反向6 (Reverse6)

First, please read my FAQ: http://www.forexfactory.com/showthread.php?t=252690

___

Attach or or to any chart, any timeframe. Do not attach to more than one chart.

Version 01a and 01b have the condition MathAbs(BiggestLoserPL) >= 0.5 * BiggestWinnerPL to filter out the reversals that occur shortly after a phantom reset in the midst of strong action that quickly groups the two sets of phantoms pairs on opposite sides.

Version 01b resets the phantom trades every day at hour 0, minute 0.

Read this post http://www.forexfactory.com/showthre...69#post6947369 to see the additional reversal condition in version 01a.

These are the pairs we trade:

Group 1, The Buys
1. GBPUSD
2. USDCHF
3. EURJPY

Group 2, The Sells
4. GBPCHF
5. CHFJPY
6. EURCHF

These 6 pairs constitute a synthetic hedge.

Lot sizes are not all the same for every currency pair. They are calculated to provide a well-behaved hedge. The hedge isn't perfect because poor lot size granularity doesn't allow for perfect hedging, just well-behaved hedging.

---

Summary:

Initially open real trades and phantom trades unconditionally; reverse the biggest losing trade when phantoms become all winners or all losers within their designated groups.

Close all when current equity exceeds 1% of last flat equity.

---

More detail:

Initially, buy the designated buy group of pairs and sell the designated sell group of pairs. Also, open phantom trades in the same direction as the real trades. Track the virtual profit-loss of the phantom trades.

Reverse the biggest losing trade when the phantom trades group together such that all phantom buys are all winners or all losers, and the same for the phantom sells. Reset the phantom trades immediately after reversing the biggest loser.

___

I have the bicycle analogy for the system.

What does riding a bicycle consist of?

Balance. What does balance consist of with this trading approach? It consists of opening trades two groups of three pairs; three buys and three sells. The direction of all currencies is perfectly balanced, and the lot sizes are as well balanced as the available lot size precision allows.

Pedal to go forward. What does it mean to pedal in terms of trading actions? Pushing on the pedals translates to closing the biggest loser, as long as it's at least half of the magnitude of the biggest winner, and trading that same pair in the opposite direction of the trade just closed.

When do I push on the pedals? When it is natural to do so of course. How does this translate to the market? I am going on the theory that it's "natural" to push on the pedals when the phantom trades ("fake trades") align opposite to each other on the two sides of the hedge.

There are only two states of alignment. They are:

Alignment State Number One

Group 1, The Phantom Buys
1. GBPUSD - Winning
2. USDCHF - Winning
3. EURJPY - Winning

Group 2, The Phantom Sells
4. GBPCHF - Losing
5. CHFJPY - Losing
6. EURCHF - Losing

Alignment State Number Two

Group 1, The Phantom Buys
1. GBPUSD - Losing
2. USDCHF - Losing
3. EURJPY - Losing

Group 2, The Phantom Sells
4. GBPCHF - Winning
5. CHFJPY - Winning
6. EURCHF - Winning