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dsugums 6 pip auto-trader by 'im again
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Author:  newbee [ Tue Jan 31, 2012 9:05 pm ]
Post subject:  Re: dsugums 6 pip auto-trader by 'im again
scooby-doo wrote:A better way but still not fool proof would be the following:

if EURCHF oversold = BUY EURCHF, SELL EURUSD, SELL USDCHF
if EURCHF overbought = SELL EURCHF, BUY EURUSD, BUY USDCHF

Scoobs
Better would be

if EURCHF oversold and EURUSD or USDCHF overbought = BUY EURCHF, SELL EURUSD, SELL USDCHF
if EURCHF overbought and EURUSD or USDCHF oversold = SELL EURCHF, BUY EURUSD, BUY USDCHF
Author:  SteveHopwood [ Tue Jan 31, 2012 9:24 pm ]
Post subject:  Re: dsugums 6 pip auto-trader by 'im again
spyderman wrote:I've got this running for a couple of hours now and already have 4 profitable trades :D Can't complain about that.

Had a question though on EA function. As seen below in each trade series it seems an additional E/U sell order was placed. Am I missing something? (hope I don't get Hopwooded :lol: )
I wouldn't count on avoiding it. Did you actually read post 1? Or if you have recently updated, did you actually read the update details I told everyone to read?

Not a shed-load of point in my describing what I have done if people cannot be arsed to read my description, is there?
Author:  spyderman [ Tue Jan 31, 2012 10:17 pm ]
Post subject:  Re: dsugums 6 pip auto-trader by 'im again
SteveHopwood wrote: I wouldn't count on avoiding it. Did you actually read post 1? Or if you have recently updated, did you actually read the update details I told everyone to read?


Not a shed-load of point in my describing what I have done if people cannot be arsed to read my description, is there?

:cry: Weeellll...Yes I did read post one (he offered sheepishly) and I understand what stacking is, in general. But what I do not know is how that is done in connection with this strategy and EA.

Does the additional position skew the balance of the triangle. It seems like adding an E/U would lead to problems say if the EUR started to climb. We'd have 2 shorts 1 long on EUR, 2 long 1 short on USD and 1 short 1 long on CHF.
Author:  SteveHopwood [ Tue Jan 31, 2012 10:18 pm ]
Post subject:  Re: dsugums 6 pip auto-trader by 'im again
scooby-doo wrote:A better way but still not fool proof would be the following:

if EURCHF oversold = BUY EURCHF, SELL EURUSD, SELL USDCHF
if EURCHF overbought = SELL EURCHF, BUY EURUSD, BUY USDCHF

Scoobs
Latest update in post 1. Please read 'Scoobs' Rsi filter' for an explanation.

Stacking has worked well for me today. Perhaps someone could test the bot with scoobs' filter enabled?

:D
Author:  hanover [ Tue Jan 31, 2012 10:26 pm ]
Post subject:  Re: dsugums 6 pip auto-trader by 'im again
blahn wrote:Excellent replies, helps clear a few things up for me since I'm also a bit new to the scene. ........
My apologies. The posts by Jeuro and Raiden are correct. I overlooked the fact that the position sizes taken by the EA across all three pairs were equal, making the hedge unbalanced. Hence the hedge can be resolved into a small buy or sell for one of the pairs, and creating real profit or loss, which I assume is what you meant by 'drift'.

If the three positions were sized in such a way as to make the hedge perfectly balanced, then everything in my earlier posts apply. The ratio EUR/USD x USD/CHF = EUR/CHF means that a buy on the first two pairs, and a sell on the third (or vice versa) resolves to a ratio of 1/1. The spreadsheet image posted by Raiden illustrates the nature of the calculations needed to size the positions.

