Hedging/averaging trades without prediction

random LONG/SHORT@1544, tp5

SHORT+5

SHORT@1544, tp5

+5

LONG closed for 0, random hedge closed for +10, so far +30 for the day

LONG/SHORT@ 1529, tp5

SHORT+5

LONG@1516, no tp

both LONGS closed (-2, +11) for +9. i think i have enough for today;-)

@Waveskierrob thanks for sharing your idea/system and showing live trade examples, it helps understand the system better.
I have read through the thread and have a few questions that maybe you can help me with..

Your system will work no doubt(with patience) in ranging or consolidating market , but how do manage trades in a strong trending market. Lets use an example, we just started an uptrend and I have 2 short positions - 10 pips apart(same lot size), I have been taking regular profit every 10 pips on long positions but have stopped opening short trades realising the uptrend...

-Where do you decide to put average intervals of short positions to help you get out of -ve trades incase of correction or reversal? and if the market keeps going up as in this example how do you manage the losing short positions?
-Assuming this trend takes the market 1000 pips without substantial corrections(can happen and has happened multiple times) how would you get out of short trades as your long trades profit would not cover the running loss on short trades.
-If a reversal happens and you get stuck again with the long trades which did not reach TP or were averaging orders, how you manage these assuming they will have the same issue.

Apologies for long post but hope you can share your experience. Thanks.

i think waveskie will have less time this week so he will answer u later.

but i give you some insight how i would deal this matter, a runaway market and i am short, which happened to me several times when i started the demoaccount a few weeks ago.

simply, i will stop shorting and go long and turn around the position to net long in averaging up or down. when i have then the whole transaction cluster in profit i will close the whole trades, shorts in minus and longs in plus.

the best is to experiment by yourself with a demo account. i had to go this "pain" to understand it. you cant study it, only by doing you learn it.

Hi, thanks for your reply.
I do trade live with hedging/averaging but my spacing of the trades is on historical S/R or Fib levels and I rollover -ve trades with profit from trend direction.
Currently I don't stop entering short positions in an uptrend and increase lot sizes with (risk management) and close oldest -ve trades offsetting them from profits towards trend direction but my trade cycles can run months and sometimes I have to change my closing method by separating both directions and use averaging alone to get out of trades.
There are many scenarios in hedging/averaging and it takes a lot of practice to master one but I am always looking to improve hence i asked the question.

I can see what you are trying to do but without having a methodology on how and when to build positions vs when to stop averaging can will cause one a lot of pain in the long term. You can back/forward test and look at all historical patterns and outcomes but the market will still find a way to surprise!

This was pretty cool. 10 pip straddles and then freestyle

Oh man, saw the first few posts and I can relate to this already. The only difference is it's automated & more aggressive.

I haven't tried it and quite possibly it's very convenient, but here in FF we have a free one, infinitely customizable, and very dangerous in the right hands. https://www.forexfactory.com/thread/...ert-save-as-ea

Side question here, but if you don't look at charts, what does your trading terminal look like ? I assume you must be looking at either the PnL constantly or the pips to know how far away the trades are from the entries.

I'm too used to MT4 so I don't know if you're just using a blank chart with an indicator to track all your trades (if you're even using MT4 that is ).

LONG/SHORT@1500, tp3

LONG+3

SHORT+3, hedge closed.

Hey Birdland, a few questions if you don't mind (don't want to beat a dead horse here and maybe you already answered it, but just to be sure):

1) I see you're entering with both orders at the same price (long & short), but are you doing it randomly for that first trade or do you have a place in the chart where you prefer to go long or short and wait for it?

2) After the first trade hits target, how much room do you give it before placing the next trade/s?

3) Do you still enter long and short at the same time when the remaining trade is underwater?