WORKING A HEDGE FROM THE INSIDE | Forex Hedging Strategy

This shows how to work a hedge from the inside!!
#forexhedging #forextrader #hedgingstrategy
My Forex Hedging Strategy
• How to Hedge trading F...
Trim The HEDGE Calculator
• FOREX HEDGE CALCULATOR...
Link to FXReplay use coupon code FOREXHEDGING15 for 15% off
fxreplay.com/?via=trimthehedge
Playlist for Trade 1
• Playlist
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.

[@razlintorrent7647]

This is so good!! Im backtesting your method a lot. I stopped trading for 4 months, but stumbling upon your video out of random, got me wanting to try it again after a really bad rollercoaster the past 3 years. This method really feels more like a game, whereby its even fun backtesting using your calculator. I must say, watching u backtest, really fires me up sometimes, makes me feel like its like a match between 2 teams, fighting for their positions hahahaha!! Then the trimming or the squeezing feels like a strategy to fight for either teams. I must say, this got me focusing much more on the process rather than the earnings or losses, really. Keep up the good work! Subscribed with the bell on! Cant wait to catch more of this :) Thank you so much for sharing your knowledge!!

[@jimdwo-gm2vr]

Thanks mate. Really great video! Best channel on youtube... transparent, genuine and very informative!

[@theforexhedge]

Oh my!!! Thank you very much. Glad you found it worth your time!!!

[@stevencloutier2963]

Legendary! Thank you for doing this :). I hope you enjoy making videos because you’re a lot of fun to watch and listen to! I wish you all the success in the world my friend.

[@theforexhedge]

Oh my heck. What a nice compliment!!!! Can’t thank you enough!!!

[@percivalbuenvenida1925]

amazing video! it's explained very well. i learned a lot from this. thank you for sharing this bro

[@TradingNirvana]

Great content, hope you post more!

[@dylanlau8858]

Genius! Thank you!

[@theforexhedge]

ha!!! now that was a nice comment!!!! Thanks!!!!!

[@hihi695]

wow just the video I needed

[@theforexhedge]

Boom. Enjoy!!!!

[@MrTraderMike]

Wow Amazing Explanation and Walk through. I'll be watching this one over and over to fully get it. I've been at Forex trading for more years than I want to admit. Lol. Finally someone with a strategy that works. Thank you !!

[@theforexhedge]

Yes!!! Love reading comments like this. I really appreciate you sharing!!! Can’t wait to hear how it goes for you!!!

[@keithfreeman2084]

Fantastic video. Can this strategy be used with futures? Points instead of Pips? I’d really like to not have to learn a whole new instrument if I can avoid it.

[@Qland22]

Subscribed!

[@krishkari7934]

Amazing content..!!

[@theforexhedge]

Thank you so much 😀

[@titodalla1]

Thank you, you are really nice to share this, can I do this with NQ and ES even if the value contract has a +/- $100k difference in value? and if so, how can I approach this system if you tried

[@max220191]

Excellent vid

[@theforexhedge]

Thanks a ton!!!!

[@paulduggan2]

This was an absolutely phenominal video. Showing the process and how you work through your trades is very helpful, and I'd have easily watched another 38min if you had carried on 😆 Thank you VERY much for your time, and for making this video, very much appreciated. Cheers!!

[@theforexhedge]

oh my, what a nice comment. I'm not sure you would want another 38 minutes of me....hahaha.

[@686shaikhmohsin]

Multiple positions of buy and sells on different prices are open with equal quantity, average of buy and sell hedge spread is very far , in such situation will it be a good idea to enter the inside hedge if yes then as you said in the video it should be the mid point of the hedge spread or can open trade anywhere if there is any move anticipated . If i enter with inside position and hedge is also activated then i will be having more open positions with far sprrad right , Or one should just wait for the big move to cross the spread size and trim it from outside.

[@theforexhedge]

Great questions... 1-make sure you are not opening more positions than you have margin for. 2-you dont have to wait for mid point. I will work inside anywhere there is a move anticipated. I would say rarely is it exactly at the mid point. hope this helps.....

[@alejandrodiaz5793]

Amazing 💪

[@theforexhedge]

wahooo!!! thanks! appreciate the comment!!!

