forex. StockSharp

Hydra Analytics - Charts Feature in S#.Data(Hydra).

2023-09-27T05:34:29Z

💥💥Trading in financial markets, whether it's stocks, currencies (forex), or cryptocurrencies, requires a deep understanding of market data. One of the most powerful tools available to traders is trading charts. They provide a visual representation of historical price and volume data, allowing traders to analyze trends, identify patterns, and make informed decisions. Hydra Analytics, a versatile trading analytics platform, offers a range of features to help traders harness the power of trading charts.

💥What are Trading Charts?
Trading charts are graphical representations of price movements over time. They display historical data points as candlesticks, lines, or bars, depending on the chosen chart type. Traders use these charts to perform technical analysis, which involves studying past price data to predict future price movements.

💥Common Types of Trading Charts:
🔥 Candlestick Charts: These are the most popular charts among traders. Each candlestick represents a specific time period (e.g., one day), showing the opening, closing, high, and low prices during that period. Candlestick patterns are widely used to make predictions.

🔥 Line Charts: Line charts connect closing prices over a specified period with a continuous line. They provide a clear view of trends but lack the details of candlestick charts.

🔥 Bar Charts: Bar charts display price data as vertical bars, with the top of the bar representing the high price and the bottom representing the low. A horizontal line on the left indicates the opening price, while a line on the right shows the closing price.

⚡️Using Trading Charts in Hydra Analytics⚡️
Hydra Analytics offers a suite of tools to analyze trading charts effectively. Here's how you can use it:

👉 1. Chart Types:
Hydra Analytics provides multiple chart types, allowing you to choose the one that suits your analysis style. Whether you prefer candlestick charts for detailed analysis or line charts for an overview, you'll find the right chart type.

👉 2. Timeframes:
You can customize the timeframe of your charts. Whether you're a day trader who focuses on short-term movements or a long-term investor interested in the bigger picture, Hydra Analytics allows you to select timeframes that match your strategy.

👉 3. Technical Indicators:
Hydra Analytics offers a vast library of technical indicators that you can overlay on your charts. These indicators, such as moving averages, relative strength index (RSI), and stochastic oscillators, help you make informed trading decisions.

👉 4. Drawing Tools:
To perform in-depth technical analysis, you can use drawing tools like trendlines, support and resistance lines, and Fibonacci retracements. These tools help you identify key price levels and patterns.

👉 5. Backtesting:
Hydra Analytics allows you to backtest your trading strategies using historical data. You can apply your strategy to past price movements to see how it would have performed, helping you refine your approach.

👉 6. Real-time Data:
For traders who need up-to-the-minute information, Hydra Analytics provides real-time data feeds, ensuring you have the latest price and volume information at your fingertips.

💥Conclusion💥
Trading charts are an essential part of any trader's toolkit, providing valuable insights into market dynamics. Hydra Analytics enhances this by offering a range of chart types, technical indicators, and analysis tools. Whether you're a seasoned trader or just starting, understanding and effectively using trading charts within Hydra Analytics can significantly improve your trading decisions. Remember that while technical analysis is a powerful tool, it should be combined with a comprehensive trading strategy and risk management for the best results.

How to download free Forex market data from Dukascopy via S#.Data(Hydra)

2023-08-20T15:49:55Z

💥How can you download free Forex market data via S#.Data? This Video has answers for you.💥

💥💥 In the fast-paced world of financial markets, knowledge truly is power. Historical market data plays a pivotal role in empowering traders and investors with insights into past price movements, trends, and patterns. This data serves as a valuable tool for making informed decisions, developing trading strategies, and understanding market dynamics. In this article, we delve into the importance of historical market data and explore where to find it for free, with a special focus on the offerings of Dukascopy.

The Value of Historical Market Data:

⚡️Historical market data provides a historical record of price movements, volume, and other relevant metrics for various financial instruments. Here's why it's crucial for traders and investors:

👉 Pattern Recognition: Examining historical data allows traders to identify recurring patterns and trends that may indicate potential market movements in the future. Recognizing these patterns can inform trading strategies and decisions.

👉 Backtesting Strategies: Historical data enables traders to test their trading strategies on past market conditions. This process, known as backtesting, helps traders understand how their strategies would have performed in different scenarios.

