What is the best hedging strategy?

Dec 18, 2020
27
1
4
36
Hi,


Can anyone suggest me what is the best settings for hedging?


My settings :


All below numeric are in Points (1 pip = 10 points)


Zone Gap : 50
Take Profit : 100+pair spread
Stop Loss : 0
Recovery Take profit : 70 (Incase it do not hit take profit, i close the trade manually at 70)
initial trade : 0.01 lot
Multiplier : 2x (Doubling each Trade)
Timeframe : 1 minute
Currency pair : Less then 25 spread


1626708741341.png



This is the settings which i use while i am doing hedging but the issues i face it take a lot of time and as the lot is exponentially growing it getting very big lot and very big drag-down/drop-down. I am planning to customize my technique but i am confused what should i do? increase zone size? or increase lot multiplication?


What do you suggest? what your hedging strategy. Please help me to improve my strategy.
 

KeepOne

Newbie
May 29, 2021
2
0
2
30
By all mean, DO NOT double down to recover a loss. You actually need to trim your losing position to get out of it. Check out the Zen8 strategy by Hugh Kimura.
 

curiouscat

Newbie
Oct 4, 2021
1
1
0
58
Hi,


Can anyone suggest me what is the best settings for hedging?


My settings :


All below numeric are in Points (1 pip = 10 points)





View attachment 18853



This is the settings which i use while i am doing hedging but the issues i face it take a lot of time and as the lot is exponentially growing it getting very big lot and very big drag-down/drop-down. I am planning to customize my technique but i am confused what should i do? increase zone size? or increase lot multiplication?


What do you suggest? what your hedging strategy. Please help me to improve my strategy.

Zone should be increased depending on the pair volatility. EURUSD moves around 50 pips a day. Your zone should be no less than 50 pips.
If you trade GBPJPY, It moves 150 pips a day. Your zone should be more than 150 pips. You can also increase your zone size gradually to reduce the drawdown. Start with 50 pips, after second turn increase to 70 later 100 etc. I can suggest a different hedging strategy. I have used yours and it is very time consuming. You have to wait for the market to move to be in profit. My hedging is for the ranging sideway markets. You open buy and sell, same lot size at any support or resistance level. Wait for the market to move to next S/R level. Close the winning position and take the profit and open a new buy/sell but double the position size. Leave the loosing position alone. After few levels the market will pull back. When it does,
you will be in profit. You have to keep your eye on the trade history and add all the winning positions you closed.
When market turns, all the negative ones will be reduced and you will be in profit after %19 reversal. You can mesure the pull back level with fibonacci retracement tool.
As you know, 23.6 % is the first level.
You will be in profit at the first level of fibonacci. If the market turns after the second S/R level, you will be in profit immediately. You dont have to wait for %19 pull back. But trade very small. The drawdown of negatives may scare you if the levels exceed 5 or 6 levels before it reverses. Start with 0.02 lot . You may skip doubling positions to every other level if market trends too long. It is stress free trading. Try on demo for a while. Good luck.
 
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