Hedging Strategy and whole Mathematics behind it
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- Опубликовано: 8 май 2024
- Quantitative trading strategy:
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The Math section starts in Time:
09:23
I this video along with introducing Hedging strategy, whole Mathematics behind it is discussed in order to use it in an expert advisor and any other algorithmic trading platforms.
I'm favoured, $60k every week! I can now give back to the locals in my community and also support God's work and the church. God bless America..
That's awesome
Which source/platform did you use to earn such huge sum of money?
As I know it's possible, I'd appreciate it if you showed me how to do it.
It was with the help of Cassandra Roberts i am who i am today
I know I'm blessed if not I wouldn't have met someone who is as spectacular as Mrs Cassandra Roberts
Thank you for the opportunity to keep learning. I am still a beginner in the world of trading and am deepening my knowledge in the NFC community
Brilliant! That gives me a lot of ideas. Thank you very much!
I have watch many video on this topic but yours is super excellent. Trader must first determine the dominant trend and trade with the trend. Then hedge can be use as a risk management tool to protect our downside or draw downs.
Thanks man!
Thanks and welcome.. I am very glad to hear that it was useful.
True , HEDGING isnt a trading strategy but a mathematical logic to help your trading strategiy , could be any strategy in the book
Complete nonsense. Instead of gaining positions in both directions, it is much safer to close the loss with a stop loss and move on in search of a new trade. You are fooling yourself into thinking you are hedging yourself by taking counter trades. Swaps and spreads get the job done in the long run. This is nonsense and not a risk management method.
You have really great concept visualizations, very helpful. Thank you very much!
Thank you for your kind words! I'm glad you find the concept visualizations helpful.
Flying high like an eagle with your leading edge analysis and "eagle eye" focus on the massive benefits through hedging. Perhaps a follow up video on using options to implement this tactic, the option strikes to purchase, time, vol etc. Thank you for sharing your trading expertise with traders across the world on YT. The truth shall set us all free on the market plane and higher spiritual levels. Bravo!!! New US subscriber.
thank you for making so clear
an absolute mentoring gem....love the content of this video ....thanks for sharing
Glad you enjoyed it!
To utilise this you'd need massive account size even with small positions as the market ranges for large periods of time. This can work but you'd need to keep doubling your size everytime your position goes under or over the moving average and to make decent money you need to keep getting stopped for the position size to increase otherwise you're making peanuts from the initial position.
This is awesome!! thank you for the formula. Do you happen to have a formula when you want the same take profit level on the opposite trade? Hoping to hear from you! more power bro!
Very nice video, that was a very comprehensive study for someone who is new to trading.
Brilliant! Thank you for sharing
You'r welcome
Very interesting. Thank you.
Pretty cool idea. The only thing is that we need to consider the wash sale rule in this strategy and see if it still profitable if you buy and sell multiple times in a short period of time.
You should combine it with your strategy not randomly, like when a condition happens.
For example all the strategies of trading will give you good trades and bad trades, it's not efficient this way, it's about getting the good trades and the bad trades, what this technique do, it will literally filter trades, you will make it in good trades, and you will lose very small or even make very small gains on the bad trades. That's what's make it great
Gr8 Stuff. Thx a Ton for the Post.
My pleasure!
very useful and helpful video thank you I am still learning in the nusantara fx community
Great lecture. Subscribed.
Hey thanks for the video ! I did watch your other video about similar subject ! Where does this idea come from? Do you have a book or something where you have inspired yourself ?
FOrmula for LBn , i think the ratio will be R2R/(R2R+1) , not as mentioned. Thanks for the video.
Thank you for this video
this video is super useful thanks bro
If the price fluctuates around Buy line and Sell line several times, we may got rekt because of huge margin. However, many thanks for pointing out this hedging strategy
thanks brother for the detailed insight. very valuable video. everyone who hedge trades must watch this video
Glad you liked it!
Very impressive work sir.
My question is this strategy only works for the scenario when open buy and sell lots are not of same lot size i.e, one is greater than the other. What if sum of both open sell and buy lot have same lot size?