👉 Risk Management: Analyzing historical data helps traders assess historical volatility, allowing them to manage risk more effectively. This is essential for determining appropriate position sizes and setting stop-loss levels.

👉 Market Understanding: Historical data provides insight into how various economic events, news releases, and geopolitical developments have influenced market behavior in the past. This understanding can guide traders in predicting market reactions to similar events.

👉 Strategy Development: Traders can use historical data to develop and refine trading algorithms and quantitative models. By testing these strategies on historical data, traders can fine-tune their approaches before applying them in live markets.

Accessing Historical Market Data for Free:

⚡️ Several online platforms offer historical market data for free, enabling traders to access and analyze the information they need. Some of these sources include:

🔥 Dukascopy: Dukascopy, a Swiss-based online bank and forex brokerage, provides historical market data through its "JForex" platform. Traders can access detailed historical tick data for a wide range of currency pairs and other instruments. This data can be invaluable for traders looking to conduct thorough analysis and backtesting.

🔥 Yahoo Finance: Yahoo Finance offers historical price data for stocks, indices, currencies, commodities, and more. Users can download historical data in various timeframes and formats.

🔥 Investing.com: Investing.com provides historical price data and charts for a wide range of financial instruments. The platform allows users to customize date ranges and chart types.

🔥 Free Charting Platforms: Some charting platforms, like TradingView, offer historical data for various markets. Users can access price data and apply technical analysis tools.

🔥 Central Banks and Government Agencies: Central banks and government agencies often provide economic and financial data, including historical statistics, through their official websites.

Dukascopy's Historical Market Data Offering:

💥💥 Dukascopy's historical market data offering stands out due to its comprehensive and detailed nature. Traders can access tick-by-tick data for precise analysis and backtesting. The availability of such data can be invaluable for algorithmic traders and quantitative analysts aiming to develop and optimize trading strategies.

💥Additionally, Dukascopy's Swiss regulatory status adds an extra layer of reliability and credibility to its data offerings, enhancing the confidence of traders who rely on accurate historical data.

⚡️⚡️ Historical market data is a treasure trove of insights that traders and investors can leverage to enhance their decision-making and trading strategies. Accessing this data for free has become easier with various online platforms and resources. Dukascopy's contribution to this landscape, with its detailed historical tick data, serves as a testament to the importance of quality information in the world of trading. By harnessing the power of historical data, traders can gain a competitive edge in navigating the complexities of financial markets.

Slope and Retracement in technical analysis.

2022-11-03T09:37:58Z

💥 Learning to observe Slopes and Retracement A novice trader should have some basic knowledge in this regard as well. In order to use it as a tool to find a time to buy or sell. Be it the Forex, bitcoin, crypto market or the stock exchange in general, the same principles apply to technical analysis.

💥 Okay, even though we know the trend and the change in trend, and have identified preliminary trading signals, being overly confident might not always be beneficial. Reversals are crucial and highly valuable in technical analysis. This is because they refer to the slope correction, or what is called the "slope zz" of the trendline in Western terminology.

From Figure 1, it can be seen that the trend has many lines and the trend is adjusted to different angles. It is not that the trend has only one line and cannot be dragged by others. The rules for drawing the line There may be a variety of methods but the most popular should understand the rules of adaptation also known as retracement.

💥 In Figure 3, it can be seen that when the price reaches a certain level, for example, 100 euros, there is a decrease. At this level, the price should have the opportunity to rebound to the original trend at approximately 38%, 50%, or 61%. If the price drops after going up 100€, it should bounce back after going down 38€ (38%). If it keeps going down, the next support will be at 50€ (50%), and it should rebound. However, some technical analysts do not give as much importance to the 50% level as the 38% and 61% levels. It should not be more than 61€ (61%) because the chances of the trend changing from an uptrend to a downtrend are already very high. Therefore, one should prepare for the trend reversal.

💥This rule is applied to create a speed line (Figure 3), which is a trend line with its own set of rules. The height is divided into three parts from the point where the price is currently moving (1) to the base level where the starting point rests. This creates two trend lines: one showing the 38% level and the other showing the 61% level. This is just one example of optimizing the trend line.

