any one can help making such hedge EA please?i am so exhausted...!!
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Many of the professional traders uses hedging strategy instead of stop loss system. This strategy is highly beneficial when market is moving against you and you take some orders in trend and close them after making some profit. This way you can support your loss orders by adding some balance in your account with small small profits while waiting for the original trade to come into profit.
we have opened a buy order but unfortunately it has gone into loss. But to protect it we have opened a sell order with the same lots. So at this stage we have hedged both of the orders where the profit/loss won’t be changed. After a little time when market moved further down we have closed our sell order to book some profit. This way we have closed our hedge order. After that we waited a little for the buy order to get in profit to close it.
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@cmk
What is the question ?
Opening an opposite position on the same instrument with the same volume has the same effect as just closing the first one, this is not a strategy at all.
Now you can just hope for your asset to go back up. -
@cmk Can you please share the link to your project?
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@cmk said in any one can help making such hedge EA please?i am so exhausted...!!:
Many losing traders are often wrong when they trade, and this is proven by using concepts such as hedging strategies, because when you are wrong, the worst thing you can do is continue to place trades.
Fixed it for you. Cut your losses short and wait for a new setup. Don't trade in the opposite direction just because your initial analysis was wrong.
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@seb-0 what most people discredit about heding the same instrument Is that you can basicly cut your exposure any time you want and then fully or partially Open up exposure (the hedge) to average price. Its a benifit.
It also gives back the margin fee when hedging CFDs, meaning once you enter the hedge, you usually have your free margin back, which can be a Advantage in my eyes, ofcurse the equity is still fixed at a loss if the hedge was made in a loss, but the margin cost is zero.
In my eyes hedging is better then martingale, grid and all the other averaging strategys.
Hedging seems to be more linear and controlable risk.So it doesnt have the same effect as just closing the first trade in my eyes, it gives you more options to manage and average positions, but ofcurse that comes with more risk too.
I would say it can't be Compared with taking a stop loss or closing the first position.We can argue that a SL might be less risk, simpler and more controlable risk, but we cant Compared it to hedging, becouse when we hedge, we have the goal to average price, when we use a SL we want to control risk and Exit a Position at a certin price.
