DislikedHello. I am a new trader. Instead of doubling the lot size with Martingale, would it be possible to avoid risking entire account by hedging with the same volume on both trades, and then reducing the losing hedge by half?Ignored
First of all, its right to avoid dubbling down, i agree. You want to stay away from exponetiall risks!
You asked " is it possible to avoid risking a entiere Account by hedging?"
The Answer is simple, dont put your self in that Position in the first place.
Dont trade high lotsize Compared to your blance, you dont want one small move be the decissions between losing or making a Lot. How should that work longterm? Trade lower lotsize to blance ratio.
The second Answer is, Yes you can average price by hedging and reduce risk or exposure, it does make sense and its the opposite of adding risk to a degree.
But its more complex then that, so you cant say you just cut something by halt, there are more variables, you also dont need to hedge the same volume as you mentioned.
Successfull hedging is not that simple and you need to adjust your trade management to each setup individually, there is no simple Answer. The successfull outcome is in the details of a lot of variables and how you position your self in that setup.