A Quick Question, Please Answer

Hi Everybody,

I have this question that I may like Someone to answer it please.

let Says I am trading EUR/AUD where the pip value is 0.675$ per 1 lot and I have 2 orders opened.

Buy 0.71 LOT at 1.6300 With a TP of 1.6360 and a SL of 1.6210
Sell 1.22 LOT at 1.6270 With a TP Of 1.6210 and a SL of 1.6360

This will lead that I will be out of all my positions whenever the prices hits 1.6210 or 1.6360, but due to the difference between the two positions size, if the price went up I will end up in a loss.

now lets say the price is hovering between 1.6270 and 1.6300, and I want to fully hedge my positions where if the price either hits 1.6210 and 1.6360, I will end up with a Zero sum from the opened positions.

what is the Size of my long position shall be and at what price?

any answer is highly appreciated.

This is not the way to trade - you won't make any money. If I were you I'd move both target orders to their entry prices - you've got the best chance of getting out with zero.

I don't think its possible to do what you want. i.e. Get out break-even if either targets are hit. Your stop loss is 90 pips, your target is 60 pips on both trades; and if the stop or target is hit one trade loses the other wins and the loss will always be bigger than the win. You'd need to be long and short at the exact same price to get out with zero.

Hi old friend! XOXOXO

Nice try but the previous answer is at least partially correct, It is not possible to get out of those positions with break even at both targets no matter what you do to hedge it. One direction will always be a different result to the other. It doesn’t not automatically follow that the technique will not be profitable. It is a break out strategy with a directional bias in favour of the larger position. Even though the stop is greater than the target, all losses are reduced by the hedge to some degree. Profitability will be dependant on the win rate overcoming the risk like any other strategy and that is determined by the trader.