Auto Hedge Commodity Trader System

Happy New Year 2015 to everyone!

Automatic hedging commodity trading system

Auto-Hedged Commodity Trading System is a concept of hedging commodity pairs that are 80% or more similar in movement while taking advantage of the volatility of the UK and US trading sessions to make some trading profits.

Some commodity pairs that move in the same direction most of the time might be:

i) USOIL (WTI crude oil) and UKOIL (Brent crude oil)

ii) XAU USD (Golden Dollar) and XAU Euro (Golden Euro)

iii) XAU USD (Gold USD) and XAG USD (Silver USD)

NOTE: You guys can also suggest any better currency pair, in the non-commodity world the correlation ratio between USDJPY and Nikkei 225 stock index is as high as 0.86, indicating a closer correlation.

Admission conditions:

Order opening hours: from the beginning of the UK session to the end of the US session (approximately)

Let’s take oil as an example, which is a very hot topic in the current financial oil war:

The system accepts the following orders for full hedging:

i) BP Oil Buy/US Oil Sell ==> Setup 1
ii) US Oil Buy/BP Oil Sell ===> Group 2

Exit conditions:

Order closing time: No time limit when Group 1 (or) Group 2 reaches 5 pips of profit

Attached: Automatic hedging trading EA for traders..

Currently the mechanic is doing well and looking forward to good suggestions/improvements to take it to the next stage.

cheers,
scooby doo