• Managed Accounts
  • Trusted Brokers
  • Blog
  • Forex Forum

Announcement

Collapse
No announcement yet.

JoePro Hedge Strategy

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • JoePro Hedge Strategy

    Rational approach rooted in mathematics and the only provider that will Video Update you daily if we are in drawdown so you always know what's going on and what to expect next

    Trading is all about choosing the right direction to trade. Our algorithm is constantly calculating the statistical significance of following the daily trend & uses these statistics to trade the direction with the best odds. By following the trend, that we defined through mathematical calculations, the odds that we are trading the right direction increases greatly and allows us to implement a form of averaging into the market to position our full trade. This allows us to profit from ranging markets as well as trending markets. We view trading kind of like playing chess. Any move the market makes, we have a per-defined response with the best statistical outcome to answer the move. At each step of managing our trades, every possibility has been per-calculated and the best decision has been carefully chosen to preserve capital & increase profits. This allows us to not end up in a position without a clear protocol of action. Watch my video where I explain how we enter the market https://youtu.be/HpS1-g-IQu0?t=4m13s

    There are 4 levels of “defense” we developed & implement at different stages of the trade management:
    • We start the day knowing statistically we are going to be trading the right direction 75-85% of the time.
    • The trade size is divided by 5, so instead of opening the full position at just one price level, we can place 5 smaller trades at different price levels & slowly position our full investment at different price levels to achieve the best possible over all position in the market
    • If market changes direction, each position is protected by our Equity Protection Hedge System & we can switch directions when there is a statistical advantage to do so
    • If market is ranging between the open hedge trades, there are multiple functions our EA has to avoid increasing the exposure when it is statistically not advantageous. To see two of these functions, watch this video: https://www.youtube.com/watch?v=jY51h9B0X6M

    Why we chose to automate our trading
    • The Algorithm identifies and reacts very fast to opportunities in quick moving markets, 24 hours a day 5 days a week
    • It removes the emotional element from trading & allows us to rationally pre-plan an advantageous response for every move the market makes
    • We can trade multiple pairs & accounts all at the exact same time and never miss a profit opportunity
    • The successful trading protocol is always followed exactly for every single trade executed

    3f1ae73e8d4c3e701746bce1ec2a885e.png




    The performance above is verifiable through myfxbook. From Jul. 2015 to May 2016 we used the broker Pepperstone, after that we switched to GBE Brokers and continued trading the same strategy with the same funds.

    When signing up to our signal service there are a few very important points you need to make sure you follow to avoid any issues in the future.

    I put a list together of 10 points. Here is the PDF with the list: http://www.4xcp.com/wp-content/uploa...for-copier.pdf

    Follow our signal on simpletrader.net here: https://www.simpletrader.net/signal/...-Strategy.html

    Update:

    We now offer also a MAM solution. Watch my video about the mam here
    https://www.youtube.com/watch?v=x9ODkQ45ILM

    Trading & MAM Plan
    1. We are using the MT4 Platform for the account
    2. The MAM is in EUR. If you deposit in a different currency, the broker will do a internal conversion for you & convert the deposited money to EUR.
    3. The EPM (Equity Protection Management) is set to maximal 30% equity draw down for a worst case scenario
    4. The longest draw down period in the past 20 months was 4 weeks long
    5. Losing trades are managed using our unique Equity Protection Hedging System instead of closing losing positions in a loss
    6. The account we are using is raw spread + commission
    7. The software will be running from the Equinix LD4 data center to assure no down time & extreme fast connection of 0.20 milliseconds. Additionally we want to note the broker we use is a proven STP (Straight through processing) Broker & doesn't B Book. All trades are executed directly with the liquidity providers and not in house
    8. Minimum investment size required is 1,000 EUR
    9. Our profit target using 1:1 leverage is 24% compounded annually
    10. Main currency pair traded is GBP/JPY & additional potential sub pairs are GBP/AUD GBP/NZD & EUR/JPY for spreading out risk
    11. Instead of taking full trades, the software takes the full trade position, splits it up by 5 smaller positions & positions them at different price levels. This is to reduce risk and allows us to implement our 4 level defense system
    12. Performance fee is 30% from profits made every month which will be deducted on the 5th of every month. If some positions are still open on the 5th, the deduction will be delayed until all positions are closed
    13. All trading activity done by the algorithm will be watched over by us to make sure everything is executed correctly during economic news & unexpected events
    14. The leveraged used will be 1:1 for a full trade & can go up to 5:1 per pair when managing a losing sequence
    15. There are no entry, exit or management fees
    16. Once you already have a minimum 1k investment deposited, you can add more funds to your account any time and you don't need to always add 1k. You can add even 100Euros at that point.

    You can find information about the MAM here: http://4xcp.com/mam

    The MyFXBook for the MAM is here:
    http://www.myfxbook.com/members/clearstonecap
    Last edited by JoePro; 09-13-2017, 08:45 AM.
    Knowing how to manage your losing trades, is what makes you an excellent trader. www.myfxbook.com/members/joepro

  • #2
    No history available in Myfxbook for either account (Pepperstone & GBE)?

    Comment


    • #3
      If you click Pepperstone or GBE it will lead you to the myfxbook links. Here again the links:

      Pepperstone: http://www.myfxbook.com/members/JoeP...ed-gbe/1299547
      GBE: http://www.myfxbook.com/members/JoeP...r-copy/1876425

      The GBE is still running and is the master account for the signal.
      Knowing how to manage your losing trades, is what makes you an excellent trader. www.myfxbook.com/members/joepro

      Comment


      • #4
        Sorry I miss read your comment. I have made the history available now.
        Knowing how to manage your losing trades, is what makes you an excellent trader. www.myfxbook.com/members/joepro

        Comment


        • #5
          Originally posted by JoePro View Post
          Sorry I miss read your comment. I have made the history available now.
          Thanks Joe.

