- Search Metals Mine
- hotstorm replied Jul 30, 2009
Although I said I would not post here anymore, I will give you one more opinion of mine. Dreamliner's system of trading the gap is overlaying two charts of positively correlated pairs EURUSD and GBPUSD. When there is a gap he goes either short/long ...
Hedge and Correlation Strategy
- hotstorm replied Jul 29, 2009
Ok, I am sorry. I will not disturb you here anymore. Good bye!
Hedge and Correlation Strategy
- hotstorm replied Jul 29, 2009
These pairs are said to be negatively correlated. That means when e.g. E/U goes up, U/C goes down. If you do long E/U, you suppose it will go up, hence you expect U/C go down. So, taking long E/U + short U/C you just risk twice as much, so I do not ...
Hedge and Correlation Strategy
- hotstorm replied Jul 29, 2009
I was not actually criticizing anything. It's your system what you do and using confirmations like S/R zones surely might help. All I was trying to explain was that trading combination like e.g. EURUSD vs. USDCHF is really nothing else than trading ...
Hedge and Correlation Strategy
- hotstorm replied Jul 29, 2009
Just because you are delighted it works right now, you just do not want to see the truth. Look, I am not jealous that you just "discovered" really profitable and working system. I just went through the same thing a few years back myself and it did ...
Hedge and Correlation Strategy
- hotstorm replied Jul 28, 2009
I am not telling you not to do so. Just so you know the risks and what can you expect one day and why... good luck!
Hedge and Correlation Strategy
- hotstorm replied Jul 28, 2009
How to calculate market neutral hedge — How to calculate market neutral hedge (it is pointless to do so, this is just for demonstration) EURUSD rate 1.4273 GBPUSD rate 1.6523 EURGBP rate 0.8637 Now, do this on your demo account: a) 1 lot long ...
Hedge and Correlation Strategy
- hotstorm replied Jul 28, 2009
Sorry, I do not go here very often. Let me explain: - if you go long EURUSD, you actually buy EUR and sell USD (you are short USD), - if you go short GBPUSD, you actually sell GBP and buy USD (you are long USD in this case) - in total, you are ...
Hedge and Correlation Strategy
- hotstorm replied Jul 28, 2009
... when EURCHF will be trending like in the attached image, you are going to be losing all the time. EURCHF was in steep downtrend for over 8 weeks and went down nearly 1300 pips. And that's just one example. These correlations don't work, they do ...
Hedge and Correlation Strategy
- hotstorm replied Jul 10, 2009
Plus, how can you explain why this is true anytime you take current bids: EURUSD Bid 1.39125 = A GBPUSD Bid 1.61877 = B EURGPB Bid 0.85927 (A/B = 0.8594488) USDCHF Bid 1.08843 = C EURCHF Bid 1.51454 (A*C = 1.514278)
Hedge and Correlation Strategy
- hotstorm replied Jul 10, 2009
Ok, go and lose your money. I guarantee.
Try opening: Long 1 lot EURUSD Long [current rate of EURUSD, currently 1.3918] lot USDCHF Short 1 lot EURCHF If there is no spread and swap you get perfect hedge.... You won't lose but you also never make ...Hedge and Correlation Strategy
- hotstorm replied Jul 10, 2009
... because trading EURUSD vs. USDCHF is nothing else than trading EURCHF. The same for e.g. EURUSD/GBPUSD, you are trading EURGBP. This has been said many times in all forex forums. You are wasting your time trying to trade these correlations... ...
Hedge and Correlation Strategy
- hotstorm replied Jul 10, 2009
Of course, MACD is nothing else than difference of two MAs. So when you have same or similar MAs on the chart (say MA 7, MA 21) and MACD(7,21,1) then they cross at the same moment as MACD crosses zero line, i.e. when difference of the two MAs is ...
Very simple USDJPY scalp
- hotstorm replied May 15, 2009
Do the Right-click in Market Watch window, then select "Show All" in the context menu.
EURUSD
- hotstorm replied Apr 27, 2009
I tried your EA on backtester and it looks like it takes trades on "inside bar high/low" break not on "master bar high/low". I think that is wrong, it should trade when the price breaks master bar high/low. Also, for how long do you consider master ...
Simple Strategy With Inside Bars
- hotstorm replied Mar 31, 2009
I do not want to scare you but you are actually trading EURGBP. Look how it is calculated: EURUSD = 1.3303 GBPUSD = 1.4314 EURGBP = 0.9293 EURUSD/GBPUSD = EURGBP. Put there numbers and see for yourself. Now, look at EURGBP chart and see how wild it ...
Hedge and Correlation Strategy
- hotstorm replied Mar 20, 2009
Yes, learning process... It uses one neuron. Learning process is when neuron's input weights are being updated to produce required output - call it optimization, if you like. You can read something about NN on wikipedia to see what I mean. However, ...
Dimon_ea Scalping
- hotstorm replied Mar 20, 2009
I agree, the x1 - x4 values should be updated every once in a while. They define weights for perceptron inputs. The weights should be optimized by a perceptron learning process. Even then, it is not guaranteed it would work profitably...
Dimon_ea Scalping
- hotstorm replied Mar 20, 2009
...moved to rookie discussion...
I put it on the demo IBFX last night. Results so far are interesting. See attached image. I first traded 0.1 lots but then changed to 1 lot, as that is mini account. Maybe if it is turned off before major news ...Dimon_ea Scalping
- hotstorm replied Mar 19, 2009
I checked the code briefly. I found out it is based on neural network theory. It calls function perceptron() and based on its return value it does sell or buy. Perceptron is the simplest neural network with one neuron url This function ...
Dimon_ea Scalping