Disliked{quote} how many pips in drawdown/ against you will you do the hedge?Ignored
There are multiple variables, not only how many pips price moved against me, but also with what lotsize the first hedge is done.
Usually i reduce risk fast with low lotsize, so i take a 25-30% hedge fast befor -20points or befor -0.4% drawdown . So lets say im 0.30lot short, if price moves up against me I Go 0.10long and i put SL to entry on that long Position, if price comes back down, im net short again.
From there it gets complicated, i either scalp smaller buys like 0.05lot, on those i would take profits and keep adding to the blance and equity, slowing down the drawdown. Or if i think the bearish retracment is imminent, i start closing partials of the buy hedge in profit to increase my net short Position without adding new shorts into it. I would call it dynamic trade management. (I would only close buys from much higher prices to average my net position as good as possible).
Like this you dont need price to come all the way back down to your sell entry price.
If you did a good job with the Buy side of the hedge, you can take a loss on your initial sell and still come out profitable.
Its pretty complicated and there are a Lot of variables that can Change things, its not a linear process the way i do it
But the actuall Key is, only trading the highest quality setups in the first place, making sure to build up profits and then to have a profit Buffer to Cover drawdowns without touching your deposit, building profits and only risking profits is my focus.
Low lotsize Compared to blance, staying in the Game and being able to survive 500-600x point move with below 8-9% drawdown.
I have started a new public 1.000$ Account, thats where it will be Seen during the next few months, i will try to trade it up to 10.000$ again
1k to 100k Copy Trading All Time Return:
367.9%
1
