Hedging instead of SL?

[Numero16]

Open position? I really don't get your point in here. How can you do hedging if you don't have open position? The main reason you do hedging is to protect your open position by farther loss by doing hedging.
What do you mean by not unlock the hedge at any point in time? The more you can get out of hedging the better. Because even though you're not losing any more pips in hedging but you also pay swap interest. So the more you stay in the more you pay interest.
And it does matter if the price goes up and down. that's what hedging is all about.
Just one question. How can you end your hedging strategy? Its easy to get in in hedging but how can you complete the whole process?

All the points you highlighted here are attributes of the old ways of hedging and like you rightly pointed out, it seeks to do damage control- medicine after death, but the strategy am talking about seeks to make profit straightaway! Defrost your mind of what you used to know of hedging, then what am saying will begin to settle in!

[bulastika]

All the points you highlighted here are attributes of the old ways of hedging and like you rightly pointed out, it seeks to do damage control- medicine after death, but the strategy am talking about seeks to make profit straightaway! Defrost your mind of what you used to know of hedging, then what am saying will begin to settle in!

Okay I give it your way.
Give me an example of hedging. from start to finish so that I can visualize what you're trying to say about this new hedging strategy.
Then I will going to make some points so that we can check your new strategy and if I'm satisfied then I will going to adopt your suggestion.
Right now I'm trading scalping, hedging and naked trading so if you can enhance hedging the better.

[EPlover]

In the past i did tried this method, it didn't work that well. It won't work for the scalpers for sure, because the spread will kill the profits big time, one instead of two trade, so twice the fee. In ranging market it may work a bit, but it will be very hard to get profit in trending market.

[Numero16]

I think it depends on your knowledge of what tool to use at any point in time and your appetite for risk. So even a trending market does not mean the market moves in a straight line, it still retraces to some extent and you can introduce an OTO order and Martingale to stay on top of things!

[bulastika]

No I'm not talking about indicators I'm talking about free margin and just read my previous post to have a clear view. For example.
Account type lite: margin limits 50% leverage 1:1000, margin 1:100 lot 0.01 capital 15 dollars. pair trading usd/cad
You trade 0.01 lot that automatically give you 40 cents pips. that's means you only have 14.60 dollars left. now since margin limits is 50%. if your funds reach 10 dollars you will get MC right away. Now how can you do hedging in here? that's what I'm asking you to do and example of a trade from start to finish if its okay with you.

[riddick09]

I'm also looking for a great sample of this hedging. As it seems reading also in other forex forums that this strategy is really worthy rather than SL. Which I don't use SL as of this moment. Hoping that we will get a good example, screenshot or well explained sample will do.

[bulastika]

I'm also looking for a great sample of this hedging. As it seems reading also in other forex forums that this strategy is really worthy rather than SL. Which I don't use SL as of this moment. Hoping that we will get a good example, screenshot or well explained sample will do.

Right now I do three strategies, scalping, hedging and naked trade. Theirs still many other strategies but I will going to add them later on when I already feel comfortable trading this three strategies. Now lets concentrate on hedging. In hedging you need to find a pair that has for two to three days has the same average support and resistance level. In this way you will know if its near support level you open this position if you reach near resistance level you open this kind of position and if you are in the middle you can open two opposite position.

[tom]

hedging is better then stop loss order , s/l order only stop loses but it has negative aspect also , price action always moves in zig zag pattern and for some reason s/l order can't stop price movements for increasing so if you use s/l order you find it tiny loss order and you get small successive loses in your bag but in hedging method either pending or any other you open two different positions in same time for instanc buy sell in same time or pending order after a few pip difference and for some time when prices touch to that point you close your position and get out of losses with small profit .

[bulastika]

@Numero16

Just wondering where is your example of hedging that you stated?
This is part of my stats in my hedging strategy. You can check it at bulastika Trading Account and you can comment on how to improve my hedging strategy or point out the weak points of my hedging strategy. I'm hoping that you can show me your hedging strategy also.
thanks.

03.05.2012 15:45	SELL	0.01	EURUSD	1.3155	04.05.2012 03:29	1.3149	0.00	0.06
03.05.2012 15:31	BUY	0.01	EURUSD	1.3115	03.05.2012 16:14	1.3168	0.00	0.53
02.05.2012 12:22	BUY	0.01	EURUSD	1.3155	03.05.2012 16:02	1.3175	0.01	0.21
03.05.2012 05:01	SELL	0.01	EURUSD	1.3139	03.05.2012 15:31	1.3115	0.00	0.24
03.05.2012 09:18	SELL	0.01	EURUSD	1.315	03.05.2012 11:41	1.3147	0.00	0.03
02.05.2012 17:09	SELL	0.01	EURUSD	1.3155	03.05.2012 05:02	1.3144	-0.01	0.10
03.05.2012 01:56	Deposit	IR						0.17
02.05.2012 13:56	BUY	0.01	EURUSD	1.3135	02.05.2012 16:45	1.3155	0.00	0.20
24.04.2012 01:31	SELL	0.01	EURUSD	1.3153	02.05.2012 15:58	1.3135	-0.01	0.17
24.04.2012 01:28	SELL	0.01	EURUSD	1.3154	02.05.2012 12:34	1.3142	-0.01	0.11

27.04.2012 09:37	SELL	0.01	EURUSD	1.3166	02.05.2012 12:22	1.3155	0.00	0.11
27.04.2012 09:34	SELL	0.01	EURUSD	1.3172	02.05.2012 11:52	1.3166	0.00	0.06
02.05.2012 10:58	BUY	0.01	EURUSD	1.3172	02.05.2012 11:04	1.3174	0.00	0.02
27.04.2012 10:40	SELL	0.01	EURUSD	1.3183	02.05.2012 10:57	1.3171	0.00	0.12
30.04.2012 13:33	SELL	0.01	EURUSD	1.3212	02.05.2012 10:55	1.3173	0.00	0.39
02.05.2012 10:22	SELL	0.01	EURUSD	1.3225	02.05.2012 10:43	1.3215	0.00	0.10
02.05.2012 03:56	BUY	0.01	EURUSD	1.322	02.05.2012 10:18	1.323	0.00	0.10
02.05.2012 06:48	SELL	0.01	EURUSD	1.323	02.05.2012 09:25	1.3217	0.00	0.13
01.05.2012 22:01	SELL	0.01	EURUSD	1.323	02.05.2012 05:25	1.3225	0.00	0.05

[nikotien]

Iwouldlike to usestop lossesinorepertradeinstead of usinghedgingmethods.I will be ableto easilycalculatethe risk of lossand is able tominimizethe risk oflossesby usingstop losses.hedgingrequiressubstantial capitalandmanagementneed to bea very goodcalculation