Hedging, Anyone doing it successfully? | Forex Factory

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Hedging, Anyone doing it successfully?

  • #1
  • First Post: Aug 22, 2009 11:01pm Aug 22, 2009 11:01pm
I have been trialling a hedging strategy for the past 5 months (demo account) which has been profitable.
I have been using a EUR GBP hedge, also played with AUD NZD hedge for a while, as well
Anyone else doing anything similar? It would be good to share ideas on risk management and profit taking.
Any thoughts on major fallacies with such a method.
I lost big time on an unhedged carry trade method last year so I am trying to be realistic about what the market can do with seemly profitable methods and not forget the lessons learned then. Once bitten twice shy!
I don't think that giving out the details of what I am doing would help, but would probably invite criticism from those who are emotionally bonded to scalping and such, but am willing to discuss with traders who have some experience with similar hedging methods

Terry
  • #2
  • Aug 22, 2019 2:22am Aug 22, 2019 2:22am
Quoting Terturk
I have been trialling a hedging strategy for the past 5 months (demo account) which has been profitable. I have been using a EUR GBP hedge, also played with AUD NZD hedge for a while, as well Anyone else doing anything similar? It would be good to share ideas on risk management and profit taking. Any thoughts on major fallacies with such a method. I lost big time on an unhedged carry trade method last year so I am trying to be realistic about what the market can do with seemly profitable methods and not forget the lessons learned then. Once bitten...
hi
could you please share your hedging strategy
sell strength in falling markets, and buy weakness in rising markets.
  • #3
  • Aug 22, 2019 11:37am Aug 22, 2019 11:37am
I utilize hedging in my trading method on my real account. But beware it can potentially double your losses if you don't know what you are doing. Trade safe
  • #4
  • Apr 30, 2020 1:02pm Apr 30, 2020 1:02pm
I think it's the same as with any other approach or strategy, if you understand the mechanism and understand how you can use it with one or another asset, then this strategy suits you. You should not listen to the common opinion just because the majority believes one way or another. In trading, you need to learn how to make decisions and test everything that you think can meet your expectations and allow you to make your capital stronger. So if you are already interested in this, then make sure you try. Now every normal brokerage company offers an unlimited demo, which you can use in parallel with the approach that you use now on the main account. And if you find out it's yours, then make sure you try it.
  • #5
  • May 3, 2020 2:33pm May 3, 2020 2:33pm
all markets move fast or slow sometimes due to its complex nature!

for hedging to work, you have to be doing it in an Algo-manner, as the markets might move in a direction that might destroy everything for you!
Long live Bitcoin
  • #6
  • May 7, 2020 4:07pm May 7, 2020 4:07pm
This hedgin thing has been bothering me from sometime.
I got an EA from someone who dissapeared and never talked to me again , i was asking questions how does it work,is there any restriction etc...because backtests with TickDataSuite were too good to be true. Each time i left it demo, it was very good, the more it was trading, the more protective was with the account.
I have been demo with it because i dont have information im not using it live.

You can check the 2 versions im am testing :
1.Extreme Edition 0.1 lot for 1000 EUR account : http://www.myfxbook.com/members/mr_b...eurusd/4650364
2.Normal Edition 0.01 lot for 1000 Eur account : http://www.myfxbook.com/members/mr_b...eurusd/5596806
Download Corti EA : https://cortiea.com
  • #7
  • May 8, 2020 12:22pm May 8, 2020 12:22pm
If you were doing some kind of position trading, it might work, but as a short term thing

"I dont know which way the trade is going, so Im just going to hedge it"

doesnt work, because you just pay more in transaction costs.

♦

I think its better to just close the trade, and take another trade later. And, I think it is better to cut your losses short in any case.
  • #8
  • May 8, 2020 1:19pm May 8, 2020 1:19pm
thats call arbit hedging ... hedge has lotta means ...
  • #9
  • Nov 6, 2020 7:00am Nov 6, 2020 7:00am
Well, maybe you chose something rather risky and difficult from the beginning. It is true. But there's nothing wrong with it, because the freedom of action in this business is confirmed by the fact that you can change your decision at any time and try something that really helps you to adapt even better in the market.
In general, hedging can be used with any asset, not only with currency pairs. After all, the principle of action, not just analysis, is important here. I will probably refrain from giving any advice on this matter, because everything depends on the specific situation in the market. And you begin to understand it in practice, that is, with experience. Take your time, you can add something new to it on the demo. And after that, you can already make a final conclusion.
  • #10
  • Nov 6, 2020 7:16am Nov 6, 2020 7:16am
If the high dynamics of the work brings you good results, then you should stick to this format. Because I'm pretty sure that everyone should use something other than what I advise. Namely, what suits him and what ensures his comfort and confident profit. Of course you can try something more relaxing, why not? But on the other hand, hedging and scalping are excellent approaches, the main thing is that you understand the mechanisms of how it works. And here is important the stage of testing, and the stage of summing up statistics, and your most objective assessment of the situation in terms of psychology and emotions. You have to think about every step. And you must always listen to yourself and to your feelings.
  • #11
  • Nov 8, 2020 4:26am Nov 8, 2020 4:26am
Hedging works fine if you have small positions, plenty of capital, and lots of time to wait for you trades to rise from the dead and be profitable. You still have to know when to take a loss though.
  • #12
  • Nov 8, 2020 4:44am Nov 8, 2020 4:44am
well, I tested the hedge strategy as an option for many years.
and I have to say it's only interesting for beginners, but they also soon realize that in the long run it's bullshit.
sorry for being honest.
  • #13
  • Dec 18, 2020 7:18pm Dec 18, 2020 7:18pm
Quoting tiborf71
well, I tested the hedge strategy as an option for many years. and I have to say it's only interesting for beginners, but they also soon realize that in the long run it's bullshit. sorry for being honest.
How if you do some sort of gamma scalping?
  • #14
  • Nov 17, 2021 12:29am Nov 17, 2021 12:29am
Quoting Terturk
I have been trialling a hedging strategy for the past 5 months (demo account) which has been profitable. I have been using a EUR GBP hedge, also played with AUD NZD hedge for a while, as well Anyone else doing anything similar? It would be good to share ideas on risk management and profit taking. Any thoughts on major fallacies with such a method. I lost big time on an unhedged carry trade method last year so I am trying to be realistic about what the market can do with seemly profitable methods and not forget the lessons learned then. Once bitten...
Does anyone know anything about cross broker hedging?
I've heard of it from a guy i met online.
Wonder how it works...
  • #15
  • Nov 20, 2021 7:57pm Nov 20, 2021 7:57pm
Just hedge with gold/silver in hand. Simple. Have 1% of your net worth per decade in physical gold/silver.
Love to talk on Discord: DividendGamer#1324
  • #16
  • Last Post: Nov 22, 2021 6:22am Nov 22, 2021 6:22am
@totorothecat Cross hedging is done to manage the risk on your investment. In cross hedging you invest in two distinct assets with positive correlation in the price movements. You take opposing positions in each investment to reduce the risk of holding just one investment.
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