Hedging Strategy and whole Mathematics behind it

Поделиться
HTML-код
  • Опубликовано: 24 ноя 2024

Комментарии • 480

  • @viaanfc
    @viaanfc Год назад +9

    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

  • @mp6674
    @mp6674 5 месяцев назад +16

    What majority of viewers are missing is "the primary idea here to have more quantity in a direction where market is heading rather than on the opposite side" which can be achieved by adding lots or even by subtracting on opposite side to keep quantity in control. So guys the idea is very valid 🎉🎉

    • @roskapostit2609
      @roskapostit2609 4 месяца назад

      This is nothing more than a standard martingale system. The world is full of them. And sooner or later they will all blow your account.

    • @toms8879
      @toms8879 2 месяца назад +1

      it will blow your account eventually.

  • @dmaspace5592
    @dmaspace5592 2 месяца назад +4

    Good to finally come across a content like this.. Now I know investors is all I need.

  • @SasaSchueller
    @SasaSchueller 23 дня назад +183

    Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

    • @ЕленаФирсова-ц6м
      @ЕленаФирсова-ц6м 23 дня назад

      I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks...

    • @SasaSchueller
      @SasaSchueller 23 дня назад

      @@ЕленаФирсова-ц6м Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. *MARGARET MOLLI ALVEY* , a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.

    • @ЕленаФирсова-ц6м
      @ЕленаФирсова-ц6м 23 дня назад

      @@SasaSchueller Oh please I’d love that. Thanks!

    • @SasaSchueller
      @SasaSchueller 23 дня назад

      @@ЕленаФирсова-ц6м *MARGARET MOLLI ALVEY*

    • @SasaSchueller
      @SasaSchueller 23 дня назад

      Lookup with her name on the webpage.

  • @viktorpaulsen627
    @viktorpaulsen627 7 месяцев назад +5

    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.

    • @calm694
      @calm694 7 месяцев назад +1

      so do you think this strategy is highly profitable

    • @vuzereusazureus2245
      @vuzereusazureus2245 6 месяцев назад

      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.

    • @viktorpaulsen627
      @viktorpaulsen627 6 месяцев назад +2

      ​@@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.

    • @vuzereusazureus2245
      @vuzereusazureus2245 6 месяцев назад

      @@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.

    • @ReptarKingoftheBrozone
      @ReptarKingoftheBrozone 2 месяца назад

      Because the market ranges and with your idea you can get stopped out repeatedly without ever having a win.

  • @lonetobefree5722
    @lonetobefree5722 Год назад +15

    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.

    • @WagnerShimatai
      @WagnerShimatai 3 месяца назад +1

      Say that to banks. They ALWAYS use hedge techniques like this to gain money.

    • @ReptarKingoftheBrozone
      @ReptarKingoftheBrozone 2 месяца назад

      This isn't a strategy to trade itself, it is the risk management to your strategy.

  • @spencerwinston4334
    @spencerwinston4334 2 года назад +10

    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.

  • @stayfocused131
    @stayfocused131 Год назад +2

    an absolute mentoring gem....love the content of this video ....thanks for sharing

  • @MT-fw8hs
    @MT-fw8hs Год назад +5

    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.

    • @justcars2454
      @justcars2454 9 месяцев назад +1

      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

  • @theophilusnwokolo7090
    @theophilusnwokolo7090 Год назад +23

    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!

    • @ecoengineering7535
      @ecoengineering7535  Год назад

      Thanks and welcome.. I am very glad to hear that it was useful.

    • @tristan583
      @tristan583 9 месяцев назад +1

      True , HEDGING isnt a trading strategy but a mathematical logic to help your trading strategiy , could be any strategy in the book

    • @irynaburkatska3910
      @irynaburkatska3910 7 месяцев назад +1

      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.

  • @Einzz18
    @Einzz18 Год назад +5

    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.

    • @peterjack6629
      @peterjack6629 Год назад

      Hi sir, if i may ask , do you trade this manually or you use an EA?

    • @FinixStoreBerkualitas
      @FinixStoreBerkualitas Год назад

      How did it go? Effective? What percentage of your account grew from the initial balance?

  • @Wisenbrow
    @Wisenbrow Год назад +10

    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

    • @ecoengineering7535
      @ecoengineering7535  Год назад +7

      Yes, in any case as I mentioned it should be consider that we are risking whole Balance while using hedging.

    • @merterselcuk
      @merterselcuk Год назад

      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 ?

  • @navketan1965
    @navketan1965 Год назад +12

    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

    • @hu5116
      @hu5116 11 месяцев назад

      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!

