Quote:
Originally Posted by deeforex
I think it would be great if we could hedge our carry trades when things aren't going in the correct direction. Here are some possiblities and how correlated the currency is to GBPJPY. Let's see how screwed up the columns will get  The Ratio will represent how many lots relative to our GBPJPY position (for example if GBPJPY has a cummulative of 1 lot, we would need ~2.82 lots of CHFJPY to hedge it) |
DeeForex,
Thanks for your contribution. We are on the same page in regards to hedging Carry trades. If someone could help with coding the Hedge Option into my Carry EA on the first post we could test all the pairs you posted. The concept again is to implement a hedge trailing stop of approximately 200 pips. Once GBPJPY start to head south and retraces approximately 200 pips we open a short trade with a hedge pair e.g. CHFJPY or EURUSD with a correct ratio of lots. In a sence we are running a traditional 200 trailing stop which triggers the open of a hedge instead of modifying the stop loss on GBPJPY. We could even implement a trailing stop in the hedged pair to help close out the hedge once GBPJPY and Hedge pair starts to head up north again.
TimeFreedom
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Last edited by TimeFreedom; 01-26-2007 at 08:01 PM.
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