[@dinukanimesh9085]

thank you sir.

[@theforexhedge]

yes, your very welcome!!!

[@SachinPatil-no4oq]

Hayy my question is wich broker give a facility to trade in forex with Unit position size And wich broker you use plz clear my doubt🙏🙏🙏

[@shonisony8321]

Amazing demo. One question: I see you are able to trim the exact units, how to trim the position if the system doesn't support unit level, & only supports lot size level changes?

[@theforexhedge]

you might have to wait for a little bigger move so you can round up to at least .01 lots. Same strategy, just have to watch your profit to trim range. hope this helps. The Trim the Hedge calculator has a lot tab...fyi. It might help you out some if you hav not already downloaded it. kzbin.info/www/bejne/bn6Yp2OBfrWEi8k

[@jacobdesmondaryon1558]

Thank you for doing the Lord's work.🤙 Quick Qn: Do we keep reducing the lot sizes as the we keep entering new postions (new hedges) into the ongoing hedged trades?

[@whatislifebro]

use the calc

[@samirorange83]

Awesome thanks. How much pip difference you wait to start building inside hedge. In this example it is 400 pips. I think you will get 15K difference with in 200 pips if one trims on regular interval. Do you maintain logs of closed positions?

[@theforexhedge]

Oh no. I would not wait 400 pips. I just wanted to show an example of a really wide hedge. You can trade from the inside anytime you want as long as you have margin to do so!!!

[@naderiansari]

Thank you for your valuable videos. Can you share the link for your Excel Sheet please

[@theforexhedge]

Yes! It’s in the description of this video. FOREX HEDGE CALCULATOR | Forex Hedging Strategy kzbin.info/www/bejne/gHbKmIeNrpafgs0

[@Mrogadget]

I’ve watched all your videos, and you have a new subscriber 😊 That’s premium content right there. I’ve noticed that getting flat really isn’t really in your vocabulary but for some (like me) sometimes we just want to get flat to save a SL hit for instance and wait for the next opportunity. Now the question is, how hard/easy would it be to get flat? What changes would one make to this strategy to get flat? We would appreciate it if you could make a video about getting flat, but you don’t have to. Even guidelines or ideas would do. (e.g. don’t trail your stop orders… or anything) Thanks in advance and once again, thanks for this premium content.

[@theforexhedge]

yea, I'm not help on getting flat. just trimming away. Going flat just happens once in a while...and then I just jump right back in!!!

[@Vlad-zk8rb]

@Mrogadget have u found a way to get flat fast? im interested in the same thing and brainstorming right now

[@njtude]

Brother, thank u for the top quality video! Can we concentrate on the daily timeframe to work the trades (trim, squeeze etc)? That would give free time for other stuff.

[@s.m.82.82]

Hey man! How do you put all of this into a trading day? How many hours do you have to stay in front of the screens?

[@flamehands3416]

What if you have 2 outside positions , and you’re starting the inside, will you squeeze the hedge from inside order say 30pips past original entry even after it goes into profit? Or do you stop at original entry

[@ericfriebel]

This is a fantastic strategy. Thank you. I was wondering though about swap fees. If you hold on to hedged positions indefinitely, you would incur swap fees after each end of day. What percentage of your average profit would you guess goes to these fees?

[@theforexhedge]

yea, good question. Here is the swap fees for today on the USD/CAD Long-0.59% Short-1.56% So on a 100k unit position it would be around 5.00. As I trim the swaps go down. At the end of each month, I average 3-5% net. This would include the fees for swaps. Hope this helps......

[@bd59]

Thanks again for the string of high quality, informative videos! Question - how much do swaps/commissions eat into your profits? I guess as long as you were completely hedged overnight the swaps should cancel each other out, but if you're in a position where you are squeezing and yet to be tagged, you might attract some fees. Thanks!

[@theforexhedge]

Swaps seem to average themselves out. As far as commissions, I use Oanda and they have a pip spread. but if you had a broker that say charged 8.00 commission, I would just shoot for 41 pips to cover. Kinda is the same thing....