💥The trend lines drawn have different slopes depending on the situation. However, every time the share price weakens and goes down to the support line from the trend line, it has rebounded at least once, also known as a rebound. Some people may use this as a moment to exit the market by selling their stocks. This is suitable if the trend is a downtrend. But if the trend is an uptrend or is about to change from a downtrend to an uptrend, anyone who exits the market may regret it because once they sell, the share price often surges higher than the selling price. Therefore, selling should be considered at the right time.

What is The Trading Robot?

2023-05-19T18:00:38Z

💥💥Trading robots, also known as automated trading systems or algorithmic trading systems, are computer programs that execute trades based on pre-defined rules and algorithms. These robots are designed to automatically analyze market conditions, identify trading opportunities, and execute trades without the need for manual intervention.

⚡️Trading robots can be beneficial for traders as they can eliminate human emotions and biases from the trading process, execute trades with high speed and accuracy, and operate 24/7 without the need for constant monitoring.

💥To use a trading robot, you typically need to develop or acquire a trading strategy and program it into the robot using a programming language or a dedicated platform. The strategy can be based on various indicators, technical analysis techniques, or fundamental factors. Once the robot is programmed, it can automatically execute trades based on the defined rules.

⚡️Trading robots are commonly used in various financial markets, including stocks, forex, cryptocurrencies, and commodities. They can be used for different trading styles, such as scalping, day trading, swing trading, or long-term investing.

💥It's important to note that while trading robots can be powerful tools, they are not guaranteed to generate profits. The effectiveness of a trading robot depends on the quality of the underlying strategy, market conditions, and proper risk management. Traders should thoroughly backtest and evaluate their strategies before deploying them with a trading robot and closely monitor their performance to make necessary adjustments.

⚡️Trading robots can be a valuable tool for traders, offering automation, efficiency, and potential benefits. However, it's essential to understand their limitations and use them as part of a well-rounded trading approach.

Advantages and Disadvantages of Technical Analysis

2022-10-27T16:57:34Z

Benefits of Technical Analysis

💥At this point, I would like to highlight the benefits of technical analysis, as many people perceive it solely as a means to play the stock market and generate substantial profits. However, the true benefits extend beyond that and include the following:

👉1. High Flexibility: Technical analysis can be applied to various financial markets, not just limited to stocks. It can be utilized in international money markets, interest rates, gold, Bitcoin, forex, cryptocurrencies, and more. In contrast, fundamental analysis may not easily translate across different markets. Additionally, technical analysis can be adjusted and tailored for use in different timeframes, whether short-term or long-term.

👉2. Time Efficiency: Technical analysis helps shorten the scope and duration of study. When time is limited or there are opportunity costs involved, technical analysis focuses on the net effect of the cause rather than delving into the root cause itself. This allows for quicker analysis and decision-making. Time never waits for anyone, and technical analysis acknowledges this reality.

👉3. Early Price Movements: Sometimes, price movements occur before fundamental analysts discover the underlying causes. Due to the global and interconnected nature of markets, there are numerous factors influencing price movements. While fundamental analysts may eventually identify the true causes, prices can be continuously affected by other factors. Traders who rely on money or stock trading cannot always wait for the real cause to be known as they may be at a disadvantage competing with other traders.

👉4. Time-saving Analysis: Technical analysis saves time by allowing analysis of a larger number of markets. Fundamental analysts may be limited to specializing in a particular business group due to time constraints and the abundance of data. In contrast, technical analysis enables us to examine price movements across various industries more efficiently and quickly. It provides a broader perspective and facilitates a better understanding of the overall picture.

👉5. Market Timing: Technical analysis helps determine the timing of market entry for stocks. It provides signals that aid in deciding when to enter and trade stocks or when it may be prudent to stay out of the market during a particular period.

💥In summary, technical analysis offers flexibility across markets, saves time, captures early price movements, analyzes a broader range of industries, and assists in market timing. It provides valuable insights for traders and investors to make informed decisions in their trading activities.

