What's the hedging in the trading online?
Hedging is simply coming up with a way to protect yourself against big loss. Think of a hedge as getting insurance on your trade. Hedging is a way to reduce the amount of loss you would incur if something unexpected happened.
We use usually direct hedging. Is when you are allowed to place a trade that buys a currency pair and then at the same time you can place a trade to sell the same pair.
While the net profit is zero while you have both trades open, you can make more money without incurring additional risk if you time the market just right.
The way a simple forex hedge protects you is that it allows you to trade the opposite direction of your initial trade without having to close that initial trade. It can be argued that it makes more sense to close the initial trade for a loss and place a new trade in a better spot. This is part of trader discretion.
As a trader, you certainly could close your initial trade and enter the market at a better price. The advantage of using the hedge is that you can keep your trade on the market and make money with a second trade that makes a profit as the market moves against your first position. When you suspect the market is going to reverse and go back in your initial trades favor, you can set a stop on the hedging trade, or just close it.
There are many methods for complex hedging of forex trades. Many brokers (USA) do not allow traders to take directly hedged positions in the same account so other approaches are necessary. A way is to use stop&reverse. Is the same way to open a direct hedging, but is difficult to monitorize the floating loss for each pair.
We use usually direct hedging. Is when you are allowed to place a trade that buys a currency pair and then at the same time you can place a trade to sell the same pair.
While the net profit is zero while you have both trades open, you can make more money without incurring additional risk if you time the market just right.
The way a simple forex hedge protects you is that it allows you to trade the opposite direction of your initial trade without having to close that initial trade. It can be argued that it makes more sense to close the initial trade for a loss and place a new trade in a better spot. This is part of trader discretion.
As a trader, you certainly could close your initial trade and enter the market at a better price. The advantage of using the hedge is that you can keep your trade on the market and make money with a second trade that makes a profit as the market moves against your first position. When you suspect the market is going to reverse and go back in your initial trades favor, you can set a stop on the hedging trade, or just close it.
There are many methods for complex hedging of forex trades. Many brokers (USA) do not allow traders to take directly hedged positions in the same account so other approaches are necessary. A way is to use stop&reverse. Is the same way to open a direct hedging, but is difficult to monitorize the floating loss for each pair.
The private videos about hedging strategies. You can purchase the videos pack in products.
The importance of trading diversification.
Diversification is a risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio constructed of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio.
How many strategies?
There are many strading strategies, some are simple, others are complicated and requires robots (expert advisors).
We recommend dividing your account into multiple sub-accounts, and diversifying your trading strategies. Some strategies will be manual, others equipped with robots.
More trading strategies, means diversifying and reducing drawdown, but be careful not to have more strategies than you can manage.
We are working to offer you all the best mathematical and profitable forex strategies, time permitting. Each strategy is customizable. Standard points and guidelines are provided.
We are working to offer you all the best mathematical and profitable forex strategies, time permitting. Each strategy is customizable. Standard points and guidelines are provided.
Our website can provide to give you some good hedge strategies, that they have in common math and hedging. The secret is, more strategies, find your best setting and.. gains!
Enjoy
Enjoy
Manual Trading or Automated Trading?
1. The advantages of automated trading: limited stress, less eye on the pc, working 24 hours per day for you. Some strategies cannot works with manual trading (for example, fast scalping, grids, etc). In this cases, an intraday robot (automated trading) like our robots is recommended.
Disadvantages: robot doesn't has a "brain", in case of cataclysms it can't help you. Also in the case of strong opportunities. But depends on the strategy and the settings.
2. The advantages of manual trading: all market situations is under control. You can use pending orders to decrease the time in front of the pc.
Disadvantages: it takes an expert trader-eye, it takes more time and stress.
Both disciplines are valid. What matters is finding the right setting that is good for your trading style!