Assuming that I understand correctly, none of this invalidates my earlier point that all hedges can be broken down to a simpler set of buys and sells, and hence that the notion that the hedge in itself can provide an edge is illusory. By creating the hedge, the trader is paying more in spread without obtaining any overall benefit, P/L wise. Also that no return is possible without commensurate risk. If I am wrong in these assumptions, can somebody please explain why; thanks.
Author:  hiredwhip [ Tue Jan 31, 2012 10:55 pm ]
Post subject:  Re: dsugums 6 pip auto-trader by 'im again
SteveHopwood wrote:
scooby-doo wrote:A better way but still not fool proof would be the following:

if EURCHF oversold = BUY EURCHF, SELL EURUSD, SELL USDCHF
if EURCHF overbought = SELL EURCHF, BUY EURUSD, BUY USDCHF

Scoobs
Latest update in post 1. Please read 'Scoobs' Rsi filter' for an explanation.

Stacking has worked well for me today. Perhaps someone could test the bot with scoobs' filter enabled?

:D
I updated it Steve....We'll see how Scoobs does....1440/20

whip
Author:  Aussiedoc [ Tue Jan 31, 2012 11:05 pm ]
Post subject:  Re: dsugums 6 pip auto-trader by 'im again
Morning all!

Downloaded the file from post 1 yesterday and loaded it (ootb settings) onto a Think FX demo platform. Found they don't accept micro-lots but as this was a trial - who cares! Have just checked things this AM to find that it stripped the a/c. :cry:

Will try a different crim. Any suggestions on this one??

Thanks.
Cheers, Doc
Author:  SteveHopwood [ Tue Jan 31, 2012 11:09 pm ]
Post subject:  Re: dsugums 6 pip auto-trader by 'im again
hiredwhip wrote:
SteveHopwood wrote:
scooby-doo wrote:A better way but still not fool proof would be the following:

if EURCHF oversold = BUY EURCHF, SELL EURUSD, SELL USDCHF
if EURCHF overbought = SELL EURCHF, BUY EURUSD, BUY USDCHF

Scoobs
Latest update in post 1. Please read 'Scoobs' Rsi filter' for an explanation.

Stacking has worked well for me today. Perhaps someone could test the bot with scoobs' filter enabled?

:D
I updated it Steve....We'll see how Scoobs does....1440/20

whip
Have fun.

:D
Author:  mobthehop [ Wed Feb 01, 2012 2:20 am ]
Post subject:  Re: dsugums 6 pip auto-trader by 'im again
run yesterday's version, one OOTB, one with currency pairs reversed - OOTB W10 L6 P=7.68, reversed W15 L14 P23.50, 0.1 lot per, crim UniversalFX Demo

Question:
1. How do I stop EA to take new trade after closing pairing without taking DD loss of a consecutive order set?
2. Is it me or why is F7 EA properties not working? (forget this, just saw Steve's post in Graeme EA thread)
3. The W/L stats are for individual pairs, right? Wouldn't it make more sense to count W/L of closed sets of three pairs?
Author:  Raiden [ Wed Feb 01, 2012 5:48 am ]
Post subject:  Re: dsugums 6 pip auto-trader by 'im again
@ Hanover

"By creating the hedge, the trader is paying more in spread without obtaining any overall benefit, P/L wise. "

Yes, exactly, and you can see how much this extra is from the net effective rate of 0.91484 USDCHF while you could have just gotten it at 0.91373. You are paying an extra 10.1 pips.

Thank you and Jeuro for getting it so quickly. No offense to others as it took me a while to figure it out when I was working it out myself.

@everyone else

And this needs to be cleared up. If you sell 1 lot EURUSD, buy 1 lot EURCHF, sell 1 lot USDCHF. Your effective cross is a smaller buy USDCHF position, not EURCHF.

With the current random entry, the system will lose eventually when the USDCHF trends in the opposite direction of net USDCHF trade. And negative swap will eat up the position gradually too.

And even with a selective entry (overbought/oversold analysis), there's no point to pay the extra 10+ pip spread rather than just take the direct USDCHF trade.

Now, if you truly hedge the triangle trade with the proper lotsizes, with a random entry with no analysis of divergence, you will be stuck in the position forever and not be able to exit in a profit.

If you do make a divergence analysis, which does occur occasionally, the 1-2 arbitrage pips will be swallowed up by the slippage. Take note that you also have to cover the total spread of all 3 positions. The risk of a requote also throws the whole system out the window when it happens.

Take it from a guy who's worked this to the bone.
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