Some Disadvantages and Misconceptions about Technical Analysis

👉1. While technical analysis can help limit the scope and shorten analysis time, relying solely on the final outcome of an event may render the analysis inadequate. It can leave one vulnerable to stock manipulation, which can be mitigated to some extent by setting predetermined stop levels. It is crucial to have the courage to cut losses swiftly when faced with unexpected price movements in the market. Failure to do so may lead to a more significant problem, as the number of losses needing to be cut increases.

👉2. Utilizing technical analysis without comprehending the underlying concepts can be perilous. For instance, using a trend-following system in a sideways market may result in frequent trades with minimal profits or barely covering the broker's commissions. Therefore, if one wishes to be a technical analyst, it is essential to grasp the concepts of the tools to be employed and integrate them with the direction of the market movement.

👉3. Some investors mistakenly believe that knowing technical methods allows them to buy at the lowest price and sell at the highest price. However, in reality, no tool or technique can consistently achieve this. Technical tools primarily indicate when to enter or exit the market, as well as when there is confirmation of a potential trend change. However, by the time a real trend change is confirmed, one may have already missed the lowest or highest point. Nonetheless, technical analysis can help reduce the risk associated with incorrect entry and exit points. It is important to note that technical analysis does not guarantee the attainment of maximum profits.

💥In addition, the signals of technical analysis do not always have to be correct. No tool is 100% foolproof. Users of technical tools must be disciplined and accept when analysis yields inaccurate results. It is important to prepare for such situations by setting stop losses, which means admitting that you were wrong at a certain point and deciding to sell (or buy back, depending on the case).

How to download Market data from Yahoo finance via S#.Data(a.k.a. Hydra)

2023-02-21T10:37:01Z

Yahoo! Finance is a media property that is part of the Yahoo! network. It provides financial news, data and commentary including stock quotes, Forex, cryptocurrency, press releases, financial reports, and original content.

👉 Open up your Hydra Application.
👉 Visit our instruction if you doesn't have Hydra application.
👉 How I can get S#.Data

👉 The first page you found will be all possible supported sources.
👉 Or click Add Sources with the plus sign on your top left hand side.
👉 Scroll down to find Yahoo finance from all sources. Or you can search from the Find box.

👉 Find Yahoo Finance from this list.
👉 Select to Connection to Yahoo.
👉 And Click OK.

👉 The system will show the screen as above to confirm the connection with Yahoo Finance. You press Yes to continue.

👉 Press Add Securities, which is a plus sign on the bottom row toolbar.
👉 After that, you click on the Download Securities tab.

*** Please Note For Yahoo Finance, you can access the instrument code from the Yahoo Finance website.***

👉 Navigate to the Yahoo finance website,
👉 Use the code in parentheses to search for the Instruments you want to download Market Data from.

👉 Back to Hydra
👉 Press Paste the code in the Code field to search and click OK.

👉 Double click on the Instruments tab on the left to move it to the right and click OK.

👉 Select the Time Frame candle and click OK.

👉 Press to select a Date. Where you want to start with Market Data information.
👉 For example 2010/01/01.

👉 Press Start at the top left hand corner of the screen to begin downloading Market Data information from Yahoo finance.

👉 Once the data has finished downloading, press Stop.

👉 Right-click on the top bar and select View download.

👉 Click View Market Data information.
👉 Or Click View Chart candle.

👉 Now everything is done.

⚠️⚠️ Tariffs - StockSharp's new pricing policy

2023-01-20T15:21:24Z

The StockSharp team wishes everyone success in the financial markets in 2023!

Today we have prepared big changes that are important to read. Please take 10 minutes of your time and read the news to the end.

We have made tariffs that will be available from 02.02.2023. You can already subscribe on pre-sale with the link where licenses were previously located - https://stocksharp.com/products/pricing/ Let's go through the most important theses:

