HEDGE looks good

[Noelaytl]

Hello everybody.

I'm kind a new in Hedge egies and create a system which seems fine.

I really apreciate if you guys give me some opinions and sugestions trigger the machine seems to good to be true (to me personally https://www.forexsoutheast.asia/attachments/1527460910.png)

So let's get it on:

Broker: InterbankFX

Initial account: $10,000

Buy EUR/USD with 3.38 std lots

Buy USD/CHF with 4.10 std lots

Note: Attempt to Buy at the exact same time, starting with U/C afterward E/U.

This lots must give you 2,520 of free margin

1 pip EUR/USD = $33.80
1 pip USD/CHF = $33.50

(I did not found the correct lot size to keep $/pip exactly the exact same https://www.forexsoutheast.asia/attachments/1527460910.png )

Let us assume pip worth $33.65, this gives you 74 pips to lose.

It is needed because it's not correlated all the time, kind a 92 percent of the time https://www.forexsoutheast.asia/attachments/1527460910.png

Swap rates IBFX:

EUR/USD: -$20.45

USD/CHF: $36.49

TOTAL: $16.04 / evening

It gives you $5854.60 annually!

In my opinion it seems very good, it's close to 5% per month w/out doing whatever

I really guie close position at a Fantastic profit and them you open (To Make margin)

Regards,

Bruno

[Calsari]

D,

I made that point in the other thread also:--RRB- The OP actually responded with the fact that the hedge has officially experienced a 3 percent drawdown.


It's so funny with the Pro Long EU and Long UF traders in two or more threads have stopped talking because the EF went down the past few days.

Ah possibly now they see...

[Nutu]

Dear Trader
if u mean u will profit in the swap its own completely wrong since the size of movement of usdchf and eurusd not same so can be u can not receive the profit ever for long time or might be ever it depend on the direction of postions and u are likey or not.

Let's clarify it by figures

out of 1.4.2007 to 30.4.2007
USDCHF opened at 1.2136 and closed at 1.2074 it signifies moved down 62 pips
At the same period time the EURUSD opened at 1.3371 and shut at 1.3641 it signifies moved up 270pips
so if u open place of them buy then u are lucky and get the profit from the gap between the moves but when u opened them market u will get big lose Because of the diffrenece in pips between two currencies that is very big compared the profit u will get it out of swap
so the only way if u need to get profit in the swap that is u will open the two opsitions market and buy at the same time in same currency and that is u can access it when opened two accounts in two brokers one of then count the swap along with other free swap and also in this case u need to Be Careful from call margin of just one of those accounts

I need good day trading
Abudu

[Noelaytl]

Dear Trader
if u mean u may profit from the swap its own completely wrong because the size of movement of usdchf and eurusd not same so may be u can't receive the profit ever for long time or might be ever it rely on the path of postions and u are likey or maybe not.

Let us clarify it by numbers

from 1.4.2007 to 30.4.2007
USDCHF opened at 1.2136 and shut at 1.2074 it signifies moved down 62 pips
In the same interval time the EURUSD opened at 1.3371 and shut at 1.3641 it signifies transferred up 270pips
so if u open place of them buy then u are lucky and find the profit from the difference between the moves but if u opened them sell u will get large lose due to the diffrenece in pips involving two currencies that's very large compared the profit u will get it from swap
so the only way if u need to find profit from the swap that's u will open the 2 opsitions sell and buy at the same time in same currency and that's u can access it when opened two accounts in 2 brokers one of then count the swap along with other free swap and in this case u have to be careful from call margin of one of the accounts

I need good day trading
Abudu Yes Abudu occasionally it will get difference between one another, and its anticipated since they are not 100% correlated, and that's why I keep a complimentary margin.

This discrepancy of 200 pips is extremely uncommon and it turns equivalent.

In the begin I supposed to allow 300 pips of free margin, but I've noticed (real account) that is no need to allow such a free margin.

However, like I submitted 74 pips perhaps is not safe.

What I trying to say is that in a long-term you will profit cause swap will probably be greater than pips:amazed. Of course we need a sizable free margin, but that's the simple part.

Please try to do this for only 1 month and allow me to know what you believe.

Thanks for the post.

See ya

[SamuDomo]

I attempting another SWAP method ant FXDD. And make this one at FXDD and IBFX. First of all, this SWAP It´s better at IBFX, don´t work at FXDD.

I really think this idea could rocks!!! However, you need to start the transactions a litlle time before the Swap and shut ASAP. The USD/CHF shuts at 0x0 and EUR/USD closes at 2x0

Now. I've shut the EUR/USD, and awaiting shut USD/CHF.

The system can support 190 pips of drawdown.

[Almercv]

Have you ever backtested your idea? Are you sure the swap is bigger than the pip gap between those pairs?

You need to understand that what you are doing is equal to trading long the EUR/CHF pair.

[paca006]

Have you backtested your thought. Are you sure the swap is larger than the pip difference between those pairs?

