10 pairs opens you up to many more possibilities for getting into profit. Your first, second and third trades can be losers and you can still close in profit. As I mentioned before, you can preclude exactly six possible specific trades for every ...

Three Pairs Hedging

Wrong. Just flat wrong. It goes without saying that you close when in profit. The benefit is that you are highly likely to get profitably hedged, and in fact this is what happens. I've implemented an EA that trades this approach with 10 pairs in ...

Three Pairs Hedging

You could look at it that way, yes. There is no assurance all of the trades will be opened per the entry targets.

Three Pairs Hedging

Here is a three-pair (in the spirit of the thread title) example. Take a snapshot of any triangle's exchange rates at any point in time. Here is a snaphot from today's quotes for one of many triangles. EURUSD bid 1.13974 ask 1.13989 GBPUSD bid ...

Three Pairs Hedging

If the trades are not opened at the same time but rather individually when the market comes to levels that would make the basket of trades profitable, is the approach I'm in favor of.

Three Pairs Hedging

The main mistake -I- see, if trying to make money from synthetic hedges, is in opening the trades for all 3 pairs at the same time. If you do that, you might as well size the lots the same for every pair because that will create the possibility of ...

Three Pairs Hedging

There are a bunch of different systems being discussed on the thread and I think you just want to be seen as the one who tells everyone else they're wrong. Due to the nature of fractions, lot sizes and exchange rates are tied together inextricably ...

Three Pairs Hedging

Sure, the arithmetic for lot sizes includes exchange rates, but the main point is that exchange rates are simply fractions with one currency the numerator and the other the denominator.

Three Pairs Hedging

Lot size equivalencies are the same as exchange rate equivalencies.

Three Pairs Hedging

Great work behind this thread. I salute you!

The Hodgepodge Trading System

Meditate on the mantra below. Pretend you are one of the possible 20 trades in the 10-pair super triangle I illustrated. You are a CHFJPY long. Or maybe you are a GBPCHF short. Doesn't matter which one you are, there are exactly six trades you don't ...

Three Pairs Hedging

"Correct" lot sizes are only important if trying to hold the equity as steady as possible. I thought for a time that this was important, but in the several years I was away from developing EAs, I realized it doesn't make sense if the goal is to make ...

Three Pairs Hedging

After a few round trips on demo accounts with the 10-pair basket I've been discussing, it became clear a good strategy needs to be employed beyond simply opening trades when the targets are hit. It's fine to recognize the connected triangles, but ...

Three Pairs Hedging

There probably is brucech, but all of the pairs need to move sooner or later and it's market movement we want. I've been working with an EA and as I expected the very quiet times aren't good. I don't know how it would do during major news ...

Three Pairs Hedging

There is no duplication of GBPCHF and CHFJPY. It is: Account 1 EURUSD - Sell USDJPY - Sell EURJPY - Sell GBPJPY - Buy EURGBP - Buy EURCHF - Buy GBPCHF - Buy GBPUSD - Sell USDCHF - Buy CHFJPY - Buy Account 2 EURUSD - Buy USDJPY - Buy EURJPY - Buy ...

Three Pairs Hedging

I'm referring to the approach I have in mind for the 10 pairs, not the approach you discussed.

Three Pairs Hedging

I should be clear about this. We wouldn't use two accounts to compare datafeeds. We would use two accounts only to be able to trade all pairs in both directions. For non-USA traders who can trade one pair in both directions on one account, one ...

Three Pairs Hedging

Very interesting, GoldTheHun.

Three Pairs Hedging

dukas_trader, you obviously aren't paying attention and exhibit zero understanding of what I've been discussing. There is no arbitrage involved, no utilization of slow vs fast brokers, no comparing one broker's data against another's, nothing like ...

Three Pairs Hedging

I hadn't heard before that brokers don't like hedging. I do get the impression that many of them just don't want us being profitable, period. One thing I know they really hate is arbitrage, especially one-leg latency arbitrage. The approach I've ...

Three Pairs Hedging