well you could just close your trade and open another one when you saw the chance for it! why would you not do that?! you would not be stocked in a trade, you would not pay any spread or any commission or swaps and you could check each and every pair to find a better position!
I totally get it but I feel hedging can be useful for managing risk and can still aim for profits though it do add complexity to strategy. What’s your approach to balancing risk and reward?
I almost never open a trade or set an entry order without setting a stop-loss at the same time. The only time I don’t set a SL is if I’m setting bracket trades above and below current price ranges - I suppose that looks like hedging, but my idea then is to dump off the loser asap, not to run opposing positions.
I am heavily biased towards strategies that have a high win rate. That might be just me, but I reason that if I have a lot of winners I can more likely develop at least some of them into over-sized winners: I have had bad experiences trying to draw SL levels tighter and tighter so that I have the view trying to avoid losers actually just multiplies your losers.
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I get it. I’d the same with stop-losses.Do you find it hard to hold onto winners long enough to let it grow?
It’s very hard to close a winner at the ideal time. It’s the hardest question in trading. I have tried using many solutions, none are perfect so surrently I am trialling a new simple strategy which has such a high win rate that it looks like this will even thnings up for a weal exit timing rule - on the D1 Nasdaq chart I am buying daily Highs and selling daily Lows, exiting at the forst profitable Close.
The Nasdaq looks best for this but I need to do back-testing on the Dow and S&P to be sure.
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Sounds interesting. Any key pattern in Nasdaq so far that might work on Dow & S&P 500?
A look-back over the year to date suggests this stratgegy works almost as well on the S&P as on the Nasdaq’s, while the Dow is not far behind the S&P.
I am going to check back on a few forex pairs in the next week or so. I expect forex pairs will under-respond to the strategy as they are all less volatile than the stock indices on the long-term, while some of them, such as EUR/CHF, EUR/GBP and AUD/NZD are very low volatility. We shall see.
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Sounds like a good plan to me. I feel it will be interesting to see how to respond to strategy.
Hi @ria_rose,
We interact again, after so long no see …
Here is another pain, losing when taking an opportunity …
Anything happen is a gain, take the lesson from the scene …
Here is a rose 
… for Ria Rose 
I used to do hedging in the past. Mostly because I wanted to take opportunities during the early of price reversal. For example, during the end of up trend, I will start a shorting. The thing we need to consider is how far the next resistance from current’s. When it’s still far enough, I wont try hedging. I will cut loss instead. Mostly, you have to consider the characteristic of the instrument from its past movement. 
Hello! Hedging helps manage risk but isn’t foolproof. Focus on timing, market correlation, and clear strategies. Avoid overleveraging and monitor spreads. Test strategies on a demo account first. Losses happen; refine your approach and stay disciplined.
You still trying this or doing something new?
Absolutely right. Do you combine certain indicators or candlestick patterns for this?
Hedging can help manage risk, but it requires careful execution. Be mindful of overleveraging, as holding long and short positions simultaneously can lead to losses due to spread costs or market fluctuations. Focus on having a clear strategy, proper risk management, and understanding market conditions before hedging.
Agreed. No point of doing hedging if you cannot manage your risk.