Profitable hedging advisor, reduce trading risks to a minimum
The path to success on the stock exchange lies not through the pursuit of profit, but through the maximum preservation of already earned capital, while additional profit becomes only a pleasant bonus.
One of the most popular techniques in order management, which allows you to minimize risks, is hedging.
However, if institutional investors use hedging only for the sake of insurance, then more experienced traders build strategies on its basis that demonstrate the highest profitability.
In this article, you will be introduced to a forex advisor that uses hedging as the basic basis for profit.
Advisor OverHedgeV2 is a trading robot created for the fifth version of the Meta Trader trading terminal (MT5).
Its basic basis was an excellent symbiosis of an entry strategy based on technical indicators, as well as a risk hedging system with a pyramidal structure for increasing trading volumes using martingale.
A hedging advisor is a multi-currency trading expert that, with proper adjustment of the parameters, can effectively trade on any currency pair or time frame.
Thus, almost every trader will be able to adjust OverHedgeV2 to the market, based on the desired profitability and acceptable risks.
Installing a hedging advisor
OverHedgeV2 is a free new product for 2018, which is available in the public domain with open source, which, of course, allows you not only to use it for free, but also to modify it to suit your needs.
Since the hedging advisor is part of the official MT5 developer library, you can install it in two ways.
The fastest way to install the OverHedgeV2 advisor without any additional downloads of the robot can be done through the built-in library in your MT5 trading terminal.
Open the trading platform and move to the very bottom panel called “Tools”, where you can actually see the size of your balance.
Open the “Library” tab and do a simple sorting of the received files so that purely advisors appear in the list.
Find OverHedgeV2 in the updated list and download it by using the additional menu, following the instructions in the picture below:
You can also use the second installation method, which involves first downloading the hedging advisor at the end of this article and then moving it to a folder called Expert, which in turn is located inside the data directory.
In order for you to be able to use the robot after installation, you must restart MT5 or update it.
Strategy.
Settings parameters The key role in the advisor is played not by the entry point itself, but by the hedging process.
To determine the direction of a trade, OverHedgeV2 examines data from two moving averages with a fast and a slow period. At the moment when the fast moving average is above the slow one, the robot opens a buy deal and vice versa.
After the advisor opens, the robot waits for a new signal in the opposite direction and begins to hedge risks, and the robot opens a series of transactions with a large lot, pyramidally increasing the volume along the trend until the total profit covers all losses.
The Start Lots variable is responsible for the position volume of the first order before the hedge is triggered.
The Base line is responsible for the multiplier, thanks to which the expert calculates the position volumes of each subsequent order after hedging is turned on.
The Shutdown Grid function is responsible for forcibly closing the entire grid of orders without waiting for profit.
Thanks to the Total Profit Target variable, you can change the potential total profit, upon reaching which all transactions are recorded. Minimal Profit Target, in turn, is responsible for the minimum profit for each position.
Also, thanks to the variables MA Short: averaging period and MA Long: averaging period, it becomes possible to set your own values for moving averages. Tests
To illustrate the functionality and prospects for using this robot, we made a preliminary optimization and test for 2017 for the Euro/Dollar pair.
Final result of the preliminary test:
Of course, the OverHedgeV2 advisor cannot be called completely safe, since it can be configured in such a way that it even accelerates the deposit.
However, the advisor is universal and at the same time flexible, which requires the trader to optimize it in more detail and adapt to market conditions.
Download hedging advisor