  • @alkahaf347
    @alkahaf347 22 дня назад

    absolutely amazing i made this strategy myself before your video, the only thing bad about it is" you need a lot of capital to enter 10 to 11 orders if price consolidate between buy order line and sell order line,"

  • @lapogk1543
    @lapogk1543 Год назад +4

    FOrmula for LBn , i think the ratio will be R2R/(R2R+1) , not as mentioned. Thanks for the video.

  • @Kirtiman3D
    @Kirtiman3D 2 года назад +5

    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! :)

    • @ecoengineering7535
      @ecoengineering7535  2 года назад

      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?

    • @Kirtiman3D
      @Kirtiman3D 2 года назад +1

      @@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

    • @ecoengineeringfarsi9227
      @ecoengineeringfarsi9227 2 года назад

      @@Kirtiman3D Have you ever used Algorithm to use hedging technique?

    • @Kirtiman3D
      @Kirtiman3D 2 года назад

      @@ecoengineeringfarsi9227 yes, but its not for hedging but simple buy and sell trading with TP/SL

  • @osamashaban2252
    @osamashaban2252 2 года назад +29

    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

    • @DedSec44
      @DedSec44 2 года назад +5

      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

    • @alancheung5449
      @alancheung5449 2 года назад

      Osama: How do you take profit?

    • @osamashaban2252
      @osamashaban2252 2 года назад +1

      @@alancheung5449 I use this formula ... TargetProfitDollar = TPDollarsPerThousand*AccountBalance()/1000
      I'm thinking to try it as BreakEven+TPpips

    • @Nyruami
      @Nyruami 2 года назад +3

      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

    • @ZainHDHQ
      @ZainHDHQ Год назад

      @@DedSec44 adapt to the market, if you see youre entering into a range then step back and either trade the range or breakout

  • @johnpraytor6441
    @johnpraytor6441 5 месяцев назад +2

    I have seen some other comments about this, but i want to reiterate. When you start your “series of trades” (placing opposite trades) you are in trending markets. You will need knowledge of how to predict trends. When you hit consolidation YOU WILL BLOW AN ACCOUNT. You can develop some risk management to this, but that is my warning practice it and you can see its power with even the most basic form of knowledge in the markets! Good luck to all!

    • @mp6674
      @mp6674 5 месяцев назад

      A possible solution is, not to add lots on 2nd buy/sell onwards, instead we can reduce opposite side size. As the primary idea here is to have more quantity on the side where the market is moving than on the opposite side.

  • @nickgangadis8679
    @nickgangadis8679 7 месяцев назад +1

    Brilliant! That gives me a lot of ideas. Thank you very much!

    • @mp6674
      @mp6674 5 месяцев назад

      Indeed!!

    • @RamNaidu-s7t
      @RamNaidu-s7t 4 месяца назад

      Hi.. can you give me code for implementing the explained logic..
      Thank you

  • @bedengler
    @bedengler Год назад +6

    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? 🤔

    • @elijahpaul5829
      @elijahpaul5829 11 месяцев назад

      Hedging is not supposed to make you money but to reduce loss

  • @daymaker_trading
    @daymaker_trading 10 месяцев назад

    You have really great concept visualizations, very helpful. Thank you very much!

    • @ecoengineering7535
      @ecoengineering7535  10 месяцев назад

      Thank you for your kind words! I'm glad you find the concept visualizations helpful.

  • @HoangNguyen-yl9eh
    @HoangNguyen-yl9eh 11 месяцев назад +2

    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

  • @ahmadhosseini6174
    @ahmadhosseini6174 15 дней назад

    the things with hedge is that people doesn't consider that the probability of 60 pip change is 0.25% and changing 20 pip is 0.75% . in a over all price change and trade in almost every hedge strategy result goes to 0 with considering spread and fee and if consider them we have a good strategy to lost money in a constant way . the only hedge strategy that maybe work are does that make an edge in our probability , be carful smaller distance has higher chance

  • @happydude2163
    @happydude2163 Год назад +7

    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.

    • @giovannisantostasi9615
      @giovannisantostasi9615 Год назад +4

      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.

    • @ernestonyebuchi4876
      @ernestonyebuchi4876 Год назад

      @@giovannisantostasi9615nice, did you come up with any results?

    • @rjeditz45
      @rjeditz45 2 месяца назад

      @@ernestonyebuchi4876yeah took 6six trades from yesterday and Got Winrate Of 100% some are direct win and some took 1 more trade

  • @shumlanguage
    @shumlanguage 5 месяцев назад

    Thank you for the excellent exposition of your model. Q: how can an account be long and short at the same time, as your model proposes?

