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Alternative hedging strategy in case of drawdown
Jun 06, 2022 at 11:00
(edited Jun 06, 2022 at 11:07)
Member Since Jun 06, 2022
1 posts
Hi everybody,
I'm a medium experienced Forex trader.
I would really appreciate to receive your comments about a strategy I'm probably going to implement in the near future on EURJPY.
I'm currently in a drawdown, with 5 Sell options opened respectively at 136.15, 137, 137.8, 138.8, 139.45 and one in pending at 140.95. My account can resist until 143.7, but if we reach that level I will close my account, since my broker closes automatically at a Margin Level of 50%.
So my strategy is to open a seventh option in Buy this time with lots equal to the sum of the six Sell ones, in order to hedge the sell ones in case the level of EURJPY raises over 143.00 and my limit becomes closer and closer. Then, every time the Buy option goes in Profit, I would set the Stop Loss at Break Even. This way if the price goes up I hedge with the Buy option, if the price goes down I do not lose money due to the Buy option going negative and my total loss become lower until I reach a Break Even point.
Not being an expert I would really appreciate your opinions about such strategy.
Thank you.
I'm a medium experienced Forex trader.
I would really appreciate to receive your comments about a strategy I'm probably going to implement in the near future on EURJPY.
I'm currently in a drawdown, with 5 Sell options opened respectively at 136.15, 137, 137.8, 138.8, 139.45 and one in pending at 140.95. My account can resist until 143.7, but if we reach that level I will close my account, since my broker closes automatically at a Margin Level of 50%.
So my strategy is to open a seventh option in Buy this time with lots equal to the sum of the six Sell ones, in order to hedge the sell ones in case the level of EURJPY raises over 143.00 and my limit becomes closer and closer. Then, every time the Buy option goes in Profit, I would set the Stop Loss at Break Even. This way if the price goes up I hedge with the Buy option, if the price goes down I do not lose money due to the Buy option going negative and my total loss become lower until I reach a Break Even point.
Not being an expert I would really appreciate your opinions about such strategy.
Thank you.
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