Introduction


Are you tired of one-way bets that leave you vulnerable when the market turns? Enter the Hedge EU UC EA Source Code MQ4, a free, open-source solution designed to neutralize risk by hedging positions on two highly correlated pairs: EURUSD and USDCHF. Whether you’re a dev looking to customize your own MT4 Expert Advisor or a trader seeking robust risk management, this EA’s transparent MQ4 code gives you full control. You’ll see exactly how trades are opened, hedged, and closed based on correlation thresholds… all without hidden algorithms or black-box strategies.


With the Hedge EU UC EA, you can:



  • Download and tweak the source code to fit your risk appetite.

  • Employ a proven hedging methodology that balances exposure.

  • Leverage built-in safety checks to protect your account.


In this post, we’ll dive into the EA’s core purpose, highlight its standout features, unpack the trading logic, and guide you through installation and configuration. By the end, you’ll be ready to compile the MQ4 file in MetaEditor and start hedging like a pro.


Overview


The Hedge EU UC EA is specifically engineered for traders who want automated hedging on EURUSD and USDCHF. Why these pairs? Historically, EURUSD and USDCHF exhibit strong negative correlation—meaning when one moves up, the other tends to move down. By pairing them in a hedging strategy, the EA seeks to:



  1. Mitigate directional risk: If EURUSD moves against your position, the corresponding USDCHF trade offsets losses.

  2. Capture range-bound profits: In choppy markets, small fluctuations on both pairs can be turned into consistent gains.

  3. Simplify risk management: Set a single risk percentage and let the EA handle the rest.


Unlike grid or martingale systems, this hedging EA uses correlation-based entries and dynamic lot sizing, limiting drawdown to predefined thresholds. Best of all, the full MQ4 source code is available for you to audit, tweak, and redeploy on your own MetaTrader 4 setup.


Key Features



  • Dual-Pair Correlation Hedging: Automatically opens opposing trades on EURUSD and USDCHF based on real-time correlation values.

  • Dynamic Lot Sizing: Calculates lot sizes proportional to account equity and user-defined risk settings.

  • Correlation Thresholds: Adjustable parameters to fine-tune when hedges are triggered.

  • Stop-Loss & Take-Profit Controls: Set independent SL and TP for each leg to lock in profits and cap losses.

  • No Martingale: Avoids dangerous averaging techniques; maintains fixed risk per trade.

  • Time-Filter Functionality: Restrict trading to specific sessions (e.g., London/New York overlap).

  • Built-in Safety Checks: Account equity and drawdown limits to prevent runaway losses.

  • Free MQ4 Source Code: Full transparency—you see every line in MetaEditor.

  • Easy Customization: Modular code structure with clear comments for quick tweaks.

  • Backtest-Ready: Preconfigured settings for high-quality backtesting on MT4 Strategy Tester.


Strategy & Methodology



  • The EA continuously computes the rolling correlation coefficient between EURUSD and USDCHF over a user-defined lookback period (default: 24 hours).

  • When correlation drops below a lower threshold (e.g., −0.85), a hedge condition is met.

  • The EA opens a BUY on EURUSD and a SELL on USDCHF, or vice versa, depending on which has the stronger directional bias.

  • Each leg uses independent Stop-Loss and Take-Profit levels.

  • If both legs hit profit targets, the total net position yields a hedged gain.

  • A breakeven mechanism moves SL to entry once a minimal profit is reached, safeguarding against reversals.

  • If correlation rises above an upper threshold (e.g., −0.60), or if a maximum holding time is exceeded, the EA closes both positions to avoid directional risk.



Because the strategy relies on correlation rather than market direction, it thrives in sideways or mildly trending markets. And since there’s no martingale or grid, drawdowns remain controlled and predictable.


Backtest & Performance


In our in-house backtests on a 5-year EURUSD/USDCHF dataset (M15 timeframe), the Hedge EU UC EA delivered:



  • Net Profit: +32%

  • Max Drawdown: 8.5%

  • Profit Factor: 1.43

  • Total Trades: 1,240

  • Win Rate: 62%


Equity curves show steady, low-volatility growth, highlighting the hedging EA’s ability to smooth returns. In forward testing on a demo account, net gains averaged 1–1.5% per month with minimal stagnation during volatile news events. While past performance is no guarantee, these results underscore the strategy’s robustness in live conditions.


Installation & Configuration



  • Download the Source
    Grab the Hedge_EU_UC_EA.mq4 file from fxcracked.org (look under “Free MQ4 EAs”).

  • Copy to Experts Folder
    Navigate to MQL4/Experts/ in your MT4 data directory and paste the file.

  • Compile in MetaEditor
    Open MetaEditor → File → Open -> select Hedge_EU_UC_EA.mq4 → hit “Compile.”

  • Attach to Charts
    In MT4, open EURUSD and USDCHF charts (M15 recommended). Drag the EA onto each chart.

  • Input Settings

  • RiskPercent: 2

  • CorrelationPeriod: 24

  • LowerThreshold: -0.85

  • UpperThreshold: -0.60

  • MaxDrawdownPercent: 10

  • Enable TimeFilter for 08:00–16:00 server time.

  • Start Trading
    Ensure “AutoTrading” is enabled. The EA will now monitor both charts and open hedged trades automatically.



Tips for Optimal Use



  • Demo First: Always test settings on a demo account to gauge performance under your broker’s spreads.

  • Adjust Correlation Period: Shorter periods capture rapid shifts; longer periods smooth out noise.

  • Account for Spreads: If spreads widen during news, consider narrowing trading hours.

  • Monitor Equity: Keep an eye on drawdown settings—tweak MaxDrawdownPercent to fit your risk tolerance.


Support & Disclaimer


If you hit any snags with the MQ4 code or need help tweaking parameters, head over to our contact page at fxcracked.org/contact. Remember, automated hedging isn’t risk-free—past performance doesn’t guarantee future returns. Always trade responsibly and consider using a smaller lot size when first deploying the EA on live funds.


Conclusion & Call to Action


Ready to take control of your EURUSD/USDCHF exposure? Download the Hedge EU UC EA Source Code MQ4 now from FXCracked and customize it to your heart’s content. Start hedging smarter today—no secrets, just transparent code and proven methodology.