Correct, that’s what I meant to say, long in both pairs. Good point on the exposure of the position, didn’t look at it from that point of view.
I currently only using a stoploss. If the trade turn the other way and hit my stoploss. THats it. One losing trade.
I did ever think of opening two positions. For example, i make a sell trade and my trade had a 38pips stoploss intended. However, i place a limit buy trade
at this 38pips stoploss. When price hit it, it trigger the buy order.
Sometimes, the trade hit your stoploss by a few pips before reversing. Sometimes it moves away and then comes back 30 minutes later. The idea is to give my trade a second chance to at least turn and continue to the downside. If it continue to move up and later move down. I can also cut my loss under 38pips.
If i closed both trade. I probably only added the spread to the buy side. But it does give my trade some breathing space. Is it really not good to trade this way? i had not tried yet.
If you are long and then go short 38 pips lower you have effectively locked in a loss of 38 pips. No matter what the market does from there on, you’re down 38 pips. The only way it can get better is if you close the short.
As I said before, do the math. No matter what scenario you use there you never improve yourself by doing that “hedge”.
I have a $5,000 Live account. I hedge on fxtm.com.
I find it works best for me Trading S&P 500 at .1% of a lot. on a $5,000 account this is about 5% if the account goes into the negative by $500 or 600 whatever it usually doesn’t do more than that before it reverses. The reason why hedging works for me is because I am the kind of Traitor who will sit in a trade until it reverses so I might as well hedge it if it’s in the middle of the chart it actually relieves a huge amount of my stress and I don’t have to be right. I wouldn’t like a robot head every single trade but when the market is ranging really tightly for a long period of time I love to hedge in both directions and see what happens. This morning I woke up and my account was at plus 454 a sell. I do put in profit takes when I head but I don’t put in stop losses. Again I only do this on the S&P 500 because it moves slower than a currency pair which can really scare the hell out of me. Don’t let someone tell you that something doesn’t work. You have to base your treating around your own psychology and if you’re like me or you never want to get out even if you have to wait 2 weeks for a trade to reverse to make $20 which I will do hedging of course makes total sense. Just demel the currency pair or the index that you’re going to do it on and make sure that if you’re like me and you never want to get out of a trade that even the most extreme examples of not getting out won’t make you go broke. I find it a lot scarier when I try to do hedging with say gbpusd. That’s a scary chart. Try snp500 it’s bigger it’s worth more just do 10% of a lan on it and demo 8 on a $5,000 account you really have no other issues. That said anything terrible can happen and you could put stop losses in just in case something wild happens but I just put in profit takes on either end and if it drops twice as far as my take profit that’s life. But on the S&P the chances that my $5,000 account could go into the negative by 1200 by only doing 10% of a lot is pretty much impossible. But the great thing about it is when I do buy and sell at the exact same time I love not having to be right I love the stress of not having to wonder but the only thing you have to do is if you start at a zero point with a buy and sell and it drops down to hundred and you get out and then it drops down another 200 then you have to wait for it to reverse up to 200 so that you broke an even and then up 200 more so that now you’re at 200 profit and then you’re by has to make some money and then both of your trades have come in perfectly and that happens constantly. Again you I wouldn’t had every single thing but if you like to trade daily charts and you like to wait long periods of time hedging in certain charts is really really fun and really satisfying too. Just don’t try to apply hedging on every single chart across the board because some of them swing so wildly that you could really really be bad.
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Split the last year of a chart into 3 sections if you’re going to hedge and basically only had to the middle. Obviously you don’t want to head in at the very top where the charts at its highest because if it never goes higher you’re in serious trouble. Obviously you don’t want to head to at the very bottom part because if you have a cell in you could be in serious trouble and have to abandon it. If the charts on the lower side of the three sections I wouldn’t hedge there and if it was on the upper part of through the three sections I wouldn’t had Cherry either I would mostly put in cells at the top and buys at the bottom and try to let them ride as much as I could it’s pretty much like hedging just being an opportunist trader. But the main thing that I found with hedging his you have to think of hedging as a bank account. So if you buy and sell at basically zero and your buy goes up and makes you $400. And you get out of it now you owe and quotes the bank in quotes or the universe and quotes$400. And the way that you pay in quotes the universe back is you don’t do anything until your cell comes in and goes into the positive. Once your cell kicks in and if you want to make five bucks on it and get out that’s fine if you want to try to let it ride that’s fine. If you want to let it go into the positive for $200 and then it backs all the way out to 10 and you get out at 10 that’s fine but basically when you had you have to make sure that you let your other order come in without adding other orders or jumping in and out because you lose the prophet of the initial 400. basically what happens is you make that $400 and then you think oh I wonder if I could also buy and sell while it’s coming back up and inevitably you get greedy and you screw it up. Basically. If you put in a buy and sell at the same time you have to let the opposite trade come back up to zero without doing anything. That’s the trade-off and if you can do that you can 100 percentage Hedge successfully. Try it on a demo. I can buy and sell at the same time at FX tm.com. So I don’t have that issue of being kicked out of a trade which is insane. and when you think about it if you buying and it goes all the way down and you make money meaning you guessed correctly? Especially when I trade makes you $500 conservatively or 5,000 if you’re betting more than one or two lots then of course it’s going to do the reverse we know that. It may not do it immediately it may take 2, 5, 14 days but we all know it’s going to do it. So anyone saying hedging doesn’t work doesn’t have eyeballs of course it works is I have to pick the right chart that isn’t too crazy volatile and not bet too much and then not get greedy and try to win your way all the way back up again. The only way I could see buying back up again is if you were extremely sure that the market was oversold or overbought in a severe reversal like you know the normal daily maximum pimps of that chart then at the exact time that you sold if you ribat in the opposite direction I think you would be okay but that’s iffy because then you have to buys or two cells going in the same direction and if the chart decides to keep going in the same direction twice as much now you’re really in trouble so I don’t like to do that. That’s what I mean about not being greedy you have to pay the universe back for your 400 by letting that trade come back up to zero – and then anything over that you want to let it do is completely fine but you have to wait for your opposite trade to at least zero itself. you just can’t be greedy. *drops mic
I used, but didn’t get such a good result! Please practice enough in demo before the final jump.
i have not tried it really, but if ever, from the current price levels, i would put a buy and sell order at the same time, and carefully measure and assessing “the least farthest” or not so near but then not so far, in pips, away from the price levels. aim is which, after placing both, that direction should not touch on both also almost simultaneously. because if these buy and sell levels are set too close to the current price level, directions may shift just above and below these, touch both, and go to a single direction, thus just cancelling both in terms of profit, no matter how far would the true direction goes. Setting these too far may mean a small or breakeven, if not slight loss, if the trend touch on it, then shifts direction, as a substantial length of the trade may have already realised, if the buy and sell levels were set too far.
tantsanalysis =)
Me myself for past 1 year have made decent consistent profit purely from this method & zero technical analysis. Only basic maths involved and zero emotions thingy is a must.
It can be done, provided your broker allows it, you have sufficient capital & proper money management. In my case, I’m only using cent account ($200 + depo bonus) with minimum lot of $0.01. You need to construct your strategy/script on risk management that allows you to steer along the short and long positions opened in favours of your reward. No stop loss, only desired TP for bullish/bearish lots & retrace lots. The focus is to increase the equities (profit collected > loss floating) time to time. Layering is part of it & most important is : 1.pips gap between entries
2.lot size
that satisfy your risk appetite & cater your margin and equities limit up to certain numbers of layers.
I’ve recently attained the EA customised to my strategy.