Check out this Hedge Strategy I use vs a Stop Loss! Need Help!!

[Aspecpower]

Hey Everyone, I use this and have created a script in FXDreema for the 1st Hedge to be placed and the SL of the original Position to be moved. From there, I remove the EA because I am stuck and I manage any additional hedge legs that are necessary manually. It is all about proper sizing and placement of the initial stops for your starting position. You need to keep in mind how easily the trade will close based on where the new TP will be of the 1st leg of a hedge. I trade using this technique with great success, happy to share with anyone but I need help. The math is correct in lot sizing based on moving the original position TP to a 1:1 R/R AFTER the hedge order triggers. The math is different if you stay at a 2:1 or 3:1 etc. I prefer to change the trade to 1:1 once hedged so as to close out all positions more quickly. If not 1:1, the distance of the TP of the Hedge will be the same size in pips/pts as your original position's TP. There is a greater possibility of trading in range and needing additional hedged legs. Downside: The lot size increases substantially as you go down from an initial trade of either 3:1/2:1 down to a 1:1. The size of your account is not so much the issue because hedging allows you to generally offset your margin such that only the difference of lot sizing from long vs short is factored against your limits. The bigger issue is if you are in fact adding legs to the hedge, the sideway nature of the trade is causing both sides of the trade to be negative and it makes your floating P/L look pretty rough until the trades close. For anyone with funded accounts, you have to be careful and size down while figuring out how to structure your trades. If anyone is interested in the actual equations for the other R/R ratios I will gladly give them out if we can get some movement and help in completing this EA:)

Needs to work on manual or auto trades and with an on/off button
1st Position opens w/ SL and TP
Turn "on" Hedge EA or drag/drop to chart
1st Hedge:

Pending Order is placed on SL of 1st Position
*LOT Size: 2X of 1st Position
TP of Pending Order is the same size in pips as 1st Position SL.
SL of Pending Order is: 2X Pip Size of TP (0.5R/R)
Move SL of 1st Position to TP of Pending Order
"If" 1st Hedge Triggers, place 2nd Hedge Pending Order:

Move TP of Original Position to SL of 1st Hedge. Now all open positions are at 0.5R/R
Pending Order (2nd Hedge) is placed at the same Entry, SL and TP of 1st Position
*Lot Size: 3X of 1st Position
"If" 2nd Hedge Triggers, place 3rd Hedge Pending Order:

Pending Order is placed at same Entry, SL and TP of 1st Hedge Position
***LOT Size: 2X of LAST HEDGE LOT SIZE
"If" Neither SL or TP levels trigger, Pending Orders (New Hedges) are placed each time price reverses and crosses the opposite Entry Level. Lot Size continues to increase @ 2X of the LAST Hedge. All Buy Orders/Positions have the same Entry, SL and TP. All Sell Orders/Positions have the same Entry, SL and TP. ALL orders will close when TP level is reached on either end of the range.

The last Pending Order that is "NOT" opened should be deleted after the trade closes.

I would love to add a setting that would close ALL orders based on a floating p/l total of all positions in the current hedge.

Let me know what you think and if you'd like me to email you a spreadsheet or anything else. So far I have a very simple FXDreema EA that puts on the 1st hedge order and moves the SL of the 1st position to the TP of the Hedge. I then close the EA and manage the trade manually.

THANKS!!!!!

[l'andorrà]

@aspecpower This is the second thread you opened for the same question. Please don't duplicate threads. I replied to the first one.

[Aspecpower]

@l-andorrà Sorry about that, wasn't sure which category was the best place to post the request...thanks!