Experts: SMA MultiHedge

 

SMA MultiHedge:

A kind of hedging style play base on "BaseSymbol" and hedge "Hedge.Symbol" to reduce the risk including the auto-calculate-correlation-function for all BaseSymbol-Hedge.Symbol.

Author: chayutra sriboonruang

 
This is a interesting idea, but there are a couple of things I don't understand.
1. If you are hedging, why trade in the direction of the MA? I would have thought the direction would not have mattered.
2. Why trade when the correlation is high? I assume the idea is the the correlation will go lower, the problem is correlation does not tell us which symbol is going to diverge.
Sorry if I have missed something.
 

Fantastic idea.

I think to wonder if what you are doing is correct, we have to understand what is the meaning of hedge.

Google search showed me: In finance, a hedge is an investment that is taken out specifically to reduce or cancel out the risk in another investment.
Different strokes for different folks.

I have not used an EA before so i have a few questions which you are able to answer, but if its too simple, you can point me to the right
link which have answers which i would be grateful, thanks in advance. Happy pipping.

1. How do we use or activate the EAs, do we have to drag it into 3 charts?
2. Does EA perform even when we have shutdown our computer? (laughs at self, simple question if you have used it b4,... not me. lol)

 
Just curious, Vixenme, if you happen to have more of your forward testing data since December.
Just that little sample of time is interesting and I am going to open a demo and let it run to see what results it gives.
But, it would be nice to see what you have gathered over the past 2 months, also.   Thank you if you can provide it.
 
Vixenme,

Not a coding expert yet, however I am learning and really like hedge trading strategies. I think this one appears 'interesting'. Loaded this EA up last week and could not get it to open a trade. I am pretty familier ith most of the 'usual' things that prevent an EA from taking trades, but his one has me stumped OR maybe is was just not a good week for this EA. Is H1 timeframe what you recommend?, I used that, maybe that is my problem. Thoughts?

Thanks.

Beaker
 
just set "TradeAllow" to true.

sorry that's my fault.
 
barakah:

Fantastic idea.

I think to wonder if what you are doing is correct, we have to understand what is the meaning of hedge.

Google search showed me: In finance, a hedge is an investment that is taken out specifically to reduce or cancel out the risk in another investment.
Different strokes for different folks.

I have not used an EA before so i have a few questions which you are able to answer, but if its too simple, you can point me to the right
link which have answers which i would be grateful, thanks in advance. Happy pipping.

1. How do we use or activate the EAs, do we have to drag it into 3 charts?
2. Does EA perform even when we have shutdown our computer? (laughs at self, simple question if you have used it b4,... not me. lol)

A hedge is a divosor, and any time you trade on both sides of the hedge, you are hedging. The most common use of hedging is the description you found in google, but if you simply took a buy and a sell at the same time for whatever reason you are hedging. Hes using it for the purposes of making money off interest rate differentials.
 

vixenme,

What is the best TimeFrame for tihis EA ??

thank you

 
This EA is good from the testing I did but it loses huge amounts for me, it needs a filter for when not to trade certain currency based on price ranges or something, I have a hedge EA that has this coded into it and it is very profitable.
 
FXIA:
This EA is good from the testing I did but it loses huge amounts for me, it needs a filter for when not to trade certain currency based on price ranges or something, I have a hedge EA that has this coded into it and it is very profitable.

hi FXIA!what filter do you using?
 

Hi vixenme,


Is there defined any StopLoss on this EA ? If yes, what variable is that?


Regards,

puncher