Happy New Year 2015 one and all!
Auto Hedge Commodity Trader System
Auto Hedge Commodity Trader System is a concept to stay hedged in commodity pairs which move alike 80% or more in same direction coupled with leveraging the volatility in UK-US session passage to collect some profits trading them.
Some of the commodity pairs which move in same direction most of the time could be :
i) USOIL(WTI Crude) vs UKOIL(Brent)
ii) XAU USD (GOLD USD) vs XAU EUR (GOLD EUR)
iii) XAU USD (GOLD USD) vs XAG USD (Silver USD)
Note : You guys can suggest any better pairs too , in non commodity world correlation ratio between USD JPY & Nikkei 225 Stock index is whopping 0.86 suggesting tighter correlation.
Entry Condition :
Order Open timings : Start of UK Session to End of US Session (approx)
Lets take OIL which is pretty hot topic at the moment with financial oil wars going around:
System takes the following orders completely hedged:
i) UK OIL BUY/US OIL SELL ==> Set 1
ii) US OIL BUY/UK OIL SELL ===> Set 2
Exit Condition :
Order Close timings : No restrictions in timings when ever Set 1 (or) Set 2 comes to 5pip profit
Attached : Auto Hedge Trader EA for traders ..
Auto_Hedge_Trader_V1.mq4 7 KB | 1,412 download
Currently it does good job with this mechanism, that said looking forward for good suggestions/improvements to take it forward to channelize into next level.
Scoobi doobi doo