Hedging Stop Loss

I

I-Forex

Guest
upload_2017-10-21_21-46-6.png

I have added a Hedging Stop Loss in my strategy - In this example ($1,000.00 account balance) the currency has 0.90 cent pip value (variable not seen in this chart) that allows me to view my $ exposure based on the PIP amount of my choice in accordance to the purchase price $0.10. (Price is entirely up to you)

I use a TP chart that dictates an order price in accordance to account balance, from that comes the hedge value - I personally use a 75% hedge.

In this example I have a stop loss of 80 pips for a total exposure of $82.80 - however when the trade goes past 40 pips (opposite) and reverses back to the expected trend direction, it will produce a small profit from my 2nd purchase(s) when it reaches the original entry point, from here I can re-assess my trade or simply continue as previously planned.

I am basically taking advantage of a standard short retrace. I added this feature as trades do not always go in the proper direction from the get go and well...I like profit. (of course I stand to lose a little more if it reaches the actual SL - however it very rarely does)

PIP amount for Stop Losses depends on your strategy, the chart above is just a simple example.

I-Forex
 

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Michelle Yeoh

Trader
Jul 9, 2017
83
10
9
44
Well, nice to know your strategy! But in my live trading, I use stop loss trading tool directly according to my trading plan and system! I see, stop loss is much better option than trailing stop or hedging.
 
I

I-Forex

Guest
Well, nice to know your strategy! But in my live trading, I use stop loss trading tool directly according to my trading plan and system! I see, stop loss is much better option than trailing stop or hedging.
Not my strategy, just a SL process.
 

Ary Barroso

Active Trader
Jul 9, 2017
908
70
39
34
View attachment 11392

I have added a Hedging Stop Loss in my strategy - In this example ($1,000.00 account balance) the currency has 0.90 cent pip value (variable not seen in this chart) that allows me to view my $ exposure based on the PIP amount of my choice in accordance to the purchase price $0.10. (Price is entirely up to you)

I use a TP chart that dictates an order price in accordance to account balance, from that comes the hedge value - I personally use a 75% hedge.

In this example I have a stop loss of 80 pips for a total exposure of $82.80 - however when the trade goes past 40 pips (opposite) and reverses back to the expected trend direction, it will produce a small profit from my 2nd purchase(s) when it reaches the original entry point, from here I can re-assess my trade or simply continue as previously planned.

I am basically taking advantage of a standard short retrace. I added this feature as trades do not always go in the proper direction from the get go and well...I like profit. (of course I stand to lose a little more if it reaches the actual SL - however it very rarely does)

PIP amount for Stop Losses depends on your strategy, the chart above is just a simple example.

I-Forex

Well, I set my SL/TP in my live trading manually! I never tried to hedge in my real trading! Because, I am not comfortable with this practice!