If this video helped you, a thumbs up (👍) is always appreciated. To get more trading tutorials, subscribe and hit the bell (🔔). Thanks 🙏 🔥 Get the FREE Forex hedging beginner's guide: www.tradingheroes.com/forex-hedging-strategy-pdf/
Hi Hugh. Thanks for this vid! My friend is currently working on AI for his project and he says AI on MT4 may intentionally stop traders' trade before prices move the other way. Go figure!
This is exactly what I came up with after four years of struggle in forex. Great to know that other people think in the similar way. The banks hedge funds and institutions trade this way of course. They won't go and put a million dollar worth of trade with a static SL and watch their money go to trash without a reason and in the end painfully watching the price hit their TP. I run cycles of 10 days. I have an entry and exit method that guarantees 95% success, it is based on SMC and ICT. I let my trades go loose and do their thing for 10 days. TPs are there, but no SL. The goal is to add double the amount than what I am losing in running trades. When this happen, bam....I square.
I just started paper trading recently and I've come to realize that my P&L is negative because I keep getting stopped out only to have the trade hit my TP a little while later. Very annoying. I was thinking that maybe I'm insane but I'm going to try to (paper) trade without a SL as an experiment. Didn't think we could do long and short simultaneously in the U.S. but as I see from your video and the comments below, there is a work around. I figured if 95% of traders are losing money and most are using SL, then maybe do something different. I don't have much money so if I blow my account, I don't care. I'm going to give this a try. Thanks!
I have planned out this execution a few time. Taken big profits on the winning trade, but then with the charts not moving back towards the losing hedge, I freak out and close the loss…essentially giving back my profits. I then watch as my original plan would’ve worked perfectly. Sooo frustrating! How do you build the courage to hold and wait while facing massive drawdown in fear??! There’s a fine line between stupidity and courage, but I think courage in the face of fear is what makes a very profitable trader. Thankfully I’ve never given my own capital to the market, only profits…
@@TradingHeroes I traded on demo when I first started learning FX for 6 months. On demo I’m a great trader 😆. I’m just working on controlling fear with smaller position size and working up from there over time. I should add, I traded stocks without leverage for years before moving into FX. So I understand the market etc, but I think using leverage has thrown me off because someone else has control of when & if I get closed out. I’ll just keep going and work on getting the emotion out of trading….
Awesome, keep going! If you release emotional attachment to the position once you open it, that helps. Be OK with whatever happens. Easier said than done obviously.
I just started a paper trading account to learn and get started until I turn 18 soon to open a brokerage account and I took $100 to $7,500 in a matter of 3 weeks without a stop loss. Just did a $2,700 week!
If the price go down and activate the sell stop, then any move downward will have greater loss of the buy position more than the profit of the sell position, remember, they have the same size 10,000 units but there is a loss of extra 146 pips from the buy position.
Been Trading for only two months now. This makes total sense. And it has helped. Took my account from 1000 to 7000 in one month. I only us Support and Resistance. And depending on my availability, I use either stop loss or hedging ( Mostly Hedging).
Agreed, the issue for me is prop firm rules. One firm even require a SL with risk less than 2%. All have an open drawdown of max 5%, more and you loose your account. Any suggestion?
