Originally Posted by bwilhite

Bob,

I've done some similar thinking and research along the same lines. It seemed to me, however, that the odds of the size of the loss getting out of control were too large (in worst case scenario basically, we're locking in a loss everytime we cross the range). I would like to know if you've found a way around this problem? Or maybe I misunderstood your original post?

Originally Posted by bwilhite

Fab4x,

Concerning your take profit idea, if we remove the long side of our hedge, then we are now exposed on our short side. What if the price keeps going?

BTW--I think there is value in this whole endeavor, although I don't think it's easy. Maybe if we can find a way to trade range and breakout at the same time...but I haven't been able to figure that out.

If we do find something workable, then I could probably code the EA.

Originally Posted by white_tiger

hello,

i've a strategy but it still unperfect

=============================
Rules
=============================
buy and sell on daily open price everday...
i suggest to put hedge position at -15 loss position
for example
close price : 1.1900
so it will open buy at 1.1902 (spread : 2) (order #1)
open sell at 1.1900 (order #2)

then the price raises to 1.1915
it will open buy position at 1.1915 to lock the Order #2

the best scenario is eurusd still raise until closed at 1.2000
i will get 85 pips (the position wil force-closed every 00:00). with locked loss -15, so it gives 70 pips profit.

the second scenario is
the price moves up to 1.2000 then fall to 1.1800,
i suggest to use trailing stop/stepping take profit (profit 30 lock 15, profit 60 lock 45)..
it will gives about 85 from buy position and 100 pips from sell position, minus 2x -15 = 185-30 pips = 155 pips (in a day).

the worst scenario, is the price ranging at 1.1915
if i use an EA, it will open-close-open-close that will cost huge spread. i wonder if there any technique to solve that.

notes: if the hedge position was opened, then the price reverse, it will be closed, and if the price reverse again, it will openede again.
basicly, i want to lock -15 pips loss by hedge it.

basicly, i want to loss around 15-30 pips only... but i will get a huge loss from spread.

any suggestion ?

thank you

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23 feb 06
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attached pic,
open buy** & sell*** at 00.00
then price going up, open another buy position*
then price reverse, then close that buy position*
up & down at the open-line
then moving up again, open another buy position*
until buy** reach 50 pips, maybe we should close the position ?...
then moving down... buy position* should be closed
lower and lower until open-15pts should be open a sell position **** to hedge buy** position, but if the buy position** was closed, you don't need to open a sell position
then the price going up... the sell position **** should be closed (if opened)
raising and raising, then open buy position ***** , then close again *****
then the day ends, profit :
50 pips from the closed buy position **
20-25 pips loss from the sell position * (forced closed)
hope it will clear my strategy