It usually happens and we hedge it rather than closing all the trades. Please also guide about this scenario. Thanks
hello first of all thanks for this video , can i ask you please to explain about indirect hedging strategy too ? or introduce a good source for it . thanks alot
Using this zone recovery strategy for a couple of months now and it's profitable for me, it's a high reward but high risk especially on a ranging market but what i usually do I limit myself for 4-5 entries only and will take the lost, but for my entries I only trade on Support & Resistance and using 0.5%-1% of my capital and I usually TP when happy if things goes in my favor to prevent opening a 2nd entry or risk of pull back.
Hi sir, if i may ask , do you trade this manually or you use an EA?
How did it go? Effective? What percentage of your account grew from the initial balance?
Love the ideas and explanation. Appreciate if you could show some of the backtest results. Thanks man.
Tasakur ❤❤❤❤
Very nice good continuation
Nader from Fance
Thank you so much
Great!❤
I loved the first half of your video - probably the clearest and best explanation of hedging principles that I've come across on RUclips. Well done sir! Unfortunately I don't have a degree in advanced mathematics - so the second part of your vid' went completely over the top of my head! But that's my problem - not yours! 👍
the 2nd part is not advanced mathematics, it is only simple maths
@@amirovsky1788
. . . That very much depends on how good you are at Maths! ;-)
Super!!
I think you have to take into account to only use this on a trending currency. The margin can grow very large in a tight range that repeatedly triggers your hedges
Yes, in any case as I mentioned it should be consider that we are risking whole Balance while using hedging.
isnt it same as martingale but different factors instead of 2, or even it like ?@@ecoengineering7535 . Also how can we find the "trendable" thing in order to not face losing strike ?
Dear Sir,
I am impressed with your wisdom & your hard work.I request you to backtest this strategy. It is nearly impossible to guess where market would next go but it is much easier to tell where market is less likely to go--and that is where there is mathematical edge & would be easier to code.
You could test the strategy on instruments which have high liquidity & trade around the clock--let us say forex & high volume US indices to start with.All orders are Limit order & orders are entered end of each day based on closing prices(EOD).For Forex pairs end of NY session is END OF DAY
On A given instrument(say Eur/Usd) limit order is placed to buy(or sell) at A distance " D" which is (70% of average daily ATR) away from the closing price EOD.Take profit (TP) & stop loss (SL) distance is 50% of that distance (D)--every order is all complete order on the same ticket.Only one order/day on the instrument.Win or lose--no trader intervention,market decides when take profit or stop loss gets hit.On that instrument orders are entered on both sides, Long & short at the same time.
All open orders get cancelled at the end of that day & new orders are entered based again on end of day new prices.Orders are placed on multiple different currencies to diversify risk(both dollar pairs & cross currencies as well).Risk capital on any instrument is 1% of account equity only.
Rationale--Markets are random but fractal in nature.Distance travelled in a given time span is based on square root of time.TRADING EDGE comes from the fact that from End of day INITIAL price the TP is closer compared to SL & chances of hitting TP are higher than hitting SL--and when TP is hit,then stop loss order gets cancelled right away..If one month option is priced $1--then 4 month option should cost $2.Distance travelled in 4 months is square root of 4.Option premium formulas are not ALLperfect but billions of $$ trade based on that formula & market makers make $$,no matter where the market goes/or does not go.At the money Call & put cost the same--take your pick.
And Thank you
Hi: might you give a numeric example of hoe this would work? You made a great effort to explain it, but I still got confused as to where the stop and the take profit end up with respect to the close price. Just listing a few numbers would clarify completely I think. Thx!
great video!! Do you have any EA suggested that using this strategy?
thank you brother
This technique is what so called, Zone Recovery.
You should mention this for the others rights.
I already coded it in the past and also develop the idea by making the 20 pips zone is changeable to go up or down once the TP region is reached, but instead, I don't use TP . I, instead start over again by opening new order either Buy or Sell according to the indicator output I use.
Profit is high but risk is sometimes high. I'm working recently on reducing this risk.
