Hello Traders,
I have started messing around with this as well as the Hedge Grid Trading. I just started a day and a half ago, and have yet to see the 100 point move to T/P on either pair, but I have made a small change to the system, and from the time I did, I closed 2 orders yesterday…this is going to sound a bit strange but thats why I am doing it on Demo
I buy EUR/USD & USD/CHF at the same time. My lot sizes were determined by taking my account balance and dividing it by 8000. (ie, 3000 account balance / 8000 = $0.37/pip). I do not set a t/p or s/l or any type of pending order. I then checked it a couple times last night ( I am in US/Mountian time). My goal was to close orders when the total of those two open orders = 10 times the pip values. So in the example above I would close when the two open orders would equal +$3.70. This happened a couple times because even though the markets move close to each other, there are small breakouts by either market. The goal is to take profit off the table, and restart the system, hopefully to avoid long term downdraw. I did have a few times I checked that both positions were in a negative, but I was confident that because of the correlation of these two currencies, it doesnt matter which way they go, as long as one of them performs an upward breakout.
On the winning pair you would enter the market again when you take profit of 100 pips are hit.
On the losing pair you average in every 200 pips based on the average price of all positions and set your t/p at breakeven to close out all trades. In other words, close out when all aggregate positions are breakeven.
This system is very good in ranging markets. The problem is not knowing if your losing positions will be able to close out at breakeven in a strong trending market before you run into margin call. It would be very interesting to see an accurate backtest result over a strong trending period.
Thanks for this very promising system and your work here but can you help me , im a little confused ...did you mean EVERY new entry to entry with BOTH currencies (eur/usd AND usd/chf) ?? i have understand to first open both currencies long ? im correct in your example we had open 3 x eur/usd AND 3 x usd/chf (6 open trades ??)
Take a look at the pic of my 2 open trades and 4 trades in the queue. Notice buy stop and buy limit levels relative to the open trades. Hopefully a visual will help you out.
just a question: when one pair (for example EURUSD) reached has average TP you close all opened positions (EURUSD + USDCHF) or only averaged trades (all EURUSD)?
what do you think about differents levels of TP and SL, for example 50 pips of TP and 100 pips of Recovery Loss? I am trying to develop an expert advisor for this strategy. In backtest this strategy provides very good results but i need more details to automate the process…
It really would need to set up a grid system :-
1st trade would be buy at X then T/P = +50
next buy stop at +52 pips for Eur/Usd & +54 pips for Usd/Chf
(but those figures are dependant upon spread)
In the reverse direction are buy limits at -100 pips
with a T/P of +50 pips.
But I have not at this time tried to integrate in a buy stop
on the return leg.
Of course one of the problems is that forex charts are not that
predictable, they do not change direction exactly at 50 or 100 pip
levels, but it would be great to see an EA for this system.
Hello Fellow Correlation Traders,
1st of all…I am really liking this system. I have sort of mixed the ways that are being talked about. I set up for a T/P +100 and another buy order at the -200 point, but…I look at each week as a stand alone position. For example, if I have +100 in the bank, another open order at +25, and 2 open orders that total -75 I will go ahead and close the 3 open order for a +50 profit, then start again.
My question though…is what are you doing for money management. If I started this on a $3000 USD account…what size lots would you use ?
Thus far, I have been waiting till I close all orders, take my new balance and divide it by 8000 to come up w/ my lot size. This means I can take a very large down trend and be OK, but that also means profits are next to nothing, I would appericate some different views on the Money Management that others are using
Read all, and I am very much into these correlated hedging trading system. Here we go, I have developed an EA based on daydreamer’s method, release here to be tested by anyone who are willing to test. Feel free to test it, BUT BUT, I have to apologize that u guys need special license to activate it (it’s my hardwork!). Do not distribute to others, this is only to those people who visit this babypips forum - the place where I learn a lot about forex.
Feedback to me the result or comment.
Any problem, read the manual thoroughly, or email me at
<[email protected]>
KAS_CorrHgV13B - not much change, except will display the EA_No (just to facilitate the monitoring of EA no) - if you want to update the EA, do not close position, just remove the old EA, remember the EA_No, put the new EA with same EA_No. It will continue run.
KAS_CORRHGV12B - this one has potential, will trade EU and GU, minimal drawdown, dont know how much pips will gain in a day. Need forward testing.
