I have an idea for a system that combines elements of different systems. There may be conflicting constraints here that i am unaware of, or i may have had too much caffeine; but i would appreciate some input. Right now it is only that: an idea. It may be there are too elements to make a system work, but i can see there are a lot of smart people coming here, who can probably tell me at a single glance whether this is workable or not.
We are looking to integrate the following systems/ideas;
1) 'Positioning/averaging-up'. Adding positions on daily basis.
- Advantages: we get positions spread though the market.
2) Hedging : Working with pairs that offset movements in each other. Im not sure what the best set of pairs in the context of this system would be, the one i am aware of is + GBPJPY, -CHFJPY, -GBPUSD, -USDCHF. This seems to be driven heavily by GBPJPY movement. With the hedging, we are building swap and opening ourselves to the possibilty of closing all the set out for a profit. This is also a lot of pairs to keep track of, so a simple dual-pair system would be preferred - suggestions welcome!
3) Scalping
The scalps we are entering, have no stoploss. If they fail, they become positions in the positioning-up system. If there was an uptrend (determined by 4) we would be looking to buy on dips, taking approx 20 pips profit. We would scalp every day until we get our failed trade, then that becomes our position for the day.
4) Following the trend. We should be tracking the trend across MTF, using HAD indicator, and can also use that system for entry guides. We should only initialise the system when the core pair (gbpjpy in this set i believe) is UP on the daily trend.
Because of the hedging, the trade directions for each pair are thus fixed.
If you are scalping, and you have a 'floater' (trade that went the wrong way), you would need to add the corresponding hedge trades.
The entire set of trades would be closed on either a negative trend indication, or reaching a certain predefined takeprofit level, similiar to an ordinary hedging system criteria.
Another, much simpler variant would be to drop the hedging component, and follow the long term trends. You would need to be able to trade very small lot sizes to trade this system, if the position-accumulation component is in place.
I think i need to make a matrix out of these components to see which can co-exist.
position-accumulation/averaging up
hedging
scalping
trend-following
scalping
We are looking to integrate the following systems/ideas;
1) 'Positioning/averaging-up'. Adding positions on daily basis.
- Advantages: we get positions spread though the market.
2) Hedging : Working with pairs that offset movements in each other. Im not sure what the best set of pairs in the context of this system would be, the one i am aware of is + GBPJPY, -CHFJPY, -GBPUSD, -USDCHF. This seems to be driven heavily by GBPJPY movement. With the hedging, we are building swap and opening ourselves to the possibilty of closing all the set out for a profit. This is also a lot of pairs to keep track of, so a simple dual-pair system would be preferred - suggestions welcome!
3) Scalping
The scalps we are entering, have no stoploss. If they fail, they become positions in the positioning-up system. If there was an uptrend (determined by 4) we would be looking to buy on dips, taking approx 20 pips profit. We would scalp every day until we get our failed trade, then that becomes our position for the day.
4) Following the trend. We should be tracking the trend across MTF, using HAD indicator, and can also use that system for entry guides. We should only initialise the system when the core pair (gbpjpy in this set i believe) is UP on the daily trend.
Because of the hedging, the trade directions for each pair are thus fixed.
If you are scalping, and you have a 'floater' (trade that went the wrong way), you would need to add the corresponding hedge trades.
The entire set of trades would be closed on either a negative trend indication, or reaching a certain predefined takeprofit level, similiar to an ordinary hedging system criteria.
Another, much simpler variant would be to drop the hedging component, and follow the long term trends. You would need to be able to trade very small lot sizes to trade this system, if the position-accumulation component is in place.
I think i need to make a matrix out of these components to see which can co-exist.
position-accumulation/averaging up
hedging
scalping
trend-following
scalping