  • @makeitreality457
    @makeitreality457 5 месяцев назад

    Great ideas! You just don't want to set this up in the middle of consolidation phase, like next Monday. Or be prepared to execute a lot of trades as it whipsaws back and forth through the stops all day. Not financial advices!

  • @laurentlabadie6921
    @laurentlabadie6921 2 года назад +10

    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

    • @emmanuelokonkwo7293
      @emmanuelokonkwo7293 Год назад

      Hi, greetings, I built this exact same strategy in an EA which was very well. This is called hedging+ martingale strategy.

  • @nelsonmachado7680
    @nelsonmachado7680 Год назад +5

    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 .🇧🇷

    • @msantos72
      @msantos72 Год назад

      Vc chegou a testar esta técnica no mercado real?

  • @juergenx298
    @juergenx298 Год назад +7

    Hedging always ended in margin call - sooner or later.

    • @FritzMarl
      @FritzMarl 6 месяцев назад +3

      Consider the volume before entering the trade

    • @WagnerShimatai
      @WagnerShimatai 3 месяца назад +1

      For those who don't know to calculate the initial lot, maybe this happens.

    • @congbalicong5723
      @congbalicong5723 2 месяца назад +2

      no if you place SL

  • @Innetstrangerr
    @Innetstrangerr 22 дня назад

    Best trading video on youtube man tks

  • @nakilaazzahra
    @nakilaazzahra Год назад

    very useful and helpful video thank you I am still learning in the nusantara fx community

  • @DivyaSai1
    @DivyaSai1 7 месяцев назад

    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?

  • @dwightwellings
    @dwightwellings 2 года назад +81

    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

    • @olgapedersen
      @olgapedersen 2 года назад

      You are entirely correct. For the majority of people, trading can be frustrating, especially if you are a novice without experienced guidance.

    • @sequoiacampbell
      @sequoiacampbell 2 года назад +2

      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.

    • @chriskitzlinger
      @chriskitzlinger 2 года назад

      ​ @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.

    • @dwightwellings
      @dwightwellings 2 года назад

      @@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.

    • @chriskitzlinger
      @chriskitzlinger 2 года назад

      @@dwightwellings I live in the UAE, does he take clients from here? How do i reach out to him?

  • @tuthanh508
    @tuthanh508 2 года назад +17

    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

    • @ZainHDHQ
      @ZainHDHQ 2 года назад

      bro what do you do in ranging markets

    • @tuthanh508
      @tuthanh508 2 года назад +7

      ​@@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

    • @ZainHDHQ
      @ZainHDHQ 2 года назад

      @@tuthanh508 thanks bri

    • @jufg6786
      @jufg6786 Год назад

      Please can u teach me

    • @kaungmyat9850
      @kaungmyat9850 Год назад

      ​@@tuthanh508 Thanks for explain but I can't get it😞😞😞😞

  • @rezamokhtary69
    @rezamokhtary69 Год назад +1

    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

  • @huijerry
    @huijerry 10 месяцев назад

    great video!! Do you have any EA suggested that using this strategy?

  • @ricks5532
    @ricks5532 Год назад +2

    Love the ideas and explanation. Appreciate if you could show some of the backtest results. Thanks man.

  • @INITIAL-AS
    @INITIAL-AS 11 месяцев назад +2

    It works in trending market but will be very risky in sideways market

  • @FindForex
    @FindForex Год назад +6

    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

    • @Starfix00
      @Starfix00 Год назад +1

      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

    • @paulb88916
      @paulb88916 Год назад

      I would put a limit on the maximum number of open positions.

    • @jonathanrom1112
      @jonathanrom1112 10 месяцев назад

      @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

    • @Cockpa377
      @Cockpa377 10 месяцев назад

      @@jonathanrom1112 If you have any coding experience, you can write this in a couple hours in MQL4

  • @masim5271
    @masim5271 Год назад

    Hi.
    Sir i like your work. I watched this vedio more times but not understand. Can you provide this strategy in written.
    Plz

  • @navketan1965
    @navketan1965 2 года назад +1

    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??

  • @punoobwp5991
    @punoobwp5991 Год назад

    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

  • @kadir260409
    @kadir260409 2 года назад +3

    thanks brother for the detailed insight. very valuable video. everyone who hedge trades must watch this video

  • @jeremycarroll451
    @jeremycarroll451 11 месяцев назад

    Great video. One observation though - do you not just end up with something similar to a Martingale strategy?

  • @nadershera9029
    @nadershera9029 10 месяцев назад

    Tasakur ❤❤❤❤
    Very nice good continuation
    Nader from Fance

  • @Weis77
    @Weis77 Год назад +1

    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.

