Hedging Strategy and whole Mathematics behind it

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  • เผยแพร่เมื่อ 19 พ.ย. 2024

ความคิดเห็น • 478

  • @SasaSchueller
    @SasaSchueller 18 วันที่ผ่านมา +182

    Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

    • @ЕленаФирсова-ц6м
      @ЕленаФирсова-ц6м 18 วันที่ผ่านมา

      I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks...

    • @SasaSchueller
      @SasaSchueller 18 วันที่ผ่านมา

      @@ЕленаФирсова-ц6м Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. *MARGARET MOLLI ALVEY* , a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.

    • @ЕленаФирсова-ц6м
      @ЕленаФирсова-ц6м 18 วันที่ผ่านมา

      @@SasaSchueller Oh please I’d love that. Thanks!

    • @SasaSchueller
      @SasaSchueller 18 วันที่ผ่านมา

      @@ЕленаФирсова-ц6м *MARGARET MOLLI ALVEY*

    • @SasaSchueller
      @SasaSchueller 18 วันที่ผ่านมา

      Lookup with her name on the webpage.

  • @viaanfc
    @viaanfc ปีที่แล้ว +8

    Thank you for the opportunity to keep learning. I am still a beginner in the world of trading and am deepening my knowledge in the NFC community

  • @mp6674
    @mp6674 5 หลายเดือนก่อน +15

    What majority of viewers are missing is "the primary idea here to have more quantity in a direction where market is heading rather than on the opposite side" which can be achieved by adding lots or even by subtracting on opposite side to keep quantity in control. So guys the idea is very valid 🎉🎉

    • @roskapostit2609
      @roskapostit2609 4 หลายเดือนก่อน

      This is nothing more than a standard martingale system. The world is full of them. And sooner or later they will all blow your account.

    • @toms8879
      @toms8879 2 หลายเดือนก่อน +1

      it will blow your account eventually.

  • @lonetobefree5722
    @lonetobefree5722 ปีที่แล้ว +15

    To utilise this you'd need massive account size even with small positions as the market ranges for large periods of time. This can work but you'd need to keep doubling your size everytime your position goes under or over the moving average and to make decent money you need to keep getting stopped for the position size to increase otherwise you're making peanuts from the initial position.

    • @WagnerShimatai
      @WagnerShimatai 3 หลายเดือนก่อน +1

      Say that to banks. They ALWAYS use hedge techniques like this to gain money.

    • @ReptarKingoftheBrozone
      @ReptarKingoftheBrozone 2 หลายเดือนก่อน

      This isn't a strategy to trade itself, it is the risk management to your strategy.

  • @dmaspace5592
    @dmaspace5592 2 หลายเดือนก่อน +3

    Good to finally come across a content like this.. Now I know investors is all I need.

  • @spencerwinston4334
    @spencerwinston4334 2 ปีที่แล้ว +10

    Flying high like an eagle with your leading edge analysis and "eagle eye" focus on the massive benefits through hedging. Perhaps a follow up video on using options to implement this tactic, the option strikes to purchase, time, vol etc. Thank you for sharing your trading expertise with traders across the world on YT. The truth shall set us all free on the market plane and higher spiritual levels. Bravo!!! New US subscriber.

  • @theophilusnwokolo7090
    @theophilusnwokolo7090 ปีที่แล้ว +23

    I have watch many video on this topic but yours is super excellent. Trader must first determine the dominant trend and trade with the trend. Then hedge can be use as a risk management tool to protect our downside or draw downs.
    Thanks man!

    • @ecoengineering7535
      @ecoengineering7535  ปีที่แล้ว

      Thanks and welcome.. I am very glad to hear that it was useful.

    • @tristan583
      @tristan583 9 หลายเดือนก่อน +1

      True , HEDGING isnt a trading strategy but a mathematical logic to help your trading strategiy , could be any strategy in the book

    • @irynaburkatska3910
      @irynaburkatska3910 7 หลายเดือนก่อน +1

      Complete nonsense. Instead of gaining positions in both directions, it is much safer to close the loss with a stop loss and move on in search of a new trade. You are fooling yourself into thinking you are hedging yourself by taking counter trades. Swaps and spreads get the job done in the long run. This is nonsense and not a risk management method.

  • @MT-fw8hs
    @MT-fw8hs ปีที่แล้ว +5

    Pretty cool idea. The only thing is that we need to consider the wash sale rule in this strategy and see if it still profitable if you buy and sell multiple times in a short period of time.

    • @justcars2454
      @justcars2454 9 หลายเดือนก่อน +1

      You should combine it with your strategy not randomly, like when a condition happens.
      For example all the strategies of trading will give you good trades and bad trades, it's not efficient this way, it's about getting the good trades and the bad trades, what this technique do, it will literally filter trades, you will make it in good trades, and you will lose very small or even make very small gains on the bad trades. That's what's make it great

  • @Wisenbrow
    @Wisenbrow ปีที่แล้ว +10

    I think you have to take into account to only use this on a trending currency. The margin can grow very large in a tight range that repeatedly triggers your hedges

    • @ecoengineering7535
      @ecoengineering7535  ปีที่แล้ว +7

      Yes, in any case as I mentioned it should be consider that we are risking whole Balance while using hedging.

    • @merterselcuk
      @merterselcuk ปีที่แล้ว

      isnt it same as martingale but different factors instead of 2, or even it like ?@@ecoengineering7535 . Also how can we find the "trendable" thing in order to not face losing strike ?

