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Profitable hedging strategies?

  • #61
  • May 27, 2013 6:10am May 27, 2013 6:10am
Just read the market before you trade. I something is going up and up and you are in selling position the you must take profit step by step and close your position this will invest your money long term and when the thing go down and down just close the buying position and you will get the maximum benefits. i earn alot of money through this strategy and I think this is good to earn profits and good use of hedging, If you invest in single thing. best of luck traders.
Always Be +ive
  • #62
  • May 31, 2013 9:17am May 31, 2013 9:17am
Hello,
congratulations ..... could you give me more 'info on your strategy?

PLEASE??
  • #63
  • Jun 1, 2013 5:10am Jun 1, 2013 5:10am
Quoting jeuro
I do not know why is so difficult for some to understand the real meaning of hedging but it is obvious that none that has posted knows a "hedging strategy" profitable or not. And all the examples given are terrible, and not strategies at all. Sadly that is very common in the forex world. Hedging is defined as an investment position to offset/minimize potential losses/gains. Big hedge funds do it all the time, wall street brokerage firms do it all the time, and most of the time profitable. But always involve different instrument and/or symbols....

hi all
we in simple strategy ii/samer00000 are hedging with profit with a strategy and the pattern is only math, no indi at all
if you are interested join us
GUYS BE AWARE FROM HUNTING YOUR STOP LOSSES BY YOUR BROKER & BY "GHOSTS"
  • #64
  • Jun 1, 2013 5:23am Jun 1, 2013 5:23am
Quoting vimma
One who has a 100% profitable strategy,,will never share ...,, may be but very difficult ..he/she can only post prove of that strategy ,, there are so many trader which are getting consistent profits and their strategies based on hedge or something like that ,,may be profits lilbit smaller then regular traders ..
we in FF are sharing our strategy
you are so welCOMED TO JOIN
SIMPLE STRATEGY II/SAMER00000
GUYS BE AWARE FROM HUNTING YOUR STOP LOSSES BY YOUR BROKER & BY "GHOSTS"
  • #65
  • Aug 12, 2013 6:58pm Aug 12, 2013 6:58pm
The fact of hedging strategies are used by Hedge Funds and major financial institution that are trading Forex Only.
In hedging, It is extremely easier to enter a trade, then you have to know, how to manage trade to Exit With Profit.
Here is what you should look for:

1) Broker

2) Volatility

3) Enter a Tade

4) Manage trade to Exit with Profit


It is zero risk to lose.

You figure it out, or pay some one to help you figure out.
  • #66
  • Oct 27, 2013 7:19am Oct 27, 2013 7:19am
This thread is a bit old, but I've spent a good 1.5 years testing some of these theories. Here is what I have found:

Hedging strategies exist and they do work. HOWEVER! there is a limit, that is you have to know when to say stop and take your losses. There have to be losses in hedging strategies also for you to survive. I had to take losses 3 times during the 6 months, but probability is on your side to recover as the sampling was 3 losses out of 600+ trades.

I have developed a few of these and have tested it with small accounts. Screenshot showing my best strategy running for 1/2 of the year.

Attached Image (click to enlarge)
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- Ignore the first few months drawdown (yellow line). This is from another strategy.
- During the course of the trades, I kept refining the logic to be more stable and in the end without revealing the hard work it came down to.

I'm not going to reveal the secret that works for me, I've spent years on it and spent 6 months testing it with but here are some notes.

1) 3 Level deep hedging is the cut off.

2) At level 3 or greater hedge level and if basket has greater than 2.0 profit I exit.

3) if I go long (current.hedge.level = 0, if it reverses on me, hedge.level=1, if rallies again to the upside as initial direction it's 2, if it reverses again to the downside it's level 3 at this point I have 4 positions open with lots (+0.01,-0.02,+0.03,-0.06) and if I hit > 2.0 profit I exit with small profit which negates the combined commission. if it reverses I exit with a loss. This method enables me not to lose my shirt. On a 1000 account starting lot is 0.01. At 10000 it's 0.10.

