kokas

Ok this is the first EA to be developed here.

All versions since begin will be posted on diferent posts with a little resume attach.

This first version was a earlier version with SWAP included on profits.

On this post you have the correlation indicator to be used to this EA.

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Last version (6.6) of the EA here:
ForexForums.org - View Single Post - HedgeEA

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Attached Files

	Correlation.mq4 (3.2 KB, 365 views)
	HedgeEA.mq4 (9.3 KB, 230 views)

kokas

Volatility as a Clue

Most traders have heard the story of Long Term Capital Management (LTCM). For those who have not heard the story, LTCM was a hedge fund designed to take advantage of situations where the price volatility of a financial instrument would go from higher than average to normal (the mean). Can lowly traders such as ourselves take advantage of volatility as a warning that large moves are coming? The answer is yes. Most traders would agree that periods of high volatility are usually followed by periods of low volatility. But what about the other way around? Are periods of low volatility followed by periods of high volatility? They are indeed (most of the time). Today, we will briefly discuss a strategy that you can use to take advantage of volatility explosions.

Here is a quantified signal to take advantage of these occurrences. We are going to focus on getting clued in on volatility increases before they occur. Optimized historical tests have shown that it's effective to compare 6-day historically volatility against 100-day historical volatility. When 6-day historical volatility is 50% or less than 100-day volatility, this tells us that the stock or index has calmed down and it becomes likely that a large market move is about to happen. Keep this in mind if you are considering entering a straddle. You can use this technique to find ideal entry points. One extremely effective technique for entry is to find a stock that fits this low volatility criteria. Once the stock breaks out of a tight range (which should be in place based on low volatility), trade the stock in the direction of the breakout. So if the stock plummets downward, then sell short, and if the stocks shoots up, go long. Usually, the longer a stock or market index stays in this low volatility state, the larger the move will be once it breaks out.

You should use stops with this technique in the following way. Once you get a breakout following the period of low volatility, take note of the high of the breakout day if it is a bullish breakout. Once the stock closes above the high of the breakout day, then go long on the stock. Use the low of the breakout day as your stop loss price in order to reduce risk.

Price Headley is the founder and chief analyst of BigTrends.com.



Now! How to implement this on our EA?? This would improve a lot our strategy!

Attached Files

Using Currency Correlations To Your Advantage.pdf (60.9 KB, 436 views)

kokas

It is possible to use this code to calculate the ratio between two currencie pair?



//+--------- --------- --------- --------- --------- --------- ----+
//+ Calculate cost in USD of 1pip of given symbol
//+--------- --------- --------- --------- --------- --------- ----+
double PipCost (string TradeSymbol) {
double Base, Cost;
string TS_13, TS_46, TS_4L;

TS_13 = StringSubstr (TradeSymbol, 0, 3);
TS_46 = StringSubstr (TradeSymbol, 3, 3);
TS_4L = StringSubstr (TradeSymbol, 3, StringLen(TradeSymb ol)-3);

Base = MarketInfo (TradeSymbol, MODE_LOTSIZE) * MarketInfo (TradeSymbol,
MODE_POINT);
if ( TS_46 == "USD" )
Cost = Base;
else if ( TS_13 == "USD" )
Cost = Base / MarketInfo (TradeSymbol, MODE_BID);
else if ( PairExists ("USD"+TS_4L) )
Cost = Base / MarketInfo ("USD"+TS_4L, MODE_BID);
else
Cost = Base * MarketInfo (TS_46+"USD" , MODE_BID);

return(Cost) ;
}

//+--------- --------- --------- --------- --------- --------- ----+
//+ Returns true if given symbol exists
//+--------- --------- --------- --------- --------- --------- ----+
bool PairExists (string TradeSymbol) {
return ( MarketInfo (TradeSymbol, MODE_LOTSIZE) > 0 );
}

kokas

This is a work in progress and not a final version. Please not that this EA is not stable to be used on a live account.

This version is with some problem placing the second trade of the hedge. I could not find the error until now, but today I'm looking deep into the EA to try to find out whats is going on.

Attached Files

	HedgeEA_v4.mq4 (11.5 KB, 111 views)
	HegdeEAv4 Small Manual.pdf (31.0 KB, 270 views)

juanche

Ok thanks

i run it on:

gbpjpy chfjpy and
1.8 ratio

its ok

so i run it on eurusd usdchf
buy , buy
1.2 ratio

dont work do you know why?

hccgtim

Hi, I'm not a programer but, I will help with what I can. I'm testing will let you know what the results. What time fame should I run it I'm using 1hr

kokas

Yes I believe that 1Hour chart is good, but this only matters if you use correlation. If this is disabled then you can run on any timeframe.

kokas

Ok, I think now the first stage is completed. I've corrected the MM functions, and now it is placing orders correctly.

I'm testing it live with MM and without MM...

Now I want to add some features like automatic TP, well this is a hard one, I want to build a function to set takeprofit integrating, lotsize and account leverage.

removed usepips. It does not make sense because if you use swap you cannot add dollars to pips.

To do list:
1 - Integrate AutoTakeProfit
2 - Integrate another Entry signal (any sugestions? BB?)
3 - Built in correlator as a function
4 - Send email on new hedge entry (and profit report for the old one)

Live Test Statement with MM:
http://www.forexforums.org/eatests/test2/statement.htm

Live Test Statement without MM
http://www.forexforums.org/eatests/test1/statement.htm

Attached Files

	Correlation.mq4 (3.2 KB, 144 views)
	HedgeEA_v5.mq4 (10.8 KB, 141 views)

berdj

I think you forgot to change the version# in the EA script

kokas

Done! v.5