Topic: Hedging Strategy ?


Is it possible to use hedging for a no loss strategy.


1. Open both buy and sell positions (same amount) at the same time in a trending pair.
2. Then wait until the pair has moved (in whichever direction) until its reached its resistance/support and starts to retrace.
3. Then take profit on the position that the market moved in favour with.
4. Then wait until the pair has reached the end of its retracement and close the losing trade.

Would't this method work, as the profit you took with the profitable trade be greater than the loss of the losing trade because of the retracement ?

Re: Hedging Strategy ?

Until you start to develop a strategy your questions will be very difficult to reply to.

I suggest that you start to work on the strategy and then when you run into a difficulty, you can post what you have and request some help.

My 'secret' goal is to push EA Studio until I can net 3000 pips per day....

Re: Hedging Strategy ?

No, because your "hedging" with the same instrument- it is the equivalent of being flat.  Step 1 in your strategy provides no value because you can accomplish the same thing by not trading at all.

This strategy is a basic S/R counter-trend strategy but it is inferior since it is doing twice the transaction costs.  What happens if there is no retracement, but it keeps on trending?  There is a loss.

Re: Hedging Strategy ?

But is it possible to put pending orders?