Azmel,

Let me correct. It was a warning message. I use InterbankFX MT4 demo, build 211 (latest version). In the code, there's this line "if (OKToTrade)" when compiled, it gave warning message. When I changed this variable OKtotrade == 1, then compiled okay without warning.

The great danger of this strategy is that when one side of the hedge hit profit target, the remaining open order is trading naked (without stoploss). If price takes off in one direction without retracing, our account will be in trouble. However, with the breakeven feature this kind of risk and drawdown hopefully will be minimized.

[quote=saintmo;185087]Following are the results of my backtesting for this strategy using the EA.
Also, clearly if you can do better than a 4 pip spread the results would be better. [quote]

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ah --- testing --- i forgot that part of it ! (thankfully !)

with 5 lots, i make $250 per side, each day although i rarely take more than a few trades (mostly because i forget what time it is and dont want to enter late.)

there WILL be days, albeit few, where the overall trend and momentum of the currency will not allow one side to complete within the normal 30 - 45 minutes that it usually takes, but i have yet to find a single instance of where that trade did not get taken out within a few days. Having said that, because of the movement of GU, the NEXT trade taken worked just fine, so you do get "floaters", but if money management is applied based on your equity, you should NEVER be in trouble and that only happens on the "minor" reversals !

if youre having problems with the silly spread your broker gives you on GU (which btw trades in FIVE decimal places and not the four you see normally)
find another broker or use an ECN with two accounts !

enjoy and trade well

mp

__________________
KNOWLEDGE and EXPERIENCE are the handmaidens of the riches of forex, and i buy them roses every day, with many a thank you !

Thank you saintmo for the backtest results. The graph from your result confirm a statement that mp6140 mentioned in the "Join the Dots" thread.

If I remembered correctly, he once said that the hedging strategy works almost everytime, but a situation where the hedge doesn't hit both sides occurs once every three years. If that happens, as per m6140's words, move on and and continue next day as if nothing happens.

This was when the TP was 10. Now we have reduced the TP to 5 so it should be safer. It is also worth to point out that mp6140's pip spread is only 1. Most MT4 brokers do not have such a low spread on the GBPUSD pair. For users with big spreads, adjust the TP values accordingly to avoid the hedge not hitting its TPs because it needs to work harder to hit it.

The EA has an option to set a StopLoss, if so desired, although it will sway away from mp6140's principles.

Perhaps saintmo (or anyone) who has a good history data of GBPUSD can run a backtest with optimisation enabled to find out what would be the optimum StopLoss value, and to see the effect of having a StopLoss as opposed to without.

Attached are 4 optimization runs for 2007. All trade .1 lots at IBFX using a $50k account.

The first 3 (10:30, 20:00 & 24:00 est) were optimized on tp 1 through 10 at 1 pip steps and sl 0 through 30 at 5 pip steps. The profits improved in many cases (over the original 5 pip tp and 0 sl) and in some cases at the expense of an increased dd. It may be that certain of the times such as 20:00 just need to be dropped due to the drawdown/risk. In all cases sl of 0 was the only sl setting producing profits.

Consequently, I redid the most profitable time frame (10:30 est) with the same tp but with sl settings of 50 through 300 at 25 pip steps to see what a wider sl would produce (image #4). As you will see much reduced profits resulted -- but with lower dd as well.

Enjoy.

Attached Files

	OptimizationReport-mphedge1.htm (4.6 KB, 113 views)
	OptimizationReport-mphedge5.htm (3.9 KB, 38 views)
	OptimizationReport-mphedge7.htm (4.2 KB, 56 views)
	OptimizationReport-mphedge1a.htm (3.9 KB, 69 views)

Here are the top results of SQL query for the minute data from last year.

Thanks, Saintmo for this backtest. These results confirmed that mp6140's principles are correct by not using stoploss. Thus, the breakeven feature that will be added probably helps in reducing drawdown but not profit. We'll have to wait and test it.

Another idea for the EA would be to make the buy and sell comments user defined. This would keep a broker from targeting the EA by name.

I am confused about the different times to use, are the times above the times you entered on the ea?? or did you enter 45min before those times? Thanks