Hi guys (and gals),
I am looking for an EA or a function that I can add to an existing EA, that will maintain a hedge order at a break even level.
'What's the guy talking about?' I already hear you say.
OK, Imagine this scenario: You have one or a series of trades where the market has gone against you and you do not want to take a loss yet, because you'd rather wait for the market to turn back. So in order to protect your orders from being stopped out you place a hedge (same total lot size) in opposite direction. So far, so good, but you need to get out of the hedge at some time without risking a huge loss.
Example: I sell 1.15 lot at 1.6100 in anticipation of a downward market. Instead of moving down, the pair moves up and at a certain pre-determined level e.g. 1.6250 I place a pending buy-stop order for 1.15 lot. Once this is triggered, I will be more or less status quo no matter which way the market moves, except for the swaps/rollover. If the market continues to move up the value of the buy order will outweigh the continuous reduction of value in the sell order.
Now the tricky part that I want to achieve is the following: When the market moves down under the 1.6250 again the hedge order shall be closed at break-even. A new pending order should be set at the same price, or as close as possible depending on the price movement, in order to secure a continued 'insurance' against repeated upward movements.
E.g. the first hedge closes as the price reaches 1.6247 (Assuming a 3-pip spread) and immediately places a buy-stop at 1.6250 again.
Please, do not respond with comments like: 'Never trade without a S/L' or other friendly advice to teach me how to trade according to your rules, because I know what I am trying to achieve here (although it may not seem so from your perspective) and I just need to know if anyone in this great community has an idea or suggestion on how to proceed. The situation is that I have a close friend who is in this situation and he does not have the time to manage the hedge 24/7. So if a small EA can manage this for him until the market for his pair eventually turns back we can both relax and wait out the storm instead of risk being caught in the 'hedge trap' or losing out to the market.
Thanks in advance for your hopefully fabulous suggestions and recommendations. May your pips be plenty.