Good luck
i did that as well, the problem is when you open hedge orders and markets pushes back going against your hedge orders, then how you gonna exit those
Osama: How do you take profit？
@@alancheung5449 I use this formula ... TargetProfitDollar = TPDollarsPerThousand*AccountBalance()/1000
I'm thinking to try it as BreakEven+TPpips
This technique was "invented" 1000s of times in th least 130 years, everybody who has a little knowledge in math will sooner or later invent it. So don´t you worry about the guys with the rights, whatever their name, you can rest assured, the strategy is older than any of them
@@DedSec44 adapt to the market, if you see youre entering into a range then step back and either trade the range or breakout
what EA are you using for hedging technique thanks
Very nice idea. The math does get too complicated for my simple mind. It would be cool if this was coded for an EA, or a simple Excell speadsheet.
Please notice by using hedging you are risking much more than 1 or 2 percent of your balance per trade.
Sir, Chances of price going up or down after hitting any level is 50-50.IF 4 hour chart based support/resistance level gives trader an edge of say 5% (of price deflecting at the level),would that edge be good enough to make money? Let trader put standing orders each day,each order has take profit & stop loss --TP about 150-200% of SL--and let statistical odds play out.New orders each day after day.Sir, Any suggestions/modifications??
This is a very knowledgeable video. Thank you very much.
Question please, what if I just want to breakeven without any profit, what would be the R2R ? The only known info I have is the zone gap (20 in the video) and the beginning lot size and that's all.
Hi, Many thanks for your comment. Please notice that this 20 gap is only an example and it can be anything base on your preference. I do not recommend to close it without profit as you already risking whole of your Balance.
Anyway, You can use this code to close all in break even:
if(AccountEquity()>=AccountBalance())
{
While(OrdersTotal()!=0)
{
int NumberOfOrders=OrdersTotal();
for(int t=0;t
@@ecoengineering7535 the problem is when you open hedge orders and markets pushes back going against your hedge orders, then how you gonna exit those
normally, market eats both, i.e. hitting 'sell stop': 1.5 lot, then go up , hitting 'buy stop: 1.1, then coming down and hitting sell TP or buy SL, giving u in loss only always! :)
How we can use this technique to gain profit while we are aware of the fact that you mentioned? Do you thing the fact that it will finally margin call us (Which I am agree with you) means we should never use it?
@@ecoengineering7535 my suggestion will be, use 'stop loss' and exit from the position and then enter , trading shud be simple , this process will complicate ur trading and u will have to watch computer until finish the process
@@Kirtiman3D Have you ever used Algorithm to use hedging technique?
@@ecoengineeringfarsi9227 yes, but its not for hedging but simple buy and sell trading with TP/SL
Great insights but most important part is your last comment - not to sit in front of computer all the time and use algorithmic trading. So, can you pls suggest some EA for this?
Excellent video, thank you for the hard work you put into your informative videos. I have a question, I am trading with IBKR, and I don't think they will allow for multiple BUY or SELL orders at various levels. When I initially go long, and the market goes against my position, do you mean to say that the so-called STPLOSS point I should open 1.5 Lot SELL position, whilst keeping my 1 Lot BUY position, or that it will be the net of 0.4 Lot SELL position? The former I believe is not possible at least with IBKR as the SELL order would CLOSE the BUY order and vice versa.
I do believe keep all your position until the very end. Also, believe you are correct, that interactive broker will not let you have opposing orders open. You can address this a couple different ways. Could open two different accounts, and do all your buying on one of them and all your selling on the other one. Could also do this by buying puts and calls, even selling puts and calls in reverse. Trouble with buying puts and calls is that you will be suffering loss of extrinsic value during the holding period. The trouble with selling puts and calls is that you will need much more margin. These complications are why few do it.
this is a good strategy.
I wrote the code and it is working. Great stability with no loss. But some day in a range market, you are gonna be short in margin and it causes great losses
True, that's why i use ADX+RI indicator, and also Squeeze indicator. I close all positions whatever result if entering range signals. Usually, the loss is not that big if you close the positions in the good order (because even in a range, you have up and downs.) Last but not least, i check on a screener the highest volatility of the last 15 min before opening scalp position. Cheers
I would put a limit on the maximum number of open positions.
