Three Pairs Hedging
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Thread: Three Pairs Hedging

  1. #1
    Hi Guys,
    I'm a fantastic lover of hedging;--RRB-

    Here I show you the way I hedge circel pairs = GBPUSD gt; USDCHF gt; GBPCHF
    Circel pairs signifies each currency GBP USD and CHF seems twice in those 3 pairs.
    GBPUSD = Buy
    USDCHF = Buy
    GBPCHF = Sell


    GBPUSD = market
    USDCHF = Sell
    GBPCHF = Buy

    I used no indior at all, but it required sometimes a while to earn profit.
    I utilized same lotsize on all 3 pairs and TP of 100$

    One may say, hey, why would you not trade just GBPUSD and GBPCHF?
    Because, it causes such a large DD that can blow off an account in very brief time, therefore please do not try this at home;--RRB-

    Here some more examples for three pairs hedging:












    There continue to be some more opportunities, but the spreads are very high!

    I utilized a very simple EA, where I just had to input the 3 pairs, whether I would like to open a market or buy order for the single pairs, the lotsize and the TP. It did not utilize any indior and started new trades whenever the previous ones where shut.
    But I don't have this EA and don't know its name . However, I had it from this forum. I'd have preferred to have automatic Lot size (calculated by percent of free margin) and automatic TP (calculated by percent of equity).

  2. #2

    This is precisely what I found when backtesting a number of triangular hedges... You could/would be stuck for years in a significant drawdown... along with the little profits never covered the considerably larger losses on account of the disproportionate pip moves between the three currencies. It's true that there were periods of profit taking, but a directional movement by one of those three pairs could blow off the hedge.

  3. #3
    Quote Originally Posted by ;
    quote but in positiones you 3 times chf sell and one time buy? is true?
    Metacoder is doing the mistake in his example, I hope he is doing it correct in real trading, or he simply will wonder why his basket wins/loss will move because of chf and usd nevertheless open with 4 rankings;--RRB-. .

    For a tip: change the direction of usdchf to have chf and usd hedged, or you're with usd and chf nevertheless open 2 times each.

  4. #4
    Quote Originally Posted by ;
    MetaCoder, Thanks. I noticed that on your post, but wanted to be certain about it. Is there a specific time of week and day that you have discovered that would be better to start a cycle that is hedging? Bruce
    Hello Metacoder, thanks for share your ideas. Please, is important the moment to ship the orders or is indifferent?

  5. #5
    Quote Originally Posted by ;
    quote I am glad it's beneficial to you. I didn't understand the question. Could you be more specific? Thanks....
    Yes..sorry for my own sanity. . The equity start each new day and interrupts profit and loss the past day...I wanted to ask you if it was possible an uninterrupted equity? I hope that I have explained. . Thank you

  6. #6
    Quote Originally Posted by ;
    There likely is brucech, but all the pairs need to move sooner or later and it is market movement we want. I've been working with an EA and as I anticipated the times that are exact silent aren't excellent. I really don't know how it would do through major news announcements. But profit was accessible today several times in a row through late afternoon and early evening, USA Pacific time. The pairs offered in no predictable order, only depends on what the market does when the anchors are set along with the EA waits for the market to get with the buy and sell levels.
    Thank you metacoder to your idea. .

  7. #7
    Quote Originally Posted by ;
    quote my yesterday's set. image Well. . Finest setup for today. 3 PAIRS. . BUY AUDUSD, BUY USDCHF SELL AUDCHF
    This Isn't hedging, the lot dimensions are Mistaken

  8. #8
    Quote Originally Posted by ;
    quote This isn't hedging, the lot sizes are incorrect
    the challenge is, that they cant comprehend that, even when they use same size cant see that there are nonetheless some position rests open, and thatswhy the basket moves. Would be easier to buy this remainder and have same result with win, at least if you dont want arbitrage trading.

    In this case the remainder position is of course bigger then normal.

  9. #9
    Every pair have different pipDolarValue and it's about this pipDolarValue what's happening in this hedging egy
    if this value goes enormous against you - you can wind in fine DD with money (pipDolarValue is lively, depends)
    reality isyou can be profitable in addition to lossable, isn't accurate, that time that your trio goes into profit, just wait - it isn't accurate, it can be in reduction years and reduction can grow...

  10. #10
    Quote Originally Posted by ;
    each pair have different pipDolarValue also it is about this pipDolarValue what is happening within this hedging egy if this value goes enormous against you - you can wind in fine DD with cash (pipDolarValue is dynamic, depends) reality isyou can be profitable as well as lossable, is not true, that one time your trio goes into profit, simply wait - it is not true, it can be in reduction years and reduction can grow... isn't without a reason if you see in the hedge/arbitrage topics the majority of the time newcomers use it. Its a egy for novices, sounds smart however once it was guessed by you by math right its easy to find the issues. Cant understand the math or market fundamentals, so they fall in love for this simple. Same time they dont understand maintain in topics they'll just drop time, and to trade really. In my beginning I was. But got ched before put into much time wasted.

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