    • @hu5116
      @hu5116 11 месяцев назад

      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.

  • @น้าเก่งนานาจิตตัง

    Great, I'm looking for a way to reduce my risk when the graph goes the wrong way.

  • @kyleb6616
    @kyleb6616 Год назад +1

    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.

    • @ecoengineering7535
      @ecoengineering7535  Год назад +1

      Please notice by using hedging you are risking much more than 1 or 2 percent of your balance per trade.

  • @timwilcox960
    @timwilcox960 Год назад +2

    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! 👍

    • @amirovsky1788
      @amirovsky1788 Год назад +1

      the 2nd part is not advanced mathematics, it is only simple maths

    • @timwilcox960
      @timwilcox960 Год назад +3

      @@amirovsky1788
      . . . That very much depends on how good you are at Maths! ;-)

  • @peterjack6629
    @peterjack6629 Год назад +1

    Just a quick direct question: What would be the formula for Lb²?

  • @yurinisimov1976
    @yurinisimov1976 6 месяцев назад

    Hi. How about the price difference on candle closure above or below hedging zone?

  • @SumairaaN
    @SumairaaN 2 года назад +2

    Real market main dekhaen paper work ka kea ha

  • @davidhuber563
    @davidhuber563 Год назад

    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 ?

  • @simonbarrett9537
    @simonbarrett9537 2 года назад +1

    plus spreads in and out of orders minus another 4 to 6 points each time

  • @irynaburkatska3910
    @irynaburkatska3910 7 месяцев назад +2

    If this is such a supposedly good money management method, where can I see your trading account being monitored to make sure it supposedly works? Something tells me that you won’t show the work using this “methodology” in real life...

  • @jerome2874
    @jerome2874 7 месяцев назад

    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.

  • @TQuantP
    @TQuantP Год назад +1

    Very nice video, that was a very comprehensive study for someone who is new to trading.

  • @robinknox-grant3072
    @robinknox-grant3072 5 месяцев назад

    Thank you for the explanation of how the strategy works. The presenters attempt to explain what is happening is greatly appreciated.
    However I personally found the presenter English difficult to follow. I had to replay the video several time to follow the explanation and even then, there were details of which I was not certain. While appreciating the gallant attempt to explain what is happening, I feel it would be so much more effective if it could be explained by someone who was more confident in the effective use if English. My comments are not intended to offend the presenter but simply a suggestion that I think would make the explanation so much easier to follow.

  • @solimanhanna8646
    @solimanhanna8646 2 года назад +1

    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.

    • @ecoengineering7535
      @ecoengineering7535  2 года назад +1

      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

    • @DedSec44
      @DedSec44 2 года назад +1

      @@ecoengineering7535 the problem is when you open hedge orders and markets pushes back going against your hedge orders, then how you gonna exit those

  • @giovannisantostasi9615
    @giovannisantostasi9615 Год назад +1

    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.

    • @masim5271
      @masim5271 Год назад

      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

    • @giovannisantostasi9615
      @giovannisantostasi9615 Год назад

      @@masim5271 you can explain it to me.

  • @hernansaa
    @hernansaa Год назад

    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.

  • @flaviodegirolamo6446
    @flaviodegirolamo6446 Год назад +1

    @ecoengineering is it possibile to have this expert advisor?

  • @666jjdemon
    @666jjdemon Год назад

    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..

  • @sometimes...3065
    @sometimes...3065 11 месяцев назад +1

    Good, clear video.
    However, at x number of hedges when there is not enough equity to buy the next opposing hedge the account is wiped out (if the market does not reverse again) via a margin call.
    And this will happen frequently.
    In other words, one is risking the entire account to regain the loss on the first trade.
    Any solutions, please?
    PS I have a simpler method of calculating lot sizes ....

  • @Ghostdoge
    @Ghostdoge 6 месяцев назад +1

    Is there a cheat sheet list we can quickly look up instead of calculating? For instance 1 , 1.5, 1.1, 1.6 etc..

    • @mercyhedging
      @mercyhedging Месяц назад

      Ive put the strategy in excel; but its setted on gold; which market you trade?

    • @Ghostdoge
      @Ghostdoge Месяц назад

      @@mercyhedging Thanks for reply. I trade GBPJPY, BTCUSDT and EURUSD.

  • @justcars2454
    @justcars2454 11 месяцев назад

    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

  • @AntonelloTrading
    @AntonelloTrading 6 месяцев назад

    Good morning, if I want to equalize open trades, how should I change the formulas?

