Forex Hedging Strategy that guarantee profit
Forex Hedging Strategy that guarantee profit
This is a discussion on Forex Hedging Strategy that guarantee profit within the Forex forums, part of the Markets category; Hedge4x and my friends are using this strategy for many months and very happy with the return. Here is the .
Hedge4x and my friends are using this strategy for many months and very
happy with the return. Here is the strategy:
For those already know this strategy, then you know what I am talking about
and congratulation on finally finding a way to make money weeks after weeks;
if you like to exchange idea on how to improve this strategy to make
even more money, please feel free to share, and it might even make you feel good inside :-)
For those do not know this strategy, please let me know what you think.
You will need two brokers for this type of strategy:
For the broker that pay interest:
You can use anyone out there.
We all use the same broker because we are very happy with
their service. we also get $1 rebate per round lot.
trade 1: buy 1 lot gbpjpy and collect around $22/day
For the broker that does not charge interest:
We all have accounts with this broker and very happy so far. I have account with them since last year.
Not too many brokers out there allow interest free.
You just have to know who to talk to. Be careful, there are lots of scam out there.
Do google search first on the broker or ask referral before open accounts with them.
trade 2: sell 1 lot gbpjpy and pay no interest charge.
The idea is to hold these two positions as long as you can.
We don't care what direction gbpjpy goes. We just make money off the interest, daily.
But you must constantly trade on the interest free broker to make the broker happy.
The broker makes their money on the spread. Since they already
loose money for not charging us interest. We need to trade everyday and make even more
money. We have a way to this. We call it triple hedging. At the end, everyone is happy :-)
Some of our friends started out small like $1000 on each account.
It does not take long before they deposit more and more money into their accounts.
Let me know if you want to open account with
this interest free broker or "the broker with $1 rebate".
Simple Forex Strategy That Can Make You Rich
Friday, October 19, 2012
SECRET FOREX HEDGING STRATEGY
Sure-Fire Hedging Strategy
- Just for simple explanation, I assume there is no spread. Take position with any direction you like. Example: Buy 0.1 lots at 1.9830 . At the same time or a few seconds after placing Buy, put Sell Stop 0.3 lots at 1.9800 . Look at the Lots.
- But if TP and SL at 1.9770 are not reached and the price goes up again, you have to have a Buy Stop in place at 1.9830 in anticipation. At the time Sell Stop was reached and became active Sell 0.3 lot (pic: number 2), you have to immediately place a Buy Stop of 0.6 lots at 1.9830 (pic: number 3).
- If price goes up and hits SL or TP at 1.9860, then you have a profit of 30 pips too.
- If the price goes down again without reaching any TP, then continue anticipating with Sell Stop of 1.2 lots, then Buy 2.4 lot…and next. Continue this sequence until we meet the profit. Lots: 0.1, 0.3, 0.6, 1.2, 2.4, 4.8, 9.6, 19.2, 38.4 and 76.8.
- With this example I use 30; 60; 30 configuration (TP 30 pips, SL 60 pips and Hedging Distant 30 pips). Otherwise, you can try 15; 30; 15, 60; 120; 60. Also we can try to maximize profits by testing 30; 60; 15 or 60; 120; 30 configurations.
- Considering the spread, choose the pair with the tightest spread like Eur/Usd. Usually the spread is only around 2 pips. The tighter the spread, the more absolute that you will win. I think this may be the “Never Lose Strategy”…let the price move to anywhere it likes; you’ll still get the profits anyway.
Actually the whole "secret" (if there is any) is to find a "time period" that the market will move enough to guarantee the pips for your profit. This strategy works with any trading method. (SEE COMMENTS BELOW)
Asian Breakout using Line-1 and Line-4.
Actually, you can use any range (pips) you want.
You just need to know which time period market has enough moves for the pips you want. And, one more important thing is not to end up with buy-sell-buy-sell too many times until you run out of margin.
Sorry, the above chart doesn’t mark up the last trade "Buy-6",
Trading Line-1 and Line-2 (10 pips) will also win. Don’t be confused, this method is very simple, only 2 things:
- Just choose 2 price levels (H, L, you decide) at certain time (you decide), if breakout H then buy, if breakout L then sell. TP=SL= (H-L).
- Every time you have a loss, increase the buy/sell lots in this number sequence: 1,
- 3, 6, 12, and 24. etc. If you choose your time and price range correctly, there should not be a need for this many trades. In fact, you should never have a need of more than one to two entries if you properly time the market.
- Learning to take advantage of momentum and volatility is a key element in learning to use this strategy. As mentioned earlier, timing and Time Period can be a crucial ingredient for your success. Even though this strategy can be traded during any market session or time of day, it needs to be understood that when you do trade during off-hours or lower volatile sessions such as the Asian Session that it will take longer to achieve your profit goal. Thus, it’s always best to trade during the prime hours of the European/London Session and/or the New York Session. In addition, we all know that the strongest momentum usually occurs during the opening of any market session. So, it’s these times that can help you to trade with a much higher probability of success. MOMENTUM + TIMING = SUCCESS
March 29, 2007 is a typical example of a dangerous day because markets did not move much. The best way to overcome this is to be able to recognize current market conditions and know when to stay out of them. Ranging, consolidating, or small oscillation markets will kill anyone if not recognized and traded properly. However, having a good trading method to help you identify good setups will help to eliminate any need for multiple trade entries. In fact, this strategy will become more of an insurance policy guaranteeing you a profit. I’m including a very good trading model with instructions on how to use it that will help you identify good opportunities.
