ADVANCED CONSISTENT PROFITABLE HEDGING STRATEGIES
Come across your forum accidentally . thanks for the investor account on the demo for the forexstay signal.
I am a programmer by profession and I do write EA as well. I have come a across many strading strategy. What is good I retain. Following is what is I think is crucial to stay in market long and profitable:-
4 main things that are important
1. The risk reward ratio must be good. At least 1:2 . The bigger the better.
2. Improve your winning rate. Refine your winning rate will greatly enhance the profit.
With high risk reward ratio 1:2 , not matter how back you are you only need to be right 35% to breakeven.
All you need is finding a good setups Good setup most of time appear at trendline bounce or trendline break out on daily or 4hr.
Where your stop is less and it have better reward.
3. Open trade base on risk percentage and your stop loss pips size. Let say you have account $100 and you willing to risk 5% for each trade
with a stop loss of 50pips and Tp 100pips. So you will be opening 0.01 lot . If Stop loss is hit you will be losing $5 and when Take profit you will be collecting $10
Lot size to risk = ( ( (RiskPercent/100) * Equity ) / stopLosspip ) / PipValueOfThatCurrency
With this you will know how much is risk loss each time and you can with stand how many times. Let say you risk 2% mean you have 50 times to wipe out your capital.
4. Improve the exit by dividing your target to multiple exit. Let say you have 0.03 Lot open with 1:2 risk reward ratio and you exit and close 0.01 Target 1 at 100% target move to BE+spread
and exit the 2nd target at 200% and close 0.01 plus and the last 0.01 leave it run until it reach another major resistance or there is break trendline. This would maximize the profit if the trend continue.
Forex is a game of stacking your winning odd to gain the maximum profit with less risk
One of the best strategy that i come across is risk like 3 to 4% of your account at a trade to gain 100% with a small stop loss like 15 to 17pips and Take Profit at 100pips.
There will be 3 trade executed one after another if the initial trade successful, the 2nd will be trigger (around 40% target of take profit of 1st trade) and if 2nd sucecssful the 3rd one will be trigger (around 60% to target of take profit of first trade) and all 3 trade heading a same target take profit same to 1st trade.
You will need to move the stop loss of 1st to break even with profit enough to cover the stop loss of 2nd trade . same to 3rd trade , stop loss of 1st and 2 trade is move to a place where it able to cover the stop loss of 3rd trade.
When second trade is execute basically you are on a risk free basis trade with small profit to gain 100%. We are basically using the profit to fund our trade for a risk free 100% again.
with a risk of 3 to 4% you can risk about 25 trades to gain 100%.
We can start with 2 trading account . 1st account as capital with $500 and 2nd account trading , we will be using $100 and risking 3 to 4% for each trade to gain 100% (i.e. $100) .
If we make more then $100 , we will move profit to capital account.
For this strategy to work we just need a sharp entry at those main demand and supply level, support and resistance level , trendline bounce or break , channel bounce and oversold or overbought level.
and 100pips. For each trade level, we may try to catch the trade with 2 or 3 times sine we have small stop loss depend on our preference let say the 1st 2 times is stop our and we manage to capture the 3rd trade at the best price and the trae move 100pips in our favor, will be be losing like 6 to 8% but gain 100% .
High the winning odd and with high risk reward ratio (refer to 4 main important factor above) we can acheive better gain and low risk .
If gaining 100% in a trade is achievable, lower down the target to 20% gain is much much easier in a month.
Hope to hear from your feed back
thank you so much can you show your strategy on an image or a few images?
thanks again
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HELLO DEAR MEMBERS
I AM SO INTERESTED TO FIND A WAY TOGETHER A SAFE HEDGING STRATEGY ,
I THINK A WISDOM HEDGING STRATEGY WITH A STRICT MONEY MANAGEMENT RULE
CAN CHANGE TRADING BUSINESS FROM RISKY TO A SAFE , YES I MEAN EXACTLY A SAFE
BUSINESS...
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FROM BANKS AND BIG HEDGE FUNDS AND SMART MONEY PROFESSIONAL TRADERS $$$$
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SEYEDMAJID MASHARIAN