OverHedgeV2
OverHedgeV2 is a hedging EA that opens opposite-direction positions to protect existing trades when the market moves against them. It manages overlapping hedge orders to reduce overall exposure and attempts to close hedged positions at breakeven or small profit. The EA is designed for traders who want automated risk offset rather than manual stop-loss placement.
Open the interactive view (equity curve, symbol switch)Key facts
Backtest results (H1, about 1 year)
| Symbol | P&L | Annual | Max DD | Trades | Win rate | Sharpe | Recovery | Losing streak | Per trade | Status |
|---|---|---|---|---|---|---|---|---|---|---|
| EURUSD | -1.50% | -1.31% | 4.73% | 96 | 46.90% | — | — | — | — | Same as other EAs |
| GBPUSD | -3.19% | -2.78% | 8.01% | 89 | 42.70% | — | — | — | — | Same as other EAs |
| USDJPY | +1.52% | +1.32% | 5.62% | 92 | 46.70% | — | — | — | — | Same as other EAs |
| XAUUSD | +95.75% | +74.19% | 27.99% | 92 | 46.20% | — | — | — | — | Same as other EAs |
On every market this backtest is identical to EA-19150. The automatic conversion almost certainly lost what makes this EA different (a custom indicator, a filter or the money management), so these results are not ranked or counted.
Converted from MQL5 to Python and run with the same rules for every EA. Positions use MT5 lot sizes (100,000 units per FX lot, 100 oz per gold lot) with 1:100 leverage, one order at a time, and a stop-out below 10% of the starting balance. Sharpe is computed from the equity curve. Results marked as unreliable are shown for completeness only.
Blow-up risk: No blow-up pattern found
None of the usual blow-up patterns were found in the code, and the account was not stopped out in our backtests. That is not a guarantee: any EA can lose money.
High: stopped out in our backtest, or martingale/grid sizing without a stop loss. Elevated: martingale or grid sizing with a stop loss, or several positions at once without a stop loss. What the label means and what we found →
Strategy analysis
The core strategy of OverHedgeV2 is hedging — opening opposite-direction positions against existing losing trades to lock in floating losses and prevent further drawdown. Entry conditions trigger when an existing position's floating loss exceeds a configured threshold, at which point the EA automatically opens a reverse hedge order of equal or multiplied volume. Exit conditions are typically set to close both the original and hedge positions simultaneously when the combined profit/loss of the hedged pair reaches breakeven or a target profit level. Position sizing may support incremental hedging (adding hedge volume as losses deepen), which resembles martingale in mechanics but differs in purpose — the goal is exposure lockdown rather than recovery through doubling. Money management relies on initial lot size and hedge ratio parameters but lacks strict equity percentage risk controls. The strategy suits ranging markets but risks margin exhaustion in strong trending conditions where repeated hedging can accumulate large exposure.
Strengths
- Automated hedging reduces manual intervention, suitable for traders who cannot monitor charts constantly
- Combined hedged position closing logic can achieve breakeven exits in ranging markets, avoiding hard stop-loss losses
- Supports multi-level hedging and lot multiplier parameters with good flexibility for different risk preferences
- Unlike pure martingale, hedging strategy originates from risk control protection rather than gambling recovery
Weaknesses
- In strong trending markets, multi-level hedging can cause position sizes to explode, creating extreme margin risk
- Lacks a global stop-loss mechanism; if the hedge combination deteriorates continuously, the account may face margin call
- Hedging does not eliminate risk — it merely delays loss realization, potentially leading to larger eventual losses
- High parameter sensitivity; improper HedgeLotMultiplier and MaxHedgeLevels settings can rapidly amplify risk
Possible improvements
- Add a global stop-loss based on account equity percentage, forcing closure of all positions when total floating loss exceeds a threshold
- Implement a trend filter indicator (e.g., ADX or moving average direction) to pause hedging in strong trending markets and avoid infinite stacking
- Implement intelligent trailing take-profit for hedged positions instead of fixed pip targets to improve profit efficiency
Risk assessment
Overall risk: Caution
- Multi-level hedging can stack positions infinitely in trending markets, creating extreme margin risk
- Lacks global stop-loss or maximum drawdown protection; account could suffer catastrophic losses
- Hedge lot multiplier greater than 1 effectively approaches martingale risk characteristics
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
HedgeStartPips | 30 | Floating loss threshold in pips to start hedging |
HedgeLotMultiplier | 1.0 | Hedge lot multiplier; 1.0 for equal hedging |
MaxHedgeLevels | 3 | Maximum hedge level limit |
TakeProfitPips | 10 | Hedge combo target profit in pips |
MagicNumber | 12345 | EA magic number; 0 manages all positions |
LotSize | 0.1 | Initial opening lot size |
Similar Hedging EAs
Backtests are historical simulations and do not guarantee future results. Not financial advice.