HedgeDCA - Page 3

TimeFreedom · 02-02-2007, 02:52 PM

Rick/Tom,

HedgeDCA closure logic working perfectly. HedgeDCA closed all orders at 3% gain and opened new hedge immediately.

TimeFreedom

TimeFreedom · 02-02-2007, 03:18 PM

Quote:

Originally Posted by tomstaufer

Here's the simple rules :

1) Open a Daily chart and choose the pair that get best positive interest paid by your broker (a good one could be GBPJPY)

2) Without know anything about forex , simply open a position on positive side using 1% of your equity. Now we have only to take care about this entry price.

3) If price will go against us for a X fixed amount of pips (where X could be 100 or 200 pips) from the entry price then we enter another position based on 1% of actual equity.

4) Step 3) will be repeated until price will go against us adding a position every time it will go down of X pips from entry price.

5) If price will go in our direction of X pips then we close all positions opened, and cash the gain due to swap interest and pips

6) After all positions are closed , we iterate again step 2)

As you can see using this system our account will grow slowly but steadly because we will gain from both the positive swap and the pips when we close all positions.
Infact if after first trade is placed , the price will go in our direction then we will cash the 100 (or 200) pips plus spread interest depending on how much days order was opened. On other hand if price will go against us we will add a new position so to increase our equity acount due to spread gain and wait for price to go back to entry price.
In both case we will gain

Tom,

I am currently testing a very similar strategy on Oanda FXGame platform which allows you to plot an average price line on chart:

I open a trade in the direction of positive swap e.g. GBPJPY (G/J) Long which pays good swap. Position size is 1% of equity.
I check the trade at the end of the day e.g. 7:00PM EST (After Dinner)
I open an additional position long G/J if position is greater than -100 pips. I only open one position per day if position is greater than -100 pips. If position is -50, -98, -05 pips I do not enter a position that day. Will wait for tomorrow to asses position status again.
I check positions at the end of the day and if positions are above average price line I close all positions. As long as the positions are above average price line I will close e.g. +2, +90, +108, etc...
I then start the cycle all over again.

TimeFreedom

rmyers · 02-02-2007, 03:56 PM

Quote:

Originally Posted by TimeFreedom

Rick/Tom,

HedgeDCA closure logic working perfectly. HedgeDCA closed all orders at 3% gain and opened new hedge immediately.

TimeFreedom

Great! I am hoping to get some time this weekend to add from the list of requested features.

Rick

rmyers · 02-02-2007, 04:01 PM

Quote:

Originally Posted by TimeFreedom

Tom,

I am currently testing a very similar strategy on Oanda FXGame platform which allows you to plot an average price line on chart:

I open a trade in the direction of positive swap e.g. GBPJPY (G/J) Long which pays good swap. Position size is 1% of equity.
I check the trade at the end of the day e.g. 7:00PM EST (After Dinner)
I open an additional position long G/J if position is greater than -100 pips. I only open one position per day if position is greater than -100 pips. If position is -50, -98, -05 pips I do not enter a position that day. Will wait for tomorrow to asses position status again.
I check positions at the end of the day and if positions are above average price line I close all positions. As long as the positions are above average price line I will close e.g. +2, +90, +108, etc...
I then start the cycle all over again.

TimeFreedom

TF and Tom,

These seem like very good strategies to add. I could add a pipdivergence property that could be used in conjunction with hour to determine if a DCA trade is valid. I am also planning to add determining lot size by % equity or perhaps % free margin to allow the trades to scale as the account (hopefully) grows.

Rick

tomstaufer · 02-02-2007, 07:05 PM

TF and Rick,
Thank you for your efforts !

TF could you show a statement regarding your Oanda test ?

rmyers · 02-04-2007, 09:25 PM

Hi TF and Tom,

I spent a lot of time working on the math behind ratios this weekend. My goal is to be able to calculate ratios and then apply them to the initial, scale in and micro lots. I am nearly there. So my development for this week is as follows:

1. Pip Divergence - If price of the initial traded goes against us a specified number of pips, then add the specified lot(s) at the HourToAdd time, else do not add to the position. Question - after having read up a bit on dollar cost averaging, I am wondering if we should be adding more lots at the lower price. I do not like Martigale techniques, so I am proposing something a bit tamer. If Pip Divergence is set to 100 pips, then if the initial lots are .1 we buy .2 at the 100 pips against level, .3 at the 200 pips against level, etc. I would really like your opinions on this.

2. HourToAddLots on a per pair basis - This would allow the user to add to a pair that had positive swap just before swap time, while allowing a pair with negative swap to be added later. I could completely automate this, but I think that would take away some of the user's ability to specify lot hours that don't correspond to swap events.

3. Ratios as mentioned above.

The first 2 items I will do by Tuesday. Ratios will be ready for the following week.

I will hold off on development while gathering your input.

Rick

tomstaufer · 02-04-2007, 10:02 PM

Quote:

Originally Posted by rmyers

Hi TF and Tom,
Question - after having read up a bit on dollar cost averaging, I am wondering if we should be adding more lots at the lower price. I do not like Martigale techniques, so I am proposing something a bit tamer. If Pip Divergence is set to 100 pips, then if the initial lots are .1 we buy .2 at the 100 pips against level, .3 at the 200 pips against level, etc. I would really like your opinions on this.

Can you make this adjustable ?

rmyers · 02-05-2007, 01:07 AM

Quote:

Originally Posted by tomstaufer

Can you make this adjustable ?

Hi Tom,

How would you like to be able to adjust it? I will only add this if you guys want this feature. If you would prefer, I will leave out.

Rick

tomstaufer · 02-05-2007, 02:26 AM

LotIncreaseMode=0,1,2,3...

0-0.1, 0.1, 0.1, .....
1-0.1, 0.2, 0.3, .....
2-Fibonacci
3-Martingale
.....etc

Just a thought....
If it makes things too complicated do not bother.

rmyers · 02-05-2007, 07:10 PM

Quote:

Originally Posted by tomstaufer

LotIncreaseMode=0,1,2,3...

0-0.1, 0.1, 0.1, .....
1-0.1, 0.2, 0.3, .....
2-Fibonacci
3-Martingale
.....etc

Just a thought....
If it makes things too complicated do not bother.

Hi Tom,

All possible. I was hoping to keep the EA fairly simple, but all your and TF's suggestions make a lot of sense. I got insanely busy today (I am a professional programmer), but I am hoping to still add at least some of these features by day's end Tuesday.

Rick