Hey. It is me David.
I wish to joint down my ideas of using Martingale and Hedging. But after 3 months of hedging. This is what I’ve concluded.
Cons
- You risk alot of money just to avoid taking a loss.
- You start to sweat and perspire as market goes into channel and you have to open more position to avoid overthinking on the direction.
- You have doubts and fear that you eventually get your accounts explode.
Pros
- You don’t have to think where the market go.
- You don’t have a losing capital.
- You don’t have doubts and fear initially.
So why do I still hedge?
It is like a parachute. I can jump from as high as the building and not fear of killing to my death if it works.
The key is the lot size. You sacrifice big gains in a short time for small gains to avoid getting your account slaughtered.
My entry is usually base price action (strength of price) and volume (rising ticks over the previous volume) and candlestick pattern (either engulfing or hanging man or shooting star)
Candidate to hedge
AUDUSD and EURAUD
EURUSD and USDJPY
I seek possible worst case scenario.
Example.
What would happen if I seek to buy both AUDUSD and EURAUD. Not at the same time.
Can suggest?
My account is in the 5 figures. My smallest lot is 0.1 and I’ll hedge in this matter. 0.1, 0.3, 0.6.
Greatly appreciate the discussion.