Hedging Strategy

Hedging Strategy for intraday  trend trading. You enter a potential trade in the direction of the trend. Find the trend the H4 and H1 charts after go on M15 or M30 chart as your trading and timing. Spreads low is important when using hedging strategy but also know how to take advantage of volatility is even more important.
Currency pairs for this strategy are some of the more volatile pairs such as the, Eur/Jpy,, Gbp/Chf, Eur/Aud, Gbp/Usd, Gbp/Jpy, Aud/Jpy.
Visual explanation for examples of a Hedging Strategy that use the martingale for money management with multiplier 3.0. This multiplerer is not good kill the account. I recommended max multiplier 2.0. this multiplier is always dangerous. See the two progressions:
first multiplier 3.0= 0.01 – 0.03 -0.06 – 0.12 – 0.24 – 0.48 – 096 – 1.92
second multiplier 2.0= 0.01-0.02 – 0.04 – 0.08 – 0.16 – 0.32 – 0.64 – 1.28
Example hedging strategy
Example: Buy 0.1 lots at 1.9830. At the same placing Sell Stop 0.3 lots at 1.9800.  
If the TP at 1.9860 is not reached, and the price goes down and reaches the SL or TP at 1.9770. Then, you have a profit of 30 pips because the Sell Stop had become an active Sell Order (Short) earlier in the move at 0.3 lots.
But if TP and SL at 1.9770 are not reached and the price goes up again, you have to have a Buy Stop in place at 1.9830 in anticipation. At the time Sell Stop was reached and became active Sell 0.3 lot (pic: number 2), you have to immediately place a Buy Stop of 0.6 lots at 1.9830 (pic: number 3).
 If price goes up and hits SL or TP at 1.9860, then you have a profit of 30 pips too.
If the price goes down again without reaching any TP, then continue anticipating with Sell Stop of 1.2 lots, then Buy 2.4 lot…and next. Continue this sequence until we meet the profit. Lots: 0.1, 0.3, 0.6, 1.2, 2.4, 4.8, 9.6, 19.2, 38.4 and 76.8.
6. With this example I use 30; 60; 30 configuration (TP 30 pips, SL 60 pips and Hedging Distant 30 pips). Otherwise, you can try 15; 30; 15, 60; 120; 60. Also we can try to maximize profits by testing 30; 60; 15 or 60; 120; 30 configurations.
7. Considering the spread, choose the pair with the tightest spread like Eur/Usd. Usually the spread is only around 2 pips. The tighter the spread, the more absolute that you will win. I think this may be the “Never Lose Strategy”…let the price move to anywhere it likes; you’ll still get the profits anyway. Actually the whole "secret" (if there is any) is to find a "time period" that the market will move enough to guarantee the pips for your profit. This strategy works with any trading method.
Asian Breakout using Line-1 and Line-4. Actually, you can use any range (pips) you want.You just need to know which time period market has enough moves for the pips you want. And, one more important thing is not to end up with buy-sell-buy-sell too many times until you run out of margin.

Trading Line-1 and Line-2 (10 pips) will also win.
Don’t be confused, this method is very simple, only 2 things:
1.  Choose 2 price levels (H, L, ) at certain time (you decide), if breakout H then buy, if breakout L then sell. TP=SL= (H-L).
2. Every time you have a loss, increase the buy/sell lots in this number sequence: 1,
3, 6, 12, and 24...etc. If you choose your time and price range correctly, there should not be a need for this many trades. In fact, you should never have a need of more than one to two entries if you properly time the market.
3. Learning to take advantage of momentum and volatility is a key element in learning to use this strategy. As mentioned earlier, timing and Time Period can be a crucial ingredient for your success. Even though this strategy can be traded during any market session or time of day, it needs to be understood that when you do trade during off-hours or lower volatile sessions such as the Asian Session that it will take longer to achieve your profit goal. Thus, it’s always best to trade during the prime hours of the European/London Session and/or the New York Session. In addition, we
all know that the strongest momentum usually occurs during the opening of any market session. So, it’s these times that can help you to trade with a much higher probability of success. MOMENTUM + TIMING = SUCCESS
March 29, 2007 is a typical example of a dangerous day for trading with this strategy because there is a ranging market. Sideways, consolidating prices, or short oscillation markets will kill anyone if not recognized and traded properly. If you learn to enter the markets using the signals generated by the trading model included with this strategy, you will find that you will usually hit your initial TP target 90% of the time and price will not get anywhere close to your hedge or initial stop loss.. In this case, the hedging strategy replaces the need for a normal stop loss and acts more as a guarantee of profits.
The above examples are illustrating using mini-lots; however, as you become more comfortable and proficient with this strategy, you can gradually start increasing the number of lots trades with an initial goal of working your way up to standard lots. The consistency that you will achieve by being able to make 30 pips any time you want to will lead to the confidence necessary to trade multiple standard lots. Once you get to this level of proficiency, you profit potential is unlimited.


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