GBPCHF - Hedging Strategy of the Week (Profit Potential: 600 pips)

Commercial Content Analysts
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[B]Currency Pair[/B]: GBPCHF
[B]Entry Zone[/B]: Go both long and short at the market if the price is at any level within the 2.42-2.48 range
[B]Protective Stop:[/B] Long stop below 2.3750 and short stop above 2.5250
[B]Profit Target[/B]: Long Target at 2.48 and Short Target at 2.42
[B]Profit Potential:[/B] 600 pips (excluding transaction costs and slippage)

For more information on FXCM hedging strategies please visit What Is A Hedge Ratio? - FXCM UK

The most effective way to capitalize on currencies pairs that are trapped in tight ranges is through the use of hedging. The hedging feature is currently available on all accounts using FXCM?s No Dealing Desk service. The GBPCHF is our primary target for hedging in the week ahead, with clear range-bound trade and concrete support and resistance levels. To hedge, go both long and short at the market if price stays within the above Hedging Zone. Take profits at R1 for longs and at S1 for shorts, covering losses above R2 or below S2.


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[B]HEDGING RADAR - Find More Hedging Opportunities[/B]
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  •      [B]Entry Zone [/B]-> Go both long and short at the  market if [B]the currency is at any level  within the Hedging Zone.   [/B]

  •      [B]Profit Taking -[/B]>Target for the long order is the  [B]top of the entry zone[/B], for the short  order is the [B]bottom of the entry  zone[/B].

  •      [B]Stop Levels are Key Support and  Resistance Points [/B]-> Place the actual stops a few  pips above the higher level and a few pips below the lower level. The break of  these levels signals that the ranges have been broken and the hedging strategy  should no longer be implemented. 

  •      The lower  the Average True Range, the Less Risky the Currency is for  Hedging.

             [B]More Low Risk Hedging        Opportunities[/B]
        [B]Currency[/B]
     [B]%        ATR Rank[/B]
     [B]Stop        for Long[/B]
     [B]Hedging        Zone[/B]
     [B]Stop        for Short[/B]
     [B]Profit[/B][B]        Range[/B][B][/B]
        EURCHF
     ||||||        0.35%
     1.6289
     1.6420
     1.6686
     1.6817
     266        pips
        EURGBP
     |||||||||        0.40%
     0.6550
     0.6670
     0.6870
     0.7020
     200        pips
        GBPCHF
     ||||||||||||        0.50%
     2.3750
     2.4200
     2.4800
     2.5250
     600        pips
        
     
     
     
     
     
     
        [B]Medium Risk Hedging        Opportunities[/B]
        [B]Currency[/B]
     [B]%        ATR Rank[/B]
     [B]Stop        for Long[/B]
     [B]Hedging        Zone[/B]
     [B]Stop        for Short[/B]
     [B]Profit[/B][B]        Range[/B][B][/B]
        EURUSD
     ||||||||||||        0.53%
     1.3450
     1.3650
     1.3850
     1.4050
     200        pips
        CHFJPY
     ||||||||||||        0.63%
     95.00
     98.00
     101.00
     104.00
     300        pips
        USDCAD
     |||||||||||||        0.74%
     1.0000
     1.0300
     1.0600
     1.0900
     300        pips

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