Friday 11 November 2011

Hedging System

I have had a few questions regarding the hedging systems.

They are still in an evolution stage.  Just when i think I cant improve it any more I get an idea that makes it more stable and more profitable. 
The profit levels have increased dramaticly from earlier tests.  From around 3% Per month to 50% Per month.  Most of the tests will start dropping their monthly % as the balance grows as they are fixed lots
.
One of the problems with hedging currencies is their unpredictability in regards to correlation. Sometimes currencies are predictable and flow together. Other times the same currencies will work in the reverse order or one currency will move unpredictably because of big news.
Some of the tests I am doing with the hedging bots use currency pairs that are not correlated at all.

The biggest improvement I have made to some of the bots I am testing is hard to see in day to day trading. It is the built in safety features to be able to recover from what would be a catastrophic move against them.  From my end I can see how it is improving even their day to day trading and improving their closing ability.

Other improvements are even more harder to see by looking at these demo test results.  One is a Free Margin Trickle system, which adjusts the risk according to the available free margin.  It is sort of a money management system, but it adjusts the risk by hedging pairs, not by lot size.

Anyway, I will keep making improvements as they come to me.

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