FOREX HEDGE CALCULATOR | Forex Hedging Strategy

This is my forex hedging calculator. Feel free to use it as you wish. Make changes to the formulas to fit your strategy. Or you can just use it has it is!!!
Thanks!!!
#forexhedging #forextrader #hedgingstrategy
Link to Trim The Hedge Calculator
Newest Version: Has a tab for both Units and Lots
docs.google.com/spreadsheets/...
My Forex Hedging Strategy
• How to Hedge trading F...
Playlist for Trade 1
• Playlist
00:00 Introduction
00:45 The Trim the Hedge Calculator
02:35 An example of how to use it
06:30 Recap
NOT FINANCIAL ADVICE DISCLAIMER
*None of this is meant to be construed as investment advice, it's for entertainment purposes only.
The information contained here and the resources available for download through this website is not intended as, and shall not be understood or construed as, financial advice. I am not an attorney, accountant or financial advisor, nor am I holding myself out to be, and the information contained on this Website is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.
I have done my best to ensure that the information provided here and the resources available for download are accurate and provide valuable information. Regardless of anything to the contrary, nothing available on or through this Website should be understood as a recommendation that you should not consult with a financial professional to address your particular information. I expressly recommend that you seek advice from a professional.
Forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the investor’s initial investment. Only risk capital-money that can be lost without jeopardizing one’s financial security or lifestyle-should be used for trading and only those individuals with sufficient risk capital should consider trading. Nothing contained herein is a solicitation or an offer to buy or sell forex. Past performance is not necessarily indicative of future results. Forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.
CFTC RULE 4.41
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

[@MrTraderMike]

Thanks for the calculator share.I am putting your hedging strategy into practice and now I don't care which way the market goes. Your a real asset to the trading community.

[@theforexhedge]

Oh wow, those are some kind words. I'm super glad you have found some benefit!!!!

[@warrenbean3276]

Thanks for the calculator. It's a great help. I'm digging myself out of a bit of a hole right now so this will be invaluable. Thanks again

[@stevebohreer9948]

Enjoy your videos and hedging strategy. Thanks for sharing your calculator spreadsheet.

[@fencestainingpro9124]

Greatly appreciate you doing this for us. I've been hedging, and never could figure out a better system. You have helped me approach it in a different angle, much appreciated! Thank you Sir!

[@theforexhedge]

Right on!!! Hope it yields great returns!!!

[@fredericogf908]

Thank you for sharing your work, I never learned this type of hedging before! Keep up uploading new videos.

[@theforexhedge]

Thank you!!! Really appreciate your comment!

[@worthlessman6860]

Yayyyy! A new video....thanks!

[@theforexhedge]

HA! This made my day!!!

[@joerox29]

Thanks for the file. It will really help to simplify the calculations.

[@theforexhedge]

Awesome!!! Glad it is helpful!!!

[@olafimihanfolarin5819]

Thanks for the calculator shared can you help with the LOTS version of the calculator for MT4/MT5 Traders who cannot trim in units

[@bd59]

Loving the updates (and the new calc format!). Hope you had a great trip.

[@theforexhedge]

Trip was awesome!!! Thank you!!! Glad you noticed the "refreshed" calculator. It's a work in progress. I like this new look, plan to change the upload links to the new one soon. I'll announce it in a video when I do so if you are interested you can download it!

[@bd59]

By the way I am "up" 3% since the end of August using this technique. Well, I have a floating loss but I guess that is part of the hedging game. Thanks for sharing your knowledge. Edit: I realised I am commenting on an older video 😅

[@theforexhedge]

OH heck yes!!! Congrats. 3% is huge!!! It's not a loss until it's closed. Right now it's working capital!!! Takes money to make money!!! Lets GOOOO!!!! @@bd59

[@atulomahderrick3343]

Your such a blessing

[@jamespaul4618]

Thanks for sharing this concept with me. Very interesting idea. Your approach to trading is very unique. It will take me some time to master the process however you have laid out great road map. HEDGEING CALCULATOR - awesome. This tool is essential for this type of trading. Thanks for sharing it with me. 1

[@theforexhedge]

Right on!!! your very welcome!! Hope you can put it to good use!!!!

[@GeekNetworkDK]

thanx for an awsome helpfull channel! 🤓, is there a reason for the difference in between the sheet in your video, and the one your linking to? 🙂

[@aybarsk8797]

Thank you soooo much for this amazing strategy👍👍😊😊 I just cant find the "where to set the hedge part" at the uploaded file or am I missing something? :D

[@janb7914]

great stuff, have a nice day

[@theforexhedge]

Thanks, you too!

[@kyleb6616]

Thank you Brother for sharing. Love this stuff.

[@theforexhedge]

Heck yea!!! Glad you like it!!!

