I’ve been thinking for a while if there is a way to develop a EUR/USD-USD/CHF hedge system.
I’ve been playing around with a few ideas and today I put on a trade which was profitable.
Perhaps you can add some ideas (perhaps using s/r levels, indicators, etc.) to make this system a winner.
I bought Eur/USd and I bought USD/CHf (equal lots).
As soon as I put on the position I was down 5.5 pips due to the spread.
The position fluctuated for a while and then went down a total of 15 pips.
At that point, I bought EUR/USD and USD/CHF again (equal lots).
After fluctuating for a while the position was in profit by 14 pips.
I decided to see if I could get a 25 pip total profit on the position with a stop at break even and I am still holding the position.
I am wondering if you enter the position at the right level and if it goes against you you can average your price once or twice- like I did today.
Perhaps there is a way to optimize the entry using s/r, indicators, etc. to tilt the odds in favor of having a profitable trade.
I do not even know if this method has the potential to be consistently profitable in the long run but I thought that it is worth a try because when the position goes against you, the losses seem to be fairly minimal and, due to the volatility, it can swing back in to profits (like today).
Any and all ideas are welcome.