Have you tried hedging strategy?

Exness Support

Active Trader
Apr 21, 2014
572
2
32
I my thought risk management is the most important part of trading which you need to focus on to be a successful trader. Stop loss is the most common way of managing risk but I have also tried hedging strategy for risk management which is using an invert position when position going in beyond the risk. If any of you guys have also tried this please share your experience here.
Risk-Management.png
 
Each trader needs to decide which strategy is right for them. Using SL or hedging needs to be executed properly otherwise it will be negative in each case. I operate two accounts, in one I use a SL and in another one I hedge.
 
Hedging has advantage and disadvantage . It is mostly ideal for experience traders because it is quite difficult to understand because it can lead to huge losses if not properly handled.
 
Hedging helps to prevent huge loss if something unexpected occurs and so helps you to limit risk.
 
I agree that hedging is one of the most effective tools to reduce losses. What is interesting, this method can be used for early placed orders, or after the first transaction.
 
Most experience traders use this strategy and it helps avoid losses as a merit when unexpected things happen,well my take is expect your losses to be dancing on you😉 when proper care is not taken
 
I don't like using hedging, and most of the time it's the wrong thing to do. To hedge a losing position is equal to closing the position.
So usually it is better to close the position, accept the loss, and start fresh in an attempt to find the perfect timing to re-enter.
 
So many trading strategy in forex trading start from hedging, averaging, and extreme strategy with martingale, hedging is one way to manage the risk with use pending order opposite from first order, this like as floating stop loss, and one difficuties use hedging is timing to open lock hedging, sometime this like s dilemma.
 
I don’t think it’s a strategy for general traders! It looks so complicated, yes blocking trading account by both side is easy, but making profit by heading is too much complicated according to my opinion! In my trading I prefer scalping and swing trading.
 
The best way to make profits using a hedging strategy is to use two accounts, one with a STP broker and one with a market maker.
And strike a deal with the market maker on NSR profit share and ask for bonus for better leverage and earn Rebates from your STP broker.
Your account with the STP broker has to gain and the account with MM has to lose and both the MT4's have to be connected via EA.
Works well if executed properly.
 
I fully agree with all what is stated above. And I also think that hedging might be very good option for traders to hedge market risks. However, I am not using any hedging strategy, as it looks so complicated to me, that at the end, I gave up. I stick to SL