march gt 25032013 - p2000 hea.pdf

Upload: heading-heading-ahead-ahead

Post on 08-Aug-2018

222 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/22/2019 March GT 25032013 - P2000 HEA.pdf

    1/23

    UNLEASH THE POWER OF HEDGING

    Part 1: By Peter Lim

    Part 2: By Chew Wai Lam

  • 8/22/2019 March GT 25032013 - P2000 HEA.pdf

    2/23

    Content Sharing

    PART 1

    What is Hedging?

    Hedging Strategy

    Law of Floatation in Hedging

    Creation of P2000 Hedging EA

    Can P2000 HEA assured Profits

    PART 2

    How you can Benefit from it.

    Q & A.

  • 8/22/2019 March GT 25032013 - P2000 HEA.pdf

    3/23

    What is Hedging?When a currency trader enters into a trade with

    the intent of protecting an existing or anticipated

    position from an unwanted move in the foreigncurrency exchange rates, they can be said to

    have entered into a forex hedge. By utilizing aforex hedge properly, a trader that is long aforeign currency pair, can protect themselves

    from downside risk; while the trader that is shorta foreign currency pair, can protect against

    upside risk.

  • 8/22/2019 March GT 25032013 - P2000 HEA.pdf

    4/23

    Hedging StrategyA FX hedging strategy is developed in four parts,

    1. Analyze risk:

    2. Determine risk tolerance:

    3. Determine forex hedging strategy:

    4. Implement and monitor the strategy:

    The forex currency trading market is a risky one,and hedging is just one way that a trader can

    help to minimize the amount of risk they take on.

    So much of being a trader is money and riskmanagement, that having another tool like

    hedging in the arsenal is incredibly useful.

  • 8/22/2019 March GT 25032013 - P2000 HEA.pdf

    5/23

    Law of Flotation in Hedging

    In the early days of shipbuilding, ships were made

    of wood and the reasoning was wood floats and

    iron sink.

    When Law of flotation was discovered, anythingcan float if its lighter than the mass of liquid it

    displaces.

    Now ships of mega tons are make to float by thesame law that makes it sink.

    The same principle can also be apply into FX

    Trading. The discovers of Law of Flotation alsostarted invention of submarine technology.

  • 8/22/2019 March GT 25032013 - P2000 HEA.pdf

    6/23

    Creation of P2000 HEA using

    Flotation LawLaw of Flotation = SL less than TP = Profitability

    Profitability using The 80/20 Rule in FX Trading

    80% of the Time Market Range

    20% of the time Market Trend

    80% of the time market oscillated within a 100pipsrange and 20% of the time it move beyond.

    In order to be profitable we have to decide what isour Risk Tolerance so we set a Trailing StopOrder to take hit the home run.

    Allowing 20% of our orders to recover all the lossesand cash in 80% of all the monies for consistent

    long term profits.

  • 8/22/2019 March GT 25032013 - P2000 HEA.pdf

    7/23

    P2000 HEA Design with

    Submarine Capabilities

    Submarines are essentially containers that hold peopleand air that is capable of diving, surface and maneuvererthrough the ocean using the Law of Floatation.

    The FX Market is like an vast Ocean full of Wealth, unlessyou are equip with the technology of Submarine

    STEALTH FEATURE

    IN FUTURE VERSION

  • 8/22/2019 March GT 25032013 - P2000 HEA.pdf

    8/23

    P2000 Hedging HEA In a Nut-Shell

    Hedging EA: Design to Profit from the Marketwhichever direction it goes.

    Methodology: M5 TF with BB Band on High, Midor Low band entry over Higher TF with TradeManagement condition hard coded in.

    Analogy: EA trigger buy/sell orders base on M5Placement of Price Action over Higher TF.

    Exit: Manual closure of all open trades after

    European market if overall trades for the week isin profit. To prevent any news over the weekendfrom affecting the trades best to square out byFriday market closes.

  • 8/22/2019 March GT 25032013 - P2000 HEA.pdf

    9/23

    P2000 Hedging HEA Formulation

  • 8/22/2019 March GT 25032013 - P2000 HEA.pdf

    10/23

    P2000 Hedging HEA

    M5 Oscillation

  • 8/22/2019 March GT 25032013 - P2000 HEA.pdf

    11/23

    P2000 Hedging HEA

    M5 in D1 Oscillation

  • 8/22/2019 March GT 25032013 - P2000 HEA.pdf

    12/23

    P2000 Hedging Back Test Result

  • 8/22/2019 March GT 25032013 - P2000 HEA.pdf

    13/23

    What Really Ohms the FX Market

    THE 80/20 RULE In FX TRADING

    80% of the time Technical move 20% of the market

    20% of the time Events move 80% of the market

  • 8/22/2019 March GT 25032013 - P2000 HEA.pdf

    14/23

    Q & A

  • 8/22/2019 March GT 25032013 - P2000 HEA.pdf

    15/23

    myfxbook Autotrade

    Part 2

    Chew Wai Lam

  • 8/22/2019 March GT 25032013 - P2000 HEA.pdf

    16/23

    myfxbook Autotrade

    www.myfxbook.com, the social forex

    community and online automated analytical

    tool.

    myfxbook Autotrade - a mirror trade service.

  • 8/22/2019 March GT 25032013 - P2000 HEA.pdf

    17/23

    myfxbook Autotrade FAQ

  • 8/22/2019 March GT 25032013 - P2000 HEA.pdf

    18/23

    myfxbook Autotrade FAQ When you open a demo account on Myfxbook, an actual MT4 is created in the background.

    The login is not provided simply because the trades of the provider can be copied withoutthe provider's permission.

    Creating a live account would be a regular process after which you'll have to provide themaster password so AutoTrade can mirror the trades in your account - important to notethe password is saved in an encrypted format on our servers, so no one can see it, noteven us, which ensures the complete safety of your password. Everything is automated sono one ever sees your password.

    An option to close an open trade is available because with live accounts you will have thispossibility through MT4

    AutoTrade is designed to match the provider performance with the follower and this is doneby constantly checking for missing trades/targets/stops/orders/limits which weren't copied -this is why when closing an active provider trade, it will be restored after a few minutes

    ZuluTrade have between 1.5-2 pips markup with most brokers (depending on the broker)while AutoTrade have only 1 pip markup

    '

  • 8/22/2019 March GT 25032013 - P2000 HEA.pdf

    19/23

    myfxbook AutoTrade

    provider requirements

  • 8/22/2019 March GT 25032013 - P2000 HEA.pdf

    20/23

    THE END

  • 8/22/2019 March GT 25032013 - P2000 HEA.pdf

    21/23

    Demo Account Opening

  • 8/22/2019 March GT 25032013 - P2000 HEA.pdf

    22/23

    Demo Account Opening

  • 8/22/2019 March GT 25032013 - P2000 HEA.pdf

    23/23

    Q & A