Smart Hedge EA

The Smart Hedge EA is a trading tool in the forex market that automatically opens and closes positions based on market trends and price movements. It can be used on the MT4 and MT5 platforms and is designed to manage multiple currency pairs with the use of hedging strategy.

In this article, we will provide a comprehensive review of the Smart Hedge EA, discussing its features, performance, and overall effectiveness. By the end of this review, readers will be able to make an informed decision on whether the Smart Hedge EA is suitable for their trading needs.

Smart Hedge EA Strategy

The Smart Hedge EA is an Expert Advisor designed for use on the MetaTrader 4 and MetaTrader 5 trading platforms. The EA uses the correlation method to hedge the orders of two highly correlated instruments. It opens opposite positions when the instruments diverge and closes positions when the instruments converge.

Smart Hedge EA
Smart Hedge EA

The EA is best suited for trading high correlation pairs and works best on M5 and H1 timeframes, although it can work on any timeframe. The recommended currency pairs for trading include AUDCAD-NZDUSD, AUDNZD-NZDUSD, AUDUSD-AUDCAD, EURGBP-GBPCHF, EURJPY-CHFJPY, EURUSD-GBPUSD, EURUSD-USDCHF, GBPUSD-EURUSD, NZDUSD-AUDUSD, USDCAD-NZDUSD, USDCHF-EURUSD, USDJPY-CADJPY, GOLD-SILVER.

One of the strengths of the Smart Hedge EA is its ability to hedge the orders of two highly correlated instruments. This is intended by the developer to cover the drawdown of one instrument by the returns of the other, regardless of the direction of the market. The EA is also designed to work under most market conditions since it uses the correlation method to trade.


Smart Hedge EA Activity
Smart Hedge EA Activity

One weakness of the Smart Hedge EA is that it cannot be backtested on the MT4 terminal since it trades according to the hedging and correlation strategy. This means that traders have to rely on live trading results to assess the performance of the EA.

Regarding risk management, the Smart Hedge EA aims to limit drawdowns by hedging the orders of two highly correlated instruments. The EA also recommends using a low spread ECN account and running it on a reliable forex VPS to achieve stable results.

It is recommended that traders test the EA on a demo account before using it for live trading. By testing the EA on a demo account, traders can gain valuable experience and build confidence in its trading capabilities before committing real funds.

Smart Hedge EA Features

  • It is a forex trading Expert Advisor designed for use on the MetaTrader 4 and MetaTrader 5 trading platforms.
  • The EA uses the correlation method to hedge the orders of two highly correlated instruments.
  • It opens opposite positions when the instruments diverge and closes positions when the instruments converge.
  • The EA works best on M5 and H1 timeframes, but it can work on any timeframe.
  • It is recommended to trade the EA on high correlation currency pairs such as AUDCAD-NZDUSD, AUDNZD-NZDUSD, AUDUSD-AUDCAD, EURGBP-GBPCHF, EURJPY-CHFJPY, EURUSD-GBPUSD, EURUSD-USDCHF, GBPUSD-EURUSD, NZDUSD-AUDUSD, USDCAD-NZDUSD, USDCHF-EURUSD, USDJPY-CADJPY, GOLD-SILVER.
  • It is designed to work under most market conditions since it uses the correlation method to trade.
  • It is recommended to use a low spread ECN account and a reliable VPS to achieve stable results.

Smart Hedge EA Settings

  • Lot 1/2 Symbol – Specify lot value, or Hedge EA MT4 will calculate lot of the first position as a percentage of the Deposit.
  • Lot 1/2 = Balance % – Value of the Deposit percentage.
  • Koeff Lot – Coefficient for increasing lot of top-up positions.
  • Max Lot 1/2 – Maximum amount of position opened on 1/2 instrument.
  • Level Virtual Orders – Distance to virtual pending orders calculated in the number of spreads.
  • TIMEFRAMES = 5 – Timeframe for calculating instrument correlation and Delta of divergence.
  • Bars Correlation – Number of bars for calculating correlation and Delta.
  • Delta open First – % of the max Delta at which the first positions are opened.
  • Next Delta open – % of the opening Delta to open additional positions as virtual pending orders.
  • Filter spread – Do not allow filter to open if Delta is less than the sum of the spreads of the two instruments multiplied by the number of NoOpenSpread.
  • Filter GEP – Ban on opening with a sharp increase in the Delta.
  • Start Tral profit (USD, 0-auto) – Closing occurs when all positions in the total amount reach set value in Deposit currency.
  • Close trall % – Rollback of the profit trail (0-close immediately).
  • Dividing the closing profit – Dividing the maximum profit to reduce the start time of the trawl.
  • Time Start (hour) – Time when the adviser starts working.
  • Time End (hour) – Time when the adviser finishes working.
  • Equity profit % – Closing on equity growth in % (0-off).
  • Minimum profit – Minimum profit in Deposit currency.
  • MagicPlus – Set any number here to trade on same pairs with different settings.
  • Minimum correlation for opening – Minimum correlation coefficient for opening.
  • WindSize – Size of the information window.
  • Fontsize – Font size in the information window.

Smart Hedge EA Summary

The Smart Hedge EA is a trading robot designed for the MetaTrader platform that uses a hedging strategy to trade multiple currency pairs simultaneously. Its strengths include its ability to manage multiple positions and its flexible settings for lot size, correlation analysis, and time management. However, its weakness lies in its complexity and its reliance on market conditions. It is suitable for experienced traders who are comfortable with the hedging strategy and can apply good risk management settings. Demo testing is recommended before using it with real money.

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