Three way Hedge
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Thread: Three way Hedge

  1. #1
    Searching about Hedging egies, came accross a techinique which seems interesting (i.e. curiosity positive). The egy would be to Buy 1 pair GBP/JPY, sell 1 pair USD/JPY and sell 1 pair GBP/USD. Within this triangular hedge, the equilibrium in Yens' units would be the volatility,which could be encashed on a favorable swing, whereas the time accruing imterest@ 6 USD every day per lot. Can some seasoned trader throw light on this and also please let us know what is the maximum pips negative swing they've experienced or ought to be anticipated. Thank you

  2. #2
    IRUSOH -

    Thanks, I'll test it out...

  3. #3
    I'm still a little new to this stuff. Can this calculator something I should be in a position to open up onto MT4. And how do open it up, if so how?

  4. #4
    Quote Originally Posted by ;
    Brentmark yoy've already been extermely lucky so far. But email us later once you get rid of all your money in a demo account.
    IRUSOH - all it took was the worst day GBP/JPY had in years! I got margin called now and dropped half of the demo account. So this experiment is over on my conclusion.

    The hedge could still be a fantastic idea, but not while being over-leveraged as I knew I had been.

  5. #5
    BMack,

    Thank You for this True update. Were you hedged with 2.4 CHFJPY shorts to 1 GBPJPY long? I think you might have survivied the day had you been hedged.

    However, I think it's excellent that you even tried this hedge. Bravo.

    Quote Originally Posted by ;
    IRUSOH - all it took was the worst day GBP/JPY had in years! I got margin called now and lost half of the 5000 demo account. So this experiment is over on my conclusion.

    The Dollar could still be a fantastic concept, but not while being over-leveraged because I knew I had been.

  6. #6
    Quote Originally Posted by ;
    Were you hedged with 2.4 CHFJPY shorts to 1 GBPJPY long?
    I had a full-sized lot on GBP/JPY and full-sized lots short on GBP/USD and USD/JPY - all at a $5,000 demo account. It had been much too small for this particular Dollar.

  7. #7
    Quote Originally Posted by ;
    I had a lot long on GBP/JPY and full-sized lots short on GBP/USD and USD/JPY - all at a $5,000 demo account. It was too little for this particular Dollar.
    Your hedge ratio is wrong. Raise your USDJPY brief otherwise what you have: 1GBPJPY -1GBPUSD -1USDJPY is approximately 0.5USDJPY and so you have a margin call.

  8. #8
    Quote Originally Posted by ;
    IRUSOH - all it required was the worst day GBP/JPY had in years! I got margin called today and lost half of the demo account. This experiment is over on my conclusion.

    The Dollar could still be a fantastic concept, but not while being over-leveraged because I knew I was.
    Hey Brent,

    that is what I meant. You can earn $10 a day, but lose $2000 a day doing this.
    I don't know if you are interested, but I trace river thread https://forexintuitive.com/discussio...pivot-egy.html.
    It is a little more complied but I like it.

    Here are my results up to now on demonion:
    Inserted Code My Intuitive DRT Trades diary Completed Trades: Symbol Type Opened Closed pips comment ------ ----- ----------------- ----------------- -- ------------------------- USDCHF Short 2/21 19:08 1.2393 2/22 09:42 1.2432 -39 ceased out USDJPY Short 2/22 16:19 121.31 2/26 15:42 120.62 69 got out on return to river. too early. AUDUSD Short 2/22 16:21 0.7893 2/26 16:55 0.7941 -48 ceased out EURUSD Long 2/22 16:16 1.3103 2/27 15:34 1.3239 136 euro feels extended. Will get back at lower levels USDCHF Short 2/22 19:05 1.2390 2/27 15:35 1.2215 175 had enough GBPUSD Long 2/23 15:47 1.9620 2/27 21:41 1.9651 31 wait to watch for zone congestion USDCAD Long 2/27 15:15 1.1611 2/28 00:55 1.1671 60 the river was attained Current Trades: Symbol Type Opened pips comment ------ ----- ----------------- -- ------------------------------ USDJPY Long 2/28 03:05 118.57 3 return to river GBPUSD Long 2/28 03:06 1.9628 -9 settled over river EURUSD Short 2/28 03:07 1.3224 3 pull back
    I missed the majority of the transfer on USDJPY.

  9. #9
    Gwan, is suitable. Rotate it and you have to average to your trade. FIFO your transactions. You don't need to blow your load in 1 day.

    PT

  10. #10
    Has
    their been some updates to this calculator? Is thier one that could
    be used for different pairs or to change lot size?





    Quote Originally Posted by ;
    This is Hedge Calculator.

    It can compute any number of pairs (with reason) in almost any combination.
    First parm Pairs works as follows:

    Pairs = symbol=lots;symbol=lots;...

    symbol to buy when lots favorable, to sell when lots damaging
    separated by semicolons.

    Pairs with this thread is going to probably be GBPUSD=-1;USDJPY=-1;GBPJPY=1

    start, ending times shluld be at least one day.

    Check it out, see if it works for you.
    https://forexintuitive.com/attachmen...2337828857.ex4

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