At 7pm I buy 1 lot eur/usd and 1 lot usd/chf. When positive both position get closed. Seams promising. Is there a way to enhance the strategy? Is there a a way to run the back test? Is there a way to automate the strategy?
The spreads on both securities combined will be greater than the profit on EU minus the loss on UChf.
Long Eur/Usd & Long Usd/Chf = Long Eur/Chf.
Buy Eur/Chf and sell when it’s in profit.
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Good thinking - but there are 24 time zones on this planet, so it’s always 7pm somewhere?
If this is a “hedge”, I need a new gardener: the USD component as both quote and base currencies obviously cancels itself out, so it’s exactly the same as buying EUR/CHF (but just paying two commissions instead of one). Good luck, though.
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Hi a, this will not work, what you are doing is a falsehood that has been spread across the internet for years. I will define a hedge for you by way of illustration. Hedge funds are used to make up for the down times in a complete investing strategy. You buy the SP and hedge with SP futures, but this is not for 5 min trades.
The Ever Enlightening VIPER