I never use stop losses, and instead open a hedge.
Here's my public-facing account with just $10k in it that I opened recently. It mirrors my main account.
http://www.myfxbook.com/members/forexfart/main/1526691
I think when people imagine hedging they say, "So if my sell isn't going well, just open a buy (hedge), and simply wait for the price to come back down again and into profit and then close the buy (hedge) position."
But it's more complex than that. What if it comes down 5 pips into profit, you close your hedge, and then it goes back up 100 pips. It can range in and out of profit for days.
If you got your original decision to enter a sell wrong, and need to hedge, then what makes you confident that you know it's going to continue up and you should open a buy (hedge) trade? You might get THAT decision wrong as well! So there's a lot to think about.
Therefore, I don't think anyone should use hedging unless they know enough to open and close at the right time, in line with other factors such as support / resistance / volume / etc... and to put enough distance between the original trade and the hedge. And putting enough distance means opening a position size small enough to handle that distance.
I wrote my own EA that manages opening / closing of hedge positions, and re-opening and closing if required. It decides whether to close a hedge in profit, or whether to take a small loss on the hedge.
Here's my public-facing account with just $10k in it that I opened recently. It mirrors my main account.
http://www.myfxbook.com/members/forexfart/main/1526691
I think when people imagine hedging they say, "So if my sell isn't going well, just open a buy (hedge), and simply wait for the price to come back down again and into profit and then close the buy (hedge) position."
But it's more complex than that. What if it comes down 5 pips into profit, you close your hedge, and then it goes back up 100 pips. It can range in and out of profit for days.
If you got your original decision to enter a sell wrong, and need to hedge, then what makes you confident that you know it's going to continue up and you should open a buy (hedge) trade? You might get THAT decision wrong as well! So there's a lot to think about.
Therefore, I don't think anyone should use hedging unless they know enough to open and close at the right time, in line with other factors such as support / resistance / volume / etc... and to put enough distance between the original trade and the hedge. And putting enough distance means opening a position size small enough to handle that distance.
I wrote my own EA that manages opening / closing of hedge positions, and re-opening and closing if required. It decides whether to close a hedge in profit, or whether to take a small loss on the hedge.
The price will go up, and down, not necessarily in that order.