All connectors (stock, forex and crypto) are now equal to a single policy. This means that they have a single price level, and they are available in a free option (tariff for free). Speaking even easier, then crypto connectors are available in the free version !
The free version and Designer Pro do not provide the use of connectors in API. The API level itself is available as before as open source codes on GitHub, as well as the graphic component in Nuget packages. But connectors will only be supported in Designer or Terminal.
In the case of Designer or Terminal you will not have restrictions with free connectors, as in the case of API. Moreover, licenses with a link to the computer are removed and you can use connectors on an unlimited number of your machines.
Training videos are provided free of charge for Designer Pro and API Pro plans in order to provide the maximum amount of training material. By subscribing to the tariff, you get all the necessary materials for the successful development of the platform. In the future, video training will only be replenished, and you will already have access to new lessons.
Tariffs are based on a subscription system, and renewal for the next year with a discount of up to 50%.
Business tariff provides unlimited access to direct market access (DMA) connections, like FIX FAST Plaza, etc. It does not restrict regular connectors either. In addition to it, there is a product MatLab that provides integration of our platform with the popular MatLab product.
Connections to MetaTrader are available in a free version, like other similar Forex connectors.
Hydra Sources in its free version only offers market-date history, without connection to real-time trading. If you need real-time history accumulation, then the minimum tariff for this is Designer Pro.
Market making strategies are available as open source and on a free plan.
For IT developers who make custom robots in C#, connectors is able to connect for demo trading. Currently, these are Binance, Bitmex, Deribit, FXCM, LMAX. Oanda, Kucoin, PrizmBit, Rithmic.
The purchase of individual components and products is possible, the store provides, as before, the purchase of individual StockSharp products at the indicated prices. But we tried to make the tariff scale so that it would be much more profitable than a separate purchase by product.

We are well aware that a number of changes may be inconvenient for some of our users. Therefore, we ask them to download the currently latest version uploaded into Nuget (or fix the version in their code, which make limit possible updates). An update to the new version of the whole platform will be published on Nuget in a week.

For all customers who have previously purchased training, connectors or other products from us, please write to info@stocksharp.com and you will be given the option to upgrade to your chosen plan at the price of renewal. The promotion is valid until 02/28/2023.

For all those who want to subscribe initially to the tariff:

we offer a 30% discount if you pay before 01/02/2023 for pre-sale.
if paid before 02/28/2023, 10% discount

Thanks for reading. We hope you appreciate our changes, which have made our connectors and other products as affordable as possible for most customers.

Happy New Year!

2020-12-31T11:34:56Z

Dear friends! Happy New Year 2021![happy][happy][happy]

Please accept our most sincere and warm wishes for the New Year!

We wish you more lucrative deals, great financial growth, and more productive work with us in the New Year!

The most important thing is health, harmony, and love! Don't let this crisis scare you, and your capital is growing steadily, and don't lose your enthusiasm!

Do not forget that today is the last day of our 20% discount for all of StockSharp products including training in trading robots online course!

Happy New Year!

sincerely yours,
StockSharp team!

Do it! Your own connector!

2020-12-01T14:51:19Z

Dear friends,

Our free S#.API library for both beginners and advanced algo traders is very flexible and allows our users create your own connectors!

In addition, we updated our documentary section related to this topic!

We sincerely wish that there are some programmers will be keen to dig into since there is nothing easier than to write your own connector-adapter!

Regards,
StockSharp

Website maintenance

2020-11-27T11:51:58Z

Dear users,

Attention please. The website will be down for maintenance over the weekend

Dear users, our website will be unavailable over the weekend due to technical reasons.

We sincerely apologize for any inconveniences caused!

StockSharp online store!

2020-11-19T12:47:28Z

Good news everyone!

Welcome to our new online store! We've just opened a new online store which located in trading robot section and warmly welcome you!

From now on every of you can order any of our products and moreover you can publish and sell your products through our website, dear client!

Contact to our email info@stocksharp.com, we will reply your questions and will provide assistant with your products.

Pyramiding in trading

2020-03-10T22:39:46Z

Earlier in the articles, we considered such mechanisms used in trading as Stop-Loss and Take Profit. Of course, these two tools help reduce the risk and increase the profitability of the strategy. But what if, because of them, we limit ourselves to getting more profit?
To understand how this can be done, you need to consider Pyramiding.
What is pyramiding - оne of the types of strategy aimed at increasing capital by step-by-step opening of several transactions with a favorable trend. Using this strategy allows the trader to get a stable income.
Let's consider the principle of pyramiding.
The essence of pyramiding is that after the profitable result of the last transaction, the trader opens a new position, while doubling the bid, compared to the previous one. As for the risk arising from the next bid, it is equal to the sum of the profit of the previous stage and the initial bid. At the same time, the amount of profit depends on the so-called "steps" of pyramiding, and it grows exponentially.

