AWESOME: New forex hedging strategy!

johnedward · 31-01-2012 11:51:39

Hi MJJ,

1) I actually don't worry too much about the spread (of course that doesn't mean you shouldn't pick a broker with low variable spreads. Setting the stop losses and take profits is actually super easy and fast if you use scripts (sounds difficult but it's not, read the section starting at the 2nd arrow here).
2) Have you tested the other similar strategy outlined here? I really like it as the following lot sizes are smaller than in the first version of the strategy which you're using (lot sizes are now 1/2/4/8...whereas in this thread's strategy the lot sizes are 1/3/6/12...)
3) I sometimes manually exit with a small profit (or loss) if I haven't reached my target after 3 positions have been opened...especially if I get the impression the pair is going to be trapped in a range for a while. Just make sure you try to exit near a TP point.

Oz · 09-03-2012 14:25:59

I am very interested in the long term success of this strategy and want to test its profitability and consistency.. but I then realized I cannot go back using a trade simulator because I trade through Oanda and they don't allow hedging on one account, so you have to create sub-accounts and open buy orders in one account and sell in the other. Real time demo accounts work for now.
Just wondering if anyone is implementing this strategy? I think its great and simple!!

Best Regards,
Oz

johnedward · 09-03-2012 15:00:33

Hi Oz, check out the variant of this strategy, which I actually prefer (and you only have one position open at the same time so non-hedging brokers won't have a problem with it): version II of the "hedging" strategy. Test it out in demo first, as usual.

Psyren · 13-04-2012 15:52:47

Hi, this is an incredible strategy and thank you for sharing it. But i have a question, can we start with Short too? i mean i tried and i dont understand why when the price line is exactly on the short line it still says that its on - ? I think thats the spread, but with long it doesnt happen. Sorry if its a stupid question, i m still a novice.

johnedward · 15-04-2012 10:21:28

Hi Psyren, yes you can start with a short too. I don't understand what you mean by "when the price line is exactly on the short line it still says that its on - " though.

toddanderson · 16-04-2012 12:24:06

could someone please repost this ea,
I like the idea of manual entry than if the trade moves against you the ea takes over,
if I am understanding it correctly.
could someone repost it the link is not working
thank you

johnedward wrote:
A friend of mine runs the French version of this site and someone recently provided him with an EA for the second version of the strategy; as I understood it, you have to manually enter the first trade and the EA handles the other positions. My friend tested it but said he got an error message, he thinks it's because his broker is a variable spread broker but isn't sure. If you want to test it, here is the EA.

I admit I'm not too keen on the idea of buying an EA anywhere, mainly because the strategy could in theory evolve to reflect improved parameters (for example a lower TP after x positions so as to get out of an unusually long trade); also, if this strategy proves to be as good as it has been so far, someone will eventually creep out of the woodwork to program it (I'm going to a trading show in Paris next month, with some luck maybe I'll run into a benevolent programmer). I also get a kick out of running this thing manually (of course when I get to the point where I'm managing 3 currency pairs simultaneously my view may change!).

Psyren · 16-04-2012 12:39:02

Even at the supposed break even price, it still was on minus , but never mind that( it only happened once, probably some sort of bug) . I have another question, today i had 2 positions on the GBP/JPY, a short with the SL at 128.039 and a long with TP at 128.039. And what happened was that when the price touched the 128.039, it only triggered the SL and not the TP too. I was lucky that the price went back 2-3 pips and then continued its path, this time hitting the TP. From now on should i move the SL a bit further? so that it needs to first go through the TP to touch the SL ?

johnedward · 17-04-2012 14:57:56

toddanderson wrote:
could someone please repost this ea,
I like the idea of manual entry than if the trade moves against you the ea takes over,
if I am understanding it correctly.
could someone repost it the link is not working
thank you

johnedward wrote:
A friend of mine runs the French version of this site and someone recently provided him with an EA for the second version of the strategy; as I understood it, you have to manually enter the first trade and the EA handles the other positions. My friend tested it but said he got an error message, he thinks it's because his broker is a variable spread broker but isn't sure. If you want to test it, here is the EA.

I admit I'm not too keen on the idea of buying an EA anywhere, mainly because the strategy could in theory evolve to reflect improved parameters (for example a lower TP after x positions so as to get out of an unusually long trade); also, if this strategy proves to be as good as it has been so far, someone will eventually creep out of the woodwork to program it (I'm going to a trading show in Paris next month, with some luck maybe I'll run into a benevolent programmer). I also get a kick out of running this thing manually (of course when I get to the point where I'm managing 3 currency pairs simultaneously my view may change!).

Are you sure the EA is not working, my computer seems to download it just fine. On a similar note, a friend of mine is trying to develop an EA for the other similar strategy discussed in this thread.

johnedward · 17-04-2012 16:18:01

Psyren wrote:
Even at the supposed break even price, it still was on minus , but never mind that( it only happened once, probably some sort of bug) . I have another question, today i had 2 positions on the GBP/JPY, a short with the SL at 128.039 and a long with TP at 128.039. And what happened was that when the price touched the 128.039, it only triggered the SL and not the TP too. I was lucky that the price went back 2-3 pips and then continued its path, this time hitting the TP. From now on should i move the SL a bit further? so that it needs to first go through the TP to touch the SL ?

It's quite normal for the TP and SL to be triggered at different price points even if the TP and SL are the same. Here's what you need to know:
1) The price you see on the main line on your Metatrader platform is always the bid price (sell).
2) When you launch a short position, it enters on the bid price and exits at the ask price (buy price).
3) When you launch a long position, it enters on the ask price and exits at the bid price.

So if you have a SL and a TP that are set to trigger at 128.039, they will not execute at the same price you see on the platform (which displays only the bid price). As far as the strategy goes, it's probably best to not fool around with the settings, just follow the strategy.

Psyren · 26-04-2012 19:15:44

Hmmm, I`ve been trading this strategy for the past 2 weeks and I must say...IT`S INCREDIBLE!! Thank you a lot for sharing it John, I`m not sure how good the second version of it is but I am very happy with this version. Again thank you for sharing it

#41 31-01-2012 11:51:39

Re: AWESOME: New forex hedging strategy!

#42 09-03-2012 14:25:59

Re: AWESOME: New forex hedging strategy!

#43 09-03-2012 15:00:33

Re: AWESOME: New forex hedging strategy!

#44 13-04-2012 15:52:47

Re: AWESOME: New forex hedging strategy!

#45 15-04-2012 10:21:28

Re: AWESOME: New forex hedging strategy!

#46 16-04-2012 12:24:06

Re: AWESOME: New forex hedging strategy!

johnedward wrote:

#47 16-04-2012 12:39:02

Re: AWESOME: New forex hedging strategy!

#48 17-04-2012 14:57:56

Re: AWESOME: New forex hedging strategy!

toddanderson wrote:

johnedward wrote:

#49 17-04-2012 16:18:01

Re: AWESOME: New forex hedging strategy!

Psyren wrote:

#50 26-04-2012 19:15:44

Re: AWESOME: New forex hedging strategy!

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