Quote:
Originally Posted by peri
Have I understood something wrong? I thought the second pair is the hedge (= opposite),but in my MT4 all open positions are long, although only GBPJPY is set long=true.
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Ok, let me try to explain the idea. If you notice on lot size on each side of the hedge you notice that the CHFJPY side is much bigger than the other side. Remember that this two particular pairs are very correlated.
Case 1: GBPJPY Drop and CHFJPY Drop too (correlation)
In this case the CHFJPY Short order will compensate the negative balance on the GBPJPY and on possible grid orders already open.
The grid is always moving trying to catch the next rise on the prices. If this does not happen just the short side of the main hegde will get you on target profit.
Case 2: GBPJPY Rises and CHFJPY Rises too (Correlation)
Nothing bad can happen on this situation. The Short side of the main hedge is bigger but meanwhile we continue to open grid positions on both currencies, both
long!
When the pairs are not correlated we should avoid to enter trades. The EA has a filter to do this. But even in this case, this can take some time but they will correlate again and the grids that are always ajusting will catch the move.
The EA still need some tune up, so please test it and make your suggestions.
The EA also have a very powerful feature that are not completely written that could see ALL pairs and choose automatically the two pairs with bigger correlation (UseDynamicPairs), maybe on a next version, this was programmed by Richard Myers.
Linear Mode
