Originally Posted by tomstaufer

Hello Guys,
below something what I think we could use to farther improve HedgeDCA.
This reminds me FFS and FR strategy with additional orders. Of course I am thinking about using hedged orders with CHFJPY.

Idea behind this system is to take gain of broker positive swap interest and trade only in that direction.
Infact as you should know , when we carry for long time a position we can see in our account the swap value that could be positive or negative depending on broker rules. For example Fast brokers get a positive interest (paid to us) for GBPJPY if we buy and a negative (paid to them) on sell side.

So our system will place trade accordingly only to positive interest paid by our broker for that pair that in the case of FB will be the buy side for GBPJPY.

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

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:

1. 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.
2. I check the trade at the end of the day e.g. 7:00PM EST (After Dinner)
3. 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.
4. 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...
5. I then start the cycle all over again.

TimeFreedom

Originally Posted by rmyers

Hi TF,

Sorry, I thought I had implemented itb the way you wanted. I modified the code during a lull in a work related crisis. I have been working non-stop to try and write a program that will determine if patient data has been compromised in a bunch of different hospitals and it is a really difficult program to write. The guy who mangled the data no longer works here and I am trying to figure out what he did in order to identify the issues. My brain is really tired. I will get to your stuff as soon as I am done with this patient problem.

Rick