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Bill, I have just coded an EA based on a simple method you described in an earlier thread (forget which one...) - basically go long GBPJPY, short CHFJPY, open 1 microlot each day (though the PDF you posted wasn't specific, I presume that means 1 microlot per pair on alternate days?) collect swap when in drawdown and close everything and restart when a certain dollar-target is achieved.
Assuming I got that much right(!) my question to you is, from your experience, what is the maximium pips drawdown one could expect from the above combination? Thanks.
If you need a testor or care to share your EA...I am interested.
ES
Quote:
Originally Posted by omelette
Bill, I have just coded an EA based on a simple method you described in an earlier thread (forget which one...) - basically go long GBPJPY, short CHFJPY, open 1 microlot each day (though the PDF you posted wasn't specific, I presume that means 1 microlot per pair on alternate days?) collect swap when in drawdown and close everything and restart when a certain dollar-target is achieved.
Assuming I got that much right(!) my question to you is, from your experience, what is the maximium pips drawdown one could expect from the above combination? Thanks.
Bill, I have just coded an EA based on a simple method you described in an earlier thread (forget which one...) - basically go long GBPJPY, short CHFJPY, open 1 microlot each day (though the PDF you posted wasn't specific, I presume that means 1 microlot per pair on alternate days?) collect swap when in drawdown and close everything and restart when a certain dollar-target is achieved.
Assuming I got that much right(!) my question to you is, from your experience, what is the maximium pips drawdown one could expect from the above combination? Thanks.
Are you serious? My question to you is why didn't you just use the C4 correlation robot I wrote to do exactly this task?
The PDF meant to add to both sides at the same time, but there are many variations in terms of time and sequencing that are open to personal preference, currency choice and market behavior.
I can't give you a number based on your question. When do you assume entry into this trade? Are you assuming that new positions are added each day? Each of these would need to be calculated as each weighs against the trade.
But, to provide some sort of basic answer, if you had entered one lot long GBPJPY and one short CHFJPY on July 1st, the maximum negative pip exposure would have been 1,533 and a negative dollar value of $13,092. You would still be negative $5,773 and 676 pips, excluding swap earnings. Additional positions before mid-August would have increased the drawdown. After mid-August, most additional positions would have helped reduce the drawdown.
BTW, if you had used my C4 robot and let it run, it would have reported the maximum drawdown of this trading set-up to you. That is one of it's features. It will even send you an email to give you a physical historical record.
Are you serious? My question to you is why didn't you just use the C4 correlation robot I wrote to do exactly this task?
'cos the EA you posted with the PDF 'timed out' about a year ago
Quote:
But, to provide some sort of basic answer, if you had entered one lot long GBPJPY and one short CHFJPY on July 1st, the maximum negative pip exposure would have been 1,533 and a negative dollar value of $13,092. You would still be negative $5,773 and 676 pips, excluding swap earnings. Additional positions before mid-August would have increased the drawdown. After mid-August, most additional positions would have helped reduce the drawdown.
This is what I wanted, just a rough ball-park figure - enough to wake me up to what the dangers can be! And get an idea of where the 'point of no return' might be, beyond where d/d is more likely to continue. I'm aware that this is the same as trading GBPCHF, which can trend for 1000's of pips, but I think there is a psychological benefit to trading both pairs.
Quote:
BTW, if you had used my C4 robot and let it run, it would have reported the maximum drawdown of this trading set-up to you. That is one of it's features. It will even send you an email to give you a physical historical record.
'cos the EA you posted with the PDF 'timed out' about a year ago
And you didn't think to ask or check out the many references to my yahoo group files in this thread? All my current files are here ----> pacificforexgroup : Pacific Forex Group
Quote:
Originally Posted by omelette
I'm aware that this is the same as trading GBPCHF, which can trend for 1000's of pips, but I think there is a psychological benefit to trading both pairs.
It isn't the same, though many people continue to repeat this statement because they read it in a post somewhere by individuals who stated an uninformed opinion as fact.
At an extremely basic level look at the elasticity. In the GBPCHF there is none. Zero. It is either up or down. Trading the GBPJPY and CHFJPY there is substantial elasticity as they both may be any combination of up and down. And, one can potentially trade for positive swap AND make a swing action profit even if both pair fall in value. Can't do that in the GBPCHF cross. I have discussed this in more detail in previous posts in this thread.
Further, if they are the same, one would expect that the drawdown in the two pairs to exactly match the drawdown in the GBPCHF from July 1st to now (it was 1,046 pips to be exact). Since they don't match, they are not the same.
Correlation trading has a relationship between the two traded pairs and its cross, but it is NOT the same as trading the cross directly. There is more than just a psychological benefit to trading the pairs - the benefit can also be mathematical.
And you didn't think to ask or check out the many references to my yahoo group files in this thread? All my current files are here ----> pacificforexgroup : Pacific Forex Group
Bill, I am not as familiar with this thread or your work as I would like - I presumed the EA was a commerical venture of yours (hence the trial). I wasn't aware of the Yahoo group either - but now I am, thanks!
Quote:
It isn't the same, though many people continue to repeat this statement because they read it in a post somewhere by individuals who stated an uninformed opinion as fact.
At an extremely basic level look at the elasticity. In the GBPCHF there is none. Zero. It is either up or down. Trading the GBPJPY and CHFJPY there is substantial elasticity as they both may be any combination of up and down. And, one can potentially trade for positive swap AND make a swing action profit even if both pair fall in value. Can't do that in the GBPCHF cross. I have discussed this in more detail in previous posts in this thread.
Further, if they are the same, one would expect that the drawdown in the two pairs to exactly match the drawdown in the GBPCHF from July 1st to now (it was 1,046 pips to be exact). Since they don't match, they are not the same.
Correlation trading has a relationship between the two traded pairs and its cross, but it is NOT the same as trading the cross directly. There is more than just a psychological benefit to trading the pairs - the benefit can also be mathematical.
Life is about learning and I am never afraid to admit I do not know something - the minute I realise the error of my ways, I can mark another item off of my 'to learn' list. And I certainly have a lot to learn about hedging/correllation
I really appreciate you taking the time to answer my questions.
Most likely, your account began trading on Sunday 10/14/07 (today). Remember, if you funded on a Saturday (10/06/07 not a business day) today is your first trading day. This manager has a weekly entry date on Sunday evenings (for funding by Friday)...some managers have monthly entry dates...also some managers may have specific withdrawal dates spelled out clearly in the docs...I have not checked GoFXPro...but I think you can withdraw anytime.
Any questions about the clearance of funds should be addressed to PFG...
For that day of gains, from what I can see, there were 30 trades in the EUR/USD and Cable...mostly cable...
Linear Mode