  • @Einzz18
    @Einzz18 ปีที่แล้ว +5

    Using this zone recovery strategy for a couple of months now and it's profitable for me, it's a high reward but high risk especially on a ranging market but what i usually do I limit myself for 4-5 entries only and will take the lost, but for my entries I only trade on Support & Resistance and using 0.5%-1% of my capital and I usually TP when happy if things goes in my favor to prevent opening a 2nd entry or risk of pull back.

    • @peterjack6629
      @peterjack6629 ปีที่แล้ว

      Hi sir, if i may ask , do you trade this manually or you use an EA?

    • @FinixStoreBerkualitas
      @FinixStoreBerkualitas ปีที่แล้ว

      How did it go? Effective? What percentage of your account grew from the initial balance?

  • @viktorpaulsen627
    @viktorpaulsen627 7 หลายเดือนก่อน +5

    What does full hedging as explained in the video (keeping the antagonistic positions) give, which we don’t obtain with a combination of sell as stop loss and enter an accordingly reduced opposite position? Nothing.
    Example (compare with first example of the video).
    Buy 1.0 Lot at Buy Line.
    Price goes against us down to Sell Line.
    Stop Loss (sell) the whole 1.0 Lot position (then we have no position anymore) and,
    Enter a 1.5 - 1.0 = 0.5 Lot Sell Order (to get a 0.5 Lot bearish position).
    After this we have only 0.5 Lot bearish position, whereas in the video example we have at this time 1.0 Lot bullish position and 1.5 Lot bearish position, the net of which is 0.5 Lot bearish position. So the modified example here gives the effect that we seek, and avoid the disadvantages (e.g., margin call...). We can use the same formulae except with antagonistic positions removed. The whole bloated "hedging" collapses down to net positions.

    • @calm694
      @calm694 7 หลายเดือนก่อน +1

      so do you think this strategy is highly profitable

    • @vuzereusazureus2245
      @vuzereusazureus2245 6 หลายเดือนก่อน

      tldr:Its a timeout/rest/rethink. Start from 2:20 The intention is not to profit, but to avoid loss. Its a capital preservation technique.
      This technique also can be use to get better entry. Capital recovery is much harder when you have drawdowns, this technique eliminate that.
      Assume go long and market going a dip against you, you apply the technique, say 0.5 gap
      If you think you are wrong you let it go on with the new 0.5 short
      If you still think you are right, close both position and reenter later at 9.5 point better position and with small profit.
      It preserve the capital, instead of enduring the 10 point drop to stoploss.

    • @viktorpaulsen627
      @viktorpaulsen627 6 หลายเดือนก่อน +2

      ​@@vuzereusazureus2245 I think that you missed my point. If you want to argue against my point, you must explain what is better by buying an opposite position (and keeping both) than selling the original position. Both methods will stop further drawdowns. The hedging ties up more capital. As a side note, hedging physical objects or hedging assets which are slow, cumbersome or expensive to trade, or which cannot be bought back later, makes sense. But heding forex with forex? It's the same thing, you don't need to hedge, just exit the position.

    • @vuzereusazureus2245
      @vuzereusazureus2245 6 หลายเดือนก่อน

      @@viktorpaulsen627 The video said it, I repeated it in the 1st paragraph and give a simulation on 2nd paragraph.This comment section is quite short to explain it but its doable if you interested.
      Here are few more reason:
      -Capital preservation, you can avoid taking loss
      +Keeping and improving trade entry/positions.
      +Achieving bigger gearing/leverage with minimal risk.
      +2nd chance/timeout to evaluate your views.
      +Immunity from market movement.
      Hedging is a trade risk management tool, since its forex, single instrument hedging should be/must be available and its 99.99% perfect hedge, minimizing /managing the risk/exposure. From point above, being immune to market condition is already a great benefit by itself already.
      Its among reasons I solely trade forex. If you bring the stocks/futures mentality to forex like the Americans--single side only, then good luck, you NEED luck, I dont need luck, I need hedging capability. I'm very very very happy with my strategy/technique, it require hedging.
      I'm safe because I'm hedged and that is important against unforgiving market.

    • @ReptarKingoftheBrozone
      @ReptarKingoftheBrozone 2 หลายเดือนก่อน

      Because the market ranges and with your idea you can get stopped out repeatedly without ever having a win.

  • @navketan1965
    @navketan1965 ปีที่แล้ว +12

    Dear Sir,
    I am impressed with your wisdom & your hard work.I request you to backtest this strategy. It is nearly impossible to guess where market would next go but it is much easier to tell where market is less likely to go--and that is where there is mathematical edge & would be easier to code.
    You could test the strategy on instruments which have high liquidity & trade around the clock--let us say forex & high volume US indices to start with.All orders are Limit order & orders are entered end of each day based on closing prices(EOD).For Forex pairs end of NY session is END OF DAY
    On A given instrument(say Eur/Usd) limit order is placed to buy(or sell) at A distance " D" which is (70% of average daily ATR) away from the closing price EOD.Take profit (TP) & stop loss (SL) distance is 50% of that distance (D)--every order is all complete order on the same ticket.Only one order/day on the instrument.Win or lose--no trader intervention,market decides when take profit or stop loss gets hit.On that instrument orders are entered on both sides, Long & short at the same time.
    All open orders get cancelled at the end of that day & new orders are entered based again on end of day new prices.Orders are placed on multiple different currencies to diversify risk(both dollar pairs & cross currencies as well).Risk capital on any instrument is 1% of account equity only.
    Rationale--Markets are random but fractal in nature.Distance travelled in a given time span is based on square root of time.TRADING EDGE comes from the fact that from End of day INITIAL price the TP is closer compared to SL & chances of hitting TP are higher than hitting SL--and when TP is hit,then stop loss order gets cancelled right away..If one month option is priced $1--then 4 month option should cost $2.Distance travelled in 4 months is square root of 4.Option premium formulas are not ALLperfect but billions of $$ trade based on that formula & market makers make $$,no matter where the market goes/or does not go.At the money Call & put cost the same--take your pick.
    And Thank you

    • @hu5116
      @hu5116 11 หลายเดือนก่อน

      Hi: might you give a numeric example of hoe this would work? You made a great effort to explain it, but I still got confused as to where the stop and the take profit end up with respect to the close price. Just listing a few numbers would clarify completely I think. Thx!

