Can you analyze the 1hr close delta and explain what it tells you?
1 HR close delta.zip (84.3 KB)
a loss should never get too big because of the negative correlation
If you read the original strat it called for leaving the losing side of the trade open and banking the winning side in a trend that could result in a huge [B]floating loss [/B] that would eat up margin.
My fascination with EAs is all the trading strategies I see posted all over the internet. The strats that have a clear set of rules that define entry,exit and risk should be able to be automated. If the strat is good it should make money in an automated way. Most strats are not good or depend on some discretionary factor that’s to complex to program with MQ4. This strat is about as simple as they come, easy to automate and test. Can an EA make a retail trader money over the long term? That question has been debated many times I say probably not. Can an EA be used to backtest and forward test the rules of a strat on a demo account? Absolutely.
A strat like this one could easily be traded from automated signals or preset orders figured out from something as simple as a spreadsheet. But why bother if it fails in testing?
Thanks for the avalanche response: I jus thought that I really figured it out – now I can go shine those guys again, but looks like it isn’t like that. Now everyone’s seen it clearly.
I jus finished swimming in all the numbers trying to solve the problem, and I think there is no problem in the first place. Here I was trying to correct a faster E/$, I switch on to make adjustments, and now $/F was ahead! :eek:That overlay of both charts by TJ shows much, including the ton of bricks. If only we could get it in moving form, it would be easier to make the hedge float in unison. The divergence swings back and forth around zero. Isn’t that something. I wonder the econs behind it, just as I wonder what S+Rs are made of, so as to know if too many people using it will close it down eventually? Haha. It’s the sprite spring, it never closes.
The chart overlay (I didn’t catch it back there in the earlier posts) and the Close Delta (I made mine in the last hours Fri) show how the divergence never diverges far off, now all you do is follow it and ensure all stairs get hit accordingly so the hedge doesn’t fall apart It seriously falls open when a higher stair is hit on the faster pair, while in the slower the equivalent stair doesn’t trigger- one skate takes off with half you! On MN1, its like E/$ is faster, and will reach +100p as $/F reaches 88p or there about in that ratio? Sure thing though, fine-tuning back and forth is necessary, and easy. I jus cant figure out the most accurate backtesting method, you need to see it floating in realtime.
Margin call is served when your overall chips (equity) run scarce, not when you loose a trade. So long as our hedge floats as should, no call, Shr1k. Someone call Hess, the party’s on. Do the brokers have a list? We’ll all make top 40 soon! It’s the greatest way to trade, range or trend. We should try to max out on the floating positions while avoiding the call from any slight divergence – intense math and finetuning.
Carry for pairs inverts when you short all, working to your disadvantage. It however must be quite punny compared with the game you’re out for. However, we’re better off with no friction whatsoever. Stick with the original longs.
I didn’t get what Pipchaser is asking about his averaging position for losses? Why do we need to tweeks it further?
Theres no way an EA’ll think fast enough when one skate start coming loose – on the other hand, {[chizzenpips\\..(weavingskills)\ set=Bullean] end}.
Plot of eurusd - usdchf.
I read the original strat but as noted there is a flaw. The goal is to make money not turn losers into winners. It can be done. 
The goal is to make money
Its nice to see someone else around here understands why we are trading;)
The question is “Why do people post on this forum?” There is some information sharing but far too many posts could be considered warfare.
I see an obvious pattern but not sure if that’s what you are referring to. So what does it tell you?
It establishes a trading range for a spread trade.
Example:
Min delta = .32578
Max delta = .44235
Min delta trade: Long EUR/USD and Short USD/CHF when the delta is within a 5% range from the Min (.32578 to .34207) with a stoploss = to 5% less than the min delta in the event the range changes. The take profit would be when the delta reaches within 5% of the max delta.
Max delta trade: Short EUR/USD and Long USD/CHF when the delta is within a 5% range from the Max (.44235 to .42023) with a stoploss = to 5% more than the max delta in the event the range changes. The take profit would be when the delta reaches within 5% of the min delta.
The range would only need to be reestablished after it’s broken.
Does it sound logical? Any feedback is welcomed.
I think we are seeing the same thing:D.
You put some data to the questions I asked in post #113.
Your assumption is the delta will close if the pairs reverse but the delta can also close even if the pairs continue in the same direction. The flaw is you are comparing delta bar by bar.
Can you provide an example? Not sure I understand.
Min delta trade: .3246
Target between: .4681 - .5181
Stop loss: .3000
1 lot long EUR/USD 1.3862
1 lot short USD/CHF 1.0616
We’ll see how it does.
Update: .3328
Open P/L: $802.87
Pip Chaser always liked your Avatar! Went thru your thread and saw you ventured out into the futures and the Dow,curious how did that go?
I couldn’t convince my spouse to let me trade futures intraday for a living. I might have to if the aerospace industry takes a haircut on budget spending.
A fellow trader in the usdchf panic thread could probably use some help.
Good morning everyone.
Update: spread @ .3376
Open P/L: $1273
Good morning everyone.
Update: spread @ .3466
Open P/L: $2156.71