- May 29, 2013
- Posted by: Forex Wiki Team
- Category: Forex Trading System
this EA has been examined with Exness. You want a dealer who provides offset hedges. Dealer compatibility: The EA calls foreign money pairs like “AUDUSDm”. Substitute the “m” within the EA together with your brokers code.
The InsomiaFX Correlation Double Hedge EA system works this manner:
AUDJPY/CADJPY have a correlation of round ninety% over 1 yr which is sweet. Over the day it modifications fairly a bit.
- Open a one hundred.000 USD demo account
- Connect EA to AUDJPY chart, timeframe does not matter
EA will do:
- Open hedged AUDJPY/CADJPY (2 orders – Pair 1)
- Open the identical orders reverse aspect (Pair 2), margin is now 0 and we now have a .. hmm .. correlated double hedge !
With margin 0 we’ve got a really good buffer for drawdowns plus we double the prospect to succeed in the TP resulting from two Pairs. Simply swap is unfavorable.
For instance every order is forty tons and TP (Take Revenue) level of one thousand USD per pair.
Revenue will probably be taken as soon as the correlation goes wild and a pair reaches the TP. Like one order is -one thousand and the opposite +2000. This pair will probably be closed and recreated. This occurs round 5-10x per day.
The drawdown will cease mechanically at a most because of the double hedge. On this instance no more than 20% or so.
Very good interactive correlation charts:
Swap loss per day round -eighty USD with forty tons per order. When you disable Pair 2 and thus pay margin for Pair 1, the Swap turns right into a revenue of ca. one hundred twenty USD per day or round 3000 USD/month. Pair 1 nonetheless will take the one thousand USD TP each time reached.
Issues to do:
- Verify the EA for bugs
- Check the system if it makes any lengthy-time period sense ?
- Add correlation formular to EA (principally executed)
- Outline good order entry factors based mostly on correlation of final X min
- Add lot based mostly compound associated to Fairness achieve to spice up this up.
As AUDCAD swings round 8% per final 2.5 years I added code to regulate the lot measurement based mostly on the identical USD worth for every pair. Nevertheless I discovered the correlation variations per day is as much as 50% per pair so it has little impact to regulate the lot sizes now. In order that code is inactive. With AUD/CAD round 1.00 simply place similar tons.
I’ve it operating on 4 Demos since right now to examine if this technique works and discover code/logic bugs.
See the pairs proven within the remark and income in factors. Enjoyable to see how the factors change round until they hit the TP.
Hooked up Picture (click on to enlarge)
Thx for studying and any suggestions.
Notice: The rar accommodates a dll which merely boosts the MT4 course of precedence to excessive. Its not wanted for those who do not belief DLLs. Simply uncomment the associated code within the EA. Should you like to make use of it, put the dll into the identical folder as terminal.exe. Wants Home windows 7 and .NET Framework 4.0. Supply on request.
Hooked up File