@FindForex can you please share the code with me ? I am a student and trying to study photon to write the code but no success so far
@@jonathanrom1112 If you have any coding experience, you can write this in a couple hours in MQL4
Sir, your videos are so much informative but i really need a help to come out from my hedging account. .. Kindly give me suggestions regarding...
Sir, Chances of price going up or down after hitting any level is 50-50.IF 4 hour chart based support/resistance level gives trader an edge of say 5% (of price deflecting at the level),would that edge be good enough to make money? Let trader put standing orders each day, each order has take profit & stop loss --TP about 150-200% of SL--and let statistical odds play out.New orders each day after day. Sir, Any suggestions/modifications? Expert advisor possible?
thanks its a awesome theoric way
You're welcome
What software do you use to execute this strategy? I have cmc markets and I can't place these OTO on triggers the other trades
hi, your content is very good, you provide me with this EA
Hi, such a great video! After long research, this is exactly what I need to close my orders! Do you already have an EA for this please? Or would you accept to code it and share it? I'm very interested. Thanks a lot.
Is there a cheat sheet list we can quickly look up instead of calculating? For instance 1 , 1.5, 1.1, 1.6 etc..
Here‘s an idea of preventing to wipe out your account in long sideways phases:
you could say, that after x trades which have hit buy/sell orders, you turn around the calculation of lot size.
This way, you are lowering the distance between LS and LB orders and probably end up in equality of lots invested in up and downside.
That means they are equaling out themselves from that point on.
That doesn‘t make you money, but at the same time you don‘t loose money and you get never margin calls again.
Here‘s an example: let‘s say it‘s going up and down for 5 times. So 5 times LB and LS is hit (would mean a total of 10 open trades.
LB1 = 1, LS1 = 1.1 etc.
After 3 turns let‘s say we have invested 5LB and 3.5LS.
From there we turn around calculation, so that after 5 tutns and 10 trades we end up in 12LB and 12LS invested.
Then you can either close it (and you just paid commissions and spread) or you start closing single positions after the chart started trending again…
What do you think? 🤔
Hedging is not supposed to make you money but to reduce loss
On the battlefield, in practice, this becomes a bit complicated and a bit laborious. The ideal is to carry out a very detailed market analysis before entering into the operation and using Hedging sporadically. anyway the video is very explanatory. greetings from Brazil .🇧🇷
Vc chegou a testar esta técnica no mercado real?
A very informative video. My investing experience, which has garnered more than $2 million in net profits over the last couple of years, leads me to believe that the greatest way to generate money passively and build the confidence you need to trade on your own is to have a professional manage your financial investments. Just my 2 cents
You are entirely correct. For the majority of people, trading can be frustrating, especially if you are a novice without experienced guidance.
Most newbies don't grasp value professional help, meanwhile high-net-worth individuals leave the hassle of trading to experts and make big bank on their capital every other year. I wish more people would take heed and stop throwing away their hard earned money.
@D. Wellings I am inexperienced in trading, and I've lost a good sum trying out strategies I found in online tutorials. I would sincerely appreciate any pointers you can give me.
@@chriskitzlinger Even though I am somewhat knowledgeable about trading, I still leave my investments in the hands of Leonard Bracher. I rely on his team and his years of successful trading to keep me earning passively.
Well said mate!
I like the idea of the hedge strategy but nobody ever compares it back against what would happen if you took the loses and established a new trade each time you return to your pre-set levels/stop points. Using your levels with 20pip loss, 60pip profit, you would have made the following with the 3 scenarios given if you took the loss and setup a new trade:
Scenario 1 - 1 stop then profit = -20 + 60 = 40 profit. Better profit than using the hedge strategy.
Scenario 2 - 2 stops then profit = (-20 x 2) + 60 = 20 profit. Better profit than using the hedge strategy.
Scenario 3 - 3 stops then profit = (-20 x 3) + 60 = 0 profit/breakeven.
