now.
I've attached a newer version. (It's pretty amazing) Sorry I don't have the documentation written yet. if the first three conditons are false you can manually enter prices and lots. if you set calculate from now to true, it will recalculate every time you change time period. It may be best on M5 or M15.
Later...Stevensign,
Can explain abit how to use the Indicator???
Like.. to put it on which chart? Default settings.. What to expect...
How do we use the information?
Thanks.
For USD lot normalization AUDUSD = 1.0; AUDJPY must be multiplied by USDJPY factor , use 1.19 (practice opening and closing an order to verify it's $1 per pip.
Daily range: AUDUSD = 54 PIPs; AUDJPY = 58 so multiply AUDUSD by 58/54=1.07
So your final settings are AUDUSD 1.07 and AUDJPY 1.19 or a ratio of 0.9.
Let me know if that seems correct, the goal, or at least my goal, is to balance the hedge.Stevensign,
sorry to trouble you again,
where can we find the daily range information from?
is there any indicator we can use or reference from?
Many posts back we define a to do list to the EA:
1. Modify the autoration section to utilize Stevensign's suggestions.
2. MM - implement ratio in order to keep the hedge in balance wrt to margin requirments.
3. Possibly add code to allow the EA to utilyze SWAP to continually open small positions.
4. "Fix" BB in order to allow traders to utilize this function with different currency pairs.
5. Learn more about how to interpret the "net P/L" between the two pairs in order to improve success potential when new trades are opened. (i.e. do we open when correlation is high or near zero? How is correlation related to this net P/L?)
1) Per my post in #342, improve entry points based on opposite bollinger band.
2) figure out how to use correlation, refer to post 343.
3) maybe entry should be based on a BB using low, not close
4) maybe take profit should be based on BB using high not close.
5) Try BB settings of 8,2 or 13,2. Different settings may be optimum for entry or exit points.
for now, I will be happy if we could write a function to calculate ratios. Actualy ratios on autoratio option are calculated:
if (UseAutoRatio) {
Ratio = PipCost(Symbol1) / PipCost(Symbol2);
}
So how this could be done to include Steven sugestions on post 308.
if (UseAutoRatio) {
Ratio = ...
}
IF someone has any sugestion please post
Range Indicator
Stevensign,
sorry to trouble you again,
where can we find the daily range information from?
is there any indicator we can use or reference from?I've attached an Indicator that will show the average range of whatever timeframe it's attached to. You can also do this by taking the difference of a moving average based on the high and the same average based on the low.
When you use my hedge indicator with "Calculate from Now" set to true it will use the range based on the candle duration it's attached to. (Try M15 if you want cash grabs and maybe D1 it you are in it for the long term, you can also change the MA value it uses for this calculation, default is SMA(200).)