Cost Averaging With Hedge

Cost Averaging With Hedge

This EA will do normal cost averaging trades. After X amount of trades are entered in one direction, EA will start a hedging trade in the opposite direction. The Hedge Trade will be linked to the oldest trade in the cost averaging sequence. Example:

10 Trades in dollar cost sequence as BUY Orders

.1

.2

.3

.4

.5

.6

.7

.8

.9

1

Hedge SELL order is 50% of all open order positions and TP of 20 pips of Hedge Trade

Sell order = 2.75

Buy Order of .1 is linked to Sell order of 2.75, and both orders to close when both LINKED TRADE profit is 20 pips of 2.75 (loss of size .1 and profit of size 2.75 must = 20 pips profit of 2.75)

--General Trading--

Direction Start (Buy, Sell, Front Buttons)

• Note: Setting Buy and Sell to allow for backtesting without Visual Mode (but visual mode should still work for all 3 options)

Fixed Starting Lot

% Balance Starting Lot (override Fixed Lot if set)

Lot Step Multiplier

Distance (in pips) – Distance between trades

Max Open Orders (only General Orders)

Max Lot Size (only General Orders)

Basket TP Method (TP Fixed / Dynamic) Note: Entire Basket including Hedge Trade loss)

                Note: Basket TP to always has priority over any other TP setting.

TP Fixed (in Pips) = Based on original opening order

Dynamic (in Pips) = will adjust to the combined size of all open General Trades

• Example, if set at 10 pips, and starting General order is .1 and if basket is now .55 General Orders, then TP is 10 pips of .55

--Hedge Trade—

Behavior 1 – As one hedge trade closes, open another based on new calculations after a 10 second wait.

Behavior 2 - If hedge size is equal to combined General orders, then hedge order will not place until more General orders are places. Note: This logic is only to prevent if remaining General order = 0.01, so that Hedge or is not also 0.01

Trade Entry # - The amount of General Trades that are active before hedge trade is entered Note: If General Orders are under this number, then Hedging will stop until this number is reached again.

Lot Method ( Fixed Lot / % General Orders)

Fixed Lots Size

% General Orders (will trade % of open “General Trading” orders)

·         Round Downward to next .01 lot size

Hedge + General TP (in Pips) – IF set at 0, then both General Trade and Hedge trade to exit at breakeven). Take Profit of the HEDGE TRADE lot size will be used

--Latest Orders Close Hedge—

Latest Orders Close Hedge (True/False) – This will run a sub-calculation of the latest orders to open, giving them the ability to close out the hedge order (Its like Hedging against the Hedge order)

Close Hedge TP (Based on size of Hedge Trade)

Example After Hedge Trade is active and new lots entered, and TP = 40:

1.10

1.20

1.30

1.40

1.50

1.60

1.70

1.80

1.90

2.00

When market moves in direction of General Trades, then profit of 1.80 + 1.90 + 2.00 – Loss of Hedge Trade 2.75 = TP of 40 pips of lot size 2.75.  ALL 4 Trades to close

Rule 1: Hedge trade must be in the negative

Rule 2. The Market must move in profit past entry to be considered to close with hedge trade. For example, the Market must move past 1.80 in profit for the order to be calculated/closed with Hedge trade

Rule 3. General Closed orders can reenter if market returns to same distance point. Example: If 1.80 closed with Hedge Trade, then 1.80 will reopen if Market retraces to same price.

----Front Buttons---

Start Buy

Start Sell

Phase Out (Will Set this is last “cycle”) – Button should either change color or show other method of being active). Click it again should “undo” the Last Cycle Command

Close ALL – Will close all active positions and prevent any new cycle from starting until Button is pressed (Will do the same even if parameter “Direction Start” is set to Buy or Sell).