I never put a stop loss in forex ot stocks, just in Gold (and only if i buy/sell more than a certain quantity of money) If you put a stop loss and the value hits that stop loss, you lose money 100%. If you dont put stop loss, the worst case scenario is to have a tamporally loss of money, but you really dont lose that money untill you close that trade, thing that I never do. Just wait for that forex/stock to recover its original level (thing that always happens, just a matter of time as buyers/sellers enter the trade to take advantage of the price) Hedging works, just open a long position and than a short position (with a little more sum), and wait for the same mechanism, when sellers(buyers enter the trade and do the work for you. So you earn money and wait for the proce to recover the original price
This one is simple, "the market is a BUY and SELL" so if you want to win just open 2 accounts with different brokers, same amount, same liverage then you go short long and short in positions, apply proper risk management, always put a SL to prevent losing lot of money in the losing account that time, it's a BUY and SELL market so the other account is to hit TP, it's as simple as that, GOODLUCK YO🎉
@andrewbongani2408. Please, are you on telegram or any social media? I want to follow you so you can share with me a better insight on the said strategy that you are using. Please 🙏
most of the time happened that the price comes for the same support level then it will come more low just testing it then bounce back upward , unless there is something wrong with your analysis or there is news impact is hitting on ,but anyway I like the way how you opened 2 trades in 1 trade ,so best thing i guess to manage this strategy with MA and RSI to see where the trend it coming then I will use your strategy
What do we do if the market goes 1 thousand pips in either direct in a single bar? would you place stop losses high and low above the current prices just in case? I would think if one account busts the other one will fill with money right?
Thanks for sharing this video. I have recently started trading and using this method, which is working for me quite fairly. However, I wasn't sure if I am doing the right thing as everyone talks about using stop loss, which didn't work for me.
This is what I've been looking for, and will study it further as I see potential on this right now if done correctly. It makes complete sense that EURUSD was used in this video. Thank you very much, Hugh for sharing us this wonderful concept. =)
indeed! I've been looking for a way to figure this system out, and just recently stumbled upon ur channel... thank you for explaining the concept wonderfully.. this "creative" method make sense.
Great info Hugh! In order to have these inter trades, what time frame do you think examplifies a good stop out plan where you are actually taking counter hedges? I am thinking maybe you are using the daily and then scaling down to the HR or less time frames. Nice video
Hi, I'm not sure what you mean. Maybe you can clarify. There is no stop loss in this method, so I don't have a stop out plan. The timeframe will depend on what you like best.
The pending stop 'hedge' short order needs to be larger than the original 10k lot long position so that if this is triggered and price tanks, it doesn't have to move very far to get to net break even on both trades and then move into profit. If the stop sell is triggered and price then reverses back up, add to the original long position such that the aggregate size of the two longs is greater than the single short position. As previously, price won't have to rise very far to get to net break even and then move into profit. Eventually, price will break out of the range and produce a winning trade. However, it's essential to calculate your position size in advance and know how many additional long and short positions can be triggered before you use up your available margin and are unable to add more positions. So, start with a tiny, tiny, tiny initial position size (e.g. 0.1%) and be prepared to cut the entire thing for a large predetermined loss if price refuses to break out of the range. The risk of this happening is small, but it will happen one day.
@@TradingHeroes Why's it better? Using the approach I've outlined will result in a net profitable trade when there's an eventual breakout from the range. And the beauty of it is that the trader doesn't have to second guess which way price will go. Moreover, if there's a strong move in either direction, the trader can cut the smaller losing leg and let the larger profitable leg run.
By trading a bigger size it's adding additional risk to the trade. Then the tendency is to make the next trade bigger, etc. For me, it's best to hedge, reassess, then decide on the best move.
@@TradingHeroes I maintain that the method I outline is safer for a novice trader as s/he doesn't have to make any decisions about market direction. Your way may work well for experienced traders, but a novice will quickly get into an almighty mess. Your point about size is on point - I agree 100% - which is why in my initial comment I suggested "a tiny, tiny, tiny initial position size (e.g. 0.1%)". This is essential as a means of getting into a position without any psychological stress and then adding to it once it's in profit. Lastly, as you are one of the few RUclips channels to focus on hedging strategies (Nick Shawn being the other that I'm aware of), might I suggest that you do a video on the approach I outline if only to make your content on the topic more complete. At least try it and if you don't like it you can explain why - which will be of interest and benefit to all your subscribers. ;-)
Very interesting approach, I use the same way and have been casted as a trading outlaw - but it works, really. If you trade a small size, on a very liquid pair like EURUSD - you will be in drawdown, but if your strategy gives you multiple entries throughout the week - you can still hold a fairly large drawdown - because it will eventually hit your tp. How do you hande long stretches of drawdown?