You have to understand that what you're doing is equal to trading extended the EUR/CHF pair. Pt-
They've been told three or even four occasions this is the equivalent of a long EUR/CHF (unhedged). I don't think that they know it. There's another thread going like this one.

[oxrimore95]

Have you backtested your idea? Are you sure the swap is larger than the pip gap between those pairs?

You have to realize that what you are doing is equivalent to trading extended the EUR/CHF pair. Yes, the only benefit to this is if the swap is trading both the pairs instead of merely EUR/CHF. But, analysis still must be performed on the EUR/CHF pair .

What is intriguing is that many find this hedge to be functioning very well. Yeah, looked at the EUR/CHF pair recently... up up up. : )

[veradar69]

The hedging concept suppose NO CORRELATED tools for reducing risk and capture the trends.

[Noelaytl]

Perhaps you have backtested your idea? Are you sure the swap is larger than the pip gap between the pairs?

You have to realize that what you're doing is equal to trading long the EUR/CHF pair. Hellp Pablo.

Yes I backtested, but I just made the backtest on range periods so I can see the higher discrepancy between these.

Swap will be larger than pip should you hold for a long time.

And I was believe y/day that we could open positions for time , this way you don't have such a major drawdown cause you are likely to perform avg price https://www.forexsoutheast.asia/attachments/1527460910.png

I do understand that this egy is sort a trade long EUR/CHF however the ideia is keep E/U and U/C long enough to profit swap AND profit in pips cause sometimes it'll be in profit, and if this happen I suggest to close the position and re-open back again.

Try this egy only for a month. You will be amazed

Thank you for the post.

Bruno

[Noelaytl]

I attempting a different SWAP egy ant FXDD. And make this one at IBFX and FXDD. First of all, this SWAP It´s better at IBFX, don´t operate at FXDD.

I truly think this idea can rocks!!! However, you need to open the transactions a litlle time prior to the Swap and close ASAP. The USD/CHF closes at 0x0 and EUR/USD closes at 2x0

Currently. I have closed the EUR/USD, and awaiting close USD/CHF.

The system can support 190 pips of drawdown. Hi Cesar, I believe the next thing is to find a broker who pays better swap instead Ibfx, however for now it sounds very good.

Obs: Eu sou do Brasil tambem, vou adicionar voce no msn ok?

Até mais

See ya

[Carmenctd]

Sounds alot like freedomrocks.

[andeladlwz87]

It almost is freedom rocks, and most of us know theres a collapse. .

[Noelaytl]

It virtually is liberty stones, and most of us know theres a collapse. . I didn't attempt the FreedomRocks but this hedge seems to work.

Give it a shot and after that you can state whether its failure.

Thanks for the article

See ya

[xescax]

Let's just do it for a year.
5/06 E/U to yesterday cl = 956 pips
5/06 U/C to yesterday cl = -196 pips
net 760 pips x 33.65 = $25575.00

WOW... GREAT!!!
THIS YEAR...

My purpose is, even if there can be this fantastic a difference for you, then there can be just as great a difference .
System needs some work.

[Noelaytl]

Let's just get it done for a year.
5/06 E/U to cl = 956 pips
5/06 U/C to cl = -196 pips
net 760 pips x 33.65 = $25575.00

WOW... GREAT!!!
THIS YEAR...

My purpose is, even if there may be this great a gap for you, then there may be just as good a difference .
System needs some work. Yes, thats why I am saying you ought to close the position when you have profit in both sides. When it goes against you, you need to add more positions to avg price. This way you won't possess such drawdown in pips.

Thanks
Bruno

[xescax]

You need to add places to avg price. This way you won't have such draw down in pips.

Averaging only helps if the pair goes your way.
When it continues to proceed against you the losses simply mount exponentially.

I think a carry trade is most secure if you hedge it from the futures market on a straight one to one basis.
You receive the complete swap points and it is cheaper to exchange futures.

There are still risks and you have to finance two accounts in case your in the USA, but IMHO it is considerably safer.

[Noelaytl]

you ought to add more positions to avg price. This way you won't have such draw down in pips.

Averaging only helps if the pair moves your way.
If it continues to go against you the losses only mount exponentially.

I think a carry trade is most secure if you hedge it at the futures market on a straight one to one basis.
You get the full swap points and it is more affordable to exchange futures.

There are still risks and you have to fund two accounts if your in the USA, but IMHO it is considerably safer. I hear people stating that hedge works much better on futures market, but don't understand that market. I never exchanged and don't understand the principles, but this could be is the way.

Once I say to include more positions you ought to do when the market is moving against you, let us say that EUR/USD create a big range then you should open more positions so the retreacement will pay for the gap.

I'm still concerned about margin call, and I am looking for a way to make the system simpler.

However, I truly know that the system is profitable when you have a large free margin.

If somebody could help with this I will be greatfull.

Thanks

[ninja]

you should add more positions to avg price. This way you will not possess such draw down in pips.

Averaging only helps if the pair moves your way.
When it continues to go against you the losses simply mount exponentially.