[@kyleb6616]

​@theforexhedge I ha e tried to open this but it looks like it is just an image. I have tried to open it with on windows 10 and Apple, and neither o e seemed to work. Would there be a way to get this in another format? Thank you again. I ha e started practicing this on a demo account.

[@theforexhedge]

@@kyleb6616 yea. No worries. Just hit the download button up top. It’s an arrow pointing down. Should be good to go after that!!!

[@kyleb6616]

@@theforexhedge Downloading it is easy, but whatever program or app you have it in seems to not allow some of us to be able to open it. I don't know if it is an Apple thing or a unique app that you are using. I am not very good with the technical things but I also had my brother try who is better than me at these things and he couldn't figure it out either.

[@voodster]

Thx for the spreadsheet

[@theforexhedge]

Your very welcome!

[@samzerker5315]

@forexhedging, first of all, thank you very much for calculator and detailed explanation of its use! I thought here you another video which will end up offering buy this calculator, I should admit I was wrong and surprised big time :) glad I was. As someone who is on his early stages of exploring hedging, would you consider making video which shows whole set up from A to Z, like setting up trading app, like guide for dummies like me and millions out there lol You have got yourself new subscriber! cant wait for your new videos. cheers

[@theforexhedge]

Yea, great idea. I have the main strategy video. kzbin.info/www/bejne/fKvLZZeEnb6al5I but this is a good idea of something a little more specific. thanks for the comment

[@samzerker5315]

@@theforexhedge would you consider giving private lessons haha )) If I can afford your hourly rates of course :)

[@andrasheilig240]

wow, thank you!!! if this is christmas day can I ask a video about your TradingView settings? How you setup your layout, how to manage two account side-by-side, etc. I would really appreciate it!

[@theforexhedge]

haha. your very welcome. Great idea on the Tradingview settings. I'm going to give this some thought!!!! stay tuned!

[@random_vids0]

Much love🇿🇦

[@danielbriggs1356]

Have you considered creating an MT4 Expert Advisor for this type of trade management? Currently, I have a custom indicator that generates probabilities of three occurrences (buy, sell, or flat). At the point in time in your hedging management where an action is required the direction could be determined by the highest probability. Would you be interested in talking about this more?

[@guillermogaitan2988]

Great videos so far! Thank you so much. Have a question. The calculator works if the PIP value is based on USD, so it would be 1,2,5,10, etc. What if the pip value is different for example in YEN or AUD,etc? Or do you use it the same way and the PIP value makes no difference?

[@theforexhedge]

Yea. Good question!!! It’s the same. Your just using profit to trim the hedge.

[@guillermogaitan2988]

Thanks sir and best of luck on the new position. Looking forward to the followup videos

[@max220191]

Great vid thanks for link to calculator. Would u consider starting a group to trade alongside others?

[@theforexhedge]

hmmm, I have not thought about doing this. Maybe down the road....??

[@max220191]

@@theforexhedge up for it when you are…keep the vids coming 👍🏼

[@theforexhedge]

Thanks my friend!!!

[@paulscaff8482]

​@@max220191 I made a small telegram channel for fellow traders if your interested mate

[@mmm_assets4016]

Hi, thanks very much for the calculator. I am going through all of your videos, I am very impressed with you approach. I am just having trouble with the download, I am using a PC and trying to either open with excel or google sheets but without success so far. I would like to change the currency in the out of the money cell to GBP

[@theforexhedge]

hmmm, there should be a download button up top. Then you can convert it to excel or sheets!!! There are two links now, one for Lots and one for Units. just a heads up.....

[@ianmegarry5559]

Thanks, I managed to get it exported into Google sheets.

[@theforexhedge]

@@ianmegarry5559 awesome!!!!

[@andersonwaldhelm9300]

como faço para usar a cauculadora? baixei ela mas precisa de autorizaçao

[@richardcalcagno6706]

Can the units be converted into lots I can only use lots with my broker

[@brianhagan6286]

Hi , these are great videos. a couple of questions for you. (1) for trade one before hedging is you trade risk 1or 2% of your account lot size matching the appropriate stop loss of 30pips example Account size $10000 2% risk at 30pips .(2) the hedge is also 2% of your account with matching sl of 30pips.. total risk is 2%. (3) what is the max drawdown you allow on the account and how do you calculate the internal hedge amounts for heding.

[@theforexhedge]

Great question. So many variables. First thing to think about is your leverage. I am 50:1 here in the states, so a position's cost is a lot more than someone that has a 500:1 leverage. Next...you have to calculate pips out of the money. I like a buffer of 300 pips out of the money, using the original full size position. For example...if you have 100,000 units and it goes out of the money 300 pips, that would be 3,000 of draw dawn. This never happens because I hedge at 30 pips and trim along the way....but I like a little breathing room. so, in this example 100,000 units cost 2,000 to open and you need 3,000 for draw down, you need 5,000 per side. or a 10k account. kinda rough math, but thats how a manage margin.