  • @stayfocused131
    @stayfocused131 ปีที่แล้ว +2

    an absolute mentoring gem....love the content of this video ....thanks for sharing

  • @osamashaban2252
    @osamashaban2252 2 ปีที่แล้ว +29

    This technique is what so called, Zone Recovery.
    You should mention this for the others rights.
    I already coded it in the past and also develop the idea by making the 20 pips zone is changeable to go up or down once the TP region is reached, but instead, I don't use TP . I, instead start over again by opening new order either Buy or Sell according to the indicator output I use.
    Profit is high but risk is sometimes high. I'm working recently on reducing this risk.
    Good luck

    • @DedSec44
      @DedSec44 2 ปีที่แล้ว +5

      i did that as well, the problem is when you open hedge orders and markets pushes back going against your hedge orders, then how you gonna exit those

    • @alancheung5449
      @alancheung5449 2 ปีที่แล้ว

      Osama: How do you take profit?

    • @osamashaban2252
      @osamashaban2252 2 ปีที่แล้ว +1

      @@alancheung5449 I use this formula ... TargetProfitDollar = TPDollarsPerThousand*AccountBalance()/1000
      I'm thinking to try it as BreakEven+TPpips

    • @Nyruami
      @Nyruami 2 ปีที่แล้ว +3

      This technique was "invented" 1000s of times in th least 130 years, everybody who has a little knowledge in math will sooner or later invent it. So don´t you worry about the guys with the rights, whatever their name, you can rest assured, the strategy is older than any of them

    • @ZainHDHQ
      @ZainHDHQ ปีที่แล้ว

      @@DedSec44 adapt to the market, if you see youre entering into a range then step back and either trade the range or breakout

  • @alkahaf347
    @alkahaf347 17 วันที่ผ่านมา

    absolutely amazing i made this strategy myself before your video, the only thing bad about it is" you need a lot of capital to enter 10 to 11 orders if price consolidate between buy order line and sell order line,"

  • @johnpraytor6441
    @johnpraytor6441 5 หลายเดือนก่อน +2

    I have seen some other comments about this, but i want to reiterate. When you start your “series of trades” (placing opposite trades) you are in trending markets. You will need knowledge of how to predict trends. When you hit consolidation YOU WILL BLOW AN ACCOUNT. You can develop some risk management to this, but that is my warning practice it and you can see its power with even the most basic form of knowledge in the markets! Good luck to all!

    • @mp6674
      @mp6674 5 หลายเดือนก่อน

      A possible solution is, not to add lots on 2nd buy/sell onwards, instead we can reduce opposite side size. As the primary idea here is to have more quantity on the side where the market is moving than on the opposite side.

  • @lapogk1543
    @lapogk1543 ปีที่แล้ว +4

    FOrmula for LBn , i think the ratio will be R2R/(R2R+1) , not as mentioned. Thanks for the video.

  • @Kirtiman3D
    @Kirtiman3D 2 ปีที่แล้ว +5

    normally, market eats both, i.e. hitting 'sell stop': 1.5 lot, then go up , hitting 'buy stop: 1.1, then coming down and hitting sell TP or buy SL, giving u in loss only always! :)

    • @ecoengineering7535
      @ecoengineering7535  2 ปีที่แล้ว

      How we can use this technique to gain profit while we are aware of the fact that you mentioned? Do you thing the fact that it will finally margin call us (Which I am agree with you) means we should never use it?

    • @Kirtiman3D
      @Kirtiman3D 2 ปีที่แล้ว +1

      @@ecoengineering7535 my suggestion will be, use 'stop loss' and exit from the position and then enter , trading shud be simple , this process will complicate ur trading and u will have to watch computer until finish the process

    • @ecoengineeringfarsi9227
      @ecoengineeringfarsi9227 2 ปีที่แล้ว

      @@Kirtiman3D Have you ever used Algorithm to use hedging technique?

    • @Kirtiman3D
      @Kirtiman3D 2 ปีที่แล้ว

      @@ecoengineeringfarsi9227 yes, but its not for hedging but simple buy and sell trading with TP/SL

  • @HoangNguyen-yl9eh
    @HoangNguyen-yl9eh 11 หลายเดือนก่อน +2

    If the price fluctuates around Buy line and Sell line several times, we may got rekt because of huge margin. However, many thanks for pointing out this hedging strategy

  • @nickgangadis8679
    @nickgangadis8679 7 หลายเดือนก่อน +1

    Brilliant! That gives me a lot of ideas. Thank you very much!

    • @mp6674
      @mp6674 5 หลายเดือนก่อน

      Indeed!!

