hello folks,
Am not a newbie, but dont know enough about hedging to make one of the better decisions what to do.
EUR/USD - trading a system with no stop loss - very small positions - 10 open positons: 1 @ 1.6000, 1 @ 1.5950, 1 @ 1.5900, 1 @ 1.5800, 1 @ 1.5650, 1 @ 1.5600, 1 @ 1.5550, 1 @ 1.5500, 1 @ 1.5450, 1 @ 1.5350.
the idea is to hedge if price falls 800 pips from high of the swing = 1.5237
now 3 scenarios` can play out:
1. price sinks just under 1.5237 and resumes trend
2. price sinks to 1.4625 and resumes uptrend
3. price sinks and never recovers.
to find a good hedge, we also have to take in account that we dont want to spend a lot of margin on that.
without selling out @ 1.5237, which other ways could be used?
any good articles/books out there?
thank you for your contribution.
Am not a newbie, but dont know enough about hedging to make one of the better decisions what to do.
EUR/USD - trading a system with no stop loss - very small positions - 10 open positons: 1 @ 1.6000, 1 @ 1.5950, 1 @ 1.5900, 1 @ 1.5800, 1 @ 1.5650, 1 @ 1.5600, 1 @ 1.5550, 1 @ 1.5500, 1 @ 1.5450, 1 @ 1.5350.
the idea is to hedge if price falls 800 pips from high of the swing = 1.5237
now 3 scenarios` can play out:
1. price sinks just under 1.5237 and resumes trend
2. price sinks to 1.4625 and resumes uptrend
3. price sinks and never recovers.
to find a good hedge, we also have to take in account that we dont want to spend a lot of margin on that.
without selling out @ 1.5237, which other ways could be used?
any good articles/books out there?
thank you for your contribution.
