Hedge and Correlation System For MT4 Intro
The Hedge and Correlation System For MT4 is depending on two factors as you see from its name the hedge and the correlation so it is mixing between both to monitor two pairs in the same time and take its trade on them.
The chart we have for you today on that we are putting the Hedge and Correlation System For MT4 on is for the EURUSD on the 5 minutes tiem frame you can see on top left that we have the stochastic results without the need of displaying it on the chart. The current EURUSD stochastic results are 37.50, while the USDCHF results are 66.23.
Usually, the trading should be above the level 80 for buying the below the level 80 for selling ( that is for the normal stochastic trading ) but that system is depending on some hedging ways using the correlation to get you a better result.
However, the original poster of that system is not active anymore which caused that the system might not work perfectly. Still, you can take an idea on how it works so, if you like it you can execute the trades manually for example.
If you need to give the Hedge and Correlation System For MT4 a try, you can download it from here just enter the e-mail that you would like to receive the ZIP file of the system and we are going to send it to you instantly in your email box.
How to use Hedge and Correlation System For MT4
What is the hedge, and how does it work whether in or outside the Hedge and Correlation System For MT4?
Simply, the hedge is like closing your trade with double spread loss; when you have a buy trade whether in win or loss and you need to make a hedge you will open a sell trade by the same position size so that if the market moved anywhere whether up or down you will not be affected. Still, you will pay spreads again for the sell trade you opened. So, why do not you just close the buy and open it again whenever you need instead of wasting your dollars in spreads?
Some people using the hedge while they know that they will pay the spreads again because if they closed the trade their remaining margin will not be able to open a new trade with the same size ( and that happens alot with the risky traders ) so that they just decide to open hedge and lose spreads to keep having a specific lot running then they can close one of the two trades later and let the other one continue.
So, as you see in an example the hedge looked completely useless and in the other example looks completely useful. So, it is your decision to use the hedge or not, you know yourself more than anyone else. If you are a risky trader or not you are the only one who can answer that question. Note that some brokers not accepting hedge so ask your broker first if it accepts the hedge in general not for the Hedge and Correlation System For MT4.
The correlation trading in the forex market is depending on the relation between two different forex pairs to be able to find good trades in the forex market and build a nice forex strategy based on it, How to start seeing or checking that?
Simply, you need to find two trading pairs that is moving in the same direction or in the opposite direction, but must look similar if you opened one chart of the first pair and one chart of the second pair you should be able to think that it is the same chart whether in the same direction or looks like a rotated picture.
So, for example if you see that the EURUSD and USDCHF are a carbon copy from each other if they are not rotated you can simply but the EURUSD and buy the USDCHF so that you have done a hedge in unusual way instead of buying and selling the EURUSD to make a hedge, you just buy the EURUSD and open the hedge on a pair that is moving against the EURUSD 95% to 100%. That is simply how the correlation and hedge works together in the market.
Also, you need to know that not the same trading pairs are correlations forever as per the market news and contunually changes in the market you need to be up to date always on which currencies moving like each other or against each other.
Hedge and Correlation System For MT4 Pros & Cons
The good thing here in that strategy idea or system Hedge and Correlation System For MT4 is that it is not a repainting system or strategy and it just depends on the correlation in the first place.
The dis advantage here is if you decided to use Hedge and Correlation System For MT4 or any other automatic system for that. That depends on the stochastic or anything similar to it, you may need to decide the market trend by your own trading strategy then take in the hedge trades on it, still you need to know each currency speed to be able to decide what currencies pair you will buy or sell, and when you will make a hedge or close it. ( it is not easy as you think ), or you can just keep testing the Hedge and Correlation System For MT4 itself and the similar systems to it.
Summary of Hedge and Correlation System For MT4
The Hedge and Correlation System For MT4 or any other system having the same concept is simply finding two pairs moving like each other or against to each other and then start having trades on it based on the stochastic over load 80+ or -80 having that said there are still many other factors and rules that we recommend to keep reading more about the correlations if you are interested in that still before trading by it.