[@Krishna-rz8dk]

Exness broker don’t have a swap and commission above all it is reliable broker

[@deyllonguimaraes5911]

perfect. i got it👏🙌

[@theforexhedge]

Yes! Yes! Yes! Let’s goooooo

[@joseneto2525.]

Hi Chad, I`m studying your video with my notebook on the side and pausing to see if I got it right, the objective of WFI is to narrow the distance between the outside hedge? so we are going to use the inside hedge profit to trim the opposite outside position and doing so we are squeezing the hedge, ``killing`` the outside positions and having another hedge on the inside thats way easier to work with...and if we keep doing it, we are going to finish everything, is that right? Thanks again for providing this videos, it`s helping so much!

[@joseneto2525.]

found the answer at the end of the video, amazing stuff!

[@funfacts9956]

Whcich broker are you using? And which one is best for hedging?

[@worthlessman6860]

Yes Sir!

[@theforexhedge]

Ha. Thanks!!!!

[@bodangoran9981]

How are you able to do this in trading view backtesting? you're overall layout is different, would you mind sharing how you do this? thank you!

[@theforexhedge]

This is FXreplay using TradingView charts!!

[@svetoslavkodzhamanov5602]

Hi amazing content, thanks a lot. I am also trying to trade using hedging techniques. Right now I get stuck in one 67-pip range in EUR/USD. My question is how do you decide which position to trim? For example, when you have a profitable inside long trade you trim your losing long position or your losing short position. I am wondering because if you trim the same direction position you can trim more lots (on discount), but in another case, the other position keeps going far from you. I would be interested to hear your thoughts. Also what your plan will be if you have 0.3 lot short and 0.3 long only 0.1 to play with in between :) Keep up the good work :)

[@funnycuteanimals523]

This is a manual leveraged grid bot? Nice videos, im trying to find a hedge system, this looks good fun tho 😊

[@MDBCapital]

while trimming, do we trim the furthest position first, or the one with much loss.

[@theforexhedge]

Always trim the furthest position first!!

[@stevezm100]

has anyone seen nick shawn's strat? this one seems quite similar but easier for me to understand - great job chad

[@theforexhedge]

thanks, I appreciate the feedback and comments!

[@valicojo5291]

I think i got why this strategy works. I used to do similar but with buys and sells from the same place then trimmed. But the problem with that strategy is the you run out of equity while the balance increases.

[@theforexhedge]

Yes!!! Your getting it!! Wahooooo

[@julesfaustin2512]

i’m facing this problem

[@julesfaustin2512]

my equity is going down while balance goes up how did u solve this problem

[@theforexhedge]

So you have made this comment a few times.... You mentioned your making a profit. Are you also trimming the opposite outside position or just keeping the profits? Are you trimming before 40 pips, of so what is your profit target. Are you keeping to much profit and not trimming the outside position enough, if not how much are you keeping compared to how much your trimming. I have gone over how I manage margin in another video, and this is key to running this type of hedging strategy. @@julesfaustin2512

[@dorianramos3083]

Cryptocurrency trading on binance futures. In hedging mode I cannot open two or more long or short positions without them being averaged. What options do I have to manage hedging?

[@fcropsman]

Great information & thanks for replying to the email!!

[@theforexhedge]

oh you bet!! hope it helped!

[@konstantinalexandermueller1921]

Dear Sir, thanks for all thegreat content.......Maybe someone can help me out.... How can you open multiple separate poritions ( trimming from the inside ) all brokers I am speaking to add all positions up and only give average prices, so that I can not trim the outside position but ONLY the average position.Can anyone help explain which broker to use and what what platform to use thank you very much much appreciated

[@theforexhedge]

if your trading a broker that requires you to average your position, you will have to close from that spot. Takes a little longer, but still doable!

[@rajeevrudra009]

wow nice Video .. can we use 2 different platforms for hedging ? one for LONG and one for Short positions so it won't create confusion ?

[@theforexhedge]

Absolutely!!! I would just try to get both accounts on lots or units. But that would for sure work!

[@ykmarkykmark]

I have a question for you : How do you close positions from the inside if you got to follow the fifo rule with oanda in the US?