I'm happy to hear that it's working for you. It is a little known method, unfortunately. For me, there are 2 keys...keeping the hedges as small as possible and having multiple exit methods if I'm wrong about the initial direction.
Hey man, if i got one trade running in loss what do you suggest i do? If i got a buy running in loss do you suggest i sell stop, how many pips should my buy be loss for me to put a sell stop. Im trading the dow jones
Hi. It is my line of thinking exactly. I am still working through the details how and where to set them in what circumstances. ... Since it was 2 years since you posted this video, is there something new? Do you still trade like this?
I've been looking for a solution to get out of a hedging I'm in, it's great to find the idea of roll-offs, but at what point do I stop rolling off, and is it possible to get the original trade to be so small that I can hold it without having to hedge again?
Hi, In the way I hedge, I stop rolling off once I'm flat. Yes, it is possible to get the trade very small, but I would prefer to get to flat. The alternatives are to start with small lots, or hedge fairly quickly to lock in a small loss, then find another opportunity that will erase that loss.
@@TradingHeroes I see, so by your experience how long would it take to get a hedging of 5 lots down flat, and is it dangerous to hedge heavily in the beginning? I appreciate your response.
I CANT believe there is someone who thinks the same and has the same simple logic. Please, how can I get in touch? I’m in shock. Because I have ne er heard of anyone either and everyone I try to explain makes fun of me. And I’m like wtf? Why do you trade the way you do??? Can I email you or smth?
Hi … if my trading account has $50 and I make 2 trades simultaneously, with a lot 0.01 , where would you recommend my stop loss ? How many pips or USD in the minus … ?
You need to have a tested trading strategy. I can't tell you where to randomly put your stops. Watch these videos: ruclips.net/p/PLOn0-_K-aYvQpQKvcZT52epvveMm9ttlz
If this video helped you, a thumbs up (👍) is always appreciated. To get more trading tutorials, subscribe and hit the bell (🔔). Thanks 🙏
🔥 Get the FREE Forex hedging beginner's guide: www.tradingheroes.com/forex-hedging-strategy-pdf/
Hi Hugh. Thanks for this vid! My friend is currently working on AI for his project and he says AI on MT4 may intentionally stop traders' trade before prices move the other way. Go figure!
Thanks for the input!
@@TradingHeroes Hi, the link on your website to purchase the hedge course isn't working?
That's exactly how I trade and I only lose when overisking. Keep it up my brother. It's good to see that I'm not alone.
Same here :)
Here that! Same here, only trade us30.
This is exactly what I came up with after four years of struggle in forex. Great to know that other people think in the similar way. The banks hedge funds and institutions trade this way of course. They won't go and put a million dollar worth of trade with a static SL and watch their money go to trash without a reason and in the end painfully watching the price hit their TP. I run cycles of 10 days. I have an entry and exit method that guarantees 95% success, it is based on SMC and ICT. I let my trades go loose and do their thing for 10 days. TPs are there, but no SL. The goal is to add double the amount than what I am losing in running trades. When this happen, bam....I square.
I just started paper trading recently and I've come to realize that my P&L is negative because I keep getting stopped out only to have the trade hit my TP a little while later. Very annoying. I was thinking that maybe I'm insane but I'm going to try to (paper) trade without a SL as an experiment. Didn't think we could do long and short simultaneously in the U.S. but as I see from your video and the comments below, there is a work around. I figured if 95% of traders are losing money and most are using SL, then maybe do something different. I don't have much money so if I blow my account, I don't care. I'm going to give this a try. Thanks!
Fantastic, a demo account is the best place to experiment with these ideas. Let me know how it goes!
Nas 100 is great with this no SL strategy! I rarely lose a trade! The price always hit my TP.
Wassup, bro. Can you elaborate more about this, please?
