Hedging in forex.
Hedging is one good way to manage risk in forex trade. With hedging you can trade the opposite direction of your initial trade without closing that initial trade. It can be helpful when you have a understanding of bigger picture and relative condition of your position. Hedging is mostly suitable you have acquired much experience in forex trading to prevent loss.
I know this is an old thread but im about to give this ago. Has anyone got any updates or anything to add.
thanks in advance.
Anything new on this?
how are the tests going on?
Hedging_Zone_Recovery_Area - expert for MetaTrader 4
Zone Recovery is an advanced hedging system. When the market goes against you by certain number of pips, you open an opposite trade by a trade with slightly bigger lot size.
If the market keeps moving in this new direction, at some point the profit from the profit trade will overtake the loss trade, at which point you can close both the trades.
If the market returns to the previous direction, the trade with the bigger lot size will accumulate loss faster than the older trade which is gaining. In this situation, calculate and open another trade in that direction by which the initial trade and the third trade together will be bigger than the second trade.
This back and forth hedging strategy can be continued for 6 iterations until the market moves to a level which can give profit or break even.
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Stanislav Milka, 2018.05.27 10:21
Aharon Tzadik, 2018.05.27 18:12
Probably yes, first of all the lotsize should start from one=1 or any other multiple of an integer (but if it is bigger than one it comes out too large), means that the multiplier=1 should be one, any other number changes the balance between the trades and causes a loss!
The possibility of changing the multiplier is so that people will come to this conclusion themselves,or if they have a lot of money they can start with "multiplier=2".
The "Zone recovery area" shuld be around 50,
The "Take profit " shuld not be less than 150.
Also you need a Volatile market So you will not lose because of commissions.