Hedging strategy on 1 minute chart

I have a strategy on the 1 minute chart that definately have an edge in the market, but since my SL is only around 3-10 pips it happens that my SL get 'whipsawed' more than I like.
I therefore looked into hedging on the strategy. Basically it works like this:
- I get a signal and set a 6 pip TP (no SL) - the TP is just 0,1% of the account
- if it does not hits my TP but instead the system give's me a signal in the opposite direction (that happens fairly fast if TP is not hit) I open a larger hedge trade in opposite direction with TP 6 again, if this hedge trade hit TP it will give me 0,02% profit in total on all position
- if this TP do not hit and I get a signal in opposite direction from second hedge I open another hedge (this time just going for a breakeven trade in total).. and basically it continues like this unless my DD is hit
- my max DD is 4-5% and at this point I will take a loss (since I'm working on a funded account there is a max DD requirement).
The monthly profits is around 5%, so basically a months of profits can be lost in one trade, BUT the system so far has been very safe and I have not been near this DD (but I'm aware of the risk). So far it has been very safe, but slow and steady profits.
- The maximum amounts of hedge trades I ever experienced in this system is 4 hedge trades... (I tried 'stress-testing' the system and around the 6'th hedge it will hit the Max DD of 5%, but I never got to this level neither on simulator or on real account)

Anyone with experience in similar kind of hedge strategy that have any advice? The problem with this system is that working on the 1 minute chart I need to do the calculation on what LOT size to use very fast.. and on the 3th,4th hedge it can be a bit complicated.. any indicator on mt4 or similar that might help?
The attached is the result from a one months simulation, just to give you an idea of the strategy stats.

59% of trades go directly to TP on first position
27% close on the second hedge
10% close on the third hedge
4% close on the fourth hedge

I get you point, but basically the spike highs you are seeing is drawdown, the higher the spike the more drawdown, the curve is created based on closed positions.. so if you have 5 hedge trades in total and it close the largest winning position first then that is is what reflects on the curve (it shoots up and then down).. there might be very small losses along the way, but that is just due to calculations being very difficult around the 4-5 th hedge and I might take a small loss -0,01-0,05% loss

Here you go: https://www.forexfactory.com/thread/...ge-trade-panel

Forex trading is a very risky business. So trading from not being secure can cause a lot of problems. In my opinion, the 1-minute time frame is very risky for trading. When the price moves in the market, in most cases there is a possibility of hit stop loss. However, I would say that it is better to use the strategy that you are satisfied with. Because we need to make a consistent profit in trading, it can be in any way.

you should not use martingale, it will blow account one day, or lose one year profits at best. not sustainable

max DD I will allow is is 4-5%, this is approximately the same as one months profits, so that is one months of profit at risk if it hit's the DD, that would suck to loose one months of profit in one trade, but it did not happen so far at least

Very informative post. This will help every trader who has no knowledge about hedging. Thank you for the post.

I think 1-minute chart is kind of risky. Too much price noise in the chart. Any higher time frame best suitable for hedging?

I'm a believer on this. Have similar system as well, just make sure to enforce safe measures for no SL trades such as max dd threshold which you already have.
Good luck!

There is no noise on market...

Good luck.

I find the 1-minute time frame quite risky for trading. There is always a probability of hit stop loss.

I dont see the point of hedging in one direction? I use the lot sizing sequence that starts with .01 then .03 and then continues to double... .06, .12, .24
This way your an Oringinal Lot Size in front, no matter which direction you TP in.
Note, this is assuming your using equal grid sizes between your orders as your TP.

I should have mentioned, I trade like this.
One more thing worth mentioning that I do. I open in both direction at every new order I take. The extra order is never multiplied and it takes profit when you normally open the next trade, it has to be for the same amount as your initial lot size of your current system (0.01) and never changes. This way your always taking some profits when the price goes against your main system and if you hit your TP instead, the extra order is now just used as the first order of your next cycle.

When I made this change to my system I found myself using the "extra" trades as my main profits and using the martingale/hedge side of the strategy to just break even.
Hope this helps.

@Dollamite, Pls do you trade this manually or you have an EA for easy and quick trading cos sitting in front of computer using hedging strategy is very tedious