I have planned out this execution a few time. Taken big profits on the winning trade, but then with the charts not moving back towards the losing hedge, I freak out and close the loss…essentially giving back my profits. I then watch as my original plan would’ve worked perfectly. Sooo frustrating! How do you build the courage to hold and wait while facing massive drawdown in fear??! There’s a fine line between stupidity and courage, but I think courage in the face of fear is what makes a very profitable trader. Thankfully I’ve never given my own capital to the market, only profits…
This is natural. Practice in a demo account until you master it.
@@TradingHeroes I traded on demo when I first started learning FX for 6 months. On demo I’m a great trader 😆. I’m just working on controlling fear with smaller position size and working up from there over time. I should add, I traded stocks without leverage for years before moving into FX. So I understand the market etc, but I think using leverage has thrown me off because someone else has control of when & if I get closed out. I’ll just keep going and work on getting the emotion out of trading….
Awesome, keep going! If you release emotional attachment to the position once you open it, that helps. Be OK with whatever happens. Easier said than done obviously.
I just started a paper trading account to learn and get started until I turn 18 soon to open a brokerage account and I took $100 to $7,500 in a matter of 3 weeks without a stop loss. Just did a $2,700 week!
did u hedge ?
@@shxrtkut615 what is that?
@@shxrtkut615 I just basically waited until I was profitable and then when I wanted to get out I got out.
If the price go down and activate the sell stop, then any move downward will have greater loss of the buy position more than the profit of the sell position, remember, they have the same size 10,000 units but there is a loss of extra 146 pips from the buy position.
That's a common misunderstanding about hedging.
Watch this intro to hedging: ruclips.net/video/3hCiJr1maAg/видео.html
Thank you!
Good idea about that you must think your head and have your own opinion and view on the market.
Take care and good luck😉👍
Yes!
Newbies going to love this one.
I did 🤝
@@DjDownBadd lost?
Been Trading for only two months now. This makes total sense. And it has helped. Took my account from 1000 to 7000 in one month. I only us Support and Resistance. And depending on my availability, I use either stop loss or hedging ( Mostly Hedging).
let them pay some lesson fees.
This is working perfectly
Happy to hear it!
Careful at the moment you close that short with profit. If the long losing trade is to big it will immediately close negative due to a margin call
That's why I roll of part of the losing side, then re-hedge.
This advice is gold, i first roll of part of the losing side, and then close the winning one
Agreed, the issue for me is prop firm rules. One firm even require a SL with risk less than 2%. All have an open drawdown of max 5%, more and you loose your account. Any suggestion?
Practice in demo or simulation until you can hit their criteria.
I never put a stop loss in forex ot stocks, just in Gold (and only if i buy/sell more than a certain quantity of money)
If you put a stop loss and the value hits that stop loss, you lose money 100%.
If you dont put stop loss, the worst case scenario is to have a tamporally loss of money, but you really dont lose that money untill you close that trade, thing that I never do. Just wait for that forex/stock to recover its original level (thing that always happens, just a matter of time as buyers/sellers enter the trade to take advantage of the price)
Hedging works, just open a long position and than a short position (with a little more sum), and wait for the same mechanism, when sellers(buyers enter the trade and do the work for you.
So you earn money and wait for the proce to recover the original price
This one is simple, "the market is a BUY and SELL" so if you want to win just open 2 accounts with different brokers, same amount, same liverage then you go short long and short in positions, apply proper risk management, always put a SL to prevent losing lot of money in the losing account that time, it's a BUY and SELL market so the other account is to hit TP, it's as simple as that, GOODLUCK YO🎉
I completely agree with you
My self I buy and sell at the same time,and use normal entry strategy for exit. At 50% discount I close the loosing trade
Brilliant!