    • @RamNaidu-s7t
      @RamNaidu-s7t 3 หลายเดือนก่อน

      Hi.. can you give me code for implementing the explained logic..
      Thank you

  • @bedengler
    @bedengler ปีที่แล้ว +6

    Here‘s an idea of preventing to wipe out your account in long sideways phases:
    you could say, that after x trades which have hit buy/sell orders, you turn around the calculation of lot size.
    This way, you are lowering the distance between LS and LB orders and probably end up in equality of lots invested in up and downside.
    That means they are equaling out themselves from that point on.
    That doesn‘t make you money, but at the same time you don‘t loose money and you get never margin calls again.
    Here‘s an example: let‘s say it‘s going up and down for 5 times. So 5 times LB and LS is hit (would mean a total of 10 open trades.
    LB1 = 1, LS1 = 1.1 etc.
    After 3 turns let‘s say we have invested 5LB and 3.5LS.
    From there we turn around calculation, so that after 5 tutns and 10 trades we end up in 12LB and 12LS invested.
    Then you can either close it (and you just paid commissions and spread) or you start closing single positions after the chart started trending again…
    What do you think? 🤔

    • @elijahpaul5829
      @elijahpaul5829 11 หลายเดือนก่อน

      Hedging is not supposed to make you money but to reduce loss

  • @tuthanh508
    @tuthanh508 2 ปีที่แล้ว +17

    Its risky. But can be controlled. I am using the same strategy, but I accepted to put SL 50%, and the rest 50% I hedge. Moreover, I trade on small time frame such as M1-M5-M15, which mean I wont have to keep the position overnight costing me extra swap fees

    • @ZainHDHQ
      @ZainHDHQ 2 ปีที่แล้ว

      bro what do you do in ranging markets

    • @tuthanh508
      @tuthanh508 2 ปีที่แล้ว +7

      ​@@ZainHDHQ Trading by small time frame already dealed with ranging market, as the price easily hit the needed R/R to break even ( SL range is around 4 - 9 pips ). I recommend using this strategy only with EUR/USD due to it high volatility + low spread. After all, you should back test first since its really easier being sad than done
      P/S : I am using the Hedge x1,35, then it will need around 1:3 R/R to be break even

    • @ZainHDHQ
      @ZainHDHQ 2 ปีที่แล้ว

      @@tuthanh508 thanks bri

    • @jufg6786
      @jufg6786 ปีที่แล้ว

      Please can u teach me

    • @kaungmyat9850
      @kaungmyat9850 ปีที่แล้ว

      ​@@tuthanh508 Thanks for explain but I can't get it😞😞😞😞

  • @nelsonmachado7680
    @nelsonmachado7680 ปีที่แล้ว +5

    On the battlefield, in practice, this becomes a bit complicated and a bit laborious. The ideal is to carry out a very detailed market analysis before entering into the operation and using Hedging sporadically. anyway the video is very explanatory. greetings from Brazil .🇧🇷

    • @msantos72
      @msantos72 ปีที่แล้ว

      Vc chegou a testar esta técnica no mercado real?

  • @nakilaazzahra
    @nakilaazzahra 11 หลายเดือนก่อน

    very useful and helpful video thank you I am still learning in the nusantara fx community

  • @FindForex
    @FindForex ปีที่แล้ว +6

    I wrote the code and it is working. Great stability with no loss. But some day in a range market, you are gonna be short in margin and it causes great losses

    • @Starfix00
      @Starfix00 ปีที่แล้ว +1

      True, that's why i use ADX+RI indicator, and also Squeeze indicator. I close all positions whatever result if entering range signals. Usually, the loss is not that big if you close the positions in the good order (because even in a range, you have up and downs.) Last but not least, i check on a screener the highest volatility of the last 15 min before opening scalp position. Cheers

    • @paulb88916
      @paulb88916 ปีที่แล้ว

      I would put a limit on the maximum number of open positions.

    • @jonathanrom1112
      @jonathanrom1112 10 หลายเดือนก่อน

      @FindForex can you please share the code with me ? I am a student and trying to study photon to write the code but no success so far

    • @Cockpa377
      @Cockpa377 10 หลายเดือนก่อน

      @@jonathanrom1112 If you have any coding experience, you can write this in a couple hours in MQL4

  • @Innetstrangerr
    @Innetstrangerr 17 วันที่ผ่านมา

    Best trading video on youtube man tks

  • @daymaker_trading
    @daymaker_trading 10 หลายเดือนก่อน

    You have really great concept visualizations, very helpful. Thank you very much!

    • @ecoengineering7535
      @ecoengineering7535  10 หลายเดือนก่อน

      Thank you for your kind words! I'm glad you find the concept visualizations helpful.

  • @juergenx298
    @juergenx298 ปีที่แล้ว +7

    Hedging always ended in margin call - sooner or later.

    • @FritzMarl
      @FritzMarl 6 หลายเดือนก่อน +3

      Consider the volume before entering the trade

    • @WagnerShimatai
      @WagnerShimatai 3 หลายเดือนก่อน +1

      For those who don't know to calculate the initial lot, maybe this happens.

    • @congbalicong5723
      @congbalicong5723 2 หลายเดือนก่อน +2

      no if you place SL

  • @ahmadhosseini6174
    @ahmadhosseini6174 9 วันที่ผ่านมา

    the things with hedge is that people doesn't consider that the probability of 60 pip change is 0.25% and changing 20 pip is 0.75% . in a over all price change and trade in almost every hedge strategy result goes to 0 with considering spread and fee and if consider them we have a good strategy to lost money in a constant way . the only hedge strategy that maybe work are does that make an edge in our probability , be carful smaller distance has higher chance

  • @laurentlabadie6921
    @laurentlabadie6921 2 ปีที่แล้ว +10

    Hello, congratulations and thank you for your very very interesting sharing.
    I don't know anything about programming and I'm on Ninjatrader8. Would you have a version of the Heidging Strategy indicators for Ninjatrader8?
    1) Hedging Strategy and whole Mathematics behind it
    2) Cascade ordering strategy base on mathematics and statistic
    Sorry for my bad English
    Thanks
    with kind regards.
    Laurent

    • @emmanuelokonkwo7293
      @emmanuelokonkwo7293 ปีที่แล้ว

      Hi, greetings, I built this exact same strategy in an EA which was very well. This is called hedging+ martingale strategy.

