SURE-FIRE HEDGING STRATEGY

Update by Sam Roy:

SOME KEY POINTS/RULES TO BE STRICTLY FOLLOWED:

1. This Hedging strategy is to grow your account slow but steadily. The profits might not be big but they are

guaranteed.

2. Do hedging on live account only when u have enough knowledge, testing on demo and funds (to start with

micro lot 0.01, u must have >$2000 account).

3. Please don’t take as granted and kindly don’t consider the gains as ignorable because just imagine, you start

with $2000 account with 0.01 lot. If your TP hits between 1st 4 positions (see blue area in image below), your

average profit per trade is 5$ and you can easily make 4 trades a day which means $20 a day and it is

amazingly 1% of your account balance which is just Awesome!!!

4. Test this strategy on Demo-Account and Sam Roy suggests to make at least 50 demo trades before you go on

live account.

5. Trade in US-Open when market is pretty much fluctuating

6. Trade most volatile elements like NZDUSD, GOLD (Gold is my favorite. Globally, 2nd most volatile after Silver)

which I call the Father of volatility and fluctuations. (Link To check most volatile currencies and metals:

https://www.mataf.net/en/tools/02-01-volatility )

7. Start with micro lot until your account balance gets heavy enough that it can afford bigger lots. (Heavy here

means >$10,000)

8. After enough testing with one pair, test on Demo account with two currency pairs with buying on both at the

same time, like NZDUSD and USDJPY and practice as much as you can.

9. I have modified it and decreased the starting pips from 30 to 20 just for the sake of preferring less-pips-per-trade but more-trades-per-day principle (its least risky)

10. Any trader modifies the number of pips or the lot size; it’s on his/her own risk.

11. The calculations in image below have been made in order to give you quick view of what’s going on.

Modifications are made in order to minimize our risk. After 4 positions, if price is not reaching 20 pips and you

have to enter more position, then put 5th, 6th and 7th position with 10 pips TP, 20 pips SL. DON’T FORGET TO CHANGE ALL THE PREVIOUS ORDERS TO THE NEW 10 PIPS PRICE. If still stuck, open further positions

with 5 pips (change all previous orders to 5 pips price as well) and now your goal is to get out of the trade

ASAP at this level. Remember, at this extreme level, keep your eyes on your total P/L and close the trade at

Break-Even or even small Loss is not a bad option here.

12. Just to keep ourselves away from mistakes with orders, Remember that you will have only 4 price levels and

you will be using only those 4 prices in all the orders until your pips distance is same. Once your TP is hit,

there should be no pending orders. Delete any pending orders. The orders will look like shown in image.

13. The best way is to trade in trending market of course. The use of MA (with Period of 5, 13, 21 etc) can be very

helpful to see if market is trending or not. Just avoid entry when MA is more like horizontal (ranging market)

and simply check other pairs with trending MA.

Expert Advisor is also attached with this strategy to test the performance of this hedging. TP is set in USD. Any trader, who modifies number of pips for TP and SL, must also modify these levels and test EA accordingly.

I WISH EVERY TRADER VERY GOOD LUCK WITH THIS METHOD OF TRADING.

Happy Trading

Sam Roy

Credits: Originally shared on forex-central.net by John Edward Modified and Edited at urbanforex.com by Sam Roy Expert Advisor created by sam14985