@andrewbongani2408. Please, are you on telegram or any social media? I want to follow you so you can share with me a better insight on the said strategy that you are using. Please 🙏
🎉the best forex strategy I've ever came across, thank you so much bru, may God bless your mind even more and more🎉🎉🎉🎉
You're welcome, glad it helped.
most of the time happened that the price comes for the same support level then it will come more low just testing it then bounce back upward , unless there is something wrong with your analysis or there is news impact is hitting on ,but anyway I like the way how you opened 2 trades in 1 trade ,so best thing i guess to manage this strategy with MA and RSI to see where the trend it coming then I will use your strategy
What do we do if the market goes 1 thousand pips in either direct in a single bar? would you place stop losses high and low above the current prices just in case? I would think if one account busts the other one will fill with money right?
I would hedge with a pending order.
Thanks for sharing this video. I have recently started trading and using this method, which is working for me quite fairly. However, I wasn't sure if I am doing the right thing as everyone talks about using stop loss, which didn't work for me.
Awesome! Quite a few pros don't use stop losses.
This is what I've been looking for, and will study it further as I see potential on this right now if done correctly. It makes complete sense that EURUSD was used in this video. Thank you very much, Hugh for sharing us this wonderful concept. =)
You're welcome, glad it resonated with you.
indeed! I've been looking for a way to figure this system out, and just recently stumbled upon ur channel... thank you for explaining the concept wonderfully.. this "creative" method make sense.
I got not to use a stop loss also in most of my entry
Great info Hugh! In order to have these inter trades, what time frame do you think examplifies a good stop out plan where you are actually taking counter hedges? I am thinking maybe you are using the daily and then scaling down to the HR or less time frames. Nice video
Hi, I'm not sure what you mean. Maybe you can clarify. There is no stop loss in this method, so I don't have a stop out plan. The timeframe will depend on what you like best.
The camera quality is great.
The pending stop 'hedge' short order needs to be larger than the original 10k lot long position so that if this is triggered and price tanks, it doesn't have to move very far to get to net break even on both trades and then move into profit. If the stop sell is triggered and price then reverses back up, add to the original long position such that the aggregate size of the two longs is greater than the single short position. As previously, price won't have to rise very far to get to net break even and then move into profit. Eventually, price will break out of the range and produce a winning trade. However, it's essential to calculate your position size in advance and know how many additional long and short positions can be triggered before you use up your available margin and are unable to add more positions. So, start with a tiny, tiny, tiny initial position size (e.g. 0.1%) and be prepared to cut the entire thing for a large predetermined loss if price refuses to break out of the range. The risk of this happening is small, but it will happen one day.
It doesn't have to be bigger. It's actually better if it's the same size.
@@TradingHeroes
Why's it better?
Using the approach I've outlined will result in a net profitable trade when there's an eventual breakout from the range. And the beauty of it is that the trader doesn't have to second guess which way price will go. Moreover, if there's a strong move in either direction, the trader can cut the smaller losing leg and let the larger profitable leg run.
By trading a bigger size it's adding additional risk to the trade. Then the tendency is to make the next trade bigger, etc. For me, it's best to hedge, reassess, then decide on the best move.
@@TradingHeroes
I maintain that the method I outline is safer for a novice trader as s/he doesn't have to make any decisions about market direction. Your way may work well for experienced traders, but a novice will quickly get into an almighty mess. Your point about size is on point - I agree 100% - which is why in my initial comment I suggested "a tiny, tiny, tiny initial position size (e.g. 0.1%)". This is essential as a means of getting into a position without any psychological stress and then adding to it once it's in profit. Lastly, as you are one of the few RUclips channels to focus on hedging strategies (Nick Shawn being the other that I'm aware of), might I suggest that you do a video on the approach I outline if only to make your content on the topic more complete. At least try it and if you don't like it you can explain why - which will be of interest and benefit to all your subscribers. ;-)
Very interesting approach, I use the same way and have been casted as a trading outlaw - but it works, really. If you trade a small size, on a very liquid pair like EURUSD - you will be in drawdown, but if your strategy gives you multiple entries throughout the week - you can still hold a fairly large drawdown - because it will eventually hit your tp. How do you hande long stretches of drawdown?