I feel a carry trade is most secure if you hedge it from the futures market on a straight one to one basis.
You get the complete swap points and it's more affordable to trade futures.

There are still risks and you have to fund two accounts if your in the USA, but IMHO it's considerably safer. Just curious, is there a thread going on about hedging using Currency Market and futures?

Wondering what FOREX pair(s) and direction with which FUTURES market(s) and leadership.

David

[space]

HEDGE looks good
Hello everyone.

I'm kind a new in Hedge egies and create a system that seems nice.

I truly apreciate if you guys give me any opinions and sugestions trigger the machine appears to good to be true (to me https://www.forexsoutheast.asia/attachments/1527460910.png)

So let's get it

Broker: InterbankFX

Initial account: $10,000

Buy EUR/USD using 3.38 std lots

Buy USD/CHF using 4.10 std lots

Note: Try to Buy at precisely the exact same time, starting with U/C then E/U.

This lots must give you $2,520 of free margin

1 pip EUR/USD = $33.80
1 pip USD/CHF = $33.50

(I didn't found the right lot size to keep $/pip the exact same https://www.forexsoutheast.asia/attachments/1527460910.png )

Let's assume pip worth $33.65, this gives you 74 pips to lose.

It is needed because it is not correlated all of the time, kind a 92% of time https://www.forexsoutheast.asia/attachments/1527460910.png

Swap rates IBFX:

EUR/USD: -$20.45

USD/CHF: $36.49

TOTAL: $16.04 / evening

It gives you $5854.60 annually!

To me it seems really good, it is close to 5 percent a month w/out doing whatever

I actually information close place at a fantastic profit and them you open again (To make margin)

Regards,


Dear Bruno,

as you presumed in the intro, your machine is too good to be true. What a shame.

Buy 1 EUR/USD: Long EUR 100K Brief USD 134.980
Buy 1 USD/CHF: Long USD 100K Short CHF 122.750

Net standing: Long EUR 100K Short USD 34.980 and Brief CHF 122.750

nice attempt, but your only doing the like buying EUR/CHF. It's not a hedge. It functions as long as the Swissy devaluates against the EUR. Https://www.forexsoutheast.asia/attachments/1527460910.png

Proof:

Buy 1 EUR/CHF: Long EUR 100K Brief CHF165.620

CHF 165.620 equals USD 34.980 and CHF 122.750 in the moment of commerce. Why? USD 34.980 was in the specified price (1.2275 USD/CHF) in the moment of trade representing CHF 42.870. These CHF 42.870 - oh wonder - additional to CHF 122.750 amount up to CHF 165.620.

Regards
t.

[space]

Someone said Freedom Rocks is a failure....why??? Personally, I don't use it but I see the concept behind it. . .let's forget GBP and JPY (too risky although the carry can be greater, same thing AUD and NZD) and speak about EUR USD CHF that's what Bruno is interested in.

Obviously you would buy the two....somebody mentioned selling but just how do you get interest in case you marketed both?

Buy EURUSD. . .long of EUR brief of USD
Buy USDCHF. . .long of USD brief of CHF

In substance you're long of EURCHF but hedged since the correlation between the two is around -0.95 (with -1 being a great correlation, tick for tick, one goes up the other goes down).

??? Dear Hornet,
to understand the simple mechanics of currency trading you have to understand everything you're doing, when Buying and Selling, will be to make dept and loan at equivalent size on the 2 sides of your balance sheet in your bank.
Buying EURUSD implies, you're getting 100 K in EUR out of the bank (i.e. financing is accounted as a asset to your favour; a PLUS) and you're carrying a dept (Selling) of equivalent size in USD (a dept, a MINUS). The interest for having the loan for a plus on your own account is netted with all the interest paid for the dept for a minus on your account. As both of these amounts of dept and loan are equal, your margin is only a fractional part of these sums you move, in order to serve as security for currency rate fluctuations. This is the reason, why you don't have to place the USD-Equivalent of 100.000 EUR of your money on the table for buying one Lot EUR/USD (i.e Buying 100K EUR against selling exactly the same amount represented in USD). You are getting a dept out of the broker or bank because dimensions in order to buy.

If a currency includes a higer interest amount, the internet interest is going to be booked to your account (i.e. USD/CHF), when the ratio is negative, it will be removed from the own equity. ... Here is the meaning of long (you have something) and brief (you don't have it).

If you do combined transactions i.e. Buy EUR/USD and Buy USD/CHF you're finally Buying (Getting, Having) EUR and Selling (owing, Not Having) USD. The same with Buing USD/CHF.

So you have to check at your equilibrium of the combined transactions to see what you have or don't have at the end of your transactions. This effective equilibrium defines your currency risk in addition to your interest earnings or payings. (See my earlier post)

Greetings
t.

[mireuste]

It's so funny with of the Guru Extended EU and Long UF traders in two or more threads have stopped speaking because the EF went down the previous few days.

Ah maybe now they see...

[mreaker888]

. . .very post that is interesting!

[Noelaytl]

Reply, cmon men https://www.forexsoutheast.asia/attachments/1527460910.png