Hedging

• 02/21/2017 at 6:45 PM #25962
  pips_103

  Question….

  If I am long on the market, can i use a 2nd automated script to see if there is a long position, and if that long position is – 20 pips enter a short position as a hedge?

  I know this cant be done in the same script as you cant have a long and short order together, but can it be done separately? If so how ?

  Thanks

  

  pips_103

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  02/21/2017 at 7:22 PM #25964
  Wing

  No, systems can’t check each other. But by including a variable that checks for the long entry inside the system that only goes short, you can ‘check’ if the mirror system is long currently.

  

  Wing

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  02/21/2017 at 7:25 PM #25966
  pips_103

  but i wouldn’t know at what price the long was? ie know its position in relation to entry?

  

  pips_103

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  02/21/2017 at 7:56 PM #25969
  Wing

  You wouldn’t know the exact entry price, but the price would likely be close to the open of the bar, or based on a limit price that you can also give the other system access to. For example:

  Long system:

  if rsi[14]<30 then buy 1 lot at market endif

  1 2 3

  if rsi[14]<30 then buy 1 lot at market endif

  Short hedging system:

  once LongEntry=0 once LongEntryPrice=0 If LongEntry=1 then LongEntryPrice=open endif LongEntry=0 if rsi[14]<30 and longentryprice=0 then LongEntry=1 endif // hedge sellshort 1 lot at longentryprice-20 stop

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  once LongEntry=0 once LongEntryPrice=0   If LongEntry=1 then LongEntryPrice=open endif   LongEntry=0   if rsi[14]<30 and longentryprice=0 then LongEntry=1 endif   // hedge sellshort 1 lot at longentryprice-20 stop

  Or something like that. If you exit both positions at the same time (a set time for example), you need to just reset the variables again.

  The easiest way is to create a common indicator that gives entries to each system, so they know exactly when an entry is triggered for the opposite system.

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  Wing

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