[@brianhagan6286]

@@theforexhedge Thank you for the reply. Leverage normally 500:1 with icmarkets. The system looks excellent I will like to see the trades on an mt4 or mt5 terminal.

[@theforexhedge]

@@brianhagan6286 I’m probably no help on MT4 or 5. I don’t use trade that software

[@brianhagan6286]

@@theforexhedge thank you again for the reply and your latest video. Class act.

[@theforexhedge]

very nice of you!!! thank you!

[@akashgedam6439]

Do we have to adjust the positions continuously, and not completely close any position, is there any minimum RR we should take??

[@theforexhedge]

Yes, you're always working the hedge. I dont have a minimum RR. I do however shoot for 40 pip profits

[@staffbull]

Thanks for sharing the calculators. How come you made two calculators? I noticed in the videos you only seem to use the unit calculator. I like that you have a lot calculator because it’s seems to be easier to use.

[@theforexhedge]

I trade in units. But it seemed like there was quite a few that traded in lots. So I just made one so you can download whichever one you want to trade.

[@staffbull]

@@theforexhedge I wish you much success! It’s rare folks provide value for free these days!

[@theforexhedge]

Hey thanks. I’m happy to pay it forward!!!

[@staffbull]

For some reason I cant unzip and extract the file. Which program are you running this on G Sheets or excel? @@theforexhedge

[@theforexhedge]

this is a .numbers file. If you download it you should be able to use a converter to turn it into an excel file or upload it to google sheets. Google sheets will convert it for you.

[@qasimmohamedyuusuf6959]

Thanks for sharing your way of hedging. Still can't understand how are you able to complete the hedge sequence and re-start all over from scratch? You hedge because you are wrong on your trade direction. ok after you start a sequence of trimming/squising etc.. but till now I haven't seen the end of it. would you mind showing a theoretical example where you start a hedge but after a serious of intermediate steps you are able to close the entire sequence and start fresh again. expectation is to be right on our first trade and use hedge only in case we are wrong. If we are permanently in a hedge is not good. agree?

[@theforexhedge]

Hey thanks for to e comment. To “close” or go “flat” I trade from the inside. So the margin I get back from trimming allows me to open new positions inside the hedge. I like your advice do making a video showing a completion or getting flat.

[@kevinjohnson3521]

@@theforexhedgecan you explain moreso?

[@theforexhedge]

@@kevinjohnson3521 Stay tuned, I'm going to make a video on how to trade from the inside!!!

[@kevinjohnson3521]

@@theforexhedge when?

[@theforexhedge]

just got done recording it, should be up later tonight. hope you got a snack, its a loooooooong one!!!!

[@mv_c_h_i_p5743]

This would be a really good idea on Indices, since they will always go back up even if they have a 40% drawdown(ex: US30 in 2020), so we could open only long positions and also profit on the short side. What do you think?

[@theforexhedge]

I have not personally tested it on the US30. I think it would work, but would love to hear back if you decide to to back test it!!! That would be awesome to know your results!!!

[@mv_c_h_i_p5743]

@@theforexhedge Sure, i will let you know!

[@darkcruzan]

Thanks for the calc! Any chance you can export it as a google docs or csv file? I am having issues when trying to convert it.

[@theforexhedge]

your very welcome. Once you have downloaded it, you should be able to upload it to Google sheets and it will convert it for you. Hope this helps!!!

[@darkcruzan]

@@theforexhedge I have tried that but after uploading a third party app is suggested to convert the file. So far none of the options has worked for me.

[@theforexhedge]

shoot me an email, its in the "about" section. What format do you want it in? @@darkcruzan

[@krisrix88]

@@darkcruzan uploading to drive and converting with Cloud Converter worked for me choosing xlsx as the file option

[@rajeevrudra009]

Plz recommended any course to learn Hedging ... as a new Beee I lost 30K .. now focusing on learning hedging

[@theforexhedge]

I'm no help on a course to learn...you're welcome to watch any of the videos on the channel....It's my style of hedging. Might help you some.... Sorry for your loss, those hurt!! :(

[@mkhpd8158]

Thanks for your videos. I've tried downloading the calculators, and I get is an image, rather than a spreadsheet, which is what I thought I was downloading! Am I overly optimistic?

[@theforexhedge]

Hey there!! Once you download (hit the download arrow up top) it it’s in a .numbers file. If you have a Mac you should be able to open it right up. If not. You can use google sheets to convert it! Hope this helps!

[@mkhpd8158]

@theforexhedge Thanks. There was a bit of messing around, but I got it sorted!

[@theforexhedge]

Right on!!! @@mkhpd8158

[@user-sn7ib4jt7o]

Just wanted to confirm the amount you keep, so you keep 0.1% of the units?

