Disliked{quote} That's all that interests me. )) {quote} Thus, if I understood correctly, we open the oncoming hedge in the reverse order, starting at a minimum, and then increase the lot in accordance with the oncoming hegery?Ignored
This means if price moves up or down you neither gain nor lose anything the trade is effectively locked.
Now you get the stop to the hedge B/E as it starts to profit and then close the primary trades to take the profit. The hedge now becomes the primary trade and because it is of a good size it produces a good profit. You can always add to this with the profit you have made and you can also hedge this later down the track all the time compounding your profits.
Really we should not bail out of one trade until we have an entry in the opposite direction. The reason for this is the lack of any real risk involved.
I don't know why people don't understand this concept, but many seem to have trouble with it.
2
