InsomiaFX Correlation Double Hedge EA
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Thread: InsomiaFX Correlation Double Hedge EA

  1. #1
    Hi,

    that this EA was tested with Exness. You need a broker who gives counter tops hedges. Broker compatibility: The EA calls currency pairs like AUDUSDm. Replace the m at the EA along with your brokers code.



    The Correlation Double Hedge EA system operates this way:

    AUDJPY/CADJPY possess a correlation of around 90% over 1 year which is good. Over the daytime it affects.Open a 100.000 USD demo account Attach EA to AUDJPY chart, timeframe doesn't matter
    EA can do:Open hedged AUDJPY/CADJPY (2 orders - Pair 1) Open the same orders contrary side (Pair 2), margin is now 0 and we have a . . hmm . . Correlated hedge !
    With margin 0 we have a very wonderful buffer for drawdowns and we double the opportunity to reach the TP because of two Pairs. Just swap is negative.

    For example every order is 40 lots and TP (Take Profit) point of 1000 USD per pair.

    Profit is going to be taken when the significance goes wild and a pair reaches the TP. Like one order is the and -1000. This pair recreated and is going to soon be closed. This happens around 5-10x daily.

    The drawdown will stop automatically at a max as a result of dual hedge. In this example not over 20% or so.


    Very nice interactive significance charts:
    http://www.myfxbook.com/forex-market.../AUDJPY-CADJPY
    http://www.myfxbook.com/forex-market/correlation


    Change reduction per day around -80 USD with 40 lots per order. If you disable Pair 2 and pay margin for Pair 1, the Swap turns into a profit of ca. 120 USD per day or around 3000 USD/month. Pair 1 nevertheless will require the 1000 USD TP whenever reached.

    Things to do:Assess the EA for bugs Evaluation the machine if it makes any lasting sense ? Add correlation formular to EA (mostly done) Define perfect order entry points based on significance of last X min Add lot based compound linked to Equity profit to boost this up.
    As AUDCAD drops around 8 percent per last 2.5 years I added code to correct the lot size based on precisely the exact same USD value for every pair. However I found the significance differences daily is up to 50 percent per pair therefore it has little impact to correct the lot sizes now. So that code is still inactive. With AUD/CAD around 1.00 only place same lots.

    I have it operating on 4 Demos since now to check whether that system works and find code/logic bugs.

    See the pairs displayed in the remark and profits in points. Fun to see how the points vary around until they hit the TP.




    Thx for reading and any comments.






    As the EA gets updated very often plz find the latest EA within the ribbon.

    Notice: The rar includes a dll which simply boosts the MT4 process priority. Its not needed if you do not trust DLLs. Simply uncomment the related code at the EA. If you prefer to use it, then put the dll into exactly the exact same folder as terminal.exe. Requires Windows 7 and .NET Framework 4.0. Source on request.
    https://www.forexsoutheast.asia/atta...2229853990.rar

  2. #2
    Had the information to share. . .here's the last 85 months at the end.

  3. #3
    I enjoy correlationhedge ideas....but who understands a broker that has 0 margin for these hedged currencies, which accepts US customers?

    So, is your TP about 3-4 pips?

  4. #4
    I think hedges for US customers can be worked around if you open a company in another country and use that company to enroll with a broker. I normally live in Canada but have a little company in Europe. Similar concept how Apple avoids to pay taxes which was from the news a bit recently . .
    Managed accounts could be a way, too.


    The TP is a personal choice. The higher you set it, the more it will take to reach it and the more unlikely you'll reach it. Better 3x 1000 1x 2000 . . Most of the time the pairs hang in a loss and move into profit very rarely for a brief time. With TP 1000 and 40 lots its just enough to not get a loss due to slippage when the orders are shut in sequence. Silly we can't shut orders in parallel with MT4. I suppose a TP 2000 is more safe. Play around with it and see what works best over a week or so. In 40 lots, 1 pip is ~400$ so its quite time critical to shut a pair quick without flaws.

    This EA would function better on a different platform than MT4 but I haven't tested others so far. Any recommendations ?

    Now the Exness Demo host seems to be sick since I have problems to shut orders because some minutes.

    Another offset hedge broker is: AFX aka https://www.supertradingonline.com/en/ What additional brokers have offset hedges ?
    I shall test AFX now. Otherwise my orderclose code is buggy . .


    This EA can be developed further. Lets assume a typical grid trading platform with longs and shorts. You specify the grid thickness with x pips as normal and instead to put a short, long or both at one grid level you set . . This - a related double hedge. We don't care about the grid itself but on the time differences when the pairs are set on the grid. As based on that we get different correlations to start with and different prices for every pair. I haven't analysed the deeper mechanics of optimal entry points for correlated double hedged pairs but feel that randomness will do good here.

    By getting more pairs we raise the possibility that one strikes the TP. Swap would be precisely the same if the entire order quantity stays the same.

  5. #5
    EA Update in OP

    - fixed bug in OrderClose
    - rewrote code to Offset correct profit when pair is closed


    Besides that, I noticed a Behaviour from grid trading:If Pair 1 is closed and reopened, the distance to Pair 2 has improved. Drawdown is increased.
    Why ? Lets say Pair 1 includes a profit of -20.000/5.000, thus 15.000 negative. Pair 2 would be in a similar range, just the opposite which holds the DD secure. Thats the way it ought to be and great. But things change if we presume Pair 2 hits the TP. We take the profit and recreate a new Pair 2. The new Pair 2 will be like -1000/-1000. Thus we get an unbalance in the account as we have a greater DD. This could lead to an increasing DD over time. Needs to be demolized over a longer period.

    This of course doesn't happen if only Pair 1 is exchanged independently. (Just uncomment the Pair 2 code). What if Pair 2 has outsourced to a second account ? I took the green mind cleaning Anti-Double Hedge pill already so will think more about that tomorrow . .

  6. #6
    Keep up the goodwork

    question time:
    pair 1 we buy A/J and buy C/J or buy and sell another?

  7. #7
    Pair1 = AUDJPY LONG (Order 1A) CADJPY SHORT (ORDER 1B) = Customize Favorable 120 USD/Day in 40 Lots

    See the screenshot in the OP, shows all the orders and to which pair they belong.

  8. #8
    Quote Originally Posted by ;
    Pair1 = AUDJPY LONG (Order 1A) CADJPY SHORT (ORDER 1B) = Swap Positive 120 USD/Day at 40 Lots View the screenshot from the OP, shows all of the orders and also to which pair they belong.
    Thanks.
    i missed out on the pic. Sorry my bad.

  9. #9
    I do not enjoy trading platform that is hedging in any way. If your trading situation is at the incorrect direction of the market, it is better to reduce your loss and begin a new trading analysis.

    ------

    http://www.forexegi.com/2013/05/how-...-payrolls.html

  10. #10
    Interesting I will leave evaluation.
    Congratulations thank you for sharing

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