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Thread: HEDGE looks good

  1. #1
    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 )

    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 )

    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

    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

  2. #2
    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.

    Quote Originally Posted by ;
    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...

  3. #3
    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

  4. #4
    Quote Originally Posted by ;
    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

  5. #5
    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.

  6. #6
    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.

  7. #7
    Quote Originally Posted by ;
    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.

  8. #8
    Quote Originally Posted by ;
    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. : )

  9. #9
    The hedging concept suppose NO CORRELATED tools for reducing risk and capture the trends.

  10. #10
    Quote Originally Posted by ;
    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

    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

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