Page 1 of 11 123 ... LastLast
Results 1 to 10 of 102
  17 17 Attachment(s)    

Thread: Cumulative MA Hedge EA

  1. #1

    Default Cumulative MA Hedge EA

    Hi Funyoo,

    Although the trading logic of the original EA is very nice, the critical point, especially for this type of EA is the DD that can easily blow the account in trending markets.
    But, what would happen if we use 2 negative correlated pairs? : USDCAD and AUDUSD.

    These globally move the same but opposite to each other where they globally hedge each other in the following situation:

    Let the first EA version (from the first page) place exact the same direction trades at exact the same moment on both pairs simultaniously, but keep all the trades floating as long there is no positive account profit. While the correlation between the pairs is not always 100% the same, there exists moments that the P/L comes in positive areas where AccountProfit should take care of simultaneously closing all trades in profit. (on both pairs)

    Although the moments of takeprofit occurrences become less we come to an an EA that would have small DD even in trending periods. .

    If it is more easy to use positive correlated pairs for some reason, then for instance NZDUSD - AUDUSD would be good pairs. (Then it is needed to invert the direction of the trades placed to the hedging pair)

    Would this have potential?
    Last edited by CycleTrader; 07-25-2010 at 14:42. Reason: typo

  2. #2
    Administrator funyoo's Avatar
    Join Date
    Sep 2008
    Posts
    7,003

    Default

    Quote Originally Posted by CycleTrader View Post
    Hi Funyoo,

    Although the trading logic of this EA is very nice, the critical point, especially for this type of EA is the DD that can easily blow the account in trending markets.
    But, what would happen if we use 2 negative correlated pairs? : USDCAD and AUDUSD.

    These globally move the same but opposite to each other where they globally hege each other in the following situation:

    Let the first EA version (from the first page) place exact the same direction trades at exact the same moment on both pairs simultaniously, but keep all the trades floating as long there is no positive account profit. While the correlation between the pairs is not always 100% the same, there exists moments that the P/L comes in positive areas where AccountProfit should take care of simultaneously closing all trades in profit. (on both pairs)

    Although the moments of takeprofit occurrences become less we come to an an EA that would have small DD even in trending periods. .

    If it is more easy to use positive correlated pairs for some reason, then for instance NZDUSD - AUDUSD would be good pairs. (Then it is needed to invert the direction of the trades placed to the hedging pair)

    Would this have potential?
    Hi CycleTrader,

    That's interesting.

    Here is a new EA. Set hedge to true, signalpair, secondpair, basketdollars (or basketpips or basketpercent) to true, globalprofit to true in order to consider both pairs.

    Attach the code to the two pairs.

    This EA can not be backtested.
    Attached Files Attached Files

  3. #3

    Default

    Great Funyoo,

    I see that backtest results with one pair enabled show the same curve like the first version, so that is good, now i just started forward testing on both pairs with hedge enabled, let's see how it performs...

  4. #4
    Junior Member
    Join Date
    Jan 2010
    Posts
    12

    Default

    Do I have to change magic number for the second chart? i.e 12345 for AUDUSD and 54321 for USDCAD? Correct? Basketpercent is not working. Add swap would be ideal if I set to long both AUDUSD and USDCAD because Aus dollar yield higher interest than US dollar.

  5. #5
    Member
    Join Date
    Jan 2009
    Location
    France
    Posts
    125

    Default

    Interesting EA but I don't understand the logic...
    I've tried with EURUSD and USDCHF but the EA only opens trades on EURUSD...all winners
    Could you explain exactly how it works ?

  6. #6

    Default

    Quote Originally Posted by stardust View Post
    Do I have to change magic number for the second chart? i.e 12345 for AUDUSD and 54321 for USDCAD? Correct? Basketpercent is not working. Add swap would be ideal if I set to long both AUDUSD and USDCAD because Aus dollar yield higher interest than US dollar.
    Currently i have both pairs on H4 with the same magic number and it opens and closes trades simultaniously on both pairs, i use basket dollars in stead of basketpercent and work correct.

  7. #7

    Default

    Quote Originally Posted by madscalp View Post
    Interesting EA but I don't understand the logic...
    I've tried with EURUSD and USDCHF but the EA only opens trades on EURUSD...all winners
    Could you explain exactly how it works ?
    Did it work correct if u use USDCAD and AUDUSD on H4 timeframe?

  8. #8
    Junior Member
    Join Date
    Jan 2010
    Posts
    12

    Default

    Quote Originally Posted by CycleTrader View Post
    Currently i have both pairs on H4 with the same magic number and it opens and closes trades simultaniously on both pairs, i use basket dollars in stead of basketpercent and work correct.
    Will demo test on Monday. Thank you, CycleTrader!

  9. #9

    Default

    Seems like a great idea. So the idea is that we hedge against AUDUSD and hopefully there will be a time when they are both in profit, exit all positions and not do this (chart).
    I'll start a test this week too.
    Attached Images Attached Images Cumulative MA Hedge EA-cumulative-ea-gif 

  10. #10

    Default

    Yes thats exact the idea to avoid the day that the account easily blows-up like your graph shows. I have it in demo test since 20 july 2010 with positive result, see screenshot below. Also see how it simultaniously opens and closes the trades on both pairs. Currently i use the default basketdollars setting of 5 USD.
    Attached Images Attached Images Cumulative MA Hedge EA-cumul-hedge-png 

Similar Threads

  1. Successful Trading Requires Cumulative Knowledge
    By painofhell in forum Trading discussion
    Replies: 9
    Last Post: 12-12-2017, 13:05
  2. EA cumulative
    By admp in forum Ideas for expert advisors
    Replies: 0
    Last Post: 12-15-2010, 15:09
  3. Cumulative MA EA
    By funyoo in forum Expert advisors backtesting
    Replies: 0
    Last Post: 03-19-2010, 22:36

Tags for this Thread

100, alpari, alpari uk, automatic, average, backtest, broker, brokers, candle, change, closing, coding, copier, copy, correlation, demo, download link, ecn, eurusd, experts, forex, forex trading, forex4you, free, funyoo, fxopen, gbpjpy, grid, hedge, hedging, indicator, learn, live, magic, magic number, manual, markets, metatrader, mq4, mt4, nzd, online, pairs, profit, profitable, request, scalper, scalping, signal, simple, stop, strategy, system, systems, test, thank you, time, timer, trader, trading, usd

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •