Thread: Need Help Programming EA

Okay, I'll bite.

I'm no super trader or anything but one thing I know is that these two pairs move in the opposite direction about 95% of their time. I've made some pips when buying selling and one on the opposite pair. That being said I must ask how you can trade both pairs in the same way and create pips?

kevin

The pairs go in opposite directions 95% of the time (well, I don't know how accurate this is, since I am certain that the proportions are off), but nevertheless. . .since (more than likely), the USD will last it's weakening from the majors, AND considering that you are technically buying more EUR than you're selling CHF, AND considering that the pairs COULD move in precisely the identical direction 5 percent of the time, the anticipation could easily be that you would make money not just from the swap (where you would be collecting in your USD/CHF long), but from congruent moves between the rates.

Furthermore, leveraging 40 percent of the account at say 100:1 would require a motion of 0.025% on the leveraged cash to make 1 percent of their account balance.

So, if you have $1000 in your account, and you invest $400 of your margin in
this, you want the $40000 of leverage to reap $10 of gain (1% of $1000).

I guess the odd thing is, why we're cutting profit off at 1 percent (other than for compounding). . .still, I've a feeling it can be more economical (there's a cost associated with opening AND closing places ) to simply add positions ever since your margin will be determined by the quantity of margin you have (not equity). In theory, I suspect you can just monitor margin and ensure that you have 40 percent margined by adding the smallest lots. It's basically the same thing, and you would be saving money by not reopening positions.

Originally Posted by ;

Okay, I'll bite on this one I guess.

I'm no super trader or anything but one thing that I know is that both of these pairs go in the opposite direction about 95% of their time. I've made some pips when buying selling and one on the other pair. This being said I must ask how you can exchange both pairs in precisely the same direction and make pips?

kevin

Originally Posted by ;

Ok, I'll bite on this one I guess.

I am no super trader or anything but one thing I understand is that these two pairs go in the opposite direction about 95 percent of the time. I've made some nice pips when buying selling and one on the pair. That being said I must ask how you can trade both pairs in exactly the same direction and make pips?

Kevin

Hello Kevin,

Yesyou can make nice pips buying selling and one another, IF you can guess the direction of this market. But because those pairs do proceed in opposing direction approximately 98 percent of the time, why would you not merely double the lot size of your commerce and stick with a single pair?

It's because those pairs go in opposing direction most of the time this manner of trading (buying both pairs) is a really secure approach to trade. It is simply called hedging. The benefit of trading this way, that is, of course hedging, is that you may use a whole lot more of your account balance in these trades. In the brief time I have been doing so, in reality , the maximum drawdown I've had has been 3%.

What we are actually doing here is simply trading the daily fluctuation in these pairs. We do not do anything when they are fluctuating against us we take the minimum drawdown. When they fluctuate in our favor we simply grab the profit.

As an example, I opened this transaction last night before going to bed (Eastern time) and checked it immediately before going to sleep and it had fluctuated against me by about $22.00 (on a $1,000 account). I went to sleep, and slept peacefully knowing I was fully hedged, and once I woke up this afternoon it had fluctuated within my favor of roughly $25.00. I closed the trades, took the $25.00 profit that was 2.5% of my account balance, and then reopened the trades again.

My goal is to determine if we can make 1% per day. So far that have doubled. I really do believe I am going to start a new thread and will post the URL here in the next thread.

Thank you all.

Mike

Here is the new URL for this particular system. Let us flawless it

https://www.forexforum.co.za/trading...s-15-mins.html

Mike,

Perhaps my math is wrong, but I'm trying to find an understanding of why you would close some of your rankings until you had to withdraw cash in the account? If you betting in precisely the same way, you set yourself back by the spread on both pairs. Wouldn't you just track your leverage and increase your rankings as your margin develops?

For instance, let us say you have two trades:
1 EURUSD buy at 1.3503
1 USDCHF buy at 1.2053

Let us say you create 1% :
EURUSD 1.3513
USDCHF 1.2056

well. . .if the spread on the EURUSD is 3 and the USDCHF is 4, and then in the event that you CLOSE your rankings in your profit level and reopen (which I assume you would do immediately?? As it doesn't specify when), you would be down by 3 pips on the EURUSD and 4 on the USDCHF.

