Every currency has directly or indirectly correlation between them which could be positive or negative depending upon currency which can be measured from -100% to 100%.
Where -100% means currencies moves exactly opposite to each other where as 100% means currencies moves in same direction and in middle range they corelate as per percent corelation in between them.
This correlation between pairs keeps changing its range which could vary from negative to positive & positive to negative.
Now depending upon the type of correlation between two pairs our Correlation EA will place place trades as
BUY-SELL or SELL-BUY
and waits for collective profits of it and once threshold is reached EA closes both the trades.
Working :- When EA loaded eg for GBPUSD & EURGBP corelation eg. current correlation 20% EA will open BUY- GBPUSD & SELL-EURGBP and monitor the trades for collective profit of both trades once is reaches predefined profit EA will close the trades but IF not reaches and correlation changes from 20%-0%-Negative region EA will add new set SELL-GBPUSD & BUY-EURGBP, and keep monitoring.
Doing such make margin required reduces close to 0 (zero) and hedge trade between same pair.
Each set of trades get different magic number.
Inputs :
- Lot
- Profits
- Loss
- Symbol1
- Symbol2
Trades / performance