  • @happydude2163
    @happydude2163 ปีที่แล้ว +7

    I like the idea of the hedge strategy but nobody ever compares it back against what would happen if you took the loses and established a new trade each time you return to your pre-set levels/stop points. Using your levels with 20pip loss, 60pip profit, you would have made the following with the 3 scenarios given if you took the loss and setup a new trade:
    Scenario 1 - 1 stop then profit = -20 + 60 = 40 profit. Better profit than using the hedge strategy.
    Scenario 2 - 2 stops then profit = (-20 x 2) + 60 = 20 profit. Better profit than using the hedge strategy.
    Scenario 3 - 3 stops then profit = (-20 x 3) + 60 = 0 profit/breakeven.
    The last scenario is significantly worse than the hedge strategy (0 vs 18 points of profit), but as you mentioned you never had margin tied up, nor did you carry the risk of if it just keeps bouncing over and over - i.e. it's gone into a range. Also by the time of the 3rd stop out, you'd seriously have to question your original logic of the trade setup.
    How often do you find you normally have to hedge/swing to close out the position? If the answer is 1-2 times then it would seem safer and more profitable to not hedge. Of course, all this analysis rides on a standard 1:3 risk/reward ratio as per the example.

    • @giovannisantostasi9615
      @giovannisantostasi9615 ปีที่แล้ว +4

      The point of this strategy is not really to replace stop loss in the traditional sense. If you have a strong setup and you bet the market goes up or down based on some indicator or analysis then yes, it is better to use a traditional stop loss. The beauty o this strategy is that is market neutral so in theory in particular if you can program it in a bot you have now a strategy that makes money no matter what, market goes up you make money, the market goes down you make money. You could have some indicator but it doesn't even need one, it is basically a grid bot that is neutral and it can make money in either direction. The only downside is that if you are in a side-way market and the price is caught in between region A then your positions become bigger and bigger and you can get easily a margin call in particular if you use leverage.
      I'm testing if there are ways to prevent or mitigate this problem, maybe reducing positions at small losses or breaking even if the positions become too large.

    • @ernestonyebuchi4876
      @ernestonyebuchi4876 ปีที่แล้ว

      @@giovannisantostasi9615nice, did you come up with any results?

    • @rjeditz45
      @rjeditz45 2 หลายเดือนก่อน

      @@ernestonyebuchi4876yeah took 6six trades from yesterday and Got Winrate Of 100% some are direct win and some took 1 more trade

  • @dwightwellings
    @dwightwellings 2 ปีที่แล้ว +81

    A very informative video. My investing experience, which has garnered more than $2 million in net profits over the last couple of years, leads me to believe that the greatest way to generate money passively and build the confidence you need to trade on your own is to have a professional manage your financial investments. Just my 2 cents

    • @olgapedersen
      @olgapedersen 2 ปีที่แล้ว

      You are entirely correct. For the majority of people, trading can be frustrating, especially if you are a novice without experienced guidance.

    • @sequoiacampbell
      @sequoiacampbell 2 ปีที่แล้ว +2

      Most newbies don't grasp value professional help, meanwhile high-net-worth individuals leave the hassle of trading to experts and make big bank on their capital every other year. I wish more people would take heed and stop throwing away their hard earned money.

    • @chriskitzlinger
      @chriskitzlinger 2 ปีที่แล้ว

      ​ @D. Wellings I am inexperienced in trading, and I've lost a good sum trying out strategies I found in online tutorials. I would sincerely appreciate any pointers you can give me.

    • @dwightwellings
      @dwightwellings 2 ปีที่แล้ว

      @@chriskitzlinger Even though I am somewhat knowledgeable about trading, I still leave my investments in the hands of Leonard Bracher. I rely on his team and his years of successful trading to keep me earning passively.

    • @chriskitzlinger
      @chriskitzlinger 2 ปีที่แล้ว

      @@dwightwellings I live in the UAE, does he take clients from here? How do i reach out to him?

  • @makeitreality457
    @makeitreality457 5 หลายเดือนก่อน

    Great ideas! You just don't want to set this up in the middle of consolidation phase, like next Monday. Or be prepared to execute a lot of trades as it whipsaws back and forth through the stops all day. Not financial advices!

  • @timwilcox960
    @timwilcox960 ปีที่แล้ว +2

    I loved the first half of your video - probably the clearest and best explanation of hedging principles that I've come across on TH-cam. Well done sir! Unfortunately I don't have a degree in advanced mathematics - so the second part of your vid' went completely over the top of my head! But that's my problem - not yours! 👍

    • @amirovsky1788
      @amirovsky1788 ปีที่แล้ว +1

      the 2nd part is not advanced mathematics, it is only simple maths

    • @timwilcox960
      @timwilcox960 ปีที่แล้ว +3

      @@amirovsky1788
      . . . That very much depends on how good you are at Maths! ;-)

  • @giovannisantostasi9615
    @giovannisantostasi9615 ปีที่แล้ว +1

    The point of this strategy is not really to replace stop loss in the traditional sense. If you have a strong setup and you bet the market goes up or down based on some indicator or analysis then yes, it is better to use a traditional stop loss. The beauty of this strategy is that is market neutral so in theory in particular if you can program it in a bot you have now a strategy that makes money no matter what, market goes up you make money, the market goes down you make money. You could have some indicator but it doesn't even need one, it is basically a grid bot that is neutral and it can make money in either direction. The only downside is that if you are in a side-way market and the price is caught in between region A then your positions become bigger and bigger and you can get easily a margin call in particular if you use leverage.
    I'm testing if there are ways to prevent or mitigate this problem, maybe reducing positions at small losses or breaking even if the positions become too large.

