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Hedging/averaging trades without prediction

  • #181
  • Oct 18, 2022 12:35am Oct 18, 2022 12:35am
yesterday my gains from the many successful LONGS were somehow saved, but i couldn't get to them because i had a SHORT running from the beginning, whose minus was getting bigger and bigger.

then i finally entered a second SHORT to improve the average price. and finally i was able to close with +120 pips net for the day.
Attached Image (click to enlarge)
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trading is like dancing, don't think and just listen to the music!
  • #182
  • Oct 18, 2022 12:35am Oct 18, 2022 12:35am
To WizardTrade,

I got a little confused because your first post said "tear this strategy down", which I thought you meant "it's bad" lol. Anyways interesting write-up. I did demo this and then traded it live in 0.01 lot sizes. The amount lost was small to be honest largely because most of my buy sell trades cancelled each other out.

I'd say the issue I have is :
1. Unhedging my trades
My buy stops hedges are just above previous high, where price quite often will hit and revert back (so I bought at its very top). That's very difficult and time consuming to hedge out especially if the market is falling lower and lower.

2. Chart Structure (which is your point 2 as well)
I'm terrible with structure and identifying SR levels. So that's why theoretically my strategy might be good, but real world application is the opposite because what I see as Support, others on ForexFactory and the Forex market doesn't. (I'm still working on it though!)

Hence why I'm trying to get hedging strategy to work. I believe if Money Management is good (as in, I can hedge good enough), then I can beat the market. It's also why I'm here, to see what Waveskierrob can do in the next few days / weeks/ years. I'm hoping he can beat the market.

Interesting to see more educational posts from you. Also looking at some of your post history, I sense you hedge sometimes?
  • #183
  • Oct 18, 2022 12:40am Oct 18, 2022 12:40am
Quoting birdland
yesterday my gains from the many successful LONGS were somehow saved, but i couldn't get to them because i had a SHORT running from the beginning, whose minus was getting bigger and bigger. then i finally entered a second SHORT to improve the average price. and finally i was able to close with +120 pips net for the day. {image}
Great job!

Alternate scenario: after your second sell, what if price went further up? What would you do? Open 2 buys or sell more?

Also your previous post you were up $20.89 but also -$21.07. Was that due to gaps in between your Buys and TP? As in after you TP your first buy, you put a buy stop slightly above in case the market continues going up?
  • #184
  • Oct 18, 2022 12:59am Oct 18, 2022 12:59am
Quoting Strykes
{quote} Great job! Alternate scenario: after your second sell, what if price went further up? What would you do? Open 2 buys or sell more? Also your previous post you were up $20.89 but also -$21.07. Was that due to gaps in between your Buys and TP? As in after you TP your first buy, you put a buy stop slightly above in case the market continues going up?
thx,
i am not sure because i learn. but maybe would have taken a third SHORT 100-200 pips above the second SHORT.

the winning trades ($20.89) were already closed trades. the minus (-21.07) came only from the floating short. but i fixed it and saved +$10
trading is like dancing, don't think and just listen to the music!
  • #185
  • Oct 18, 2022 1:39am Oct 18, 2022 1:39am
Quoting Strykes
To WizardTrade, I got a little confused because your first post said "tear this strategy down", which I thought you meant "it's bad" lol. Anyways interesting write-up. I did demo this and then traded it live in 0.01 lot sizes. The amount lost was small to be honest largely because most of my buy sell trades cancelled each other out. I'd say the issue I have is : 1. Unhedging my trades My buy stops hedges are just above previous high, where price quite often will hit and revert back (so I bought at its very top). That's very difficult and time consuming...
My choice of words was bad I meant I will tear this strategy apart to look for how it works. Opening the hedge is a real problem and many traders struggle with this aspect of hedging. I will elaborate further on this once I am done examining your strategy with follow-up visual posts. Hope to bring in some value to your strategy. Even if you are bad with SR levels and chart structure you can still make your failed strategy work in your favor with hedging More on this later because it deals with the lot sizing schedule and money management aspect of hedging. 1 on 1 hedge has less chances of success than a percentage hedge. More on this too, later.

Hope to see you around quite often.