Pyramiding is applicable in any market – stock, currency, and others. The trader adds a new position to the previous effective one, if the trend direction is profitable for him.
If the trader's actions are calculated correctly, he will always be in profit. The use of various trading robots also contributes to a more convenient use of pyramiding. For example, "Mr. Hyde" from StockSharp, which in automatic mode and flexible configuration can trade in pyramiding mode.
An important point is that the trader must be sure that the trend is stable, otherwise it can lead to losses. However, the use of automated programs, such as Designer, which use condition cubes and position protection, makes trading with pyramiding minimally risky. An example of this strategy is shown below.

Let's consider the basic rules of pyramiding.
- Constantly monitor the ratio of return and risk within 1 to 2, so that the previous yield can cover the current risk.
- All parameters used during trading must be calculated in advance before entering the market.
- Use pyramiding only on a stable trend.

Let's look at an example of using pyramiding.
Let the trader have a capital of $10,000. At each main level, it can buy 10,000 units of the selected currency. In the Forex market, this is 1 mini lot. The amount of profit at each stage will differ, however, the size of the set Stop-Loss for each opened transaction will be equal to 50 points.
So, the trader buys 10,000 units of the base currency. Let's assume that the market situation is shown in the figure.

The price rises and breaks through the resistance level, now this level becomes the support level.
Let a bullish pin bar be formed at the support level (a graphical analysis figure based on the non-indicator method of trading, as well as the analysis of Price Action charts), in consequence of which the trader decides to buy 10,000 units of currency. When a trade is opened, the trader sets the Stop-Loss at 50 points or 1% of the risk of capital.

This way the trend keeps its direction, and the trader trades further. The trend breaks the next level, and the price is set above the support level, and the trader buys another 10,000 units, and the previous Stop-Loss is transferred to the new level.
The same situation is when the price breaks the third level

Thus, the trader accumulates a long position of 30,000 units of the main currency by the third stage. There is almost no risk, since at the third stage, when a deal is concluded for 10,000 units, the profit will be 4% if the trend reverses.

The potential profit, with a successful outcome, can be 12%.
Let's look at this example in numbers.

It is important to see how the possible profit increases from each stage to the next, while reducing the risk
The trader's first trade will bring him a profit of 6% of the initial capital.
Consider all the situations in the market:
- First transaction: 10,000 units
Negative: there was a -1% loss
Positive result: +6% in profit

- Second transaction: 10,000 units
Negative result: no loss (+2%in profit from the first stage and -1% in loss from the second)
Positive result: +10% in profit (+6% in profit from the first stage and +4% in profit from the second)

- Third transaction: 10,000 units
Negative result: +4% in profit (+3%in profit from the first stage, +2% in profit from the second stage and -1% in loss from the third)
Positive result: +12% in profit (+6% in profit from the first stage, +4% in profit from the second stage and +2% in profit from the third)

As you can see, the risk is about 1%, while with positive trading of all three stages, the profit will be 12%

Main advantages and disadvantages of building:
Plus:
- Pyramiding strategy allows you to increase your income with minimal risk;
Minus:
- The strategy is quite complex and requires experience. It is possible to use the strategy for medium or long periods of time, preferably using automated trading systems. The correct calculation of the exit point from pyramiding, analysis and testing of the trend behavior is of great importance, which necessarily leads to the use of trading robots. Pyramiding is not suitable for scalping strategies, and is also aimed at long-term trading.

Pyramiding is a profitable and relatively safe method of trading. Its reliability has a downside in the duration of the process, the accumulation of sufficient experience and knowledge in trading that would correctly calculate the levels of trade. Also, this type of trading is not suitable for all traders, so choosing it as the main one should be conscious.

Hedge. The essence and its types.

2020-02-11T11:59:47Z

Unfortunately, insurance companies do not provide traders with insurance in case of adverse price changes in the market. However, the so-called insurance mechanism exists, and is implemented through the futures exchange.
This insurance mechanism is called Hedging.
Hedging is an option for insuring assets against adverse price changes in the market, in which a trader buys an opportunity to buy and sell an asset (futures) in a subsequent period of time with fixed terms of the transaction. The name originates from the English hedge, which means insurance or protection.