    • @masim5271
      @masim5271 ปีที่แล้ว

      I can solve this problem but i have no this ea. If there is a programer having this strategy EA i can explan it with him to resolve margen call risk

    • @giovannisantostasi9615
      @giovannisantostasi9615 ปีที่แล้ว

      @@masim5271 you can explain it to me.

  • @kadir260409
    @kadir260409 2 ปีที่แล้ว +3

    thanks brother for the detailed insight. very valuable video. everyone who hedge trades must watch this video

  • @INITIAL-AS
    @INITIAL-AS 11 หลายเดือนก่อน +2

    It works in trending market but will be very risky in sideways market

  • @Ali-zz6yz
    @Ali-zz6yz 8 หลายเดือนก่อน

    What software do you use to execute this strategy? I have cmc markets and I can't place these OTO on triggers the other trades

  • @kyleb6616
    @kyleb6616 ปีที่แล้ว +1

    Very nice idea. The math does get too complicated for my simple mind. It would be cool if this was coded for an EA, or a simple Excell speadsheet.

    • @ecoengineering7535
      @ecoengineering7535  ปีที่แล้ว +1

      Please notice by using hedging you are risking much more than 1 or 2 percent of your balance per trade.

  • @ricks5532
    @ricks5532 ปีที่แล้ว +2

    Love the ideas and explanation. Appreciate if you could show some of the backtest results. Thanks man.

  • @huijerry
    @huijerry 10 หลายเดือนก่อน

    great video!! Do you have any EA suggested that using this strategy?

  • @flaviodegirolamo6446
    @flaviodegirolamo6446 ปีที่แล้ว +1

    @ecoengineering is it possibile to have this expert advisor?

  • @peterjack6629
    @peterjack6629 ปีที่แล้ว +1

    Just a quick direct question: What would be the formula for Lb²?

  • @navketan1965
    @navketan1965 2 ปีที่แล้ว +1

    Sir, Chances of price going up or down after hitting any level is 50-50.IF 4 hour chart based support/resistance level gives trader an edge of say 5% (of price deflecting at the level),would that edge be good enough to make money? Let trader put standing orders each day,each order has take profit & stop loss --TP about 150-200% of SL--and let statistical odds play out.New orders each day after day.Sir, Any suggestions/modifications??

  • @King_Eke
    @King_Eke ปีที่แล้ว

    How does this work with consolidating markets. If you have to keep opening higher lot sizes at the buy and sell lines

  • @nadershera9029
    @nadershera9029 10 หลายเดือนก่อน

    Tasakur ❤❤❤❤
    Very nice good continuation
    Nader from Fance

  • @shumlanguage
    @shumlanguage 5 หลายเดือนก่อน

    Thank you for the excellent exposition of your model. Q: how can an account be long and short at the same time, as your model proposes?

  • @DivyaSai1
    @DivyaSai1 7 หลายเดือนก่อน

    Great insights but most important part is your last comment - not to sit in front of computer all the time and use algorithmic trading. So, can you pls suggest some EA for this?

  • @น้าเก่งนานาจิตตัง

    Great, I'm looking for a way to reduce my risk when the graph goes the wrong way.

  • @hernansaa
    @hernansaa ปีที่แล้ว

    Thanks for de video. Is very interesting, but you said eventually you will loose your account by doing this if i didnt misunderstand you. So what is the point of hedging if i will eventually loose all the account? Thanks a lot.

  • @yurinisimov1976
    @yurinisimov1976 5 หลายเดือนก่อน

    Hi. How about the price difference on candle closure above or below hedging zone?

  • @simonbarrett9537
    @simonbarrett9537 2 ปีที่แล้ว +1

    plus spreads in and out of orders minus another 4 to 6 points each time

  • @Ayza673
    @Ayza673 2 ปีที่แล้ว +3

    Is not it better to start with both position at same time, when one tp hit then hedging scenario start. so in one way there is one guaranteed win and the next hedge trade could be profitable or breakeven trade

    • @giovannisantostasi9615
      @giovannisantostasi9615 ปีที่แล้ว

      How do you make sure the trade goes in your direction? This strategy is all about dealing with the uncertainty of trade direction. It is an amazing strategy but it has the main problem of making the positions larger and larger if the market trade side way. Not sure how to address that. Maybe set a lower take profit that is just breakeven and dump some of the positions if you get hedged multiple times. Coding and testing live all these ideas. I would love to have a strategy that is market neutral. But I guess risk cannot be completely eliminated.

  • @justcars2454
    @justcars2454 11 หลายเดือนก่อน

    This strategy need to be traded in the levels, where its a consolidation area, and you know that after it will be a big move either up, or down.
    Like supertrend indicator.
    In the supertrend, you know that in a place, that the price will either form a new supertrend or continue the actuel supertrend.
    And with you knowing exactly where to enter the market, even if go wrong with the direction. You still can benefit from it using hedging startegy.
    Its even good, if you want to trade with real money, but you dont want to blow up your account, it will give you so much experiance why you pay little

  • @sajidmahmood9511
    @sajidmahmood9511 ปีที่แล้ว

    Hello Chia, I am more interested in your algo strategy for hedging. Which tools and platforms and brokers do you recommend. how to get connected with you?

  • @AntonelloTrading
    @AntonelloTrading 5 หลายเดือนก่อน

    Good morning, if I want to equalize open trades, how should I change the formulas?

  • @davidhuber563
    @davidhuber563 ปีที่แล้ว

    Hey thanks for the video ! I did watch your other video about similar subject ! Where does this idea come from? Do you have a book or something where you have inspired yourself ?

