Has anyone automated Jacko's anti-hedging strategy?

Many of us who have been around more than a few months know about Jacko's trading and also his anti-hedging strategy for controlling drawdowns.

His anti-hedging strategy is great but it generally reqiures that you're at the computer around the time the trade is stopped out, and that's not practical. I was wondering if anyone has automated his anti-hedging strategy with a simple EA.

For review, here is his anti-hedging strategy in his own words:

"Hedging" to me is simply hiding a loss under another opposite trade...and sooner or later, when the hedge comes off, there is an ugly loss exposed...I don't like that concept !!! (However, to those who use them, I say, different strokes for different folks...that is, its a personal choice).


Currently, this is what seems to happen to some Traders...

1. you put a trade on and you put a stop loss of around 40- 50 pips
2. the market goes against you (horrors....I was wwwwwrong !! )
3. let the market continue...it will probably go say another 30 - 100 pips past your stop...who knows ???
4. FINALLY, the market comes back around and starts to head in the opposite direction
5. by now you are totally hacked off with the market and you let it go


The solution that that I found is a pretty simple one but one that has to be executed without fail...

Scenario 2

That strategy is:

1. you put a trade on and you put a stop loss of around 40- 50 pips
2. the market goes against you (horrors....I was wwwwwrong !! )
3. let the market continue...it will probably go say another 30 - 100 pips past your stop...who knows ???

4. PUT AN ORDER IN AT THE EXACT SAME FIGURE AS YOUR STOP LOSS (if you were originally "short" then place a "short" order) This ensures that when the market comes back, as it invariably does, you have a DEFINATE order in place to put you back in the market where you were originally...and you are now in the same direction as the market is moving..

5. FINALLY, the market comes back around and starts to head in the opposite direction
6. The market picks you back up on its new direction

7. THE ADVANTAGES OF THIS (THEORETICAL) STRATEGY IS THAT
a. IT HAS AN EFFECTIVE AND DISCIPLINED COURSE OF ACTION
b. IT GIVES YOU A SPECIFIC "ENTRY" POINT
c. IT REDUCES LARGE DRAWDOWNS
d. IT PUTS YOU BACK IN THE MARKET EXACTLY WHERE YOU GOT OUT

If no one has I'll try to make an EA for it this weekend. I was imaging something that could be stuck to one chart but watch all trades in the account, and have custom levels for each currency for how far past the stop the price would to go before placing a stop order.

You still have to have the skill to close the hedges correctly, dont really see the point.

the rules are black and white, the only variable is how far to let the price go past the stop point before setting the stop order.

OK, so your stop order is triggered. Now your still x pips in red, you've paid the spread for another position and you still have to pick where to close that position, correctly.

I havent read the strategy but im familiar with the concept of hedging a bad position, its how I blew my first account. Had 2 overly large positions hedged, got really retarded and opened a 3 large position trying to chase the market, got a margin call on my first BAD position, the 2nd one reversed and before you know it POOF, while at work. LOL

never felt such a lightheaded bad euphoria in my life, never want to feel it again either.

if you haven't read the strategy, why are you posting?

Thats the whole point, wait for price to go further pass where it hit your SL, THEN place the new pending stop order in same direction as the 1st trade at the same price as your SL.
No hedging in Jacko's system, from my understanding.

Aicccia.
Since reading Jacko's thread, been thinking through some functions to add into ea's instead of a separate ea. As most seem to come with some bit of trade management built in. Just replace it - yea I know it sounds so simple -- but.

cheers scalpz

I have read most of this thread and I'm wondering if Jacko's strategy is still valid in the current market. Can any of his turtles confirm?