I try to use hedge instead of stoploss. Due to too many stopping out, also a big loss, and reduce down your free margine, which is a nightmare for all small traders, don't it?
It is most hard problem for hedge trading that when you should exit out one leg of hedged trades, and let other leg to run to make pips.
I am testing a system of hedged on price cycle. The rules are (1). when price hit cycle peak, you should exit out long leg. (2). At cycle trough, short leg exit out.
Next issue, we should have a best price/market cycle indicator which can say when will be next cycle high and cycle low. Of course, key resistance or support levels are useful. ALso, you can use resist/suppt as your point instead of cycle indicator.
Attached chart is what I did in today trade. I short on euro, but, price breakout higher, long hedged is triggered. When price hit yesterday high, then, dropped, hedged long was stopped. Then, price go down with it cycle down.
Hope you enjoy a bit.
It is most hard problem for hedge trading that when you should exit out one leg of hedged trades, and let other leg to run to make pips.
I am testing a system of hedged on price cycle. The rules are (1). when price hit cycle peak, you should exit out long leg. (2). At cycle trough, short leg exit out.
Next issue, we should have a best price/market cycle indicator which can say when will be next cycle high and cycle low. Of course, key resistance or support levels are useful. ALso, you can use resist/suppt as your point instead of cycle indicator.
Attached chart is what I did in today trade. I short on euro, but, price breakout higher, long hedged is triggered. When price hit yesterday high, then, dropped, hedged long was stopped. Then, price go down with it cycle down.
Hope you enjoy a bit.
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