[@theforexhedge]

Yes. 100,000 units I keep 100.00. 50,000 units I keep 50.00.

[@apostolosserkezos875]

i cant use this archive.What kind of archive is that ? number?

[@theforexhedge]

You should be able to hit the download button. Top right. From there convert to your preferred file type. Hope this helps

[@paulscaff8482]

Hi mate, just had a few of questions as I know it could take many days/weeks for the different scenarios to play out for videos. 1. The trade idea: Am I right in saying, that if you come to a clean chart without trades playing, then you are quite simply looking to just "get in", getting the direction right for a quick easy take profit is a bonus, but doesnt matter overall. So whether trending, consolidating, small bars, big bars, just get in the trade, but ideally pick the most probable direction? 2. Trading from the inside: When an inside trade doesn't get hedged and closes for a profit, we use this profit to partly trim the outside as shown in video 1 which is fairly simple. But when the inside trade gets hedged......when we trim, do we use the profits to only trim the inside now and leave the outside alone? or do we close part inside part outside, or still concentrate on rolling off the outside before concentrating on the inside? (sorry sounds confusing, hope that makes sense😂) 3.Time in the trade, in the market: Am I right in saying that with the method you are constantly in the market from the original idea. I.E your original trade will become wider and wider, open trade from inside, roll off the outside completely, inside trade then becomes wider and wider, open new trade from inside to roll off new outside, so on and so forth? I get this example would be more so in a trending market rather than a mean reverting one. Im not sure if youve heard of Hugh Kimura over at Forex Heroes? He has a youtube channel where he will go on the tester and try and work his way out of positions/hedges, pretty interesting videos. If youve got a tester I.E FXReplay, Soft4FX etc etc then it would be really cool to see a video of the process, could probably cover weeks of ground into a short video and would likely clear up alot of questions, and get alot of traffic. White board is good, but tester footage would be fantastic. Cheers mate, thanks for making the videos 👍 Edit. Was doing some testing today and got caught in an 800 pip rally on GU, decided to flatten everything after 9 weeks of data at a small loss. 9 weeks though, guessining I was making mistakes though, how istesting going with all you guys?

[@beepbeep.health]

I was literally about to ask these same exact questions. I've been backtesting it quite a bit now but then I came across the scenario you mentioned where I wasn't sure if I should have trimmed the inside position or the outside one. My guess would be the inside position since it's going to be much larger but other than that idk 😵‍💫

[@theforexhedge]

Excellent Post....here are my thoughts 1. Yes, try to make a good entry. What ever your strategy is, a trade that you open and close without a hedge is still your most profitable trade. 2. When I have an inside hedge, I still use the profits to close the outside. The idea there is to reduce risk and narrow the hedge. 3. I dont really focus on getting flat.... More often than not you end up flat when the market does turn. They dont go one direction for ever. This is a great post, I hope to make a video to expand on how the inside trade works...

[@worthlessman6860]

HI! Can work out manually but wanted to try the calculator and couldn't get it to open with the links provided...of course I'm an old guy and don't know much on computers....please advise if possible ...Thanks

[@theforexhedge]

no worries!!! if you click on the link...up top should be a download button (has an arrow pointing down towards a line). download the spreadsheet. Once downloaded you can open in numbers if you are on a Mac, convert to excel if you are on windows, or upload to google sheets. (google sheets may be the easiest way to convert)

[@worthlessman6860]

Darn chromebook giving me file not supported...ugghhh / will try again on windows desktop when i get home....thanks so much!@@theforexhedge

[@theforexhedge]

hope you get it!!!

[@stevezm100]

can this be applied to crypto trading like btc?

[@theforexhedge]

not sure on crypto, I dont trade it

[@rejieabayon4881]

How to avail on your calculator sir?

[@theforexhedge]

There is a link in the description!!! Hope that helps!

[@toms8879]

i am unable to download it. its an excel spread sheet,right.

[@theforexhedge]

Hey there, you should be able to download and then convert to the format you want to use. Its currently a .numbers file

[@toms8879]

oke, let me google. how to do that.;-)

[@toms8879]

yes, it worked. thanks.

[@manuelangelosarausad6653]

Great video!

[@mrindorivlogs7209]

I am sorry for the previous comments😂

[@frantzen1]

How to open the file in excel?

[@theforexhedge]

Hey!! Once it’s downloaded you should be Beale to convert to and excel file. I’m not 100% sure the process because I am on a Mac

[@MrJachinder123]

If you. think logically. This won’t work. Suppose you open 1 lot buy and sell. Now imagine market trends upwards. You take 1 lot buys profit and minimize the sell lot. Now suppose you open 1 more buy and sell lot, if market trends upwards you can close your first sell completely but now you’re second will not be completely closed only to small fraction Similarly if the circle goes on, momentum market you will have you various sell positions open. The margin will do you no good. Think about it