The "Sure-Fire" Forex Hedging Strategy - Never Lose Again

[Guest phreak]

Well, this strategy is not mine. It looks promising, so please share your opinion if it would work or not...

 

 

http://www.mediafire.com/?f3byuswlukuye26

[freddy]

Hi phreak,

 

thanks for reminding that strategy.

 

(in fact it was already shared few years ago.)

 

http://indo-investasi.com/showthread.php/876-Sure-Fire-Hedging-Strategy-EASY-Trading-Method-etc.

 

 

 

Have you tried it?

Just read it in a flash, and it looks to me a martingale strategy, so quite risky (if you are caught in range, margin will kill your account.)

 

Those who are testing, please report your feedback.

 

P.S. it was invented by a French guy.

French people may have good ideas, but you don't have to follow them blindly....:D

(don't worry, I am French! and I don't follow always my own ideas either :P)

[Guest phreak]

Hi, freddy,

 

I haven't tested it yet, and you are absolutely right - martingale is a road to the disaster. But if this system works, it should be profitable without martingale as well, or at least lot increase should be limited, and if there is no profit at that point, we'll start all over again.

 

I'm looking for a hedge system, which would allow you to protect profit and at the same time not to worry where the market goes. What do you think about the following:

 

During the Asian session you open one 'sell' and one same size 'buy' position at opposite sides of 'asian' range. Due to this setup the second position is open only when the first one is ALREADY in profit. Then depending where the market goes after London open we close one of the positions and let the other run (this can also be achieved with preset stoploss on both positions). We can us Camarilla levels to determine appropriate stoploss and possibly targets as well. Would this setup work?

[freakgib]

i was thinking the same but there is a risky part

i did try it with a small account 100 dollar microlots and big leverage

but the problem i got was i was short and long at the same time only i went short before the other was in profit they where both at almost break even then the next day one was in profit at 450 dollars the other at -500 something

at that moment i had a problem as long as the orders where stil open everything was in balance but when i did close the 450 profit order my acount would be at that moment 100+450 = 550 but the other order was -500 and that would left only 10% of my account so i got a margin call at the moment when i closed the 450 profit order

what i had to do is add fund to my account before closing those orders

and do it with smaller lots

[freddy]

@Phreak and Freakgib,

your two nicknames are funny and...... freaky! ;)

 

About hedging, you might be interested to follow the thread opened by our friend Freddie.

 

http://indo-investasi.com/showthread.php/11615-Who-can-teach-me-MANUAL-GRID-TRADING

[alansim]

i was thinking the same but there is a risky part

i did try it with a small account 100 dollar microlots and big leverage

but the problem i got was i was short and long at the same time only i went short before the other was in profit they where both at almost break even then the next day one was in profit at 450 dollars the other at -500 something

at that moment i had a problem as long as the orders where stil open everything was in balance but when i did close the 450 profit order my acount would be at that moment 100+450 = 550 but the other order was -500 and that would left only 10% of my account so i got a margin call at the moment when i closed the 450 profit order

what i had to do is add fund to my account before closing those orders

and do it with smaller lots

 

If so easy to earn money, then everyone would have quit their day time job and start forex trading.

[juicyt]

I always thought hedging could be done if you use something to guage momentum to exit. A strength meter is one thing or an unusually large candle is another (Cartoon bar indicator should do the trick). When there is genuine momentum you should be able to exit with minimal retrace.

 

My 2c worth!

[alansim]

I always thought hedging could be done if you use something to guage momentum to exit. A strength meter is one thing or an unusually large candle is another (Cartoon bar indicator should do the trick). When there is genuine momentum you should be able to exit with minimal retrace.

 

My 2c worth!

 

But sadly in reality it doesn't really work this way. Most newbies would have that kind of perception.

[noone22]

I always was wondering, how hedging could be used for good.

Let's have a look at this.

"Never lose again" - seems, that I've already heard this slogan,

but don't want to be fooled by it again.

[maddman]

Hedging, I have never had success with Hedging, Good Luck...

[juicyt]

alansim, http://fxpowerhedge.blogspot.com/ I assume you mean newbies to hedging as I'm far from a newbie to trading. Maybe you should jump on Sparks's blog and test him out, he claims he and others do alright with it. I bet if you could prove credibility in your trading he would like to prove his words right.

[Zoki]

According my opinion the "Sure-Fire" Hedging Strategy is excellent from the theoretical point of view, but using the system in the live account could present some surprise and damage the account (e.g. in case of losted Internet connection, or deleyed data by some reason, or not well filtered unexpected price, or because of the gap, etc.)

Also important point is the good Money Management strategy (account must be enough for more hedging order in case of worst case scenario).

The system could be improved with the good timing and some additional filters (to volatile periods should be avoided).