[@theforexhedge]

Hey great question! The position sizes have to be different. For example: If you have two positions of 10,000 units. The first in, has to be the first out. but If you have two positions, one of 9,999 and one at 10,000 units you can chose which one you want to close. this works with Oanda using Tradinview. I would recommend testing your own software to see if this applies!!!

[@centroforex]

Pass a prop firm challenge using your strategy of hedging ! That will be a great video series

[@theforexhedge]

I'm probably not any help on prop firm challenges.....

[@jimgannon1917]

its a good tactic. profit every day

[@ryanjay13]

Interesting. Literal money printing machine work from home gig. This would be insane on a 500:1 broker. The concepts will be occupying my thinking time for the next few weeks. Thank you.

[@renzkarlosantos1515]

@ryanjay13 does it work to u

[@qasimmohamedyuusuf6959]

I get it know. Understood you want to be always in the game but sometimes you have to go on holidays or family/business afairs etc... In such scenarios you may want to be able to close all your positions in order to be flat, close PC and don't think about trading for few weeks. Did you experienced that need to be flat and managed to reach it? cheers

[@theforexhedge]

What a great question!!! I took the family to Hawaii the first week of Aug. Had a hedge in the whole time....checked on it once, had an alert and trimmed it. There was several opportunities to trim, that I just did not take. We were on vacation!!! one of the things I love the most about this strategy!!!!

[@fahedfateh6885]

Hi .. thanks for this good job ...how much the capital for the first trade suggest 10000 unit ?

[@theforexhedge]

good question. for a 10,000 unit position I think you need at least 1k. if you are using two accounts....500.00 in each account. this would be for a 50:1 leverage

[@waynefisher4296]

I wonder if this strategy can be programed into an EA.

[@muhammadishfaq3127]

Excellent! It looks perfect and amazing. However, when we trim down the hedge against the winning position, it only increases the accoumt balance, not our equity. Because the losing trade per pip is higher prior trimming agaisnt winning trade. It will be great to see the net Account Balance and Equity effect in the up coming vedios to understand this strategy better, please.

[@theforexhedge]

Right on...I'll try to include this in the Trade Series videos. I would like say...dont forget about squeezing and working the hedge from the inside. The combination of all three is where you see account balance go up, and then equity as you close positions. This is relative due to opening new positions. I would not say my goal is to get flat and have an equity increase. Something to consider..... It's not really a "traditional" way of trading.

[@Wesmoen]

Maybe I'm wrong, but trimming the losing position will open up equity again, right? Going from 100000 with 70pip loss (-$700) to 50000 with 70pip (-$350). I'd say, $350 is open again.

[@theforexhedge]

Yes!!! its like the light just went on for you!!! I would even say not so much the 350.00. but the 50,000 units is available to work the inside. you made money, freed up margin to put back to work!! @@Wesmoen

[@Wesmoen]

@@theforexhedge Good to hear I'm getting the concept correct! I've been binging your videos to check, If the premise keeps hanging. Your style can also work for crypto, but people obviously need to convert the pip to the correct percentages. Coming from a DCA approach, this strategy feels more like a balancing scale than a spring effect. You don't have be scared, if something isn't going up soon. Demoing it with Tradingview's paper trading. Already "made" $4.

[@stevezm100]

hey you done it with crypto? @@Wesmoen

[@stevencloutier2963]

If you were to trade from a funded account where your max draw down was 5%ish. How many pips wide would you allow your hedge to go before initiating another on the inside? I feel like you would need to use 50,000 units and reserve 50,000 for a exit plan. What are your thoughts?

[@theforexhedge]

I may not be the best resource this question. I don’t trade props. Just trade my own money…. I would be interested what you find out as you research it!!!

[@cornetopremodebida1423]

Prop uses 10% drawdown. 5% is for daily loss

[@UnemployableFakeGuru]

So... in most cases you end up with 2 smaller outer band positions possibly 100's of pips away from each other. You let them sit there until they breakeven. Meanwhile opening new hedges between them? The total close might be sooner if the hedge didn't got picked up? Trimming = tacking some money of the table while reducing margin?

