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Jeuro's Three Pairs Hedging on Renko Charts
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Author:  tex [ Thu Mar 29, 2012 9:18 pm ]
Post subject:  Jeuro's Three Pairs Hedging on Renko Charts
Hello dear Coders,

i came across a thread over at FF the other day and it seems that would be a nice concept to code an EA for.
I tried to trade this manually, but it needs too much screentime for a wage slave like me to do this seriously, so an EA would be great.

Here is an overview :

The used pairs are:

EUR/USD, USD/CHF, EUR/CHF

(Other pairs will do the trick too, so this should be adjustable in the EA)

----------
Open 3 Renko Offline Charts, one for EUR/USD, USD/CHF and EUR/CHF

The Renko brick size should be : EUR/USD = 11, USD/CHF = 11, EUR/CHF = 5

No more indicators needed.

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Now for the EA:

EUR/USD
Open a trade with TP=15, SL= 15 “Buy only”. “Every time when renko prints an up bar”

USD/CHF
Open a trade with TP=15, SL= 15 “Buy only”. “Every time when renko prints an up bar”

EUR/CHF
Open a trade with TP=7, No SL “sell only “ “ every time when renko prints an up bar” (yes, up bar)

TP and SL should be adjustable.

A Trading Times function and a close all trades when CashProfit is reached should be in the EA too.

---------
Here's a quote from Jeuro :
They say a picture is worth a 1000 words.
Here is a screen shot how the system should look like and some explanations. I do not use any indicators.

Green arrows are triggered trades. Notice all trades in all 3 pairs are with
up bars (green)

No trades with down bars (red bars)

E/U and U/C are 11 pips renko Chart, E/C is 5 pips renko chart (in spite that E/C bars appears to be longer)

Red lines in E/U chart are the 15 tp and 15 sl. And in the E/C chart the 7 pips tp

In the top left of the E/C chart you see I keep track of the "Equity". Not the Profit of open trades.

Because Renko do not use time to close, you can not relate all 3 charts bar by bar. Meaning (example only) it is possible that the U/C triggered all those 5 green arrows in an X "time span" while E/U maybe went only 1 bar in the same X "time span"

And :
Example using EUR/USD, USD/CHF , EUR/CHF.

These 3 pairs would make an impeccable (perfect) hedge "IF" Empty4 or Empty4 broker would allow decimal lots size
like 0.21025451. but they don’t, therefore we can use a fix equal lot for all 3 pairs, say 0.30 and here is were we use the renko chart to compensate for the UN-impeccable hedge and take advantage of the fact that EUR/USD and USD/CHF are negative correlated (not always) and that
EUR/USD*USD/CHF=EUR/CHF (always, but between a small inefficiency factor)


To set the EA we “assume” that EUR/USD and USD/CHF are perfect negative correlated. Example:
say the current prices are EUR/USD= 1.2985 and USD/CHF=0.9385 … then EUR/CHF=1.2186 (1.2985*0.9385)


If we are assuming perfect correlation, this means if EUR/USD moves 20 pips up, then USD/CHF would move 20 pips down and we would have 1.3005, 0.9365 and (1.3005*0.9365)1.2179. In other words EUR/CHF moved only 7 pips down.


Therefore I would set the EA for EUR/USD and USD/CHF in a 20 pips renko charts and EUR/CHF in a 7 pips renko chart. EUR/USD buy only, USD/CHF buy only and EUR/CHF sell only. ..no TP, no SL but set to CloseALL when in X profits.


To get a better picture, the EA would buy EUR/USD at close of the 20 pips renko bar (if the bar is up bar). If the closed bar is a down bar, EA does nothing. For USD/UCH would do the same and for EUR/CHF would do the opposite (sells only in the 7 pips renko chart)


I think this approach has potential, but long and tedious without back testing to fine tune or find the weak spots.
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Author:  guandi [ Thu May 03, 2012 4:37 pm ]
Post subject:  Re: Jeuro's Three Pairs Hedging on Renko Charts
Hello Tex,

any luck at all? This system look interesting.

best regards.

- guandi
Author:  celte83 [ Wed May 09, 2012 1:47 pm ]
Post subject:  Re: Jeuro's Three Pairs Hedging on Renko Charts
Hello Tex,
It is very intelligent, very very intelligent !
I try to modify an EA which I have to adapt it to this strategy. Then I try on :
EU renko box size 11, UCHF 11 and ECHF 5.
Without SL nor TP but with another EA which closes all the current trades : "close all trades after account profit reached" 10 $
Naturally I return with the results ...
Thank you very much for this excellent idea

belle soirée
jean-francois
Author:  guandi [ Fri May 18, 2012 9:25 am ]
Post subject:  Re: Jeuro's Three Pairs Hedging on Renko Charts
Hello celte83,

do you mind sharing the EA?

best regards.

- guandi
celte83 wrote:Hello Tex,
It is very intelligent, very very intelligent !
I try to modify an EA which I have to adapt it to this strategy. Then I try on :
EU renko box size 11, UCHF 11 and ECHF 5.
Without SL nor TP but with another EA which closes all the current trades : "close all trades after account profit reached" 10 $
Naturally I return with the results ...
Thank you very much for this excellent idea

belle soirée
jean-francois
Author:  celte83 [ Fri May 18, 2012 9:37 am ]
Post subject:  Re: Jeuro's Three Pairs Hedging on Renko Charts
Hi,
Regrettably my EA "do-it-yourself" does not work correctly and I have in more a very bad internet connection.
I thus stopped the test.
Although it is, I observed that there is a strong risk of DD :(

cordialement
jf
Author:  GarethC [ Fri Nov 02, 2012 8:58 am ]
Post subject:  Re: Jeuro's Three Pairs Hedging on Renko Charts
Have taken one of Steve's EA's and done a mod to test the system. This is only a hack to check the concept. DON'T USE IT LIVE!!!

I have not yet had a positive trade. The eurusd seems to be dominant and I think that you have to bias the usdchf in terms of the lot size to balance the equation.

If the concept works then it is worth spending time on the ea and will require Steve's help as my mq4 coding is a bit ropey.
Author:  SwingMan [ Fri Nov 09, 2012 12:38 am ]
Post subject:  Re: Jeuro's Three Pairs Hedging on Renko Charts
GarethC wrote:Have taken one of Steve's EA's and done a mod to test the system. This is only a hack to check the concept. DON'T USE IT LIVE!!!
Please check the posted chart. It hink that the condition to sell EURCHF is also Close > Open...
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