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Just for a simple explanation, I assume there is no spread. Take a position at any point in the direction you like. Example: Buy 0.1 lots at 1.9831. At the same time or a seconds after placing Buy, put Sell Stop 0.3 lots at 1.9801. Look at the Lots.

forex hedge strategy

If the TP at 1.9861 is not reached, and the price goes down and gets the SL or TP at 1.9771. Then, you have a nice profit of 30 pips because the pending Sell Stop had become an active Order (Short) earlier in the move at 0.3 lots.

forex hedging strategy

But if chart TP and SL at 1.9771 are not reached, and the market price goes uptrend again, you have to have a Buy Stop in place at 1.9830 in anticipation. When Sell Stop was reached and became active Sell order 0.3 lot (picture: number 2), you have to immediately place a pending Buy Stop of 0.6 lots at 1.9831 (pic: number 3).

forex hedge strategy 1

If the price goes up and hits SL or TP at 1.9860, you have a profit of 30 pips.

forex hedge strategy 2

If the market price goes down again without reaching any of the TPS, then continue anticipating with pending Sell Stop of 1.2 lots, then Buy 2.4 lot, then Continue this until we meet the expected profit. Lots: 0.3, 0.1, 0.6, 1.2, 2.4, 4.8, 9.6, 19.2, 76.8 and 38.4.

. In this example, I use 30; 60; 30 configurations (TP 30 pips, SL 60 pips, and Current Hedging Distant 30 pips).but you can try 15; 30; 15, 60; 120; 60. Also, we can maximize profits by testing 60; 120; 30 or 30; 60; 15 configurations.

With the spread, choose the pair with the tightest spread like Eur/Usd. Usually, the spread is only around two pips. When The tighter the chart spreads, the more sure that you win. I think this is the “Never Lose in Forex Strategy“…let the chart price move to anywhere it likes; we still get the good profits anyway.

The whole “secret” (if there is any secret) is to find a “good time period” that the market will move good enough to guarantee the pips for your profit. This strategy works with any trading method. (SEE COMMENTS BELOW)

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Forex_Hedging_Strategy-2

Asian Breakout using Line-1 and Line-4.
You can use any range you want.

You need to know which time period the market has enough movements for the pips you need. And, the most important thing is not to end up with buy-sell-buy-sell too often till you run out of margin.

profitable Forex_Hedging_Strategy-2

Sorry, the above forex chart doesn’t mark up the last trade “Buy-6”,

Comments: now, I hope that you see the incredible possibilities of this forex strategy. In summary, you open a potential trade in the direction of the prevailing trend. I would suggest using the H1 and H4 charts to determine this direction. Further, I would recommend using the M30 or M15 as your trading and timing chart. With this, you will usually hit your TP target 92% of the time, and your Forex hedge won’t be activated. As mentioned in the #7 topic above, keeping spread low is imperative when using hedging forex strategies. But also, learning how to get the advantage of volatility and momentum is even more critical. So, along with this line, I would suggest looking at some of the most volatile pairs such as the Eur/Jpy, GBP/Jpy, Aud/Jpy, Eur/CHF, GBP/CHF, GBP/Usd, etc. These pairs will give up 40 to 30 pips. So, the extra amount of spread you will pay for these pairs will be worth it. I would still suggest looking for a forex broker with low spreads. The trading model that I’m telling you with this forex strategy is based on MetaTrader 4 indicators, so I suggest checking our recommended broker list. They have some of the lowest spread among MT4 and mt5 brokers. Typically, their spread on the GBP/Jpy is 5 to 4 pips; whereas, most other brokers get 5 to 8 pips. In addition, all MT4 and mt5 platforms allow for true hedging and have two opposing positions open simultaneously on the same pair, and most brokers don’t let this. 

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Hedging_Strategy-2

Trading Line-2 and Line-1 (10 pips) will also win.

Don’t be confused; this method is straightforward, only two things:

  1. choose two price levels (H, L, you decide) at a certain time (you decide); if breakout L, then sell; if breakout H, then buy. TP=SL= (H-L).
  2. Every time you have a some loss, increase the buy/sell lots in this number sequence: 1, 3, 6, 12, 24. etc. If you choose your time and price ranges correctly, there should not be a need for this many trades. You should never need more than one to two trade entries if you properly time the market.
  3. Correctly Learning to take advantage of momentum and volatility is a key element in using this strategy. As mentioned earlier, timing and Periods can be crucial ingredients for your success. Even though this forex strategy can be traded during any forex market session or the time of day, it needs to be understand that when you trade during off-hours or lower volatile sessions such as the Asian and New York Session, it will take longer to achieve your daily profit goal. so, it’s always best to trade during the prime hours of the European/London Session and the New York Session. In addition, we know that the strongest momentum usually occurs during the opening of any market session. So, these times can help you trade with a much high probability of success. TIMING+ MOMENTUM = SUCCESS
Forex_Hedging-2
forex hedgeing

March 28, 2007, is a typical example of a bad day because markets did not move very much. The best way to win this is to recognize current market conditions and learn when to stay out of them. Ranging, small oscillation, or consolidating markets will kill anyone if not recognized and appropriately traded. However, having a suitable trading method to help you identify good setups will help to eliminate any need for multiple trade entries. This strategy will become more of a forex insurance policy guaranteeing you a profit. I include an excellent trading model with instructions on how to use it that will help you identify suitable opportunities.

Suppose you learn to enter the markets using the signals generated by the trading model included with this strategy. In that case, you will find that you will usually hit your initial TP target 90% of the time, and the price will not get anywhere close to your forex hedge trade or initial stop loss.. In this case, the forex hedging strategy replaces the need for a standard stop loss and acts more as a guarantee of profits.

The above examples illustrate using mini-lots; however, as you become more comfortable and proficient with this strategy, you can gradually increase the number of lots trades with an initial goal of working your way up to standard lots. The consistency that you will achieve by making 30 pips any time you want to will lead to the feeling necessary to trade multiple standard lots. when you get to this level of proficiency, your profit potential is unlimited. Whether you realize it yet or not, but this strategy will enable you to trade with virtually no risk.

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