im not here to blame or badmouth freedom rocks
Some of my friends had good results using freedomrocks provided hedging system.
I entered the market on NOV the 4th and within 2 weeks I�m 90 pips away from margin call… I guess I entered the market at a really bad time with relatively high leverage of 10% (but freedom rocks recommended it as long as it�s within 30%)
when i looked at the hourly charts, the recent EUR/USD and USD/CHF is way off each other… i didn’t pay attention on that when I started it, and my friend were like ��just go for it�
Right now I have 3 options…
1, close all positions and save the remaining 7000 (lose 18000)
2, dilute the 10% margin to 5% by feeding another 25000-30000 (might lose everything as well)
3, let it bleed out (lose 27000 for sure)
From the standpoint of a professional gambler(Poker Player here), if you assume theres roughly a 50-50 chance the market will either go up or down from here, then reaching the point of no return is when you getting 2:1 or better on your money. (2:1 implies you are betting 50-50 with a chance to double your money, or in your case more than double).
By this I mean, You are risking the final 7k, in an attempt to retrieve your 18k, meaning you are risking 7k for the potential gain back of 18k. This means you are priced in at greater than 2:1 on your money, from the a gambling standpoint, you are now “pot committed”.
This means that even if you close now, your account is essentially whiped out, meaning you will have to deposit funds in it any way. As your account approaches 0, your drawdown will approach 25k, meaning the closer and closer you are to 5:1 or 10:1 and so on for your money, As far as reward and risk go atleast.
!!!Note!!! This is not sound investing advice, you should have closed your trade when it was at 1:1 or atleast less than 2:1. This is sound gambling advice i gave you though, and keeping your position open at this point is gambling.
If you have more money to invest after this mistake, then from my point of view I would keep the position open and close if the drawdown goes from 18k to 11k, thus you achieved atleast 1:1 on your gamble.
Bottom line there is no good way out of this. Other people will certainly disagree with me, and for good reason too, because taking my advice would literally be gambling, but a smart calculated gamble atleast.
