Hedging system - 4xworks!
Read it, it seems nice but actually when entering LONG eurusd and LONG USDCHF (or any other negative-correlation pairs) you are actually entering LONG EURCHF, so nothing is really achieved.
You may see profits from time to time but judging from Risk:Reward point of view it is a negative expectancy system.
Read it, it seems nice but actually when entering LONG eurusd and LONG USDCHF (or any other negative-correlation pairs) you are actually entering LONG EURCHF, so nothing is really achieved. You may see profits from time to time but judging from Risk:Reward point of view it is a negative expectancy system.
Why you always misses the point... The aim of this system is minimizing your drawdown. Had you take the trade directly on the eurchf, and it goes against you. You stoploss gets triggered or you get into loss or drawdown. With the hedging method, your account would be quite safer indeed. Take a look at the shot below and I will try to explain what this system is intended for.
So, do you think what you wrote above to be still valid and applicable? Would like to hear back.
Please do not bask each and every system without properly testing it for yourself. This is pure intellectual dishonesty.
Here is a little update on these trades. Had this trade been taken on EURCHF alone as Autotrader2 suggested, we would have been only +1 pips in profit but with the hedging method, we are +5 pips in profit. This is 4 pips more!
Thanks for sharing the links and explanation, this is great!
phoenix421
Thank you for your input. A little twist to this system is playing with the lot size for the trades. Instead of keeping the lotsize equal for both the eurusd and usdchf. You can use the following formula to calculate specif lotsize for each of the trade.
Lots for eurusd = current usdchf price rounded to your lot size. For example if usdchf is trading at 1.1243, your lotsize will be 1.12 lots for standard account, 0.11 lots for mini account and 0.01 for micro account.
Lots for usdchf = current eurusd price rounded to your lot size. Calculation same as above.
Have fun. Hope to hear back
Interesting hedging method, I will try it and keep you posted. Thanks for sharing.
Interesting hedging method, I will try it and keep you posted. Thanks for sharing.
Thank you... I am trying it as well and I must admit that this is a very interesting system. Especially when it comes to the lowering of the drawdown and risk on ones account. I will definitely appreciate that you share your results with us. I am working on a EA for the trade entries only. So far it is doing fine.
An update on some of the trades I took following this system.
An update on some of the trades I took following this system.
By the way, boss, where's the "Thanks" button?
phoenix421
It's sound good system , keep update the performance... thanks. 
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Hello
Would like to share this ebook with you. It is a nice hedging system neatly explained and well detailed. It uses the EURUSD and USDCHF currency pairs. It is not the ordinary hedge that we know but rather a different one and this hedge inface relies on 3 pairs, it need the EURCHF to work.
The author has also written some very nice words on the proper trading psychology that the trader should adopt while he is participating in the market. It give a good idea how greed would not work in the long run, and neither risky trading aiming at xxx amount of pips per week etc.
I hope you will enjoy this reading. Download the book for this rapidshare link
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