[@theforexhedge]

I always trim the furthest opposite outside position

[@ykmarkykmark]

I was watching the video for so many times maybe like 6 hours back and forth. Enjoy it very much. Have 1 questions: 1. That video it took like how many days to get to lower the hedge, i think like a week. Am i right? Love it . Thanks

[@theforexhedge]

I think it starts on July 16th...I kinda go bored and gave up around Aug 2nd...if I remember right. So this example was around 2 weeks. Or somewhere around that.. It is a process, not a quick scalp. Great question! hope this helps!

[@ykmarkykmark]

Well it is . With me one time took a trade 2.5 months to close . Imagine from $9000 DD UNTIL profit . Im planning on $40000 balance to trade it. First excise it on 0.01 to get use too . And then rise to 4 lots total of open trades. If necessary. Thanks again.

[@theforexhedge]

I love that you have put serious thought into it. It's more about managing the trade, than the profits of the trade. You can always scale up...like you mentioned....to 4 lots. @@ykmarkykmark

[@ykmarkykmark]

Waiting for the open trades to be on float. Then instead of waiting i will hedge like you said. Hope to make it to ATM machine 😊. But seriously there is alot of potential i can tell you that much. Appreciate that . Thanks

[@qasimmohamedyuusuf6959]

I have another question. On the video you start with 400 pips gap hedge. But let assume price keep going up and up until you are let say 1000 pips gap. Yes you trim your lowest entry on the way up but still that sell below keep increasing your draw dawn. On my broker the min lot size for a position is 0.01 and you can't trim less than that. We simulated your hedge strategy under big big trend and it keep failing. Maybe myself and friends are missing a pice of the puzzle secret. Can you please clarify strong trend situations and how you manage them? Thanks

[@theforexhedge]

Great thoughts!! Even if it kept going up, I would still have traded the inside. I would wait for a pull back, they happen all the time!!! Then trade from the inside and apply profits to the lowest position. Eventually, the larger size position that you are opening on the inside takes care of the out of money position that has been trimmed down. This video showed that happen twice. You can trim lots or units. I dont think you can trim more than a .01 lot. Micro units give you a little bit more flexibility. Hope this helps!!!

[@kevinjohnson3521]

Finally!!!

[@theforexhedge]

Haha. Love it!!!

[@muhammadishfaq3127]

Kindly, make a 3rd vedio with total account balance and equity change! Look forward to learning more from you on hedging strategy. Thanks

[@theforexhedge]

As you watch the Trade series videos this might help with account balance and equity change questions. This is a similar response I gave to a comment below....I think it applies to both. Just wanted you to know I ready your question!!! I would like say...dont forget about squeezing and working the hedge from the inside. The combination of all three is where you see account balance go up, and then equity as you close positions. This is relative due to opening new positions. I would not say my goal is to get flat and have an equity increase. Something to consider..... It's not really a "traditional" way of trading.

[@muhammadishfaq3127]

@@theforexhedge thank you, much helpful.

[@muhammadishfaq3127]

Thank you.

[@theforexhedge]

You're very welcome!! @@muhammadishfaq3127

[@dpc107]

Excellent thankyou, is this trading view?

[@theforexhedge]

This is TradingView charts. But the back testing software is FXreplay.

[@dpc107]

Thanks amazing stuff keep it up@@theforexhedge

[@Yibanathi]

What happens when you use the full 40 pips profit to reduce the loss position ? Does it have a negative impact?

[@theforexhedge]

You just don’t keep any profits for yourself. But as far as trimming the hedge. Nope, you just trimmed more!

[@vinodrathod780]

Does this strategy work in prop firms

[@jerinthepreacher]

Sir, wehn will next video come in?

[@kyleb6616]

I was looking at Oanda Brokerage, and it looks like their spreads are very large. For example AUC/CAD, Oanda is 2.4 pips compared to .8 on others. That's a significant difference. Is there a reason you use them or am I missing something. Maybe because they trade in units and not lots?

[@theforexhedge]

They trade in lots and don’t have commissions just fixed spreads. The main chains are usually around 1.8.

[@RC-xq9ib]

Great video once again!! Would it be possible to do a video explaining on how to manage the margin to avoid broker liquidation?

[@theforexhedge]

Great idea!!! I'll give it some thought and see what I can come up with!