          Comment


          • #6
            I'm following this signal since January and so far it has been great. I like that every trade is planned ahead, so in case trades go against us there are hedges that get triggered and than we make profit on the "wrong" side. But this signal is for patient traders as sometimes it can take a while for trend to break from the range. I noticed that past 2 months have been ranging and the profit was lower, but still we ended up in profit. I hope market will be volatile, so we get nice returns. But all this waiting is great considering that almost nothing can surprise you and you end up in profit either way.

            Comment


            • #7
              Love this thread. Keep it up joe
              The forex market is already so complex, don't make it worse.

              Comment


              • #8
                Today I ended the trading as soon as I saw a chance to take a little bit of profit and stop the trading to go trade free into the weekend. We don't know what to expect from the French election and we saw last time what kind of gap there was after the first round of elections. We did have a good chance to make some really nice profit but I just didn't feel the risk was worth it.

                Last month we ended with a profit gain of 3.45% & the first week of May we ended with 0.21% gain.

                I wish you all a great weekend and hopefully next week we see some more action

                -JoePro
                Knowing how to manage your losing trades, is what makes you an excellent trader. www.myfxbook.com/members/joepro

                Comment


                • #9
                  I was looking for the videos explaining your strategy. Can you clarify thanks Joe Pro.

                  nc!

                  Comment


                  • #10
                    Yes, I am working on the videos. I had some before but I wanted a more straight forward and clear video and more professional so it's easy to understand what the EA is actually doing and why we always come out in profit when we have a sell target and at the same time a buy target that closes all trades in profit.
                    Knowing how to manage your losing trades, is what makes you an excellent trader. www.myfxbook.com/members/joepro

                    Comment


                    • #11
                      Joe could you tell me what the max DD is and what the average DD is?

                      If I'm going to follow I want to know what I'm risking. Thanks!

                      Comment


                      • #12
                        Sure DD cutoff ist at 30% but to see 30% we would have to be running 3 pairs, all pairs to have full positions open that get hedged & all hitting their max DD without ever having a chance to close out early. Even during the flash crash we had the EA running double on 2 pairs with 2 different settings on each pair & we had full positions open and max DD was 15%. What I am trying to say is before a 30% DD would happen, many many many things would have to happen that are very unlikely especially because 1 full position is 1:1 leverage and we never open full positions.
                        Knowing how to manage your losing trades, is what makes you an excellent trader. www.myfxbook.com/members/joepro

                        Comment


                        • #13
                          Originally posted by JoePro View Post
                          Sure DD cutoff ist at 30% but to see 30% we would have to be running 3 pairs, all pairs to have full positions open that get hedged & all hitting their max DD without ever having a chance to close out early. Even during the flash crash we had the EA running double on 2 pairs with 2 different settings on each pair & we had full positions open and max DD was 15%. What I am trying to say is before a 30% DD would happen, many many many things would have to happen that are very unlikely especially because 1 full position is 1:1 leverage and we never open full positions.
                          Sorry maybe I wasn't detailed oriented enough in my reading, but you've already experienced 40% DD on this account:
                          http://www.myfxbook.com/members/JoeP...r-copy/1876425
                          So... What do you mean 15%?

                          Comment


                          • #14
                            Originally posted by peeper View Post

                            Sorry maybe I wasn't detailed oriented enough in my reading, but you've already experienced 40% DD on this account:
                            http://www.myfxbook.com/members/JoeP...r-copy/1876425
                            So... What do you mean 15%?
                            It says 40%, but that is not really correct, and that is because you cannot close two trades the exact same moment.

                            Example:
                            1. You enter a long trade.
                            2. Price goes 10 pips against you.
                            3. You open a sell trade, slightly bigger than the long trade.
                            4. Price keeps moving down 100 pips.
                            5. You are now in profit and want to exit these trades.
                            6. If the winning sell trade closes before the loosing buy trade, you will be in a 110 pip drawdown for a short while untill it also closes (a matter of seconds, or less). This is what myfxbook is showing.

                            Got it?

                            Comment


                            • #15
                              Originally posted by PontusLSE View Post

                              It says 40%, but that is not really correct, and that is because you cannot close two trades the exact same moment.

                              Example:
                              1. You enter a long trade.
                              2. Price goes 10 pips against you.
                              3. You open a sell trade, slightly bigger than the long trade.
                              4. Price keeps moving down 100 pips.
                              5. You are now in profit and want to exit these trades.
                              6. If the winning sell trade closes before the loosing buy trade, you will be in a 110 pip drawdown for a short while untill it also closes (a matter of seconds, or less). This is what myfxbook is showing.

                              Got it?
                              That's correct. So if you can imagine, during the crash all the losing trades were -4k but at the same time the winning hedge trades were +5k and when I closed them at the same time, they close 1 after the other in milli seconds but myfxbook does their statistics by first subtracting all the losing trades and than adding the winning trades no matter if the EA closed them by closing winning trade than a losing than a winning than a losing.

                              This is also a reason why I am not running this strategy in the competition. I worked with Will to try and figure out a way we could record the real draw down but we couldn't get it to work. We also worked out the equation myfxbook is doing for their statistics and that's how we figured out why myfxbook is showing a DD that never happened.
                              Knowing how to manage your losing trades, is what makes you an excellent trader. www.myfxbook.com/members/joepro

                              Comment

                              Working...
                              X