Hi all,
My cousin and I have been working on a way to backtest hedging strategies for up to 6 currencies at the same time. If any of you are familiar with the www.goldenmoneytree.com you will know what I'm talking about as far as hedging strategies. Since we have put in a lot of time on this project already for our own benefit I just wanted to get a feel for what people would be willing to pay for such a tool before we start spending the time it will take to create instructions on how to use the tool effectively? Please let us know and we will begin to finish working out some small bugs and start creating detailed instructions.

Thanks.

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Is there not a single person who would like to see how a hedge has performed in the past before trading it in a forward test? Rather than being an EA this is an indicator that shows how the hedge has behaved in the past which gives some indication how stable it may be in the future although I'll be the first to admit tat the past doesn't necessarily mean that he future will be the similar. This indicator makes it easy to see how stable and unstable a hedge may be and also how the swap will effect it. It is still in a beta stage right now but development is going smoothly. I personally think this a valuable tool especially for those trading the Freedom Rocks type strategies.

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I could be reading this wrong, but the title of your thread is confusing to me.

The title is: How much would you be willing to pay to be able to backtest a hedging strategy?

So, what you're asking is if someone would pay you to backtest?

If so, good luck. Most backtesting is done for free. Again, if I'm wrong, correct me.

Thanks for the question and maybe I should change the thread title. What I'm asking is if people would be willing to pay a few dollars for an indicator that my cousin and I are developing that allows one to backtest hedges. We would just sell the indicator and documentation on how to use it to profit from the market and reduce risk. The people would do the backtests themselves and could therefore do as many as they wanted as long as the wanted. We would also provide support. We aren't thinking of charging a lot, just enough to make creating the needed documentation and instructions worth our while.

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Hi huhenyo

Im sure quite a few people would be interested, I assume that you can set a start date for the trade, and it calculates and displays how profit and loss vary through time ? does it include swap ?, correlation etc ?

It might be worth while explaining a bit more about what your indicator does, perhaps with a few screenshots

I tried doing something similar in MT, there quite a few indicators around that take data from 2 or 3 pairs, but I found quite a few problems, mainly due to missing candles in one of the pair, eventually I gave up and developed in VB !

It sounds like a useful tool, so good luck

regards
zu

Zupcon,
Let me answer your questions. You are able to tell the indicator when to start and it can be tested with or without swap. You are correct in that holes in data can be a problem. We actually have plans to go through Alpari's data and fill in all the holes altough Alpari's data works quite well with this indicator. Although most people already know how to do it we would include instructions on how to get good data so the indicator will work right. Attached is a taste of the indicator for you. What it shows is the impeccable hedge of buy GBPJPY, sell GBPUSD, and sell USDJPY. In this example the USDJPY lot size has to be set to whatever the GBPUSD price close is whenever the indicator starts. The other two are just 1 lot each. Of course the swap isn't included in this example otherwise it would slowly trend down.

Attached Images

Impeccable without swap.JPG (219.2 KB, 349 views)

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The histogram bars represent the account balance but it doesn't include the spread although we could easily program that in. The programming of the calculations for the indicator was a beast.

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Hi huhenyo

yes, the holes can be a problem. I'm surprised that there isnt more interest in this, particularly from new traders who are subscribing to hedging programs like freedom rocks, your indicator would at least help them identify the kinds of risks or drawdown they might expect. There's probably a forum or group somehere with hundreds of potential customers, so its probably worth while finding them.

regards
zu

I'm also confused that more people aren't interested in this. It really can open your eyes to what risks you are taking with a hedging system. Most people just trade the hedges like freedom rocks without understanding at all what really is going on. I think this indicator can help people become more conscience of what the hedge actually does. Well, I'm going to keep perfecting it for myself, but I'm not sure if I want to create instructions if no one wants it.

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Finally someone showed some interest in this. I guess I'll get started on those instructions so that they will be ready for others.

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