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its a simple mechanical hedge trade of GBPUSD that i enter with a 5 pip take profit on the long and the same on the short ---- both trades are entered as closely to each others price as possible and the whole concept is based on the intraday reversals that EVERY currency goes thru and the inter - interday reverrsals they make WITHIN the reversal ! My spread is one pip !
I DO NOT USE A STOPLOSS !
I enter a minimum of 45 minutes before the market reversals in the US which can be considered as MAJOR at NOON, EST and MIDNITE, EST.
I use the minor reversals at 10:30 AM, 1:30 PM, 5PM, 8PM, 10:30 PM
NONE of these times are written in stone unfortunately, but on a very VERY high average hold true ---- sometimes the NOON reversal happens at 11:30 AM if the banks feel its time to reverse, but invariably the trade will come in if you get stuck there --- simply takes a few hours then.
I had been trading this without entering a weekend trade, but last week I did as an experiment and it cleared nicely came sunday nite --- I wouldnt run right out and do that if I were you, but its something to consider.
if you observe the market, you will notice reversals every 1.5 hours ( WHICH USUALLY DO NOT ALTER THE LONGER TREND, such as on the H1), as the longs get out and the shorts come in (or the brokers now short the runup to make THEIR profit against your long, or to simply hit your stoploss, take your shares, and then run the price up again ---- that way they make twice as much while you sit there wondering what happened to your nice profit on the long trade !
IF THE REVERSALS COME IN EARLY, count one and a half hours to expect the next --- somewhere on down the line the banks will get back on schedule, but its good to be ready for them a little early --- rather than late !
essentially, thats it --- cause there really isnt much to it except leaving the basket under your floppy drive to catch the money dropping !
TEST IT --- it works for me, even when i enter late and suffer a days drawdown, but DONT enter LATE and dont suffer, which is kinda simple to remember and is the ONLY rule i can think of .
the whole thing with the trade is the range of GU --- even if you get stuck in a trend change, the "noise" of the mkt with up and down movements at that point, will invariably take out your 5 pips !
But 5 pips here, and 5 pips there and do it enough times in a day, and then a week, and it begins to look like real money after a while.
As a kinda aside, whenever
I think you may be confused or not sure of how it works because its mechanical and has no rules except DONT ENTER LATE and while some probably think there is not much to be made, try throwing 5 or 10 lots on each side, 5X a day, and tell me then !
BTW --- YOU dont do that for a long long time --- greed is what kills graveyard dead !Does anyone have a script for this?
The basics are this;
H4 chart, any pair, although I mostly trade only the EUR pairs manually.
Long Trades
When Mega Trend and Trend Histo are both blue, trade any Red dot that appears as soon as the dot appears, do not wait for the end of the candle.
Short Trades
When Mega Trend and Trend Histo are both Red, trade any Blue dot that appears as soon as the dot appears, do not wait for the end of the candle.
Hi Kamper,
This has been a good strategy for me to play with. I have made a few pips with it. Thanks.
I do have a question\thought about trade entry though. Above, you say that you enter the trade as soon as the dot appears and the other indicators are in confirmation also.
For example, If trend histo and mega trend are both blue and a red dot appears then we enter the trade long. But sometimes, I have noticed that the dot will repaint if the price continues downward.
Do you ever wait for maybe the next candle to appear or anything to help ensure that the price will move back up. Perhaps you always enter exactly when the dot appears and take comfort in the fact that odds are the price will go back up.
Not trying to second guess what you have shared here, just looking for some additional tips.
Thanks.
mjramos76,
Sorry for the late reply. I was on holiday.
Here's version 3 of mp6140's Hedge EA. The StopLoss is working now if you decide to use it. If you decide not to use it, set it to 0.
I've also added TakeProfit so you can put a smaller number here instead of the locked 10 pips on previous versions. You'll also need to be aware that some brokers has a minimum TakeProfit requirement. So if this number is smaller than what your broker allow, the hedge will not open.
TimeToTrade is the time for the EA to open the hedge. Set this time equivalent to your broker's clock corresponding to 8pm EST or 1am GMT.
And finally there's MoneyManagement, where if used, the EA will calculate how big the lot to trade will be based on your free margin. For example, by putting PercentageToTrade to 50, it will use half of your free margin to open a single trade (so by opening a hedge, i.e. two trades, it will use up 100% of your free margin).
If you set MoneyManagement=true, then set PercentageToTrade anywhere between 1 to 50 depending on how far you are comfortable with the risks. If your account has 1:100 leverage, enter 100 in the Leverage setting.
If MoneyManagement is not used, then the lot size to trade is equivalent to the Lots value in the EA.
AccountType is as follows:
0 is for standard accounts where the minimum lot size is 1 and the pip price per lot is $10.
1 is for mini accounts where the min lot size is 0.1, and the pip price per lot is $10, for example NorthFinance.
2 is for micro account where the min lot size os 0.01 and the pip price per lot is $10, for example Alpari UK
3 is for nano account (InterbankFX mini) where the min lot size is 0.01 and the pip price per lot is $1.
Unlike previous versions, this EA will open a new hedge when the time arrives regardless whether the previous hedge has closed or not.
Let me know if you have discovered any more bugs.
