Hi fellow traders have developed a unique hedge strategy since it would be very long to write here so watch youtbue
I watched the video and sorry to burst your bubble. This is not a unique hedging strategy, it’s a unique way on how to lose money in trading.
Instead of trying to find ways to trick the market you should straight up to learn how trade or learn to long term invest. Do you not think the computers that firms pay thousands for would be doing this if it worked? You will be eaten up by spreads, commissions and slippage. Save yourself the time and effort and move on.
My apology, i think pasted wrong hedge strategy video, the below one is the one i was talking about
Have you traded this in real life?
I don’t think this works the way you think it does.
You use the example of a 10-pip range, and the profit target is 30 pips.
But, if the hedge is activated, the 30-pips becomes a break-even point.
That’s 10-pip range, plus 30 pip break-even to the upside, and a 30 pip break-even to the downside, that’s effectively a 70-pip losing range if the hedge is required. You need something to be greater to generate a profit, plus pay for the costs of each trade.
I think you’re just lining the pockets of the broker with this, with spreads, etc.
You are also digging yourself into a trade that you may be better off taking a 10 pip SL and free to look at other trades.
I think these hedging strategies appeal to people who can’t deal psychologically with taking a loss, and moving on.
However, if you have trading data that contradicts this, I would be interested.
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Hey thanks for your quick reply, well the pips difference is based on trader’s choice, the original focus here is, lets say there is a range of 80 pips and we need around 50 pips to be able to get out from positions with small profit, that’s enough.
What is the problem giving spread/commission to broker if our positions are hedged and finally we get out with safely. this is not the only strategy i use there are 3 terminal running with different strategies but surely will automated this and put in vps.
we have already tested though. btw its all upto a trader’s style of trading some likes hedging some doesn’t.
I’ve tried doing something that is basically this. Cost me a lot of money. Wouldn’t recommend it.
could you clarify that you did exact like this or something like this coz there is huge difference the one mentioned in video is not to increase lot size no more than once which is the most important
To the upside, at 30 pips will be in breakeven but, to the downside,at 30 pips, will be 5 pips short from breakeven , isn’t it?
Sorry quite didn’t get your question, if you take a look on video carefully you will get to know, if still any doubt, pls ask
After the 1st hedge at (a), it’s breakeven at 20 pips, but after the 2nd hedge at (b), breaking even only after 30 pips, after the 3rd hedge at ©, breaking even after 40 pips.
My point is , isn’t this a problem,?
This is not a completely crazy strategy.
On the pro side it relies on the tendency of price to escape strongly from a range. The assumption is made that the the longer the range, the more dramatic will be the break-out. The strategy does not depend on spotting a break-out immediately it happens and it does not require a specific TA price chart signal to enter in the break-out’s direction: the “hedge” buys time.
On the con side financial risk increases as the range continues sideways and the original position is added to repeatedly. The loss incurred by the distance between buy and sell orders is baked into the overall position and can never be avoided. The strategy requires double the capital and double the margin that simply playing the break-out needs, and it costs double in fees and spreads. It ties up capital in multiple trades which are not appreciating financially.
Its expensive, but so is taking conventional positions if they mostly lose money, and so is missing break-outs.
The legitimate question is, does it work?
How long have you been successfully trading real money with this strategy?
Really impressed looking at how much effort you put on plotiing this and for calculation, but sorry your calculation is not exactly correct but it is very close, actually in order to be breakeven or get small profit your distance does not hiden in a way you mentioned, it is but a very small lets just few pips.
yes it does yeah it takes time sometime but it is also safer.
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since long, only thing you need is patience rest up to you guys, just sharing if any of you wish to give it a try.
Its similar to something I have tried but I was using stops instead of hedging.
I am not convinced that there is any justification to keep enlarging the position as price in the range continues to move sideways, hitting its upper and lower boundaries.
the size of position will be increased only once which is on second order
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It was exactly this, until I ran out of margin and the trade went in the losing direction.
But even if it doesn’t you can sit in a 10 pip range for a while and the spread and commission will be making it unprofitable pretty quickly.
I’m sure it works sometimes, but I won’t be trying it again in a hurry.
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i believe you haven’t watched the last part of video 
I did it badly. I’ve seen the end. In your example, you need a 50 pip breakout in order to make a profit. Since you’re trading the daily chart, I’m assuming you expect a fair amount of time for this to work, so you’ll have a whole load of swap to overcome too.
Have you got a history of this method showing it works? I can see how it could work, but I’d think the times where the breakout is big enough to make much money are rare.