4) My tp = (ADR/2), hedging level = (tp/3), sl = (tp+hedging level).

5) Now that money mgmt is covered above, I use a high probability entry strategy, could be any strategy really. The key to trading is the money mgmt, but most people here focus on strategy. So it can work with any strategy.

6) This is all managed in my ea (i'm a software dev). The entry points are decided by me manually. It doesn't trade automatically only manages the money.

7) This also allows me to trade news and no matter what direction it goes because my tp is half average daily range, most moves like NFP blow this out of the water. That is if ADR range for EURUSD is 80 pips for example, half of this is 40 and NFP days for example it can move 100+ pips on average.

8) I have also custom indicators which trigger optimal long or short trading areas. You can see the green and red middle bars. I use MACD for confirmation + divergence counter trend trading..

Attached Image (click to enlarge)
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Some results..

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  • #67
  • Oct 28, 2013 7:28am Oct 28, 2013 7:28am
Quoting nonfiction
This thread is a bit old, but I've spent a good 1.5 years testing some of these theories. Here is what I have found: Hedging strategies exist and they do work. HOWEVER! there is a limit, that is you have to know when to say stop and take your losses. There have to be losses in hedging strategies also for you to survive. I had to take losses 3 times during the 6 months, but probability is on your side to recover as the sampling was 3 losses out of 600+ trades. I have developed a few of these and have tested it with small accounts. Screenshot showing...
What is 2.0 profit? And what made GBPUSD to lose more as compared to the other pairs?
  • #68
  • Jan 3, 2014 11:15pm Jan 3, 2014 11:15pm
Here is my hedge strategy performance.
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  • #69
  • Jan 3, 2014 11:48pm Jan 3, 2014 11:48pm
Quoting promisedea
Here is my hedge strategy performance. {image}
No offense, but the dips (that immediately recover, and coincide with larger trade volumes) in a steadily rising curve tell me that it's a martingale that hasn't imploded yet.
  • #70
  • Jan 4, 2014 12:10am Jan 4, 2014 12:10am
you can do what some pro traders do and hedge your spot fx positions with options.

Haven't watched the attached vid, not promoting anyone, it's just one of many examples you can find if you're interested, good luck