The last scenario is significantly worse than the hedge strategy (0 vs 18 points of profit), but as you mentioned you never had margin tied up, nor did you carry the risk of if it just keeps bouncing over and over - i.e. it's gone into a range. Also by the time of the 3rd stop out, you'd seriously have to question your original logic of the trade setup.
How often do you find you normally have to hedge/swing to close out the position? If the answer is 1-2 times then it would seem safer and more profitable to not hedge. Of course, all this analysis rides on a standard 1:3 risk/reward ratio as per the example.
The point of this strategy is not really to replace stop loss in the traditional sense. If you have a strong setup and you bet the market goes up or down based on some indicator or analysis then yes, it is better to use a traditional stop loss. The beauty o this strategy is that is market neutral so in theory in particular if you can program it in a bot you have now a strategy that makes money no matter what, market goes up you make money, the market goes down you make money. You could have some indicator but it doesn't even need one, it is basically a grid bot that is neutral and it can make money in either direction. The only downside is that if you are in a side-way market and the price is caught in between region A then your positions become bigger and bigger and you can get easily a margin call in particular if you use leverage.
I'm testing if there are ways to prevent or mitigate this problem, maybe reducing positions at small losses or breaking even if the positions become too large.
@@giovannisantostasi9615nice, did you come up with any results?
plus spreads in and out of orders minus another 4 to 6 points each time
Hi.
Sir i like your work. I watched this vedio more times but not understand. Can you provide this strategy in written.
Plz
Great video. One observation though - do you not just end up with something similar to a Martingale strategy?
Just a quick direct question: What would be the formula for Lb²?
The point of this strategy is not really to replace stop loss in the traditional sense. If you have a strong setup and you bet the market goes up or down based on some indicator or analysis then yes, it is better to use a traditional stop loss. The beauty of this strategy is that is market neutral so in theory in particular if you can program it in a bot you have now a strategy that makes money no matter what, market goes up you make money, the market goes down you make money. You could have some indicator but it doesn't even need one, it is basically a grid bot that is neutral and it can make money in either direction. The only downside is that if you are in a side-way market and the price is caught in between region A then your positions become bigger and bigger and you can get easily a margin call in particular if you use leverage.
I'm testing if there are ways to prevent or mitigate this problem, maybe reducing positions at small losses or breaking even if the positions become too large.
I can solve this problem but i have no this ea. If there is a programer having this strategy EA i can explan it with him to resolve margen call risk
@@masim5271 you can explain it to me.
you said something like summing up the lot sizes is there a way to sum all lot size in mql5 if yes how can that be done
Thanks for de video. Is very interesting, but you said eventually you will loose your account by doing this if i didnt misunderstand you. So what is the point of hedging if i will eventually loose all the account? Thanks a lot.
Great
Do you know how to switch on Meta Trader 4 or 5 from Netting Trading to Hedging Trading with a click of a button? Thanks in advance.
Hello Chia, I am more interested in your algo strategy for hedging. Which tools and platforms and brokers do you recommend. how to get connected with you?
This strategy need to be traded in the levels, where its a consolidation area, and you know that after it will be a big move either up, or down.
Like supertrend indicator.
In the supertrend, you know that in a place, that the price will either form a new supertrend or continue the actuel supertrend.
And with you knowing exactly where to enter the market, even if go wrong with the direction. You still can benefit from it using hedging startegy.
Its even good, if you want to trade with real money, but you dont want to blow up your account, it will give you so much experiance why you pay little
Hello, congratulations and thank you for your very very interesting sharing.
I don't know anything about programming and I'm on Ninjatrader8. Would you have a version of the Heidging Strategy indicators for Ninjatrader8?
1) Hedging Strategy and whole Mathematics behind it
2) Cascade ordering strategy base on mathematics and statistic
Sorry for my bad English
Thanks
with kind regards.
Laurent
Hi, greetings, I built this exact same strategy in an EA which was very well. This is called hedging+ martingale strategy.
