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In trading, "hedging" does not offset any costs and can actually incur additional costs. So "hedging" in trading makes absolutely no sense whatsoever.
All is clear
But
I have an experimental MQL5 EA with a simple logic that has an optional hedging feature
That is, the EA can open the opposite position leaving the initial position open
Optimization mode in tester with hedging shows better results then without it
I can post .ex5 file in this thread so that anyone can make check this
But I would like this to not be considered advertising or promotion
All is clear
But
I have an experimental MQL5 EA with a simple logic that has an optional hedging feature
That is, the EA can open the opposite position leaving the initial position open
Optimization mode in tester with hedging shows better results then without it
I can post .ex5 file in this thread so that anyone can make check this
But I would like this to not be considered advertising or promotion
There is no need to post the file, just explain the logic.
If an EA makes more profit by "hedging" it is not because of the "hedging" aspect but due to something else in the code. Maybe different lot sizes for the "hedge" trade.
It is mathematically impossible to gain any benefit from "hedging".
Earlier Alain posted a link to my topic from long ago that totally dispels the myth that "hedging" is beneficial. Please read it.
There is no need to post the file, just explain the logic...
The logic is very simple
Position volumes are always equal in this sample
There is no need to post the file, just explain the logic.
If an EA makes more profit by "hedging" it is not because of the "hedging" aspect but due to something else in the code. Maybe different lot sizes for the "hedge" trade.
It is mathematically impossible to gain any benefit from "hedging".
Earlier Alain posted a link to my topic from long ago that totally dispels the myth that "hedging" is beneficial. Please read it.
All is clear
But
I have an experimental MQL5 EA with a simple logic that has an optional hedging feature
That is, the EA can open the opposite position leaving the initial position open
Optimization mode in tester with hedging shows better results then without it
...
You would have yet better results without "hedging" and closing your losing trade.
You would have yet better results without "hedging" and closing your losing trade.
Not a fact for many reasons
Moreover, the initial position can be hedged when the profit on it is > 0
Not a fact for many reasons
Moreover, the initial position can be hedged when the profit on it is > 0
The logic is very simple
Position volumes are always equal in this sample
So please explain how there is any benefit to this "hedging" strategy.
Using an initial buy trade for example.
Instead of opening the sell "hedge" simply close the buy and then re-enter the buy when the "hedge" sell would hit TP or SL. The result would be exactly the same except by not using the "hedge" you may save on swap costs.
Your strategy is flawed as the only way that it can make a net profit is if the sell hits TP and then price reverses to at least the sell entry price. This is because while both the buy and sell are open, the profit from the sell will be nullified by the additional loss with the buy.
If the sell hits the SL, you have made a net loss because the buy will have reversed to its entry price, meaning it is at BE, but you have made a loss on the sell.
So the only way that you can benefit is if the sell hits TP. Now a good trader would have a reason to believe that the price is heading down and if that good trader opens a sell, he certainly wouldn't leave a buy open.
I don't know why you have mentioned TF as they are irrelevant to a "hedging" strategy.
I actually using hedging strategy for more than 11 month and it works for me.
Don't hedging if you're not clearly understand how the characteristics of the pair you trade.
It works for me, but maybe it doesn't suit for you.
I actually using hedging strategy for more than 11 month and it works for me.
Don't hedging if you're not clearly understand how the characteristics of the pair you trade.
It works for me, but maybe it doesn't suit for you.
Anybody that uses "hedging" and claims that it "works" for them is delusional and don't even understand simple mathematics.