  • @masim5271
    @masim5271 ปีที่แล้ว

    Hi.
    Sir i like your work. I watched this vedio more times but not understand. Can you provide this strategy in written.
    Plz

  • @jeremycarroll451
    @jeremycarroll451 11 หลายเดือนก่อน

    Great video. One observation though - do you not just end up with something similar to a Martingale strategy?

  • @Weis77
    @Weis77 ปีที่แล้ว +1

    Excellent video, thank you for the hard work you put into your informative videos. I have a question, I am trading with IBKR, and I don't think they will allow for multiple BUY or SELL orders at various levels. When I initially go long, and the market goes against my position, do you mean to say that the so-called STPLOSS point I should open 1.5 Lot SELL position, whilst keeping my 1 Lot BUY position, or that it will be the net of 0.4 Lot SELL position? The former I believe is not possible at least with IBKR as the SELL order would CLOSE the BUY order and vice versa.

    • @hu5116
      @hu5116 11 หลายเดือนก่อน

      I do believe keep all your position until the very end. Also, believe you are correct, that interactive broker will not let you have opposing orders open. You can address this a couple different ways. Could open two different accounts, and do all your buying on one of them and all your selling on the other one. Could also do this by buying puts and calls, even selling puts and calls in reverse. Trouble with buying puts and calls is that you will be suffering loss of extrinsic value during the holding period. The trouble with selling puts and calls is that you will need much more margin. These complications are why few do it.

  • @kmhub0410
    @kmhub0410 5 หลายเดือนก่อน

    Hi Would you let me know, R2R what does mean? Where it come form? Just Long short cap × 2?

  • @robinknox-grant3072
    @robinknox-grant3072 5 หลายเดือนก่อน

    Thank you for the explanation of how the strategy works. The presenters attempt to explain what is happening is greatly appreciated.
    However I personally found the presenter English difficult to follow. I had to replay the video several time to follow the explanation and even then, there were details of which I was not certain. While appreciating the gallant attempt to explain what is happening, I feel it would be so much more effective if it could be explained by someone who was more confident in the effective use if English. My comments are not intended to offend the presenter but simply a suggestion that I think would make the explanation so much easier to follow.

  • @rezamokhtary69
    @rezamokhtary69 ปีที่แล้ว +1

    hello first of all thanks for this video , can i ask you please to explain about indirect hedging strategy too ? or introduce a good source for it . thanks alot

  • @davidav3980
    @davidav3980 ปีที่แล้ว

    Do you know how to switch on Meta Trader 4 or 5 from Netting Trading to Hedging Trading with a click of a button? Thanks in advance.

  • @TQuantP
    @TQuantP ปีที่แล้ว +1

    Very nice video, that was a very comprehensive study for someone who is new to trading.

  • @mirzabaig-p1r
    @mirzabaig-p1r 3 หลายเดือนก่อน

    Very good presentation thanks so much for this effort ❤❤❤

  • @Ghostdoge
    @Ghostdoge 6 หลายเดือนก่อน +1

    Is there a cheat sheet list we can quickly look up instead of calculating? For instance 1 , 1.5, 1.1, 1.6 etc..

    • @mercyhedging
      @mercyhedging หลายเดือนก่อน

      Ive put the strategy in excel; but its setted on gold; which market you trade?

    • @Ghostdoge
      @Ghostdoge หลายเดือนก่อน

      @@mercyhedging Thanks for reply. I trade GBPJPY, BTCUSDT and EURUSD.

  • @lapogk1543
    @lapogk1543 ปีที่แล้ว +1

    you have not shown the Rate of change required on lot size when you move from buy to sell and sell to buy. You gave an example of 1.5 times of the Buy lot. At what rate of change of lot size it will break even or make a little profit

    • @tebohewane7092
      @tebohewane7092 ปีที่แล้ว

      This is the best question asked on here. Because this is the only part left to be worked out. If you can achieve the rate of change in lot seize then you've protected your account. As for me, I came up with the figures depending below😊. And, i recommend you start with the smaller lot seizes for the first entry positions be it a buy or sell order:
      0.11, 0.13, 0.15, 0.18
      0.15, 0.16, 0.17, 0.18
      If you are using a smaller time frame sat 15minutes, at least to the 4x hit either ways, you will make little profit not just break even😊.Back test and update if my figures are right.😊😊

  • @EmmanuelMigs
    @EmmanuelMigs ปีที่แล้ว

    you said something like summing up the lot sizes is there a way to sum all lot size in mql5 if yes how can that be done

  • @gersonmendes65
    @gersonmendes65 ปีที่แล้ว

    hi, your content is very good, you provide me with this EA

  • @BlizzPort
    @BlizzPort ปีที่แล้ว

    This is a problem, because the price often forms a prolonged range.

  • @jerome2874
    @jerome2874 7 หลายเดือนก่อน

    Hi, such a great video! After long research, this is exactly what I need to close my orders! Do you already have an EA for this please? Or would you accept to code it and share it? I'm very interested. Thanks a lot.

  • @alancheung5449
    @alancheung5449 2 ปีที่แล้ว +2

    Is it Zone Recovery ?

  • @johnnymnemonic1369
    @johnnymnemonic1369 ปีที่แล้ว +1

    Now factor in commissions on all those lots.

  • @morehn
    @morehn 11 หลายเดือนก่อน

    Wouldn't this be similar to doubling down but with more precision?

  • @Cryptonikolai
    @Cryptonikolai 5 หลายเดือนก่อน

    ive tested this strategy and it cannot loose, it can only loose if the market goes sideways correct?? other than that it cant loose.