👏🌹 Subscribed. Liked. Thank you for your kind videos. it is very my appreciated. Bless you. Please carry on the good work. can you kindly make a video with Crypto example - BTC, ETH, SOL or any other asset; on how to identify which crypto (asset) to select and how to select for hedging.
How does this work with consolidating markets. If you have to keep opening higher lot sizes at the buy and sell lines
What does full hedging as explained in the video (keeping the antagonistic positions) give, which we don’t obtain with a combination of sell as stop loss and enter an accordingly reduced opposite position? Nothing.
Example (compare with first example of the video).
Buy 1.0 Lot at Buy Line.
Price goes against us down to Sell Line.
Stop Loss (sell) the whole 1.0 Lot position (then we have no position anymore) and,
Enter a 1.5 - 1.0 = 0.5 Lot Sell Order (to get a 0.5 Lot bearish position).
After this we have only 0.5 Lot bearish position, whereas in the video example we have at this time 1.0 Lot bullish position and 1.5 Lot bearish position, the net of which is 0.5 Lot bearish position. So the modified example here gives the effect that we seek, and avoid the disadvantages (e.g., margin call...). We can use the same formulae except with antagonistic positions removed. The whole bloated "hedging" collapses down to net positions.
so do you think this strategy is highly profitable
tldr:Its a timeout/rest/rethink. Start from 2:20 The intention is not to profit, but to avoid loss. Its a capital preservation technique.
This technique also can be use to get better entry. Capital recovery is much harder when you have drawdowns, this technique eliminate that.
Assume go long and market going a dip against you, you apply the technique, say 0.5 gap
If you think you are wrong you let it go on with the new 0.5 short
If you still think you are right, close both position and reenter later at 9.5 point better position and with small profit.
It preserve the capital, instead of enduring the 10 point drop to stoploss.
@@vuzereusazureus2245 I think that you missed my point. If you want to argue against my point, you must explain what is better by buying an opposite position (and keeping both) than selling the original position. Both methods will stop further drawdowns. The hedging ties up more capital. As a side note, hedging physical objects or hedging assets which are slow, cumbersome or expensive to trade, or which cannot be bought back later, makes sense. But heding forex with forex? It's the same thing, you don't need to hedge, just exit the position.
@@viktorpaulsen627 The video said it, I repeated it in the 1st paragraph and give a simulation on 2nd paragraph.This comment section is quite short to explain it but its doable if you interested.
Here are few more reason:
-Capital preservation, you can avoid taking loss
+Keeping and improving trade entry/positions.
+Achieving bigger gearing/leverage with minimal risk.
+2nd chance/timeout to evaluate your views.
+Immunity from market movement.
Hedging is a trade risk management tool, since its forex, single instrument hedging should be/must be available and its 99.99% perfect hedge, minimizing /managing the risk/exposure. From point above, being immune to market condition is already a great benefit by itself already.
Its among reasons I solely trade forex. If you bring the stocks/futures mentality to forex like the Americans--single side only, then good luck, you NEED luck, I dont need luck, I need hedging capability. I'm very very very happy with my strategy/technique, it require hedging.
I'm safe because I'm hedged and that is important against unforgiving market.
This is the best question asked on here. Because this is the only part left to be worked out. If you can achieve the rate of change in lot seize then you've protected your account. As for me, I came up with the figures depending below😊. And, i recommend you start with the smaller lot seizes for the first entry positions be it a buy or sell order:
0.11, 0.13, 0.15, 0.18
0.15, 0.16, 0.17, 0.18
If you are using a smaller time frame sat 15minutes, at least to the 4x hit either ways, you will make little profit not just break even😊.Back test and update if my figures are right.😊😊
I don't get it can you elaborate please
How did it go? Effective?
Dear cud u pls elaborate? I can backtest these figures for u
Its risky. But can be controlled. I am using the same strategy, but I accepted to put SL 50%, and the rest 50% I hedge. Moreover, I trade on small time frame such as M1-M5-M15, which mean I wont have to keep the position overnight costing me extra swap fees
bro what do you do in ranging markets
@@ZainHDHQ Trading by small time frame already dealed with ranging market, as the price easily hit the needed R/R to break even ( SL range is around 4 - 9 pips ). I recommend using this strategy only with EUR/USD due to it high volatility + low spread. After all, you should back test first since its really easier being sad than done
P/S : I am using the Hedge x1,35, then it will need around 1:3 R/R to be break even
@@tuthanh508 thanks bri
Please can u teach me
@@tuthanh508 Thanks for explain but I can't get it😞😞😞😞
@ecoengineering is it possibile to have this expert advisor?
Thanks alot
What are you exactly calculating?
The next lot size for each of trades carried out?
I am sorry I did not get the question
Amazing! Thanks!
SIR, Trading forex supply & demand if 4 hour trend is up,& 1 hour trend is up as well--then on 15 minute time frame chart one has to wait until price comes down to support level(derived from 1H chart) & using smaller 15 minutes chart watch that this level holds & then buy. Next step would be how this long position attacks higher supply level ON THE SAME 1H chart & only sell if forex pair turns down at this higher supply level--otherwise just hold the position on to next higher supply level ON SAME 1HOUR CHART--any modifications you suggest?
Hey I don’t know if you have found answers in the meanwhile but maybe you should check out Nick Shawn. And in his Short’s you can find his sniper entry’s👍
6:44 This is not 2 open buy orders, because your 1st buy order had hit the Stop Loss you only have 1 open buy order which is the 1.1 lots..
Great, I'm looking for a way to reduce my risk when the graph goes the wrong way.
Hi, this is a good system. Do you have EA for it?
Have fun during news events which we have daily. Price can easily blow through your recovery zone, where you have difficulties to enter a recovery trade or face the risk of high slippage and spread, especially you have to use Stop market orders so you depend on execution speed and liquidity on certain prices points. XAUUSD sometimes has extreme volatility events during the day(no news) where price can move 100pips in 1second. I think zone recovery can be used, but uncertainty in extreme volatility moves makes it very risky. Additionally it also can be said to limit cycles and take your loss, as if you are in a longtime flat market, it would blow your account or cause a huge DD when your emotions force you to go out.
Thanks
DOes and ea exist than automatically calculates lot sizes based on risk reward?
Real market main dekhaen paper work ka kea ha
hi there, how to use this strategy in pine editor at trading view? can you help here?
How to do the same with Nasdaq e-mini futures market?
Hedging always ended in margin call - sooner or later.
Consider the volume before entering the trade
What broker do you use?
Is it Zone Recovery ？
I have an EA built like this, the swap fees will take out any gains if it takes too long to get to 60 pips.
Dear friend, thanks for the video. I went through the calculations. Here is what I got. Start with LB1=1 RtoR=3, LS1-1.5, no problem here....Tthen LB2=(4/3)*1.5-1)*1.1=1.1 ok so far, BUT LS2=(4/3)*(1+1.1)-1.5)*1.1)=1.43 ?? and NOT 1.6 as you show..... So, Am I calculating wrongly or is the formula wrong ?
Is not it better to start with both position at same time, when one tp hit then hedging scenario start. so in one way there is one guaranteed win and the next hedge trade could be profitable or breakeven trade
How do you make sure the trade goes in your direction? This strategy is all about dealing with the uncertainty of trade direction. It is an amazing strategy but it has the main problem of making the positions larger and larger if the market trade side way. Not sure how to address that. Maybe set a lower take profit that is just breakeven and dump some of the positions if you get hedged multiple times. Coding and testing live all these ideas. I would love to have a strategy that is market neutral. But I guess risk cannot be completely eliminated.
Wouldn't this be similar to doubling down but with more precision?
Plz provide EA..Good presentation..
It's work in only Auto mode. Manually impossible
Many thanks for your comment. Yes, The whole purpose of our channel is about algorithmic trading
This is a problem, because the price often forms a prolonged range.
Now factor in commissions on all those lots.
Can you do a video on how to code dashboard indicator for mql5?
I would consider that for next videos, many thanks for your suggestion.
bjit 👏👏
It works in trending market but will be very risky in sideways market