InsomiaFX Correlation Double Hedge EA

Hello,

This EA has been tested with Exness. You need a broker that offers offsetting hedging. Broker Compatibility: The EA refers to the currency pair as "AUDUSDm". Replace the "m" in EA with your broker's code.

The InsomiaFX related Double Hedging EA system works like this:

AUDJPY/CAD has a one-year correlation of around 90%, which is good. Over the course of the day, things changed a lot.

1. Open a $100.000 demo account
2. Attach EA to AUDJPY chart, time frame is not important

The EA will do:

1. Open a position to hedge AUDJPY/CADJPY (2 orders - 1 pair)
2. Opening the same order opposite (pair 2), the margin is now 0 and we have a.. well.. related double hedge!

With 0 margin, we have a very good drawdown buffer, and thanks to two pairs, our chances of hitting the target price are doubled. It's just that the exchange is negative.

For example, each order is 40 lots and the TP (Take Profit) point is 1000 USD per pair.

Take profits once the correlation goes crazy and the currency pair reaches the price target. Like one order is -1000 and another order is +2000. The pair will be closed and recreated. This happens about 5-10 times a day.

Due to the double hedging, the retracement will automatically stop when it reaches the maximum value. No more than about 20% in this example.

Very nice interactive related chart:
http://www.myfxbook.com/forex-market.../AUDJPY-CADJPY
http://www.myfxbook.com/forex-market/correlation

Each order is 40 lots, and the daily swap loss is approximately -$80. If you disable pair 2 and therefore pay margin for pair 1, the swap will translate into a profit of approximately 10%. $120 per day or about $3000/month . Pair 1 will still have a price target of $1,000 whenever it is reached.

Things to do:

1. Check the EA for errors
2. Does testing the system make long-term sense?
3. Add relevant formulas to EA (mostly done)
4. Define the perfect order entry point based on correlation over the last X minutes
5. Add batch-based compounds that correlate with equity returns to improve this.

Since AUD/CAD has fluctuated about 8% over the past 2.5 years, I've added code that adjusts the lot size based on the same value for each USD pair. However I found that the daily correlation differences were as high as 50% per pair, so adjusting the lot size now has almost no effect. So the code is inactive. When AUD/CAD is around 1.00, just place the same lot size.

Starting today, I'm running it on 4 demos to check that the system is working properly and to find code/logic errors.

See currency pairs and profits in pips shown in the comments. It will be interesting to see how the score changes until the target point is reached.

Thank you for reading and any feedback.

Insomya Forex



Since EAs are updated frequently, please find the latest EA in the thread.

NOTE: The rar contains a dll that simply increases the MT4 process priority to high. If you don't trust the DLL, you don't need it. Just uncomment the relevant code in the EA. If you want to use it, put the dll into the same folder as terminal.exe. Requires Windows 7 and .NET Framework 4.0. Sources available upon request.