  • @punoobwp5991
    @punoobwp5991 ปีที่แล้ว

    Very impressive work sir.
    My question is this strategy only works for the scenario when open buy and sell lots are not of same lot size i.e, one is greater than the other. What if sum of both open sell and buy lot have same lot size?
    It usually happens and we hedge it rather than closing all the trades. Please also guide about this scenario. Thanks

  • @xclr8er
    @xclr8er 10 หลายเดือนก่อน

    thank you for making so clear

  • @___MK__
    @___MK__ 5 หลายเดือนก่อน

    hi, you mentioned that this is done with an EA, would it be possible to obtain the code? thanks

  • @IceHound-gi8pj
    @IceHound-gi8pj 8 หลายเดือนก่อน

    this video is super useful thanks bro

  • @trader-timvinh4780
    @trader-timvinh4780 2 ปีที่แล้ว

    Can you automate what you are doing? - which would save heaps of time sitting in front of computer...

  • @frederikpetersen62
    @frederikpetersen62 10 หลายเดือนก่อน

    What are you exactly calculating?
    The next lot size for each of trades carried out?

    • @ecoengineering7535
      @ecoengineering7535  10 หลายเดือนก่อน

      I am sorry I did not get the question

  • @sometimes...3065
    @sometimes...3065 11 หลายเดือนก่อน +1

    Good, clear video.
    However, at x number of hedges when there is not enough equity to buy the next opposing hedge the account is wiped out (if the market does not reverse again) via a margin call.
    And this will happen frequently.
    In other words, one is risking the entire account to regain the loss on the first trade.
    Any solutions, please?
    PS I have a simpler method of calculating lot sizes ....

  • @shutengloke5907
    @shutengloke5907 5 หลายเดือนก่อน

    Is it possible to open both LONG and SHORT positions?

  • @pinoypinoynoy
    @pinoypinoynoy ปีที่แล้ว

    what EA are you using for hedging technique thanks

  • @PiggsyPc
    @PiggsyPc 5 หลายเดือนก่อน

    gold . this is gold information
    thanks a lot

  • @aldav4185
    @aldav4185 ปีที่แล้ว

    Brilliant! Thank you for sharing

  • @RamNaidu-s7t
    @RamNaidu-s7t 3 หลายเดือนก่อน

    Sir need code logic to implement sir.. can you help me with

  • @solimanhanna8646
    @solimanhanna8646 2 ปีที่แล้ว +1

    This is a very knowledgeable video. Thank you very much.
    Question please, what if I just want to breakeven without any profit, what would be the R2R ? The only known info I have is the zone gap (20 in the video) and the beginning lot size and that's all.

    • @ecoengineering7535
      @ecoengineering7535  2 ปีที่แล้ว +1

      Hi, Many thanks for your comment. Please notice that this 20 gap is only an example and it can be anything base on your preference. I do not recommend to close it without profit as you already risking whole of your Balance.
      Anyway, You can use this code to close all in break even:
      if(AccountEquity()>=AccountBalance())
      {
      While(OrdersTotal()!=0)
      {
      int NumberOfOrders=OrdersTotal();
      for(int t=0;t

    • @DedSec44
      @DedSec44 2 ปีที่แล้ว +1

      @@ecoengineering7535 the problem is when you open hedge orders and markets pushes back going against your hedge orders, then how you gonna exit those

  • @salmanmuhammadh5292
    @salmanmuhammadh5292 25 วันที่ผ่านมา

    Thank you so much it’s amazing

  • @romangora9519
    @romangora9519 5 หลายเดือนก่อน

    Surely u could just do A as 5 lots and then 15 on the tp's?? That way u can hedge constantly with very low lots say 0.1 and never really lose

  • @CryptoTraderHab
    @CryptoTraderHab 3 หลายเดือนก่อน

    Cool tutorial. God bless you!

  • @sherzaventureslimited5701
    @sherzaventureslimited5701 ปีที่แล้ว

    hi there, how to use this strategy in pine editor at trading view? can you help here?

  • @bassam79
    @bassam79 4 หลายเดือนก่อน

    do u have this formula as expert adviser?

  • @engrahmed7122
    @engrahmed7122 9 หลายเดือนก่อน

    👏🌹 Subscribed. Liked. Thank you for your kind videos. it is very my appreciated. Bless you. Please carry on the good work. can you kindly make a video with Crypto example - BTC, ETH, SOL or any other asset; on how to identify which crypto (asset) to select and how to select for hedging.

  • @dwaynehotmilk7210
    @dwaynehotmilk7210 ปีที่แล้ว

    DOes and ea exist than automatically calculates lot sizes based on risk reward?

  • @hobbiesandfxtrading
    @hobbiesandfxtrading ปีที่แล้ว

    This is awesome!! thank you for the formula. Do you happen to have a formula when you want the same take profit level on the opposite trade? Hoping to hear from you! more power bro!

  • @navketan1965
    @navketan1965 2 ปีที่แล้ว

    Sir, Chances of price going up or down after hitting any level is 50-50.IF 4 hour chart based support/resistance level gives trader an edge of say 5% (of price deflecting at the level),would that edge be good enough to make money? Let trader put standing orders each day, each order has take profit & stop loss --TP about 150-200% of SL--and let statistical odds play out.New orders each day after day. Sir, Any suggestions/modifications? Expert advisor possible?

  • @saebifar
    @saebifar 10 หลายเดือนก่อน

    thanks its a awesome theoric way

  • @jumpmanjxhnsxn7608
    @jumpmanjxhnsxn7608 ปีที่แล้ว

    If I code this into a MT4/MT5 trading bot would it work?