Hedging uses the futures market, which reduces the risks of an adverse trend change in this market, in fact, a futures transaction is a replacement for an upcoming transaction in the cash market, while the futures position has the opposite direction of the position in the cash market, thus reducing the risk.
For example:
The wheat producer is confident that its future crop will bring it profit in three months.
Provided that all farms get a good harvest, the price of wheat will decrease in the market. To reduce the risk – hedging the risk, the wheat producer buys a forward contract (not a standardized contract for the delivery of the underlying asset in the subsequent period, with the fixed price of the underlying asset), under which it will be able to sell 10 000 tons of grain at a price of $200 per ton.
Now let's look at the possible scenarios:
- Let the harvest turned out good, respectively, the price on the market sank to $150 per ton. In this case, the manufacturer executes its forward and earns:
$200 x 10 000t = $2000000-that is, it remains a winner;
- Let the crop was born bad, while the price rose to $250 per ton. The manufacturer performs its forward, while it receives $2000000, and its losses are $500 000. In this scenario, the buyer wins, but the manufacturer has insured itself. To avoid losing more.

When hedging, a fixed-term hedging contract is opened. at the same time, this contract itself is a financial asset, so it can be bought and sold, that is, to carry out normal transactions on the market.
The asset that is insured can be any asset from your portfolio and any asset that is only expected to be purchased. The market where the possibility of operations with an asset is implemented is a spot market (transactions in such a market are made immediately, usually within two days at most).
We can say that hedging contracts form a fixed-term or future market.
Let's look at another example that examines the possibility of compensating losses from the sale of an asset by selling futures and Vice versa:
Let the organization acquire a tanker with oil, having a desire for subsequent resale. In the current period of time, it is not able to sell oil at current market prices, however, the organization sells a futures contract for oil. In the subsequent period, the organization sells oil and buys futures.
- Let's assume that the price of oil fell at the time of sale, respectively, when it is sold, the organization will suffer a loss, but the liquidation of the futures contract will give a profit that will cover the loss from the sale of the real product.
- Let's assume the situation has changed, and the price of oil has started to rise, respectively, the organization will make a profit on the sale, but the purchase of futures will bring a loss, but it should be covered by the profit received.
Thus, the loss is compensated in one market at the expense of profit in another, we can say this is comparable to an arbitration operation.
Such operations are possible because of the close relationship between the price on the real market and the futures market. Of course, we can not say that the prices in both markets are the same, since there are differences. For this reason, it is impossible to talk about an ideal hedge, in which losses are reduced to zero, but at the same time, the importance and possibilities of hedging are fully justified when trading.
Successful hedging depends on the degree of correlation of prices in the cash and futures markets, the higher the correlation, the more successful the hedging. Of course, there is a risk that changes in prices on the cash market will not be compensated by changes in prices on the futures market, which will result in a loss or profit. But this is how hedging protects the underlying risk from the greater risk caused by the insecurity of an open position in the cash market.

A market participant who insures their risk is called a hedger, and the counterparty in the hedging contract may be:
- hedger's partner;
- other hedger (buyer or seller of the underlying asset, which also insures the risk, but in the opposite direction);
- financial speculator.
The hedging strategy for participants is based on a unidirectional parallel change:
- current price of the underlying asset-spot prices;
- a prospective "futures" price.
Operation of the hedge opens two trades at the same time:
- transactions with the underlying asset on the spot market;
- transactions on the futures market of the same asset.

Hedging can be of various types, let's look at what types are:

By the type of instruments used in hedging:
- Exchange-traded instruments (futures, options), while contracts are opened exclusively on exchanges, and transactions have a third party-a Settlement Fee that tracks the performance of obligations. All contracts are independent derivative financial assets and items of purchase/sale operations.
It is worth highlighting the following positive aspects of such hedging:
- security,
- access to auctions,
- market liquidity.
The disadvantages are standardized assets, strict requirements, and various restrictions on transactions.
- Over-the-counter instruments (forwards, options), while contracts are concluded outside the exchange, are one-time, do not have circulation on the market, and are not independently traded assets.
Positive aspect:
- Large flexibility in the choice of an asset and the terms of the contract.
The disadvantages of such hedging are low liquidity with an increased risk of default, and increased transaction costs.

