Zone Recovery Hedge
- Utilità
- Shokhboz Mamarasulov
- Versione: 1.0
- Attivazioni: 5
The Zone Recovery Hedge strategy works by creating a price zone between two levels (above and below the current entry price). Instead of closing a losing position at a stop loss, the system opens an opposite (hedging) position when price moves against the trade. This creates a "zone" in which future movements can help recover the loss.
-
Initial Trade: A buy or sell order is placed.
-
Zone Definition: A fixed distance (in pips) from the entry is set to trigger a hedge order in the opposite direction.
-
Hedge Trade: If price moves into the opposite zone, a trade of equal or larger lot size is opened in the opposite direction.
-
Recovery Mechanism: As price continues moving within or out of the zone, additional hedge trades may be layered. The system aims to capture profits when price eventually exits the zone, covering previous floating losses.
-
Lot Sizing: Often uses martingale (increasing lot sizes) or fixed hedge volumes to accelerate recovery.
-
Exit Condition: When combined trades reach a net profit, all positions are closed.
