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dsugums 6 pip auto-trader by 'im again
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Author:  FreddyFX [ Mon Jan 30, 2012 11:30 pm ]
Post subject:  Re: dsugums 6 pip auto-trader by 'im again
This site might be of value for this type of trading:

http://www.forexticket.co.uk/en/tools/01-01-correlation
Author:  hanover [ Mon Jan 30, 2012 11:43 pm ]
Post subject:  Re: dsugums 6 pip auto-trader by 'im again
ironrick wrote:Thanks, Steve and dsugums! This looks very interesting!!

Question on the closing logic: is it a TP if any one of the 3 pairs gets to 6 pips or is it 6 pips based on the basket?

Also: Is it 6 pips profit (over and above spread costs) or just 6 pips?

Thanks for the work and the clarification!

Rick
Rick,

I've had a quick look at Steve's code. Assuming that I understand correctly, the 6 pips is the total profit across all 3 pairs, and is net of spread. When you run the EA, there's a comment that says "Open trades = 3. Pips profit/loss = X points". I believe X is the value that's being checked against the 6 pip TP. So if this figure reaches 60 (points), then all 3 trades will close. Steve, feel welcome to weigh in and correct me if I'm wrong. (he says nervously!)

Even more nervously, I must admit I've never understood how these hedging strategies work. EUR/USD x USD/CHF = EUR/CHF, hence the strategy is apparently counting on an arbitrage scenario where the banks' books get out of balance for a fleeting second, and the EA leaps in to exploit it. Otherwise the three trades will simply bounce around, showing a net loss that's approximately equal to the sum of their spreads. I've had the EA running for around 2 hours now, and so far that's all that's happened.

I've always run a mile from strategies whose inventor says things like "a loss isn't a loss until you close a trade". One of the biggest myths of trading, IMO. Still, we're talking arbitrage here, and as long as the hedge holds, the worst possible outcome is loss of the (combined) spread.

I also understand that the CHF is currently pegged to the EUR. If I'm wrong about the zero sum effect of the hedge, then presumably economic factors could have a gravitational effect on the success potential of this strategy. There was a good (non-arbitrage) EURCHF strategy on FF a couple of years ago that fell apart as soon as the correlation between EUR and CHF broke down.

If I understand correctly, the inventor of this strategy claims that it can't lose. If return without risk is possible in forex, then my last 5 years' worth of analysis has been a complete waste of time. But if making a profit every day is as simple as running this EA, then I certainly won't be complaining! Very happy to eat humble pie when I have a few million in the bank. :)

But I won't be running this one on a live account immediately, that's for sure.......

David
Author:  pipcruiser [ Mon Jan 30, 2012 11:54 pm ]
Post subject:  Re: dsugums 6 pip auto-trader by 'im again
Love the thought of this EA. Less is more!

I thrown the EA on my small micro live Bully Pepperstone acc. and bcs its an ECN, I set it to a 7 pip TP.

Lets see what the night brings :)

Good night from sunny Spain..

PC


TehCount wrote:Very interesting concept. I suppose the spread becomes that much more important with a strategy like this? Using an ECN criminal that charges a commission on round lots with a lower spread might give you more wins when the variations take place.
Author:  ingmarforex [ Mon Jan 30, 2012 11:55 pm ]
Post subject:  Re: dsugums 6 pip auto-trader by 'im again
I did made a lot of profit on the original thing what can be found on the forum in forexfactory by the guy name spieler eventually this broke down because of the peg and the unstability in the pair but this might be intresting again.

Thanks

Regards, Ingmar
Author:  FreddyFX [ Tue Jan 31, 2012 12:00 am ]
Post subject:  Re: dsugums 6 pip auto-trader by 'im again
Loaded and watching.

getting error 131

Advise please.
Author:  SteveHopwood [ Tue Jan 31, 2012 12:02 am ]
Post subject:  Re: dsugums 6 pip auto-trader by 'im again
hanover wrote:
Rick,

I've had a quick look at Steve's code. Assuming that I understand correctly, the 6 pips is the total profit across all 3 pairs, and is net of spread. When you run the EA, there's a comment that says "Open trades = 3. Pips profit/loss = X points". I believe X is the value that's being checked against the 6 pip TP. So if this figure reaches 60 (points), then all 3 trades will close. Steve, feel welcome to weigh in and correct me if I'm wrong. (he says nervously!)
Yep. Dead right.
Even more nervously, I must admit I've never understood how these hedging strategies work. EUR/USD x USD/CHF = EUR/CHF, hence the strategy is apparently counting on an arbitrage scenario where the banks' books get out of balance for a fleeting second, and the EA leaps in to exploit it. Otherwise the three trades will simply bounce around, showing a net loss that's approximately equal to the sum of their spreads. I've had the EA running for around 2 hours now, and so far that's all that's happened.
Great to read someone like you posting something like this. I always felt a bit of a thickie because I did not really understand what was being posited. Now, it seems I understood it but did not see how to use it. Maybe DS's strategy provides this; we shall see.
But I won't be running this one on a live account immediately, that's for sure.......

David
Hehe. Best not to. Only an idiot would run one of my creations on a live account without a whole boat-load of evidence that it is successful.

Wonderful to see you here David. Thanks for stopping by.

:D
Author:  hiredwhip [ Tue Jan 31, 2012 12:08 am ]
Post subject:  Re: dsugums 6 pip auto-trader by 'im again
I hate to bring this up Steve, but you forget how long I've been on your threads.....You've already done forms of this strategy at least twice....Scoobs sent you a version that you coded that worked pretty well with a pdf file etc.....I'll send my bird dog after it........

Have a great evening

whip
Author:  SteveHopwood [ Tue Jan 31, 2012 12:14 am ]
Post subject:  Re: dsugums 6 pip auto-trader by 'im again
FreddyFX wrote:Loaded and watching.

getting error 131

Advise please.
Ye Gods Alive, Dead, Moribund, Comatose and all point in between.

Error 131 is 'Invalid trade volume'.

This means you have tried to send a lot size your benighted bloody criminal will not accept.

For crying out loud, every singly one of every single EA I have issued since the First Coming has had a minimum lot size message on the chart feedback display.

Yet you still manage to get this wrong?

And post a question about it?

For God's sake forget..... Actually, never mind God. He, She, or some kind of It that we cannot even begin to comprehend, cannot help you. Just for your own sake, give up the idea of trading now. You are far too dim to do so and will lose all your trading money.

Above all else, stop posting in these forums until you have spend several weeks at http://www.babypips.com/ learning the absolute rock-bottom basics of trading. Babypips will not equip you with and actual trading strategies, but it will at least give you the knowledge to stop asking such a stupid question.

Go away and come back when you have learned enough to contribute meaningfully.
Author:  FreddyFX [ Tue Jan 31, 2012 12:18 am ]
Post subject:  Re: dsugums 6 pip auto-trader by 'im again
Found my problem, had to adjust the lotsize setting.

Chill bro, or I hang you on a piano string, lol.
Author:  Antra [ Tue Jan 31, 2012 12:27 am ]
Post subject:  Re: dsugums 6 pip auto-trader by 'im again
OMG even I am tempted to start playing with EA's.....this one seems very nifty. Thanks.

( does this mean I am going over to the dark side? :-) )
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