Biggest Benefit of Hedging Over Stop Losses.

Make sure one of the oders doesn't hit your stop loss and one can buy or sell short posting on the loosing side 🎉🎉...to get few dollars as you wait for a reversal.

This sounds very subjective leading to huge inconsistency

Seeking your wisdom--Over thousands of trades market movements are random with intermittent trends here & there--so we can assume that smaller distances are more likely to get filled back and forth(say 30 pips) compared to bigger distances (say 60 pips).Put SL(as hedge order 30 pips out & take profit at 60 pips away & WAIT--so we want to nail larger distance when ever market LUCKILY gives that larger move & still control drawdown with hedge order in place of stop loss order( SL)--that gives you one more shot to break even with no additional risk exposure by making some profit from hedged positions. So if pair has daily ADR of 100 pips, expect to see enough filled orders at the end of the week. Academic literature has never researched this common sense which can make $$ for ivory towers MEN.Very small SL orders(10-20pips are hit just in random noise movements and drain the account to zero.

High value as always🙌

I have one question tho, doesn't the margin get tight up doing this? What if price moves against the second buy order, is the account blown then?

I'm not saying this is right or wrong but it isn't hedging, what you have done is achieved a cost average but still net long. Hypothetically it could have blown through the second buy support, now what ? You buy at next support so you are now 3 lots net long at say 20 pips apart ? Or when it blows through the second support do you freeze it by opening a 2 lot short? Take what you can get from the 2 lots short to offset some of the drawdown from the longs ? You need a plan for the what if moments, it can be done and most situations can be traded out of with banking along the way but the lot sizes need to be small compared to your overall bank to have the benefit of plenty of margin so the floating losses aren't hurting you and at some point you can recover to breakeven but most times a decent profit can be achieved. A strategy that just relies on cost averaging alone will run into issues at some point. Knowing how and when to hedge is better than a stop loss IMO. This game is only about how much ammunition you have in terms of margin, picking the right direction for the first trade is nice but it's not important to win.

Isn't this averaging down?

I set a fixed stop order 26 pips away from the wrong open trade. I learned this trading 5 dollars, so I could only use minimum size lot. Usually the big picture was “from here to below I’m allowed to sell. I look at the open opposite trades as “portals to profit” up with longs and down with shorts. How do one knows when the price is changing direction of profits? Well, it’ll go to one direction and then it’ll stop and start going to the other :) you’re awesooome!!

Man....whats the software youre using called ?

How is this "hedging"? Its just doubling down on a trade and getting lucky it came back

What if the price keep going down and you suffer huge losses from those 2 buy positions?

Hi sir how to exit hedge position in pairs usd jpy. I have been stuck in from 20 day's. Also I have not enough money for deposit

Nice explanation. Thanks sir.

Nice... Where can I learn your method? Regards

Hey Hugh - here's a terrible trade I have for you that I could use some advice on: EURUSD 02/02/23


Sell Order triggered some time back - 1.08097
Buy Order triggers later at - 1.10259 - thought this was a runaway after a FED update

Price came back down and is now sitting right in the middle

My assumption and what I am hoping for is that we move back up for another retest and then have a bit of a retrace. In this assumption I can close the Buy and then reduce the Sell loss if it comes back down

Time is not the issue - but a technique to manage my way out of that would be most appreciated!

I'm too embarrassed to talk about the Lot Size - however lets just say it was bigger than it should have been and they are both even...

Hedging is the only way to trade forex profitably for the long run. i've been doing it for years now and never had a losing day. this man here found the holy grail and did not even know it...... a word is enough for the wise. if what ur doing is working keep doing it. if its not please listen to this man carefully. shout out to you mate. "the world hate light and prefer darkness, they hate truth and prefer lies. it wouldn't change" keep the great work up

what do you do if the market keep goin the opposite way do you keep buying until it reverse back into your favor?

hedging is for loosers and people who donot understand where the market is heading. there's no strategy that will excuse such ignorance. when you enter a trade you better know where the price is heading

What questions do you have about hedging? Leave your question below...👇