I'm happy to hear that it's working for you. It is a little known method, unfortunately. For me, there are 2 keys...keeping the hedges as small as possible and having multiple exit methods if I'm wrong about the initial direction.
@@TradingHeroes do you mean you partial out the losses at key levels?
That's one method.
Hey man, if i got one trade running in loss what do you suggest i do? If i got a buy running in loss do you suggest i sell stop, how many pips should my buy be loss for me to put a sell stop. Im trading the dow jones
You have no strategy. Create a strategy, backtest that strategy. What you're doing right now is like playing chess without knowing the rules.
If you hold on to the trades (main position + hedge) for a long time, there will be cost incurred via the daily rollover swap.
Of course, that's why it's important to
Roll Off positions as fast as possible.
Hi, sir am from India, so which forex app is best for forex currency and commodities trading
Hi MT4 and MT5 are easily accessible.
Hi. It is my line of thinking exactly. I am still working through the details how and where to set them in what circumstances. ...
Since it was 2 years since you posted this video, is there something new? Do you still trade like this?
Still doing it.
Amazing video!, How did yo connect multiple Oanda accounts into TradingView?
They are sub accounts of the main account.
If it’s illegal to take out buy and sell orders simultaneously in the US, is it possible to do grid trading in the US?
It's not illegal to hedge. It is possible to grid trade.
There is no restriction on hedging on my account, i have started using hedging instead of a stop loss and I have cut my losses in half.
Happy to hear it!
Hi, you talk about hedge , that you mean take profit TP ISN'T ?
No
rollover effects crypto aswell??
No, only Forex
Hi, the link on your website to purchase the hedge course isn't working?
Hi, sorry for the confusion. I'm working on a new version. It will be available soon.
I've been looking for a solution to get out of a hedging I'm in, it's great to find the idea of roll-offs, but at what point do I stop rolling off, and is it possible to get the original trade to be so small that I can hold it without having to hedge again?
Hi,
In the way I hedge, I stop rolling off once I'm flat.
Yes, it is possible to get the trade very small, but I would prefer to get to flat. The alternatives are to start with small lots, or hedge fairly quickly to lock in a small loss, then find another opportunity that will erase that loss.
@@TradingHeroes I see, so by your experience how long would it take to get a hedging of 5 lots down flat, and is it dangerous to hedge heavily in the beginning? I appreciate your response.
I CANT believe there is someone who thinks the same and has the same simple logic. Please, how can I get in touch? I’m in shock. Because I have ne er heard of anyone either and everyone I try to explain makes fun of me. And I’m like wtf? Why do you trade the way you do??? Can I email you or smth?
Hedging is so underrated
Totally.
Thanks for that.
You're welcome!
Sounds great unless you are in the USA where there is no hedging, and FIFO. No sl can be set if two trades are the same size. Limit of 1:50 margin.
It can be done in the US, if you understand the loopholes.
wtf are you talking about , everything is used in the states
Is there a way to send an email or something to you? You’re extraordinary
Hi … if my trading account has $50 and I make 2 trades simultaneously, with a lot 0.01 , where would you recommend my stop loss ? How many pips or USD in the minus … ?
You need to have a tested trading strategy. I can't tell you where to randomly put your stops. Watch these videos: ruclips.net/p/PLOn0-_K-aYvQpQKvcZT52epvveMm9ttlz
Interesting though watch out for the margin used by the additional positions which could get you in trouble with a margin call
If you manage your risk correctly, you don't have to worry about a margin call. I've never had one.
Great stuff...thanks
My pleasure!
What was your longest losing trade that you had to dig yourself out of with this method?
About 5 months
Thx bro
You're welcome!
Does your rsi alert indicator work for cryptocurrency
If your broker offers cryptocurrency trading through MetaTrader.
I never like to use stop-loss. My losses has Been huge due to this fact though.
You gotta have some sort of risk management if you aren't going to use stops.
@@TradingHeroes Thanks, still learning this market. Learning the hard way for sure
😄