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#1 05-04-2012 10:16:56

tokyojerry
Member
Registered: 05-04-2012
Posts: 4

Hedging Forex

Hi.  I am brand new to this forum.  Can any one provide me with advice or resource about learning about forex hedging?  I am basically new to forex trading but am familiar with concepts but somewhat weak on strategies.  I have had situations that I am sure many others have had in which I set my SL/TP points, the trades move against me just enough to activate the SL and then rebound to go in the direction of original intention.  Rather then set SL each time, I am thinking of a hedging strategy in which I coiunter the initial trade with a size of the initial trade + alpha factor.  Actually I found this via Google search which lead me to this website (and forum) in the first place:  =>  http://www.forex-central.net/AWESOME-Forex-Trading-Strategy-(never-lose-again).pdf   

If anyone can expound on the concept, and also, perhaps recommendable brokers with low pips spreads (obviously)  I surely will appreciate the help as a somewhat 'newbie'  Thanks.
Jerry
Tokyo, Japan

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#2 06-04-2012 15:55:03

johnedward
Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 3050
Website

Re: Hedging Forex

Hi Jerry, welcome aboard. The last strategy I have been using (and will be using once again once I open an account by the end of the month) is this one: http://www.forex-central.net/forum/viewtopic.php?id=325
It's a sort of martingale hedging strategy, and it can also be used with non-hedging brokers as you don't have 2 positions open at the same time, once your long one gets stopped out, the short one starts (and vice versa).

As far as recommending brokers, based on experience, stay away from Russian ones! 2 very good low-spread ones that I feature here on this site are Iron FX and Pepperstone. They are also featured here on my forex broker comparison chart page (and they both have review pages which you can easily find by clicking on the logos on the homepage.)


"Anything worth having is worth going for - all the way." - J.R. Ewing

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#3 06-04-2012 16:55:39

tokyojerry
Member
Registered: 05-04-2012
Posts: 4

Re: Hedging Forex

Hi John!  Thanks for the feedback.  Much appreciated.  Well, perhaps too late now, but I already signed up for (and funded) an account with HotForex of Mauritius.  What caught my eye immediately is the liquidity and accessibility of funds via a sponsored Master Card-based debit card.  Nice to be able to access your money very easily from any ATM.  However, the initial was worn down a bit after I read a bit of their legalese and the one document related to charges.  They do have a variety of charges in order to sponsor / maintain this card including a monthly fee of $3.00.  Not a big deal but,  when you are a beginner like me, and not a lot of capital (yet) smile  it's a consideration.

Pepperstone and IronFX were two alternatives in fact I was considering when checking them out through the 3 brokers side-by-side matrix which you have.  Your comment has reinforced my insight for those two brokers.  I will keep them in mind going forward.  I currently have an account with 4XP before discovering your site.  Nothing really bad to report on them.

As for Russian brokers,  thanks for the heads up.  I do have these accounts with Exness (St. Petersburg, Russia) but for all practical purposes they are defunct.  Funded in the past with minimal capital ($250.00 or something like that) and now close to zero.  I will just let them go by the wayside.

I will definitely look at the martingale hedging strategy.   After all, if I am going to have a trade go sour on me, at least I'd like to put the loss to work in a productive way rather then being just stopped out as a confirmed loss.  Let me study that for awhile.  As I mentioned, I fundamentally familiar with the concepts but I need to take time to study them and let the concepts 'gel' prior to applying them.

Thanks again for your input.

Cheers,
Jerry Suppan
Tokyo, Japan

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