How to Hedge trading Forex | Forex Hedging Strategy

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This is my Forex Hedging Strategy. Hope you find something useful!

#forexheding #forextrader

00:00 Introduction
00:30 When to Hedge
02:49 Trimming the Hedge
10:02 Squeezing the Hedge
11:46 Building from the Inside

NOT FINANCIAL ADVICE DISCLAIMER

*None of this is meant to be construed as investment advice, it's for entertainment purposes only.

The information contained here and the resources available for download through this website is not intended as, and shall not be understood or construed as, financial advice. I am not an attorney, accountant or financial advisor, nor am I holding myself out to be, and the information contained on this Website is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.

I have done my best to ensure that the information provided here and the resources available for download are accurate and provide valuable information. Regardless of anything to the contrary, nothing available on or through this Website should be understood as a recommendation that you should not consult with a financial professional to address your particular information. I expressly recommend that you seek advice from a professional.

Forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the investor’s initial investment. Only risk capital—money that can be lost without jeopardizing one’s financial security or lifestyle—should be used for trading and only those individuals with sufficient risk capital should consider trading. Nothing contained herein is a solicitation or an offer to buy or sell forex. Past performance is not necessarily indicative of future results. Forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.

CFTC RULE 4.41
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
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using my strategy + replacing my stop loss with your idea = a game changer for me thanks got my respect and a new subscriber

allinone
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I have been experimenting with hedging for a few months now and this trimming idea is genius. May be the last piece of the puzzle for me. Thx!

covertintelligence
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i am watching this for the 4th time now and have every-time went....why is this simply making so much sense.

IkanshBansal
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00:02 Forex hedging provides peace of mind and flexibility
01:58 Hedging in Forex involves setting up equal shared stop orders to automatically enter a hedged position with a 30 Pips difference.
03:49 Forex hedging involves managing both profit and loss positions.
05:57 Hedging strategy involves closing a portion of position and re-hedging.
08:07 Hedging strategy involves closing positions and setting stop orders
10:31 Hedging involves maintaining a trailing stop to minimize risk and spread.
12:24 Hedging a forex position using buy stop orders and calculating profit and loss.
14:27 Hedging can be a successful trading strategy when positions are carefully managed.
Crafted by Merlin AI.

SachinPatil-nooq
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Thumbs up for simplifying hedging. Usually every where one can see closing down profitable position and doubling down loosing one and average out. This is opposite and reduces risk significantly.
End to End example where gap increases significantly like 200-300 plus pips will be helpful in addition to V shape reversal.

samirorange
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Can finally hedge with knowledge of an exit strategy, thank you very much. Great video and the first content provider too not ask for the thumbs up or subscribe and that was the first thing I did. Thanks again.!

ragequitelite
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Hi again!! I have some questions for you that might also help you as well.

1. At 6:50 mark, why don't you just enter the short hedge immediately? Why add additional 30 pips? Your long position is already in drawdown. So, if you add 30 pips to its down side, isn't this working against you?

2. Is there a difference if you use a larger pip size as your take profits? I see you typically use 40 pips. But, would the end result look the same if you used, say 100 pips for TP? Or would that actually negatively impact the initial long position by creating a huge disparity between the two hedged positions?

Thanks!!

onix
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Ironically, you're such a "Chad" for coming up with and sharing this. It's truly brilliant. I really appreciate it, you're a pleasure to listen to, thank you.

There's one thing I'm not understanding, about unrealized loss. If the hedge position is 30 pips away, and your take profit is 40 pips away, the drawdown would be 70 pips. But then you add another 30 pip buffer for a chance to get a clean trade. But if it triggers then your next take profit would be another 40 pips away. Each trade essentially would add another 70 pips. If you're able to reduce it by 50% the first time, the distance has doubled and left your unrealized loss the same as it was.

In this case, is the unrealized loss only addressed by Inside trades? Either by using a portion of what you'd pocket, or by clean inside trades (or squeezing inside trades). But with less units on the inside, it seems like it would be a long grind to offset the unrealized loss. Then that inside hedge may eventually become as wide as the outside one, with less shares at your disposal to do another inside hedge inside of the inside hedge, lol.

I get that it's unrealistic for the chart to trade within your hedge that long, but trying to understand. Thank you again. Best regards.

prasand
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i can call this one of the best trading videos ever. best strategy

winmcmaina
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I've also been hedging and this looks great.
It's a great way to trade as long as you're not chasing gigantic profits. But now with prop firms, you can get big accounts and stick to making ~2% month low risk. Game changing! Slow and steady is the way.

Keepone
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Sir, Your wisdom is great--my question is how to slow down too many orders on volatile pairs eg-- gbp/aud, gbp/jpy, eur/nzd where reversal/hedge order has to be about 50 pips out and so profit has to be around 100 pips otherwise commissions eat up any edge/profit. Volatile pairs run & run in front of your eyes & hedge orders keep on getting hit & process becomes big project in itself. We need your wisdom.

navketan
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Thanks for the video, I`m currently trading a good strategy and hedging but didn`t know how to trim the hedge until I saw your video, thank you so much for the information, I`m now starting to apply it in my account to bring back my liquidity.

joseneto.
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I've only started hedging this week, thankfully very successfully so far. I think this will add an extra layer of security for me so thanks very much for sharing :)

bazinga
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I'm using hedging strategy to but one thing that didn't come into my mind is to trim the lossing side as win you on other the side and I was like OMG!! that strategy really makes sense I was mind blown dude ahahahaha. Anyway thanks for this and will continue to support your channel I may learn more about hedging.

Einzz
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thanks for your videos. I have been a fan of Grid, hedge, and martingale for a decade and lost a lot in this so far. You have a genius idea but still need clarification on the edge of your strategy.

malikkashifnawaz
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Wow. Trimming Down is what I don't have in this strategy, I will try this.

Sllypastl
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In this example when you are inside the hedge your position goes straight to the take profit so you can trim the outside long position, but i wonder what would you do if that position gets hedged too, how do you decide which ones you will trim in this case? Keep up with these nice videos!!

hesit
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In one of the comments, you talked about sharing this XLS calculator... Is there a way to get that...

javedsaba
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You have saved my life by giving out this genuinely working strategy it goes with my trading style as well…. You r a life saver….love from india ✌️

dr.vasusharma
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How do you avoid volatile moves that trigger your hedge and then pull back when you asleep?

RattlesnakeJ