Hedgeing Strategies and ForexMarket

 

Hi,


Lots of people is talking about the end of the Hedge in the forexmarket. I've some projects that uses hedging strategies but they are in a early stage and I'm not worried about this matter at this moment.

BUT

I know some guys that are using hedging strategies but the result aren't so good. In this forum lots of people is complaining about the Hedge restrictions BUT I NEVER sa one profitable EA that uses Hedge.


Does anyone have something to show? :)


I just ask for a Report


Thanks

 
I have used hedging in real trading. It is possible to limit losses with hedging. The biggest problem is related to the limit of free margin and multiple open reverse orders. You are mostly be flat in the market.
 

Everyone is missing the possibility!! When I have buys and sells.... and the market is going up and down.....I make money going both up AND down....

Good brokers should be happy too... they make twice as much spread profit because I have more orders!!

 
n8937g:

Everyone is missing the possibility!! When I have buys and sells.... and the market is going up and down.....I make money going both up AND down....

Good brokers should be happy too... they make twice as much spread profit because I have more orders!!

Hi,


Do you give 2 orders at the same time, and then profit the buy's when the market is going up and sell the other way?

 
zenoni:
I have used hedging in real trading. It is possible to limit losses with hedging. The biggest problem is related to the limit of free margin and multiple open reverse orders. You are mostly be flat in the market.

Hi, can you explain ?

or give an example?

 
psousa:

Hi, can you explain ?

or give an example?

EUR/USD is at 1.4700

I enter a buy and a sell at 1.4700

The sell has a TP of 1.4650

The buy has a TP of 1.4750

The currency goes up and down we know that....so if it goes up we close the buy at a profit.

Then it goes down and we close the sell at a profit...

We also add positions as it goes one way or the other...but the basic is we know the currency will go up AND down.

Because we study historically we can tell by how much usually...and also how far in a worst case day....

so we determine what the best pipstep is between orders and TP's... and also lot size based on account balance.

 

>>profits from both directions


YES! That is exactly the point -- hedging is an extremely valuable tool for trading that can limit losses and maximize profits from normal price action. True, it has its risks, but what Forex strategy doesn't?


The brokers I have talked to are NOT planning on implementing MT5 because of these restrictions. It is a shame, but it is not the end of hedging. It may be the end of using US brokers, or US "counterparty" brokers (only counterparties have to comply with those NFA regulations).


In the final analysis, it is the retail FX trader who ends up being restricted by this, leaving them at even more of a disadvantage than before. It is just another example of wrong-headed regulations producing far more consequences than benefits.


RS

 
Read this post, there are a lot of talk about hedging: https://www.mql5.com/en/forum/115684
Reason: