Red News Hedge Trading + EA
This buying and selling technique is predicated on making the most of excessive volatility available in the market as a result of excessive influence pink information. On this technique, we open two trades on two completely different foreign money pairs that are recognized to be correlated (positively or negatively). For instance, we open Lengthy positions on each EURUSD and USDJPY just a few seconds earlier than a excessive influence pink information within the hope that we’ll profit from imbalance within the basket. I’ve written an EA that makes it simpler to commerce this technique. Connect the EA to considered one of foreign money pairs’ chart (for instance, EURUSD), and enter the hedge foreign money pair image (for instance, USDJPY) within the enter settings of the EA. There are 4 buttons to open positions,
1. Purchase/Promote: the EA opens a Purchase place on the hooked up chart, and a Promote place on the hedge foreign money pair.
2. Promote/Purchase: the EA opens a Promote place on the hooked up chart, and a Purchase place on the hedge foreign money pair.
3. Purchase/Purchase: the EA opens Purchase positions on each foreign money pairs.
4. Promote/Promote: the EA opens Promote positions on each foreign money pairs.
and there are three buttons to shut the basket manually. You’ll be able to specify the web take revenue (in cash, not pips!) within the enter settings of the EA.
Positively Correlated Symbols
For a pair of symbols which might be positively correlated (similar to AUDUSD and AUDCAD), use both Purchase/Promote or Promote/Purchase button.
Negatively Correlated Symbols
For a pair of symbols which might be negatively correlated (similar to EURUSD and USDJPY), use both Purchase/Purchase or Promote/Promote button.
Foreign exchange Correlation Desk
Here’s a web site the place yow will discover a Foreign exchange correlation desk,
AUDCAD ~ EURAUD
AUDJPY ~ AUDNZD
CADJPY ~ AUDJPY
How do I commerce with this technique:
1. Select a excessive influence pink information of a serious foreign money, for instance AUD.
2. Select two different main currencies to pair with AUD such that absolutely the correlation of two pairs is bigger than 0.5, for instance AUDUSD and AUDCAD.
3. A couple of minutes earlier than the information launch time, take a look at a foreign money energy meter to look at which of above two currencies (USD or CAD) is extra highly effective.
4. Choose a commerce button based on each the signal of correlation (this may be robotically finished by the EA for you), and the strongest foreign money you recognized within the earlier step.
— Replace 2017-05-24 —
Model 1.67 of the EA launched. On this model customers can specify the lot dimension of the hedge image.
Enter settings description:
1. Choose Auto Time Primarily based Motion:
– Auto Commerce Disabled (default), This feature disables auto time primarily based buying and selling.
– Purchase/Purchase: This feature makes the EA to open BUY/BUY positions at Auto Motion Time.
– Promote/Promote: This feature makes the EA to open SELL/SELL positions at Auto Motion Time.
– Purchase/Promote: This feature makes the EA to open BUY/SELL positions at Auto Motion Time.
– Promote/Purchase: This feature makes the EA to open SELL/BUY positions at Auto Motion Time.
2. Enter Auto Motion Time (dealer time):
– yyyy.mm.dd hhss, for instance 2015.11.19 14:29:30
– The EA opens two positions presently based on Choose Auto Time Primarily based Motion setting.
3. Auto Button Choice?
– If enabled, the EA hides irrelevant commerce buttons based on the correlation worth between two symbols.
4. Hedge Image:
– Enter hedge image as precisely because it seems available on the market watch of your MT4 platform.
5. Internet Take Revenue (cash):
– When internet revenue turns into larger than this worth, the EA robotically closes each positions.
6. Internet Cease Loss (cash):
– When internet revenue turns into lower than detrimental of this worth, the EA robotically closes each positions.
7. Equalize Pips? – If enabled, the lot dimension of buying and selling two positions will probably be recalculated such that one pip of each symbols will probably be (roughly) price equal (see – If disabled, the EA opens two positions with the consumer specified lot dimension.
8.1 Lot Measurement: 0.1 (default)
8.2 Hedge Lot Measurement: 0.1 (default)
9. Slippage (factors): 30 (default)
10. Magic Quantity: 1122 (default)
– If you wish to use the EA on the identical image twice or extra, it’s important to assign completely different magic numbers. In any other case, depart it default.
Methods to set up this EA in your MetaTrader4 Platform
For newbies, here’s a