HedgeCoverV1.04
HedgeCover is a hedging EA that opens opposing positions to cover existing trades when the market moves against them. It uses a coverage-based approach where counter-positions are triggered at configurable distance intervals to protect against adverse price movement, aiming to net out losses through correlated opposing trades.
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 hedge coverage, which automatically opens opposing positions to hedge risk when the market price moves adversely beyond a set threshold. Entry conditions are based on the floating loss of the original position reaching a configurable trigger distance, at which point a counter-hedge order is placed to lock in the floating loss. Exit conditions typically involve closing both the hedge and original positions together when net profit reaches a target or when the market price reverts favorably. Position sizing uses fixed lots or incremental lot sizes for hedge orders, with some versions supporting multiple hedge layers. Money management relies on parameters controlling maximum hedge layers and per-layer lot size limits, but lacks a strict stop-loss mechanism, depending more on hedge locking to control risk. The overall strategy is defensive, suitable for ranging markets, but faces margin insufficiency risk during strong trending conditions with multiple hedge layers.
Strengths
- Hedging mechanism locks floating losses in adverse markets, avoiding actual loss from one-sided stop-outs
- Multi-layer hedge design provides stepwise risk management, more flexible than a single stop-loss
- Highly configurable parameters allow traders to adjust hedge distance and layers per instrument and account
Weaknesses
- Multi-layer hedging in trending markets consumes significant margin, risking margin call
- Lack of hard stop-loss means hedges may not execute timely in extreme market conditions
- Unlocking strategy after hedge lock-in is unclear, potentially leading to prolonged margin-occupying positions
Possible improvements
- Add a hard stop-loss as a final safety net to prevent margin calls in extreme markets
- Optimize hedge unlock logic with automatic unlock conditions to avoid prolonged margin-occupying locked positions
Risk assessment
Overall risk: Caution
- Multi-layer hedging can exhaust margin in strong trends leading to margin call
- No hard stop-loss means hedges may fail during extreme slippage or gap events
- Unclear unlock timing after hedge lock-in may result in unrealized floating losses over extended periods
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
HedgeDistance | 300 | Distance in points to trigger hedge |
HedgeLotMultiplier | 1.0 | Hedge order lot multiplier |
MaxHedgeLayers | 3 | Maximum hedge layers |
TakeProfit | 500 | Take profit in points |
StartLot | 0.01 | Initial opening lot size |
MagicNumber | 12345 | EA magic number |
HedgeProfitTarget | 10 | Hedge group profit target in account currency |
Slippage | 30 | Allowed slippage |
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Backtests are historical simulations and do not guarantee future results. Not financial advice.