Hedge like a madman...

Ok this will be my personal journal where i will try a new hedging strategy that will literally hedge the sh*t out of the markets.The risk is minimal, yet the profit will be moderate, and the accuracy rate will be close to 100%.

So lets start i have a few trades hedged, when i close some i will resume and update my progress.

Rules of my system (post 20): http://www.forexfactory.com/showthre...48#post7521448

DISCLAIMER: NOTHING IN THIS THREAD IS AN INVESTMENT/ TRADING RECOMMANDATION, THIS IS MY PERSONAL TRADING JOURNAL SO IF YOU WANT TO TRADE LIKE ME, YOU DO IT AT YOUR OWN RISK, I`M NOT RESPONSIBLE FOR YOUR LOSSES!

Ok lets recap, we won 3 trades , or actually i have closed them because i see that it was too overleveraged, so we will stick to maximum 0.06-0.07 lots on either side or else risk a margin call.

So now that its eased, we will let the other pairs work out.Also i will not trade again on EUR/JPY and EUR/CHF because i see that the spread is too big.

Dont worry the -5% DD wont last long, i`m anticipating the EUR/CHF to turn around and finally to exit the long position.After that the risk will be minimal and hedge like usual 0.06 lots at tops / side diversified in any instruments with low spread and high volatility.

Yen hedge closed, the second part will be hit with TP also with the EUR/CHF and other € pairs.It looks like an EUR appreciation for me, nevertheless i`ll leave the position with takeprofit for the night, hopefully collect some swaps on AUD & NZD thats why i put more lot on those.Also have some pending limit orders if things go too badly to counter hedge them, if the EUR will depreciate, but i dont think so, but nevertheless risk management is important.

Goodnight!

Bought the Yen again for a quick scalp to 102.Also i think it will crash so i have a sell stop lower, if the buy order was a mistake, i will exit it, and the sell order will compensate for the loss + profit

Quit Yen buy, looks like momentum dryed out.Now looking for reversal, already got a sell stop, and if it happens, every other trade that i`m in will also take profit

Big boys could very well sell the USD today

Maybe i exited too early of that yen trade, but i was not sure, however, good news for the other pairs, EUR will rise. But only next week, so we have to wait 2 more days, stupid weekend

Anyways, the australian and the new zealander give me positive swaps, and covered the swap loss of the other pairs.Atleast some good news there.

I wont do a weekly recap yet, since the week didnt ended, i have still big challanges to overcome next week.

Looks like there is a massive shorting of EUR and buying of USD on the market for next week, although i`m still confident of the EUR appreciacion, no doubt, but i misplaced it in time.

The EUR apreciacion will come in 1-2 weeks, not now, but i neither wanna close those loosing trades, so what i will do is as some free margin comes free, i will hedge against them all, mainly on GBP short , NZD short and EUR short.The NZD must be an intraday, we wont pay swaps.

While the GBP & EUR will be 2-3 day swing trade.

However the AUD & NZD long must stay on to acumulate swaps.The other positions are ok for the time being.

So to liberate some free margin i will close the EUR/GBP probably.

Hedge placed , good night.

Any core hedging strategy you can share with me and others audience?

Sh*t looks like i've put the TP too far, the price just reversed a few pips near it.I`ve tightened the TP, lets see if the price turns back, if not ,then i must close the losing shorts, thats it.Because the USD just started to weaken, so every other currency ,where the USD is quote will go up.
I could but i dont think its too hard to figure out what i`m doing here

Finally the reversion starts, i was predicting this for 1 week, but couldnt exactly pinpoint the exact time.

Eur usd short was closed for loss, before the price rally's too far, looks like the EUR wont go back to that level for a very long time, and i dont want to waste margin on hedging a very improbable position.

Instead we will scale in to the other positions, it is time to make 30-40% growth this week

Ok i added 1 microlot to the NZD position, although i`m more confident in the EUR/GBP, but the NZD gives swap, so it will go up, both of them no doubt, but the NZD may delay 1 day or 2, so its better to acumulate more swaps there instead on EUR/GBP pay the swap.

After more free margin gets eliberated i will add to the EUR/GBP too.

Damn looks like the markets in these 2 weeks were very calm.Maybe tomorrow it will move more, usually Tuesdays are volatile.

black monday

Dark monday followed by bright tuesday.Everything is moving according to my expectations, soon taking profit on EUR/GBP, and letting the GBP/USD roll down.

Wohoo GBP sinking very hot, i closed some useless positions, like the AUD, and added more to this GBP short.

After the GBP is over, i buy back the AUD at lower price, but at the moment i need free margin

And thats how you make 5% in a day, first GBP target hit, took profit, second one will be for tomorrow.

Previous experiment was a tragedy, but now the strategy is perfected, lets see how we will play this one out.

Here are the new rules of my system:

1. 2-3 : 1 R/R ratio , rarely 1:1 but never less
2. Margin level must be always above 200%
3. Maximum risk/trade is 3% of the balance or less
4. Occasionally put TP & SL, but we will focus more on mental stops
5. Trail stop & Moving the SL to BE or scaling out tehniques will be used aswell
6. Fundamentals & News will be observed and incorporated into the strategy
7. Trades put before London Open, and exit before midnight, only leave the long term positions open
8. Pending orders will be used to hedge at different levels, mostly limit orders for big reversals against our initial position
9. Intra-Pair hedge, or Cross-Pair hedge aswell, so that we put both buy/sell on a pair or just on different pairs, but each buy must have a sell order which covers it, preferably on a similar spread& volatility pair
10. Only put on new trades once the current trades are closed, in pairs
11. Dont have uncovered positions, all of them must be covered, once 1 trade is closed the pair of it must be risk-minimized
12. Trading signals BUY/SELL is at the trader's discretion, you can use indicators or whatever, i use mixed analysis, both fundamental and technical, and sentiment ,and so on...
13. Maximum 8 trades open at any given time, and not be below 200% margin level (including pending orders because they could activate at any moment)

Let's start!