Three Pairs Hedging - Page 2
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Thread: Three Pairs Hedging

  1. #11
    Quote Originally Posted by ;
    quote true.it is not without a motive when you see in the hedge/arbitrage topics the majority of the time novices utilize it. ... .
    Exactly, look here:


    chart is made on period 2011-2016 and shows price behavior from mix BBS (blue) and SSB (crimson )
    BBS: buy eurgbp, buy gbpusd, sell eurusd -- each 1 lot dimensions
    SSB: sell eurgbp, sell gbpusd, buy eurusd -- each 1 lot dimensions

    from that chart can be observed, that in certain time trades portfolio may go from 2000 to -3500, and it is drawdown -5500 USD, and this downward takes longer than 1 year for reverse - and if it reversed, yet another 1 side movement happend with reverse mix and choose another 1 year to undo
    now somebody can assert, that you can take trades just in direction for profits - ok, but if you understand this direction, it is possible to take trades without hedging with more profits (other combinations can create larger DD, such as JPY pairs, even -15000 with 1 lot dimensions ), and below aren't calculated additional fees such as swap...

    as you said, a lot of people/traders drops right into this systems for decades and are holding places for decades, are multipliing places for small profits and are hoping, that these tiny profits pay losses - possibly, but as result a lot of work from enormous drawdowns (since they are often multiplied)...

    so people, dont be greedy to this egy

  2. #12
    Thats normal, and by math its outcome. You have much disperse paid, and you have still 2 positions (remaining parts overlapping) always open at minimum, and this 2 positions will show if you have win or loss ultimately. Of course additional and swap spread will give a a possibility that is bad, and always when you won you will be laughed about by other because you could have wins without risk and cost a whole lot simpler by just open the unhedge place part.

    Its always better to help starters with math and market fundamentals, but what they do with the fundamentals and math, we cant decide. Some metacoder are so extrem ched in their thoughts, they dont have a chance to accept the facts. Already some folks tried to warn him about his mistakes, but he will ignore it (a few he was even attacking) and even begin blocking you. But such extrem beginners you will always see here, we will help all starters. When dont know fundamentals, some need to learn on the way, dont know dont and math accept truth.

  3. #13
    Quote Originally Posted by ;
    quote precisely, look here: image chart is created on period 2011-2016 and shows price behaviour from combination BBS (blue) and SSB (crimson ) BBS: buy eurgbp, buy gbpusd, sell eurusd -- every 1 lot dimensions SSB: market eurgbp, sell gbpusd, buy eurusd -- every 1 lot dimensions from this chart could be seen, that in some time trades portfolio can go from 2000 to -3500, also it is drawdown -5500 USD, and this downward takes longer than one year for reverse - and if it reversed, another one side movement happend with opposite combination and choose another one year to reverse...
    His point was that it's a waste of time because if you completely and properly hedge all units in the ring - you may only ever lose because the net swaps are almost always negative (didn't used to be that way) and also the only means you're seeing any movement whatsoever is because you aren't properly calculating lot dimensions. This usually means you are one currency and x units brief another; efficiently wasting funds paying for swaps and tying up margin money for no reason. That really is a egy for all those reasons.

  4. #14
    Quote Originally Posted by ;
    quote His purpose was that it's a waste of time because if you fully and properly hedge all units in the ring - you will only ever lose because the net swaps are always negative (did not used to be the way) and also the only means you're seeing any movement whatsoever is because you aren't properly calculating lot dimensions. This usually means that you are one currency and x ray units short another; effectively wasting capital paying for unnecessary swaps and tying up margin money for no reason. This is a egy for those reasons.
    The problem is, its complete impossible to hedge it completely. You can hedge most parts, but parts that are small will be open all the time. And this parts decide loss or the wins.

  5. #15
    There is no way for something as correctly hedge by calculating lot dimensions... result in my evaluations from MT5 out of multipair EAs based on these triangulars was, that 1:1:1 lot dimensions are best for long term hedge/alive if you start with calculating for various lot sizes with artifical formulas, you constantly move from hedge ring (for larger profit or larger loss)...

  6. #16
    Quote Originally Posted by ;
    quote Hi Metacoder, thanks for share your ideas. Please, is important the minute to send the orders or is indifferent? Thanks.
    Following several round trips on demo accounts together with the 10-pair basket I've been talking, it became clear that a fantastic egy has to be used beyond just opening trades once the targets are struck.

    It is fine to comprehend the attached triangles, but you shouldn't enter all available trades with no logical criteria.

    Following the first trade opens since the target has been hit, I suggest excluding some other trades from opening. For instance, if the first trade is a GBPJPY sell, then do not open another trade that sells GBP and buys JPY until some payoff is in place. I might be more specific since I exercised and implemented the exact logic for all 20 possible trades, but I'm going to keep this for today.

  7. #17
    Quote Originally Posted by ;
    there is no way for something as properly hedge by calculating lot dimensions... result in my evaluations in MT5 from multipair EAs based on these triangulars was, that 1:1:1 lot dimensions are best for long term hedge/alive if you start with calculating for various lot sizes with artifical formulations, you always move from hedge ring (for larger profit or larger loss)...
    Correct lot dimensions are only important if trying to maintain the equity as steady as possible. I thought for a time that this was important, but in the many years I had been off from developing EAs, I realized it will not make sense if the goal is to create money . Together with the egy I've been working on lot dimensions on all pairs would be the way to go.

  8. #18
    Quote Originally Posted by ;
    quote Following several round trips on demo accounts with the 10-pair basket I have been talking, it became evident that a good egy has to be employed beyond simply opening trades when the targets are struck. It's fine to comprehend the connected triangles, but one shouldn't enter trades. I suggest excluding other trades after the first trade opens since the target was struck. For example, if the first trade is a GBPJPY market, then do not open another trade which sells GBP and buys JPY until...
    at least use a cent account or small actual account, demonion is just for testing code, then testing egy is complete useless, particular arbitrage and hedging shows useless outcomes.
    Simply to help you to save some month:--RRB-.

    By the way: there aren't any keys in hedging, all was completed before in 1000 times better way. Mathematics is math. You are able to calculate the effect of 2 2 as 10 20-26. But will this help.

  9. #19
    Meditate on the mantra below. Pretend you're one of the potential 20 transactions at the 10-pair super triangle I illued. You are a long that is CHFJPY. Or maybe you're a brief. Doesn't matter which one you're, there are six transactions you don't want to see if you aren't yet hedged opened.

    This is your mantra: '' I'm not hedged in among the four ways I can be hedged, then don't let any of those six transactions available unless they would finish a hedge.

    And you have to know for sure which six transactions shouldn't be opened based on what trade you're. And you have to keep them until you're hedged from opening.

    This is what I have worked out and implemented.

  10. #20
    Quote Originally Posted by ;
    Look, I am not saying that a egy based off the mathematics behind tri-arb is not without virtue, but the reality is that no matter what your egy, in case you're holding offsetting components in your Currency Market account and it's not arb or positive carry trade then you're either screwing yourself or else you're screwing your investors, period. I'm going to leave this thread alone for now, but I'll leave it with something constructive. Did you know that you can use the formula to plot artificial pivot points? C/A = 1/((A/B)*(B/C)) Where A/B and B/C will be the daily pivot points...
    PLEASE CHECJ THIS LINK:
    https://www.forexsoutheast.asia/cryp...lume-bars.html

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