  • @aldav4185
    @aldav4185 Год назад

    Brilliant! Thank you for sharing

  • @IceHound-gi8pj
    @IceHound-gi8pj 9 месяцев назад

    this video is super useful thanks bro

  • @Ayza673
    @Ayza673 2 года назад +3

    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

    • @giovannisantostasi9615
      @giovannisantostasi9615 Год назад

      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.

  • @Ali-zz6yz
    @Ali-zz6yz 9 месяцев назад

    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

  • @lapogk1543
    @lapogk1543 Год назад +1

    you have not shown the Rate of change required on lot size when you move from buy to sell and sell to buy. You gave an example of 1.5 times of the Buy lot. At what rate of change of lot size it will break even or make a little profit

    • @tebohewane7092
      @tebohewane7092 Год назад

      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.😊😊

  • @alancheung5449
    @alancheung5449 2 года назад +2

    Is it Zone Recovery ?

  • @sajidmahmood9511
    @sajidmahmood9511 Год назад

    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?

  • @xclr8er
    @xclr8er 10 месяцев назад

    thank you for making so clear

  • @mirzabaig-p1r
    @mirzabaig-p1r 4 месяца назад

    Very good presentation thanks so much for this effort ❤❤❤

  • @CryptoTraderHab
    @CryptoTraderHab 3 месяца назад

    Cool tutorial. God bless you!

  • @Seeker_of_sense
    @Seeker_of_sense Год назад

    Very interesting. Thank you.

  • @manasranjan8343
    @manasranjan8343 2 года назад

    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...

  • @johnnymnemonic1369
    @johnnymnemonic1369 Год назад +1

    Now factor in commissions on all those lots.

  • @King_Eke
    @King_Eke Год назад

    How does this work with consolidating markets. If you have to keep opening higher lot sizes at the buy and sell lines

  • @kmhub0410
    @kmhub0410 5 месяцев назад

    Hi Would you let me know, R2R what does mean? Where it come form? Just Long short cap × 2?

  • @retailmindset
    @retailmindset 11 месяцев назад

    How we will having your projects? Are you going to open MQL store account to sell them?

  • @PiggsyPc
    @PiggsyPc 5 месяцев назад

    gold . this is gold information
    thanks a lot

  • @achillemazzini5026
    @achillemazzini5026 Год назад

    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 ?

  • @morehn
    @morehn 11 месяцев назад

    Wouldn't this be similar to doubling down but with more precision?

  • @guntherxtent
    @guntherxtent Год назад

    Great lecture. Subscribed.

  • @aishen9668
    @aishen9668 4 дня назад

    using indicator you can risk 1% of account to open trade, but to be super safe you should have like 1000 account to start 1st trade with 1 dollar 😇 from my experience, 1% risk can be still high in unfortunate situations

  • @RamNaidu-s7t
    @RamNaidu-s7t 4 месяца назад

    Sir need code logic to implement sir.. can you help me with

  • @moneymagnet9009
    @moneymagnet9009 Год назад

    This hedging is very risky because of martangale strategy. Plus very complicated equations.
    Imagine we are in the middle of computation and the market already wipes out our entry because of volatility.
    There is another hedging strategy that i want to know. There is no stop loss. Hedging itself is a risk management

  • @JamesWilliams-qn5cq
    @JamesWilliams-qn5cq Год назад

    Gr8 Stuff. Thx a Ton for the Post.

  • @BlizzPort
    @BlizzPort Год назад

    This is a problem, because the price often forms a prolonged range.

  • @iq-nj4xg
    @iq-nj4xg 11 месяцев назад

    Just woulda coulda shoulda trading? No live trading?

  • @frederikpetersen62
    @frederikpetersen62 10 месяцев назад

    What are you exactly calculating?
    The next lot size for each of trades carried out?

  • @futurestrader8798
    @futurestrader8798 9 месяцев назад

    How to do the same with Nasdaq e-mini futures market?

  • @navketan1965
    @navketan1965 2 года назад

    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?

  • @povdrivekls8369
    @povdrivekls8369 2 года назад

    hi , third trade should be 0.97 because you allready have 1 lot on buy fron first trade , if you leave like you done you will have higher profit on buy than sell

  • @shutengloke5907
    @shutengloke5907 5 месяцев назад

    Is it possible to open both LONG and SHORT positions?

  • @gersonmendes65
    @gersonmendes65 Год назад

    hi, your content is very good, you provide me with this EA

  • @trader-timvinh4780
    @trader-timvinh4780 2 года назад

    Can you automate what you are doing? - which would save heaps of time sitting in front of computer...