If you learn to enter the markets using the signals generated by the trading model included with this strategy, you will find that you will usually hit your initial TP target 90% of the time and price will not get anywhere close to your hedge or initial stop loss.. In this case, the hedging strategy replaces the need for a normal stop loss and acts more as a guarantee of profits.
The above examples are illustrating using mini-lots; however, as you become more comfortable and proficient with this strategy, you can gradually start increasing the number of lots trades with an initial goal of working your way up to standard lots. The consistency that you will achieve by being able to make 30 pips any time you want to will lead to the confidence necessary to trade multiple standard lots. Once you get to this level of proficiency, you profit potential is unlimited. Whether you realize it yet or not, but this strategy will enable you to trade with virtually no risk. It’s like having an ATM Debit Card to the World Bank.
"No loss" recovery hedging system
Question: Would you be willing to trade any system or strategy you want on your $10000 account and turn every trade you take into a win trade (of $200 or $20) or a breakeven trade and have only a small theoretical chance of losing let's say $600 in worst case scenario?
Some traders would probably say no, if your answer to this question is also NO, then have a nice day;) If your answer is YES or MAYBE, then before you will jump out of your seat thinking you just found a holly grail of trading, please read carefully all stuff below and download and test a demo version of my newest EA, because it might also work for you!
So everything started with the following simple question:
"Is it possible to design a recovery system that is using a smart hedging mechanism able to "beat" the forex market? - and also your broker "
Apparently and surprisingly the answer to that question is YES*.
(*= of course only under certain conditions)
So to prove the statement above, I've coded an EA that is using "back-and-forth" hedging mechanism (it's NOT a martingale system), which I'll explain in the pdf manual. This trading technique is probably not new and maybe it is also discussed many times on this forum. However, I couldn't find any EA for it so I've coded my own.
Thus, just for the illustration let's say you have just entered a "sell" trade and you are now waiting to see what will happen next. Let's think about this situation for a moment. For sure we cannot predict the upcoming market events with a 100% accuracy. Then what can we say regarding the future market direction? Unless you are an extremely experienced trader, the answer is of course: not so much! However, the one and the only one peace of reliable information, that we have at that moment, is that the market will eventually go "up" or "down" w.r.t. the current price level. It can take a day, a week or even a month but the market will move up or down, simply because it has to!
We can take this one peace of reliable information and use it to our advantage. And here is how:
At any point in time, any price level we can open a "buy" or "sell" position and add several new positions by anticipating to new market movements. Thus, when the first trade is a "sell" order and market moves several pips in the opposite direction (up), then we could open a new "buy" position, and vice-versa. While doing this back-and-forth hedging we could also calculate the new Lot size required to cover for our previously opened trade(s) at our original TakeProfit, but ALSO at our original StopLoss level! By doing some simple mathematical calculations we can easily discover that the Lot sizes of our new recovery trades are not necessary always bigger than the previous ones. This is so much better than a martingale system which will just blow up your Lot sizes just within a few trades.
Of course there are some constrains, w.r.t this trading methodology. For example we need to make sure our open trades will not eat up our freemargin, which we will use to open new trades in case of market direction change. So this automatically means (unless you have a $100000 account) that we need to trade only with small lot sizes, e.g.: using mini lots (0.1 of standard Lot size) but also not to small e.g.: micro lots (0.01 Lot size) because of calculation errors that are introduced by the "MODE_MINLOT and MODE_LOTSTEP" restrictions. Furthermore our account size needs to be large enough to be able to cover for some equity dips and the required margin. Our StopLoss and TakeProfit levels need to be carefully chosen to minimize the resulting recovery lot sizes. We also need to make sure the system can survive several recovery attempts, when market will be ranging. (The wise recommendation for ranging condition is to exit at the best price and take some small losses). Furthermore, we need to add some on-the-fly correction for our spreads, slippages and swaps and commissions. To help the system a little bit we will also add a BreakEven with a TrailingStopLoss mechanism and will also automatically close all positions when our pre-set ForceTakeProfit target is hit.
Nevertheless, this type of trading could have some potential for success when positions are opened manually or according to a proven trading system. How about the risks involved in this kind of trading? It depends on several factors like: account size vs lot size, spreads and slippages, selected recovery levels, etc. As I said before the most important is to avoid ranging markets and assuring our account has sufficient FreeMargin for opening new trades. Otherwise the system will not be able to recover and it will take a loss. The only way to find out the limits of this system is to play
with it and adapt the parameters according to desired trading behavior. Please try it first on your demo account or in strategy tester (99% modelling only!) When the settings are properly chosen you will see, that it is really very very hard to lose money with this system.