Inserted Video
"If The Fool persists in his Folly he will become wise." - William Blake
  • #71
  • Jan 4, 2014 10:27am Jan 4, 2014 10:27am
Quoting hanover
{quote} No offense, but the dips (that immediately recover, and coincide with larger trade volumes) in a steadily rising curve tell me that it's a martingale that hasn't imploded yet.
Imploded?? yes, every system can be imploded if don't use properly.
  • #72
  • Jan 4, 2014 3:07pm Jan 4, 2014 3:07pm
Quoting promisedea
{quote} Imploded?? yes, every system can be imploded if don't use properly.
Please come back and post the updated equity curve in 12 months' time.
  • #73
  • Jan 5, 2014 4:30am Jan 5, 2014 4:30am
Quoting promisedea
Here is my hedge strategy performance. {image}
Quoting hanover
{quote} No offense, but the dips (that immediately recover, and coincide with larger trade volumes) in a steadily rising curve tell me that it's a martingale that hasn't imploded yet.
Sorry for the naive question but I don't use MT4. Does the simultaor of MT4 correctly simulates the margin requirement?
A quick visual inspection of the graph around the 20th trade shows a DD of more or less 85%. I suspect that MT4 is buggy.
Could the recovery trade be open in real life? You need a leverage such as to multiply the account by 7+ with a single trade!
No greed. No fear. Just maths.
  • #74
  • Jan 5, 2014 5:06am Jan 5, 2014 5:06am
Quoting PipMeUp
{quote} {quote} Sorry for the naive question but I don't use MT4. Does the simultaor of MT4 correctly simulates the margin requirement? A quick visual inspection of the graph around the 20th trade shows a DD of more or less 85%. I suspect that MT4 is buggy. Could the recovery trade be open in real life? You need a leverage such as to multiply the account by 7+ with a single trade!
Check the vertical axis values at the right edge of the graph. The lowest displayed value is 23794 (not 0).
  • #75
  • Jan 5, 2014 5:39am Jan 5, 2014 5:39am
Hedging is meant to be done between different asset classes, baskets or derivatives.Everywhere you can spot (huge) value imbalances. Once found it works pretty excellent.
  • #76
  • Jan 5, 2014 5:56am Jan 5, 2014 5:56am
Quoting hanover
{quote} Check the vertical axis values at the right edge of the graph. The lowest displayed value is 23794 (not 0).
Oopps!
No greed. No fear. Just maths.
  • #77
  • Jan 5, 2014 2:59pm Jan 5, 2014 2:59pm
Quoting nonfiction
This thread is a bit old, but I've spent a good 1.5 years testing some of these theories. Here is what I have found: Hedging strategies exist and they do work. HOWEVER! there is a limit, that is you have to know when to say stop and take your losses. There have to be losses in hedging strategies also for you to survive. I had to take losses 3 times during the 6 months, but probability is on your side to recover as the sampling was 3 losses out of 600+ trades. I have developed a few of these and have tested it with small accounts. Screenshot showing...
Hi Nonfiction, I believe we trade very similar way. The best pairs for this strategy are Yen pairs and EA and GA. What is your favorite pairs? Also on Friday is a bit tricky how to manage existing positions.
  • #78
  • Mar 9, 2014 1:48pm Mar 9, 2014 1:48pm
usually the best pair is eur/jpy with 75pip winning each trade or you can try eur/usd at ^50pip win on every trade. im developing my own hedging and to reduce risk each trade caps at 1-1.5%(to control my money mngment) profit agains my capital each day. to fill my quote at 70% every month, i need to enter market 3 or 5 times a day. i can say its 0% risk with ^^discipline. money mngmnt is the most important thing to master before trying this method. without an EA i need to run it manually and it cost me around 3hour per day infront of my samsung tab2(using mt5 apps).

as my major is in M.engineering and business(what is cooding???) im still searching for someone that can help me to build an EA for my trading method.
1month in trading demo(understanding forex)+2 weeks in calculating(build)+2month testing (data analysis)=running smooth for 8month till now.
  • #79
  • Oct 21, 2014 1:10am Oct 21, 2014 1:10am
I've personally been trading for 7 years. Only this year I've understood the profitably of hedging. Get updated post on how I trade and whether I'll beat the market. Follow my post here.

http://www.forexfactory.com/showthread.php?t=509072

I can't teach but you can emulate. It is very very simple. No indicators. No robots. Just price action and volume.
Forex Price Action Hacked - Price Action Rockstar
  • #80
  • Jul 15, 2015 11:51am Jul 15, 2015 11:51am
Quoting forexmnstr
There is many traders out there that use ... hedge strategy ... each have his own ... they are making lots of money ... never lose ... how is that even possible ... is there one of these traders in here -forexfactory- ... please share your strategy ... I have tried to make some money out of hedging ... in the beggining it was fun and profitable ... but there was a night that in a sudden seconds ... boooooooooooom ... equity droped 95% down to zero .... ....
Buddy Hedging is fun and a way to make Money but needs better calculation. Let's say you are looking at EUR/USD going up, now keep in mind one market golden rule, whatever goes up will come down soon and whatever goes down will move up soon, no market moves in single direction. Now let's say you have bought EUR/USD $5 stake on upward and same time sold $5 stake on downward, means if it going up you are making but other-side you loosing. Now fun begins, wait till market comes to overbought conditions and from that point market will start falling, So at this point take profit by selling your upward position, and let market goes up to 50% down side, on Down position you are still at loss but as your loss reduce to 50% just come out of position, means on one side you made 100% profit but other side you have made 50% loss, that means you are total 50% in profit I hope you have got the idea.
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