And yes I hedge quite often and it always plays in my favor. MONEY MANAGEMENT is the key concept here. You can examine my TEs on my profile. One of them is failed and is left deliberately there for others to see how hedging fails if you don't have your money management rules on standby. Right now I am hedged again on GU. I am net long at the moment. Either way I will print money out of it.
WARNING: This post warps space and time in its vicinity.
  • #186
  • Oct 18, 2022 3:35am Oct 18, 2022 3:35am
Quoting randu
For whom want to try this strategy (in demo first please) here the EA (put this in "Expert" folder, not Script). source : https://www.mql5.com/en/code/14371 @Rob you could put this EA on first page if you want. R. {file} {file} {image}
Like it, work smart not hard ...thanks for input...
  • #187
  • Oct 18, 2022 3:41am Oct 18, 2022 3:41am
Quoting mwasim
Right now its looking great strategy but here is few more questions?? 1. MM what is the maximum lot size to trade a 100$ account according to you? 2. what is the best way to tackle trending market?? (Because sometime we thought at certain point market reverse but it don't so how we tackle that point) 3. Till now what pairs you find best to trade that strategy?
1. try it on demo then you decide
2. try it on demo then you decide, trades have been successful and not gone deeply underwater, but they will hopefully today
3. any with a low spread

Please I'm no guru I'm not going to tell you what to do and how to do it....thanks for your post...
  • #188
  • Oct 18, 2022 3:56am Oct 18, 2022 3:56am
Quoting Strykes
To Waveskierrob, Very interesting yesterday for you. Great job in making those pips (even though it's demo account). What I would love to see is for you to purposely trade big news events, be on the wrong side of the market and attempt to hedge your way back to profits. Basically it's a good simulation of those 'fat fingers' or unannounced news that shoots price up and down massively. One question is why GU? I would've thought Indices like US30 would be good with direct hedging/scalping due to very low spreads relatively speaking. Spreads/Commission...
I wouldn't normally trade news or opening times but if we are stuck in a trade already would could even out the hedging eg 2x LONGS 2 x SHORTS no sl no tp and then wait for the dust to settle. I did trade news last week but there no way I could trade and post when the market is moving that fast, it was a trail run not for the faint hearted but I gave it a go :-

https://www.forexfactory.com/attachm...l?d=1665155948

Will purposely get myself underwater today to show you how I deal with it.

...as for other pairs you need to read my trades that Ive posted...
  • #189
  • Oct 18, 2022 3:58am Oct 18, 2022 3:58am
Quoting birdland
yesterday my gains from the many successful LONGS were somehow saved, but i couldn't get to them because i had a SHORT running from the beginning, whose minus was getting bigger and bigger. then i finally entered a second SHORT to improve the average price. and finally i was able to close with +120 pips net for the day. {image}
Yea baby ..... just repeat ....
  • #190
  • Oct 18, 2022 4:02am Oct 18, 2022 4:02am
Quoting birdland
{quote} thx, i am not sure because i learn. but maybe would have taken a third SHORT 100-200 pips above the second SHORT. the winning trades ($20.89) were already closed trades. the minus (-21.07) came only from the floating short. but i fixed it and saved +$10
" but maybe would have taken a third SHORT 100-200 pips above the second SHORT."

...so you'll know better next time ......this why I tell everyone you have to experience for themselves, I can't tell you.....good work buddy...
  • #191
  • Oct 18, 2022 4:07am Oct 18, 2022 4:07am
TRADE 13 (hopefully unlucky) EG....LONG 8697 no sl tp +5
  • #192
  • Oct 18, 2022 4:17am Oct 18, 2022 4:17am
Quoting Waveskierrob
TRADE 13 (hopefully unlucky) EG....LONG 8697 no sl tp +5
Haha LONG tp hit +5
  • #193
  • Oct 18, 2022 4:18am Oct 18, 2022 4:18am
running total +92
  • #194
  • Oct 18, 2022 4:19am Oct 18, 2022 4:19am
TRADE 14 ...EG ...LONG and SHORT 8700 no sl tp +5
  • #195
  • Oct 18, 2022 4:33am Oct 18, 2022 4:33am
Quoting Waveskierrob
TRADE 14 ...EG ...LONG and SHORT 8700 no sl tp +5
LONG tp hit +5
  • #196
  • Oct 18, 2022 4:36am Oct 18, 2022 4:36am
Quoting Waveskierrob
TRADE 14 ...EG ...LONG and SHORT 8700 no sl tp +5
SHORT again no sl no tp ...LONG no sl tp +5...@ 8705
  • #197
  • Oct 18, 2022 4:37am Oct 18, 2022 4:37am
Quoting Waveskierrob
{quote} SHORT again no sl no tp ...LONG no sl tp +5...@ 8705
LONG tp hit +5
  • #198
  • Oct 18, 2022 4:42am Oct 18, 2022 4:42am
pending LONG 8015 no sl tp+5 and pending SHORT 8015 no sl no tp
  • #199
  • Oct 18, 2022 4:42am Oct 18, 2022 4:42am
Quoting Waveskierrob
pending LONG 8015 no sl tp+5 and pending SHORT 8015 no sl no tp
both pending trades now open
  • #200
  • Oct 18, 2022 4:44am Oct 18, 2022 4:44am
Quoting Waveskierrob
pending LONG 8015 no sl tp+5 and pending SHORT 8015 no sl no tp
LONG tp hit +5
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