You have a "strategy" for GBPUSD. You have 4 different setups.
1) long, average trade length 6 h
2) long, average trade length 24 h
Be long 1 unit when 1) or 2) is long, be long 2
units when 1) AND 2) are long.
3) short, average trade length 6 h
4) short, average trade length 24 h
Vice versa…the two system suggestion would
work fine.
> All of these setups give good positive results.
Which do you use in your FX systems?
"And to those others here who keep insisting that hedging is a wrong or worthless thing to do, it would really be a good idea to stop showing your ignorance and lack of knowledge about the futures and trading industry. Hedging is a valid strategy to reduce risk short term while maintaining exposure and a lot of funds do it. Just because YOU don’t like to, doesn’t mean it is incorrect. I find it to be comic relief from those who think they know everything."
The comic relief, lack of knowledge and ignorance actually is that you talk without seeming to understand the comments of this thread. Nobody said hedging wasn’t a valid strategy. As said above:
– the precise issue is there is little value to offer a trading system that hedges by simultaneously holding long and short of the exact same instrument. It is the same as just reducing the units of the instrument. And it is less confusing to subscribers.
– Nothing above was offered as legitimate arguments or proof by the hedger-wannabees that hedging via opposite positions in the EXACT SAME instrument offered any real value add (please read the preceding posts, don’t assume it is so).
– whether funds hedge still does not particularly apply here. C2 is not a site of CTAs or hedge fund operations. It is people who want to offer a system and people who want. I doubt most C2 system providers really want funds as customers, taking major positions with their signals.
– there are other ways that don’t require MK to perform radical surgery when it is unnecessary. Use options, different months, or other methods. As you stated in your note…
>Which do you use in your FX systems?
Well, FX+ Easy was ment to work like this. But because of the restrictions of C2 I took just one part of the strategy at the moment, what makes it quite incomplete.
At the moment I just look at all the systems and enter trades manually (except GBPUSD short term).
> But from a programmer’s view I would like to look at the long strategy and at the short strategy separately. You can also consider using different timeframes for the same forex symbol, if you want.
In TradeStation you would program that like this:
Buy 100 XYZ LT;
{long 100 XYZ}
Buy 100 XYZ ST;
{you are now long 200 XYZ}
Sell 100 XYZ ST;
{you are now long 100 XYZ}
Sell {Short} 100 XYZ ST;
{you are now flat…this is the same
net effect as the “hedge” you describe}
Buy {to Cover} 100 XYZ ST;
{you are again long 100 XYZ…aka the hedge
is off}
and so on. This can all be done in the
same “system” or TS has an “include
system” mechanism so you can write
two systems and combine them. The
bottom line is being flat and being
"100% hedged" is the exact same thing
from any practical POV.
"TS has an “include system” mechanism so you can write
two systems and combine them."
How can this be done? What are the commands needed?
I’ve not noticed this function so far, it would be very useful for my purpose.
>>TS has an "include system" mechanism so you can write
two systems and combine them."
> How can this be done? What are the commands needed?
The command is "include system" and then the system name.
Check TS EL help. Search for "include system".
Here is one of mine. This is the actual code.
IncludeSystem: "WT3";
Pretty easy, huh?
Here’s my 2 cents under about creating a real hedge:
1) You should have it ready to go before you are down $ 20,000. In this case you are not hedging, you are trying prevent your system from blowing up because you don’t know how to trade, and C2 should not allow you to create a 2nd trade using the same currency when your 1st trade has not been closed out for a loss.
2) You can hedge a similar instrument in forex really easily, but again plan to have the hedge entered in before a big drawdown. I hedge both stocks and forex without any problem as a C2 system developer. If you don’t know how to hedge, you should not be creating systems for C2 in the 1st place, instead go back and read a few forex trading books.
