The best strategy that your broker does not want you to know

[zrrsys]

@Trendswithbenefits

In Australia any costs associated in generating a Taxable Profit are deductible…

i wish i was in Australia trading and surfing

[zrrsys]

@zrrsys, Not bad, 18%+ in a couple of days… The trolls will be along shortly to rant it was a fluke…

thanx

[MattyMoney]

Good job, @zrrsys.

You’ve put in the work and proven money can be made with this strategy.

‘tips cap’

Cheers!

[zrrsys]

@MattyMoney

Good job, @zrrsys.

thanx man so fare so good but more testing needed

[zrrsys]

@zrrsys

it will be paid by your profit
here is the balance since i started 7 days ago
I think this strategy has potential
I will have to do more testing to be sure

week 2+ 2days so far so good
USDJPY gave me some trouble because it went on trend but was able to break even and get out with no harm
again timing is key with this strategy and money management (for 1000$ account 0.1 lot is good but for 1 paire only)
when is the best time to close the winning trade and reopen 2 opposites ones ?

[greenscorpio]

Nice one zrrsys

[Blue2]

Hey @zrrsys this is quite similar to how I trade -never knew it had a name. Except I don’t lock my profits into the grid, I take them out and release the cash to open more positions.

Yeah, I don’t know why hedging causes such controversy. Seems to be a red flag for lots of people.

This type of strategy works for me - you need deep pockets though and it can get v scarey when you are all in and get a margin-call and you have to start thinking about which positions to sell. You need laser-precise money management to avoid getting wiped-out totally. Also, trades that were supposed to be short can end up lasting a really long time (I was in a trade for a year once and you have to consider the cost of overnight funding.)

You also need enough funds to buy into the trend if it starts moving in one direction for too long. Again, if you don’t have the funds for this it’s a wipe-out.

But it’s interesting to see it has a name and people are talking about it. Of course if the price moved forever in one direction it would be unsustainable, but I compare this risk to crashing my car on the way to work and getting killed! Might happen, but probably won’t…!

[Blue2]

I would say this is a fairly high risk trading strategy, but can be profitable. You also need to spend alot of time doing sums on bits of paper, so you don’t misjudge and end up having to sell all your losing positions. I would avoid it if you are already good at predicting market movements from studing indicators/price action/candle-sticks etc.

[Blue2]

I invented my own system, though, so it might be slightly different to this, so some of my points might not apply here. It just sounds very similar.

[zrrsys]

@Blue2

Hey @zrrsys this is quite similar to how I trade -never knew it had a name.

well so fare so good no stop losses no stress
but it is definitely not the holy grail

[slade_456]

@zrrsys

ek 2+ 2days so far so good
USDJPY gave me some trouble because it went on trend but was able to break even and get out with no harm
again timing is key with

Thanks for this info mate.

[Eloise_1]

Ah Nice One!

[zrrsys]

ROI 50%
TIME PERIOD 14/07/2022 TO 16/08/2022
Trading details at

Statement 14 7 TO 16 8.htm

[Panda_Forex]

Are you still testing on demo account or going to a live one for this strategy @zrrsys?

[Psychological]

@ MattyMoney I like your explanation, I’m still getting there, trying to find my strategy.

[Trendswithbenefits]

This thread is dead Jim…

Forex Hedging - Criticisms Finally DEBUNKED.

I know I’m wasting my time posting this YouTube vid… What can I say…

[AmericanTrader]

I do see a lot of benefits to cost averaging and placing additional trades after pullbacks. I still use a large SL though, in case of armageddon and such.

Most trades we give up on seem to show they would have worked out if we had that patience.

[KaziTanzib]

I think mean reversion is the thing that fits here. Am i right?

[MarchFX]

@zrrsys

The second sell has now gone positive by 100 and the second buy is carrying a loss of -100. According to the rules one would cash the sell in and another 100 will be added to your account. That brings the total cashed in at this point to 200

Clearly you have not tested your strategy. Several years ago when studying engineering mathematics, I studied combinations and permutations. How many possibilities are there in this particular instance? Your strategy will not work.

[MarchFX]

@MattyMoney

Now here’s what will actually happen…

Enter a buy (1) and a sell (2) at 100, price moves to 200, so you close the buy (1) at $100 and you have -$100 (2) left open.

Enter another buy (3) and sell (4) at 200, price keeps rising to 300. Now you have your first sell (2) open at -200, your 2nd sell (4)open at -$100, your 2nd buy (3) at $100, and $100 in the bank, so you close your 2nd buy (3) and bank that $100. Now, you’re at -$100 ($200 banked and -$300 (2,4) open).

Ok, so let’s open another buy (5) and sell (6) at 300. Price is still going up, 400! Bank $100 more (5) except now #2 is open at -$300, #4 is at -$200 and #6 is at -$100, and you have $300 in the bank.

Math please?

I am glad we have this explanation. I think you assumed price will remain within a given range. However, it can also continue to rise or fall.