I think this is one of the secrets to really make everything work…actually TMB mentioned hedging to me last night…but no details as I missed the meeting…
Sanjoz, maybe you can post your trade using this strategy…I have a hedging idea of my own…but still testing it…
Sanjoz
How about when one currency pair starts moving against you. If we used all corelated pairs, all of our positions would be loosing at the same time.
You said you been doing it. Can you please give an example of stopped out trade or drawdowns and how it affected other open trades?
Here is my proposed hedging strategy for trading harmonics, gartleys or any pattern, or setups:
OT = Original Trade/Pair
HT = Hedge Trade/Pair
[B]Hedging Formula:[/B]
1.The Hedge Trade/Pair’s SL and TP should BOTH EQUAL the SL of the Original Trade/Pair…
For example:
OT: SL = [B]10 [/B]pips, TP = 30 pips…then
HT: SL = [B]10[/B] pips, TP = [B]10 [/B]pips
The usual results:
1.[B] OT works[/B]: We get 30 pips - 10 pips (from HT’s SL) = [B]Net of 20 pips[/B]
2. [B]OT fails[/B]: We lose 10 pips but get + 10 pips (from HT’s TP) = [B]~Break Even[/B]
3. Other…ouch!!
This way, if the trade goes according to our setup, we make our TP of the original trade minus the SL of our hedge trade.
And if our trade goes wrong, we break even…right??
[B]The general rule is:
[/B]
The TP of the HT should = the SL of the OT…The reason for this is that, if our original trade doesn’t work and/or get stopped out, our hedge trade will close the same TP as our SL to break us even…
Two gartleys? EUR/AUD 1h and GBP/JPY 1H. cd legs first, then D 
Has your tested your hedging idea? I tried several times but is very frustrating. basically when one is up and one is down when to stop really tests the heart.
A common scenario is it goes the OT first for 10-20 pips, then down to 30 pips. you lost both if you stick to your original plan. If not, well, even more tricky …
Yes…it’s risky…don’t try this yet…
I’m looking to applying this to my CD trades…
another gartley? eur/gbp 1h, convergence 127%CD/100XA. CD leg between 4h trend lines.
I’ll wait for your results first 
Did you trade it or deem it too risky?
Hi Stu,
yup, no problems… I’ll put an example up of one that I have done… please bear with me… I may not get to it till the weekend, but will definately put it up… if I can before I will do so.
One thing to be aware of though, the idea was not to trade this method everytime blindly… what I mean is that the other pairs must be checked to ensure they are folowing trend… The reason I say this is becuse, (although rare), the cable does leave the Euro… yesterday was a good example… the Euro went for a lie down and the cable was was flying high…
I think it can be done more consistanlt with the Euro and EurGBP… cable needs to be verified each time.
remember, we are only going for a small gain in each pair and they will more than likely trigger at different times once you put the trades on… so it is still worth going through the trouble of finding a suitable entry point for each one… this is where it can become combersome… I didnt do this, I just flicked all on at the same time and they went a little up and down before firing off one at a time…
Hi Amanfx
Im not sure I fully understand the point here. That is exactly what will happen, the pairs will move in different directions, but over a period of time, they normally follow the same direction. you still clearly need to be accurate with your entry criteria on the original pair. So if you were going for say 30 pips on the Euro, well that could move against you as well right? but I am suggesting, instead of doing that, split the 30 pip target across multiple correlating currencies thus spreading the risk. if you are confident of 30 pips, then you must be confident of 10pips right? you still need to manage your entry and stops…
I may have misunderstood your point, please clarify if I have…
hi
trades that just triggered
aud/usd h1/m 30
By radofx at 2012-01-31
usd/chf 30 min/h1
By radofx at 2012-01-31
Thank you CashDemon!
Hey Rado…
How do you know which convergence to take? Where to set your SL, and your TP?
TMB told me that you are trading for a living…good job…good trading…
bearish ej 5m with main trend in mind
update: only a small retracement, less than 20 pips. maybe not a good idea to follow 5m chart for a big reverse (.618 retracement in 5m chart is not a strong force)
aus/usd proffit 2 taken before the trendline and we are waiting for a break up…and the market gives it to us shortly…
enjoy the gartleys…bye
By radofx at 2012-02-01
