Now just a note for those asking about hedging:
Trading is difficult as it is , and hedging adds another level, of shall we say, mental fatigue. Therefore it is certainly not suited for the beginner or even experienced traders. I'll take a leap here and say that most here are probably intraday traders, expecting to reach TP within 4-8 hours.
Now if you are an intraday trader it is going to be very difficult for you to carry a hedge for several hours, it will feel like a millstone around your neck and the temptation wil be to let it go, as soon as price "seems" to be moving in a particular direction.
These days I rarely hedge myself, but from my experiences I would say successful hedging requires a couple of things:
1. Only hedge what your stop loss would normally be
2. Dont hedge consecutively
3. Patience to WAIT for the right time to release
4. Knowing the possible support and resistance points
Place your hedge at where your stop loss would be and not a pip more.The idea here is that you would have been stopped out anyway, so why crystallize the loss when you can leave it as just a potential loss and not an absolute loss.
The important thing now is NOT to jump on a seeming change in the trend. You have to essentially ignore your hedge and WAIT until you see a proper buy setup or sell setup as the case maybe. For example, if you use Auslanco's 15 min strategy, wait until you see that setup before you release your hedge. Don't hedge this release, place your usual hard stop, otherwise you may get into a continuous cycle of hedges that incrementally reduce your equity slowly but surely.
There are other techniques of hedging I'm sure, but we don't want to get in a continuous cycle that only give you a false sense of security while eroding your equity
Trading is difficult as it is , and hedging adds another level, of shall we say, mental fatigue. Therefore it is certainly not suited for the beginner or even experienced traders. I'll take a leap here and say that most here are probably intraday traders, expecting to reach TP within 4-8 hours.
Now if you are an intraday trader it is going to be very difficult for you to carry a hedge for several hours, it will feel like a millstone around your neck and the temptation wil be to let it go, as soon as price "seems" to be moving in a particular direction.
These days I rarely hedge myself, but from my experiences I would say successful hedging requires a couple of things:
1. Only hedge what your stop loss would normally be
2. Dont hedge consecutively
3. Patience to WAIT for the right time to release
4. Knowing the possible support and resistance points
Place your hedge at where your stop loss would be and not a pip more.The idea here is that you would have been stopped out anyway, so why crystallize the loss when you can leave it as just a potential loss and not an absolute loss.
The important thing now is NOT to jump on a seeming change in the trend. You have to essentially ignore your hedge and WAIT until you see a proper buy setup or sell setup as the case maybe. For example, if you use Auslanco's 15 min strategy, wait until you see that setup before you release your hedge. Don't hedge this release, place your usual hard stop, otherwise you may get into a continuous cycle of hedges that incrementally reduce your equity slowly but surely.
There are other techniques of hedging I'm sure, but we don't want to get in a continuous cycle that only give you a false sense of security while eroding your equity