Additionally, I'd assume that you will need a ratio of 1 to 1 on the pair buys. . .does that mean up to 40% of your equity is used to buy an exact number of EURUSD and USDCHF lots? So, if you're leveraged at 100:1 on a 1000 mini account, you may only buy 1 lot of the EURUSD and 1 lot of those USDCHF because if you tried to buy 2 of each, you would actually be leveraging 47% (2 lots of EURUSD @ 1.35 = $270 margin two lots of USDCHF @ 1.2030 = $200 margin). Could this be correct?

Originally Posted by ;

I closed the trades, took the $25.00 profit which was 2.5% of my account balance, and then reopened the trades again

Fantastic question, please post on the new thread and lets discuss.

Originally Posted by ;

Mike,

Perhaps my math is wrong, but I am attempting to get an understanding of why you would close any of your positions until you had to draw money from the account? If you're always betting in precisely the exact same way, you set yourself back by the spread on both pairs. Why wouldn't you just track your leverage and add to your positions as your margin develops?

By way of example, let's say you have two transactions:
1 EURUSD buy at 1.3503
1 USDCHF buy at 1.2053

Let's say you make 1% :
EURUSD 1.3513
USDCHF 1.2056

nicely. . .if the spread on the EURUSD is 3 and the USDCHF is 4, then in the event that you CLOSE your positions at your profit amount and reopen (which I presume you would do instantly?? As it doesn't define when), you would be down again by 3 pips on the EURUSD and 4 on the USDCHF.

Additionally, I would presume that you will need a ratio of 1 on the pair buys. . .does that mean up to 40% of your equity is used to buy an exact amount of EURUSD and USDCHF lots? So, if you're leveraged at 100:1 on a $1000 mini account, you may only buy 1 lot of the EURUSD and 1 lot of those USDCHF because if you tried to buy two of each, you would actually be leveraging 47% (two lots of EURUSD @ 1.35 = $270 margin two lots of USDCHF @ 1.2030 = $200 margin). Could this be correct?

Originally Posted by ;

I went to sleep, and slept peacefully knowing I was fully hedged, and once I woke up this afternoon it had fluctuated in my favor of roughly $25.00. I shut the transactions, took the $25.00 profit which was 2.5% of my account balance, and then reopened the transactions again.

Mike,

I don't really think you've got a grasp of what you're doing:If you're buying EUR/USD and USD/CHF in precisely the same time, whatever you're doing is buying EUR/CHF except you're paying the spread. This position Isn't FULLY HEDGED. Crosspairs do tend to range less, but don't confuse that with a hedged position. Closing the position and reopening it does absolutely nothing except cost you commission.

This is logical, thank you. I'm not sure why it functions, to tell you the truth, only glad it does. When I said hedging I used the wrong word. Thank you for your help in understanding.

Originally Posted by ;

Mike,

I do not really think you have got a grasp of what you're doing:If you're buying EUR/USD and USD/CHF in the same time, all you're doing is buying EUR/CHF except you're paying the spread. This position is NOT FULLY HEDGED. Crosspairs do tend to range less, but do not confuse that with a hedged position. Close the position and reopening it does nothing except cost you commission.

Originally Posted by ;

This is logical, thank you for your comments. I'm not really sure why it works, to tell you the facts. Once I said hedging I probably used the wrong word. Thank you for your aid in understanding.

Here you go Mike, I believe you're making a mistake. I would not suggest trading this manner. I modified an EA I had and added some features.

Great fortune
https://www.forexforum.co.za/attachm...9417694228.mq4

As the conditions are ripe for this system to work, but make no mistake about it, after just a few days it works, it is difficult to determine the viability. Fundamentally, you are still gambling for the EUR to be stronger than the CHF and the USD. When the EUR decided to shoot a 500 pip plunge against the USD while the USD remained flat against the CHF (or worse, the CHF became strong against the USD) it would take you a very long time to return to break-even.

Originally Posted by ;

This is logical, thank you for your comments. I'm not really sure why it works, to tell the truth to you. I probably used the wrong word once I said hedging. Thank you for your help in understanding.