Hedge any positions
This EA opens hedge (opposite direction) positions against existing open positions to protect against adverse market moves. It monitors current open positions and automatically places counter-directional trades with configurable lot sizing and distance parameters, effectively creating a market-neutral exposure when activated.
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 | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Not convertible yet |
| GBPUSD | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Not convertible yet |
| USDJPY | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Not convertible yet |
| XAUUSD | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Not convertible yet |
Why this EA never traded: no entry rule survived the conversion.
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
- Has no stop loss or trailing stop
On its own this is not a typical blow-up pattern, 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 this EA is hedging existing open positions by opening counter-directional trades to neutralize directional exposure. Entry conditions trigger when the EA detects an existing open position and places an opposing hedge order at a configurable distance from the current price. Exit conditions are not inherently automated; they depend on the user's manual management or the stop-loss/take-profit levels of the original positions. Position sizing for hedge trades can be configured, potentially matching the original position's lot size or using a fixed ratio, providing flexibility in how much exposure is neutralized. Money management is straightforward without complex allocation algorithms, relying heavily on the user's proper configuration of hedge parameters such as lot multiplier and trigger distance. The strategy functions primarily as a risk management tool rather than a profit-seeking system, aiming for exposure neutrality which is particularly useful during uncertain market conditions to protect existing profits or limit potential losses.
Strengths
- Effectively hedges existing position risk, providing protection during uncertain market conditions
- Simple and intuitive operation — users just activate it to automatically hedge all open positions
- Configurable lot multiplier allows partial hedging, full hedging, or over-hedging for flexibility
Weaknesses
- Hedge positions themselves can incur losses, doubling spread and commission costs
- Lacks automated exit mechanisms; hedge positions require manual management or rely on original position stop-losses
- Does not account for correlation-based hedging; simple directional hedging may be ineffective under asymmetric volatility
Possible improvements
- Add automatic closing mechanism that closes corresponding hedge positions when original positions are closed
- Implement correlation analysis and cross-instrument hedging to improve hedging efficiency
- Add dynamic hedge distance and lot adjustment based on market volatility to automatically optimize hedging parameters
Risk assessment
Overall risk: Medium
- Improperly managed hedge positions can lead to double losses instead of risk reduction
- Lack of automated exit mechanism means hedge positions may lose their hedging effectiveness during extreme market volatility
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
HedgeDistance | 0 | Hedge distance in points from market price |
HedgeLotMultiplier | 1.0 | Hedge lot multiplier relative to original position |
HedgeAllPositions | true | Hedge all positions: true=all, false=selective |
MagicNumber | 0 | Unique order identifier number |
Slippage | 3 | Allowed slippage in points |
Similar Hedging EAs
Backtests are historical simulations and do not guarantee future results. Not financial advice.