Oh yes, after the EA has opened the hedge at the designated time, do not close the EA and restart it again during the first hour of this time or it will open another hedge automatically.
mp6140, you said you published your second hedge? Maybe I've missed it, but on what page number was that?Now that we have the hours all you need to do is apply the EA to 6 charts changing the magic number and time. This is great!
mp6140 EA only goes for two months
Hi all,
Another rookie question. Trying to do backtest on Azmels mp6140 rev3 EA. I set the start for 2007/01/01 to present but it only does the first two months. I try to change the max bars to max but it keeps resetting to 2147483647. Any thoughts?
Bob
Hi Kamper,
This has been a good strategy for me to play with. I have made a few pips with it. Thanks.
I do have a question\thought about trade entry though. Above, you say that you enter the trade as soon as the dot appears and the other indicators are in confirmation also.
For example, If trend histo and mega trend are both blue and a red dot appears then we enter the trade long. But sometimes, I have noticed that the dot will repaint if the price continues downward.
Do you ever wait for maybe the next candle to appear or anything to help ensure that the price will move back up. Perhaps you always enter exactly when the dot appears and take comfort in the fact that odds are the price will go back up.
Not trying to second guess what you have shared here, just looking for some additional tips.
Thanks.Hi Stephen
Nope, I never wait, I look at the chart and make a decision there and then whether to trade or not?
If it repaints and the trend is strong, I consider that a bonus and enter again.
If it repaints and the trend is weak, I consider that a caution and watch the trade carefully to see what it is doing, or rather if it looks to be changing direction.
Yes, it is an odd s thing, but I base the odds very much on what I believe the strength of the trend to be.
Now if I can just wrap my head around MP's spaghetti system and add that to the equation, I think we are going to be golden.
Cheers
Wayne
Now that we have the hours all you need to do is apply the EA to 6 charts changing the magic number and time. This is great!
=============================================
great for you, but i think it should be named after me at least !
i like "mp6140 handy hedge"
mp
Hi Stephen
. . . . . . . . . . . . . . . . . . . . . Now if I can just wrap my head around MP's spaghetti system and add that to the equation, I think we are going to be golden.
Cheers
Wayne====================================================
dont forget the raw egg and the cracked pepper --- is there anything better than linquine carbonara ?
let me slide in here and add what i have stated MANY MANY times in previous posts --- If you get a reversal trigger from the ziggys, IT IS RIGHT, although it may be early !]
what happens with a lot of currencies these days is that they make a dbl bottom (or slightly below the previous ziggy alert), so when the alert comes on, often the currency begins the reversal, reaches the 15 - 32 fib AND THEN REVERSES BACK DOWN TO ITS ORIGINAL SUPPORT, which is the original ziggy alert ----- now i play that reversal, but if you simply want to "set it and forget it", the trend reversal signaled by the ziggy WILL PLAY OUT !
if you get in early, you will have a drawdown, BUT IT WILL PLAY OUT !
HAVE I SAID THAT ENOUGH ???
I use silverlining and supersignals which provide arrows that often show BENEATH the dots --- this simply means, if the currency DOES reverse before it plays its full run, it will reverse back down to this new support area.
I take the trade when the ziggy announces it, play it and watch to see if it will reverse down, at which time i take a hedge trade against it (therefore margin holds steady) and i ride this new short to support, leaving the long side still in play. Depending on how disgruntled I may be during this, I "might" dump the long side when it hits its first resistance or hold it -- probably depends on attention span and whether Im being greedy or not that day !
BUT THE BOTTOM LINE IS, WHEREVER THAT PRICE WANDERS, IF THE ZIGGYS SAY ITS GOING UP, ITS GOING UP, although that may not be till the 12 midnite EST major reversal point !
Hope Ive clearly stated my position on this !
BTW -- u should see how it plays out using the LRC's
enjoy and trade well
mp
mp,
How will the reversal times be affected on the mp6140 handy hedge when we set the clocks ahead?
Mp, question
This hedge thing can be done if you are very sure how/where the market is going and you know that the price will close both sides. It's not right thinking that i open the hedge to reduce the drawdown.
Anyway my question: Let's say you open a buy position acording to your system and price goes against you. You open the hedge and wait. How much you wait until you know that it will never reverse(or will reverse but not in the near future)? Do you close both positions or let it run forever paying swap for the delight of the brokers
?.
Second thing: let's suppose you have 2 positions in hedge and you get a signal that might close both position how are you solving the problem. Mathematicaly speaking being not right about a position has the probability m but not being right for 2 positions (hedge) has m*n. (Which is harder)
So how do you close the positions in order to avoid increasing the distance between them?
I just tested a fiew days this thing with the hedge to see how good this works(with an EA). It worked well i almost doubled an account but i had a problem, 2 hedges that increased the distance between them a fiew times and bye bye doubleing...Each time i try to reduce the distance between them it's harder and harder....and at the end i make it bigger.
It's like a game where when i want to try doing something i automaticaly advance to the next level which is harder.
So from my point of view the biggest problem with your system is not the setup you use (indicators and so on) but the way you close the hedge after you have it opened.
One more question: That account you started from 250 and is now to 1000, has the balance = 1000 or the equity? I have doubled in the balance but the equity has only 20% in profit and decreasing (later edit checked now).
Thanks