Hey,

Hi hi. I am back. Just finish reading up Anna Couling Volume Price Analysis. BIG BIG BIG eye opener. Of course with tick volume nothing beats hands down. Anyway I just watch a video by Joseph Nemeth. And his theory on hedging to replace stoploss.

I used to hate stoploss. But now I have to use it to protect my capital or profits. Than I discover volume where there is a way to determine the current move is participate instead of fake movement. Than this hedging algoritum which totally interest me.

Ok enough of texting my question is does anyone here can tell me how does the formula works in hedging? I meant can it be engineered?

I show you some example from today trade like 10/09/2014. GBPAUD. Mini lot.

Ok let's start. As the previous day for this pair is up. So we should long. And somehow we don't follow our rule and buy @ value. Instead we buy at the example shown below.

https://fbcdn-sphotos-d-a.akamaihd.n...c095a5b8907f79

Our profit target after deducting spread is 1.76670. We are looking at 10 pips after spread of 3 for the GBPAUD.

https://fbcdn-sphotos-h-a.akamaihd.n...a20bf822cba0e3

But the market stops at 1.76660. 1 pip shy of hitting our target level. And so we hope the market will pullback and reverse. But as shown it didn't reverse.

Instead it breaks the dynamic support aka moving average so which triggers the selling hedge.

https://fbcdn-sphotos-f-a.akamaihd.n...e676579b0711cf

As such we are looking at a 10 pip profit after deducting spread. So the target level should be 1.76220

https://scontent-b-kul.xx.fbcdn.net/...c3&oe=5498B151

Fortunately price did hit our target level. So we are cushion. The result is $14 profit on the sell. But what about the buy that was trigger. It was negative at 1.76540 - 1.76220 @ $32

Am I missing something here?

https://fbcdn-sphotos-c-a.akamaihd.n...69b1554ffb3838

HE mention the lot size here. 53.37

I don't understand. Can anyone illustrate the formula he is talking about???

Thanks

Hi hi. I am back. Just finish reading up Anna Couling Volume Price Analysis. BIG BIG BIG eye opener. Of course with tick volume nothing beats hands down. Anyway I just watch a video by Joseph Nemeth. And his theory on hedging to replace stoploss.

I used to hate stoploss. But now I have to use it to protect my capital or profits. Than I discover volume where there is a way to determine the current move is participate instead of fake movement. Than this hedging algoritum which totally interest me.

Ok enough of texting my question is does anyone here can tell me how does the formula works in hedging? I meant can it be engineered?

I show you some example from today trade like 10/09/2014. GBPAUD. Mini lot.

Ok let's start. As the previous day for this pair is up. So we should long. And somehow we don't follow our rule and buy @ value. Instead we buy at the example shown below.

https://fbcdn-sphotos-d-a.akamaihd.n...c095a5b8907f79

Our profit target after deducting spread is 1.76670. We are looking at 10 pips after spread of 3 for the GBPAUD.

https://fbcdn-sphotos-h-a.akamaihd.n...a20bf822cba0e3

But the market stops at 1.76660. 1 pip shy of hitting our target level. And so we hope the market will pullback and reverse. But as shown it didn't reverse.

Instead it breaks the dynamic support aka moving average so which triggers the selling hedge.

https://fbcdn-sphotos-f-a.akamaihd.n...e676579b0711cf

As such we are looking at a 10 pip profit after deducting spread. So the target level should be 1.76220

https://scontent-b-kul.xx.fbcdn.net/...c3&oe=5498B151

Fortunately price did hit our target level. So we are cushion. The result is $14 profit on the sell. But what about the buy that was trigger. It was negative at 1.76540 - 1.76220 @ $32

Am I missing something here?

https://fbcdn-sphotos-c-a.akamaihd.n...69b1554ffb3838

HE mention the lot size here. 53.37

Inserted Video

I don't understand. Can anyone illustrate the formula he is talking about???

Thanks

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