The next type is hedging by type of counterparty. It is divided into the following types:
- The buyer's hedge, in this case, the buyer's risks are insured, which are associated with a prospective increase in prices and deterioration of the transaction conditions. With such hedging, the most common operations are the purchase of forwards, futures, call options, as well as the sale of put options.
- The seller's hedge, in this form, the seller's risks are insured, which arise when the asset's value potentially falls and the contract terms deteriorate. This hedging involves selling forwards, futures, and call options, as well as buying put options.

Hedge by the amount of risk that must be insured, is divided into the following types:
- Full hedging, in which the entire volume of the transaction is insured.
- Partial hedging, in which only part of the transaction volume is insured.

By the time the underlying transaction is concluded, the hedging is divided into:
- Classic hedging, used with the application of a fixed-term transaction, which is concluded after the transaction with the insured asset.
- Anticipatory hedging, in which a fixed-term transaction is concluded in advance before the acquisition or sale of the insured asset.

Hedging by asset type is divided into:
- Net hedging, in which the insurance contract is concluded for the same type of asset.
- Cross-hedging, in which the hedging contract is entered into for a different type of asset than the underlying one.

Hedging under the terms of the contract is divided into:
- One-sided hedging, in which the possible loss from price changes in the market is fully borne by one of the participants in the transaction – the buyer or seller.
- Two-way hedging, in which losses are distributed among all participants.

It is worth noting that all the types of hedging analyzed allow you to choose the most optimal strategy for the implementation of the trading mechanism.
Of course, it is worth saying that this type of operation is quite difficult for a beginner, and sometimes for an experienced user, it causes a large number of problems.
Today, the use of this type of operations is facilitated by implementing hedging mechanisms in various trading systems and robots.
For example, StockSharp has implemented an "Hourglass" trading robot that allows hedging using various methods and trading operations.
For Designer users, the "Hedging" cube is implemented, which settings allow you to protect against risks in ongoing trading operations.

In this way, building strategies is easier, and is reduced to configuring the cube and input parameters.

Remember that the types of hedging considered can be fully implemented using our SOFTWARE, including the implementation of these methods is considered in the course of programming training.
The most important thing is to remember and not forget about the opportunities to save your profit, and hedging methods will come in handy

MetaTrader 5 connector is available now!

2018-11-09T15:51:51Z

Hello dear friends! Today, we are completing the delivery of products within 3rd crowdfunding round and present connector to MT5.
Now the StockSharp platform allows trading by robots both through the most popular forex terminal MetaTrader 4 and through the 5th version of this product.

Participation in the project is still possible by the same prices until November 12!

We invite everyone who has not participated in the project to get the lifetime license for only 500$. Since November 12 1000$!
Project participants, we invite you to get the connector here!

Faster! Higher! Stronger!

2018-07-10T15:52:04Z

Hello dear friends!
today we have a short and terrible news! Our third crowdfunding to create a connector for MetaTrader sets new records!
Already today the amount of raised funds exceeded 85%!!!
We see tremendous interest not only among those who want to participate in the campaign but also potential investors!
To all of you, we recommend hurrying up. Pre-sale with a minimum amount of the base payment in 300$ available only 2 days!
On Friday, the minimum contribution will be 500$!!!
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S#.Terminal - new release 4.3.27.1

2017-09-15T14:24:22Z

Hello everyone

We've just released a new version all our product - S#.Terminal. We really appreciate a feedback. Every day we receive your messages. Thank you for your help.

Major features and options:

1) No jokes! It a free charting application. Try it right now (no cards, no trial). We do trading tools for all of you. Wanna support up? Please buy our training.

2) Support any markets, any instruments (stocks, FX, bitcoins, futures).

2) Easy to plugin you favorite broker or exchange. Developer's guide, C#.

3) Join multiple accounts and connections into single app.

4) Only Japaneses candles? Sure not! Cluster chars with market profile are included.

5) Full source code available. You can add any feature, or make our own custom product use our White Label program .

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