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Mohammadi
Sep 25 2017 at 06:29
886 posts
The purpose of this thread hedging is useful or not. In order to me, hedging is an investment to reduce the risk of adverse price movements. Practically hedging brings no profit because of your intention. When I open a trade, I always try to support my trade even the trend is going against me. So better to close the trade and open a new one when it seems to be in right trend.
AmDiab
Oct 15 2017 at 07:09
718 posts
I seem, hedging is the most complicated trading style; it’s not the style for the mass people! I have never seen any retail good trader with the hedging trading style.
eafxprofit
forex_trader_[287073]
Oct 15 2017 at 13:45
4 posts
This is Hedge SemiAutomated

HedgeAutomated + OverLap:


Baldo (BaldoN)
Oct 17 2017 at 13:28
522 posts
'Hedge money are dead money' - a man was telling me that many years ago :)
MoneyPumpRobot (YuTsai)
Oct 18 2017 at 06:59
17 posts
After over many decades of history data back testing with more then 30 forex pairs, my opinion is that hedge is functioning same as stop loss. It freeze the stop loss amount in unfavorable time and waiting until the favorable time returns, then react the trading. Instead of loss money by close the loss trade with stop loss. Also, when hedge trading, while unfavorable direction trading is frozen, the other direction start making money. Anyway, it's not new in trading and there are job title called 'Hedge fund manager'😄
vontogr (togr)
Oct 18 2017 at 14:53
4862 posts
YuTsai posted:
After over many decades of history data back testing with more then 30 forex pairs, my opinion is that hedge is functioning same as stop loss. It freeze the stop loss amount in unfavorable time and waiting until the favorable time returns, then react the trading. Instead of loss money by close the loss trade with stop loss. Also, when hedge trading, while unfavorable direction trading is frozen, the other direction start making money. Anyway, it's not new in trading and there are job title called 'Hedge fund manager'😄
Imagine the situation that your position is becoming loosing.
You can either close it or hedge (or it can hit sl and close)
If you hedge it you got 2 positions and your equity drop is fixed.
So it seems there is no advantage to hedge position, the only exception could be when market moves a lot in both directions like during NFP. And in such situation you are able to close both hedged position without loss.
On the other hand it is risky as hell to close one side of hedged positions during such news :)
Buddah5698
Oct 18 2017 at 14:54
16 posts
I agree. I have tried hedging and it just doesn't seem like it is worth the effort
Tiffany (TiffanyK)
Oct 19 2017 at 12:18
427 posts
One more vote for ' I don't think it is worth the effort ' . Maybe hedging is good only for the most experienced professional traders using this style.
Accept the loss as experience
Mohammadi
Oct 20 2017 at 08:58
886 posts
At present I am not willing to hedging at all , because I have bad experience when work using hedging , loss more wider than recover loss, hard part using hedging when should open lock hedging , this is like as dilemma, if good in analysis might possible become profit , but if wrong the way also will making loss more.
NyNFinancial
Oct 22 2017 at 06:32
20 posts
You can create a new way to trade in ForEx if you know how to use hedging. If the market reverses and goes against you, you can not only freeze the loss of a bad trade, but you can earn more than you lose, and close the whole sequence of trades with added profit. See an example in my profile, the N&N Financial's manual trading account.

Ganando dinero en el mercado FX. Earning money in the FX market.
AmDiab
Oct 23 2017 at 06:29
718 posts
BaldoN posted:
'Hedge money are dead money' - a man was telling me that many years ago :)

So true! I have no idea how retail traders can make money by using hedging strategy.
Mell (Mellvt)
Oct 23 2017 at 14:55
1 posts
How if hedge + martiangle
Together we achieve greater heights
eafxprofit
forex_trader_[287073]
Oct 24 2017 at 06:17
4 posts
Hedge in MT4 is Locking Temporary your Equity. You can do other Profit traders and if close that new profit traders - you will receive New + to Balance.

Profit = Equity > Balance.

Usually Martingaile collect new balance but not Equity. Equity go Down when Balance Up
I use Additional balance to kill part of orders from Drawdown - OverLap

In MT5 you cannot Hedge - there if you have 1 sell and you add 1 buy - platform close 1 sell and open Buy at current price
So in Mt4 you have mo possibilities to survive with temporary Hedging.
You can develop a lot of strategies with locked Equity / But for unlock that you need open new orders and use proportion to reduce Locked Lots by new profit.
Money Management
mmltd
Oct 24 2017 at 06:32
31 posts
Hedging is a waste of time and only for people who don't know what direction to trade and those shouldn't be trading in the first place.
vontogr (togr)
Oct 24 2017 at 13:34
4862 posts
TMAs posted:
Hedge in MT4 is Locking Temporary your Equity. You can do other Profit traders and if close that new profit traders - you will receive New + to Balance.

Profit = Equity > Balance.

Usually Martingaile collect new balance but not Equity. Equity go Down when Balance Up
I use Additional balance to kill part of orders from Drawdown - OverLap

In MT5 you cannot Hedge - there if you have 1 sell and you add 1 buy - platform close 1 sell and open Buy at current price
So in Mt4 you have mo possibilities to survive with temporary Hedging.
You can develop a lot of strategies with locked Equity / But for unlock that you need open new orders and use proportion to reduce Locked Lots by new profit.

Not exactly. Especially you can now hedge even in mt5.
Buddah5698
Oct 24 2017 at 13:42
16 posts
I kind of agree but I thought that a lot of pro traders in bank hedge their positions using the options market
leo23
Oct 24 2017 at 13:44
631 posts
It depends on how you define hedging, what you know about hedging, how you use hedging, what type of hedging and what is your basic trading system upon which you are using hedging.

Just hedging doesn't mean anything without a solid base trading system. But hedging can be a very powerful tool to minimise overall risk exposure of your account if you are trading many currency pairs. Also, hedging is useful to make the equity curve smoother for many profitable strategies.
Artificial General Intelligence
Baldo (BaldoN)
Oct 24 2017 at 14:04
522 posts
Buddah5698 posted:
I kind of agree but I thought that a lot of pro traders in bank hedge their positions using the options market

As per my understanding, hedging would make sense more or less for business, which is in general 'long' with their products - for example producers and etc. or long term financial investment in given asset, aiming to benefit with option trades from mid - or short term price decline and keeping on the same time original investment.

Me personally, I do not like hedging (long and short in the same asset) or taking position in the same direction in opposite correlation assets. :)
AmDiab
Dec 26 2018 at 11:38
718 posts
Mohammadi posted:
The purpose of this thread hedging is useful or not. In order to me, hedging is an investment to reduce the risk of adverse price movements. Practically hedging brings no profit because of your intention. When I open a trade, I always try to support my trade even the trend is going against me. So better to close the trade and open a new one when it seems to be in right trend.

I would like to close my trade, then I understand that I opened a trade agilest the trend instead of hedging; hedging is not any solution to me.
LyudmilLukanov
Sep 13 2020 at 11:16
851 posts
leo23 posted:
It depends on how you define hedging, what you know about hedging, how you use hedging, what type of hedging and what is your basic trading system upon which you are using hedging.

Just hedging doesn't mean anything without a solid base trading system. But hedging can be a very powerful tool to minimise overall risk exposure of your account if you are trading many currency pairs. Also, hedging is useful to make the equity curve smoother for many profitable strategies.
Thats right. However, all broker don't allow it. So, traders should choose broker carefully.
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