Okay, here goes. Let’s say that I open a buy and a sell trade on several different pairs at the same time. Let’s say three different pairs, 3 buys and 3 sells.
Half a day later I now have 3 profitable trades and 3 losing trades… of course because of the spread I am probably losing overall.
Could I close the winning trades, and expecting a reversal enter a trade in the opposite direction to reduce the losing trade ? Or, just let the market naturally reverse. So I keep the profit from my winning trade and the losing trade gets smaller or even back to zero or rejoins the main trend and goes onto profit.
I know it’s risky expecting any kind of reversal, but that’s why I will trade a small amount across several pairs. If there is no reversal and I have already closed the profitable trade then It won’t be good. But forex is not a straight a line, there is always a reversal. But saying that, picking tops and bottoms is one of the worst things you can do. It can go sideways for days …
In theory by opening a buy and sell order at the same time, I have a 100% chance of making one profitable trade every time. What other system can give you a 100% chance of having a profitable trade every single time ??? The only problem then is to decide when to close the profitable trade….
What do you guys think ? I know that without sone reversal, my buy and sell trade will cancel each other leaving me with zero profit or a small loss due to the spread…. I understand that. But forex is random ,
There are many systems, everyone is looking for an edge. And how often do you have reversals ? Often.
I have traded in December with a real account. However I did not open trades at the same time.
I used a buy/sell stop order, like a SL. I broke even or made a profit mainly.
You know that 95% or higher of people lose money… no one knows which way the market will go, only the big financial players do.
Also being stuck in losing trades, or waiting for trades to return to the main trend and become profitable takes up a lot of time and I am tired of it.
I don’t see how this method, is any worse or better than any other system out there. I don’t need to use stop losses or even look at the chart every five minutes. Maybe it won’t suit everyone but in theory I am growing my account, then trying to reduce the losing trades. Does anyone out there trade like this ??
I think anyone who has the ability to hedge has tried this at some point.
You could if you had a plan and knew where price was more likely to bounce. But you can’t open trades based on random expectations or hope. Once you close that winning trade and that losing trades (or trades) continue to go against you, then what’s the plan, hope it turns around before a margin call?
The market is not like a tide that you can predict will come in and out. It’s more of a pending tsunami.
This is the best case scenario, like winning $10 from a $6 lottery ticket once every few weeks. It’ll work out once and a while, but the odd are not in your favor unless you really know what you’re doing. Even then I don’t believe it’s a viable strategy.
You can’t think this way, the losing trade cancels out the wining trade until it’s in profit.
This statement reminds me of a trader here once who bragged about having a high win rate, like 90% or something, but then when they displayed their account it was in a 66% draw-down, meaning they were just closing the winning trades and letting the losers run. Those traders don’t last long.
But like dushimes suggested, try it on a demo account so you can experience it first-hand. There’s no better way to learn than by doing.
I can see you are trying to hedge currency pairs but from your result I can see losses are more than winning, so why don’t just go with one currency pair but first thing first try to backtest on trading view and fowardtest on demo before going live.Good luck on your tradings
Here are the sane trades, one day later. Actually I have several demo accounts. This one has 4 sets of pairs … other accounts have one pair or two pairs, but each trade size is bigger. Is it better to spread risk across 3 or 4 pairs , or stick with one pair and use a larger trade size ?
I would now wait until the middle of Monday … maybe using bollinger bands on a 1hr or 4hr time frame … if price crosses over the center line, I could close the profitable trades and hope price reverses…
I can open an order with a SL how beautiful would that be ? You profit on the winning trade and now profit IF price retraces and goes back… if it does’nt we have a SL.
Thank you for your reply ! Once I close those winning trades my account balance has now increased and I assume my margin too… however it is kind of an illusion. As the losing trades cancel out the winning trades…
What is I was to keep both the buy and sell trade open and enter one more trade in the direction of the expected reversal ??
In this scenario, I would either have one profitable trade and two losing trades ( if the market continues and does not reverse )
Or I would have two trades in profit and one losing but diminishing losing trade if the market does reverse …
I could then close the original profitable order, and still have one more in profit trade after the reversal has been confirmed + the losing order is getting smaller … I could put in a SL etc
Your margin won’t change if both positions are the same size until you close the second trade. However, If your long position is bigger than your short, it will use the margin for your long.
Then you might as well close out the first 2 trades because they’re now obsolete, unless you plan on only closing the trade going against you and leaving the 2 open in the direction you expect price to go.
If you close the original profitable trade then you still have the original negative trade open that you need to deal with, plus you now have a new trade open which widens the gap between the two. You’re still hedging so that gap will remain the same no matter where price goes, unless you close one of them.
Hedging is stressful, it’s designed to protect your account from further loss, not to make money. There are hedging strategies that you can make money from, but you need to fully understand how they work because like any strategy it can burn you.
I would recommend doing a search on hedging here, there are many threads about them. I actually have some bookmarked, I’ll see if I can dig them up…
It’s a perfect way to predict with 100% accuracy the outcome of your trade, a net loss every single time. Your loss will be the spread for each position.
@tokyotrader1… Most here cannot take in this type of information without losing their minds on all the peripheral BS…
Ignore the naysayers that don’t understand hedging…
Ignore members preconceived, untrialled comments…
Ignore the claims of millions of dollars…
Ignore the Fancy glasses, coloured lights and flashy backdrops…
Ignore all the peripheral rubbish in this video…
Just concentrate on the strategy displayed… Watch the video over and over until you understand exactly what this trader is doing and apply to your demo…
30 minutes of clear, concise examples of how hedging is applied… All without the losses caused by Stops and without doubling your margin…
A nice 4 figure profit overnight (UTC10) using this technique on USOil…
Ignore the naysayers that don’t understand hedging…
Ignore members preconceived, untrialled comments…
Ignore the claims of millions of dollars…
Ignore the sun glasses, coloured lights and flashy backdrops…
Ignore all the peripheral rubbish in this video…
Just concentrate on the strategy displayed… Watch the video over and over until you understand exactly what this trader is doing and apply to your demo …
yeah ,you last longer ,you’d taste the winner a lot , but eventually …
is this system rubbish ?not at all,say if you could figure a way not blowing it ,you’ve got the holy grail .