[@andrasheilig240]

@@theforexhedge would be really nice! and what do you think what is a good deposit for the account to manage this strategy if you have a quite low leverage (i just have 1:30) but I can manage the hedge in one account. by the way, thanks for the videos, really like them, you are a real man not just the guys who are usually have big mouths but nothing to say.

[@theforexhedge]

@@andrasheilig240 This is a good question. As a rough start I would think you need around 7500.00 for a 50k position. You an always tighten that up, but that might be a good starting point. As a rule, you need to cover the cost of the position and give yourself plenty of margin to work the hedge.

[@andrasheilig240]

@@theforexhedge thanks for the reply! I think I would start with low until I am gonna be familiar with the strategy. So I am thinking about a 1000 EUR account and using a 0.1 lot (10.000 unit) starting position. I can only trim at least 10% each time (0.01 is the minimum lot size) but I hope this gonna work.

[@theforexhedge]

@@andrasheilig240 I think this is a great idea. You can always scale up!!!! It will work trimming by .01...you may just have to wait for a bigger move. Thats totally fine though!!! be patient with it!!! Markets move!!!

[@jjfattz]

Is this a form of staying "delta neutral", to borrow a term from options trading? Meaning you're straddling the market, not getting heavier in either direction, while picking up profit.

[@theforexhedge]

I would say...kinda. Delta Neutral is a strategy that that tries to get the net change of the position to zero. as the option moves in or out of the money and closer to expiration date the greeks change a bunch. In forex hedging you dont have to worry about the greeks, so no expiration date or trying to have the greeks line up with your calls and puts. But, a similarity is that we are working the market from both ways. So you can profit from a long position as well as a short position. With the goal of making some profits along the way vs trying to get to a net zero. Hope this kinda helps....but really we are comparing oranges and apples. The big difference is no greeks and no expiration date.

[@jjfattz]

@@theforexhedge Thx!

[@fcropsman]

What trading platform are you using to backtest?

[@theforexhedge]

I use FX Replay....the charts on it are from Tradingview!!!

[@vinaypandit7779]

Should you only trade from the inside once you have got a decent chunk of your margin back? I'm just trying to establish if it's best to wait for the market to move back towards one of your hedged positions in this situation.

[@vinaypandit7779]

What I mean is, if you still have the majority of your units in the market, and the price starts to move in between your 2 hedges positions, should you just wait for price to move back towards your hedges positions?

[@theforexhedge]

Yes. Only trade the inside when you have a decent chunk back. If not just let the market move until you get a good trim. Some times you sit. Last two days are a good example of that. Markets have been really quiet!!! Patience for sure!!

[@hiltonroberts-baxter2745]

Is there any way you can do it with mt4 or 5 coz you are able to close partials on your platform

[@theforexhedge]

Hey there....sorry I may not be much help on the mt4 or the mt5. I personally dont trade mt4 or mt5. I am pretty sure you can do partial closes on those platforms.

[@samirorange83]

Yes you can close partials on MT4 kzbin.info/www/bejne/goSpiqiDmdOZi6M

[@MuhammadFayyaz1]

Great content. Quick question, what is the maximum equity % drawdown you have faced with this strategy?

[@theforexhedge]

I am not sure to be honest what my max equity draw down is. You do experience draw down as your trimming a hedge.

[@zam2050]

@@theforexhedge how are you not sure what your max equity draw down was? Literally go into your account and look at the report. I like your strategy and these videos but this comment made me suspect that you've had some gnarly draw downs, got rekt and now don't want to disclose it.

[@theforexhedge]

ha ha, well thanks for the comment. I do appreciate it. But, I'd like to point out you're literally seeing my draw down. I'm literally recording the trades live. I go through how I figure margin and what I plan for draw down in this video. Maybe it will help you to figure yours. kzbin.info/www/bejne/fmnWlWqEjq6NpMk I hope the best for you, and I sure dont mean to upset you. @@zam2050

[@zam2050]

@@theforexhedge I'm not going to go back and watch all of your live trading videos to calculate what your maximum drawn down was nor do I need your helping "figuring" mine. Idk what platform you're using to trade but on mt5 there's a clear indication of max drawn down level under reports. Mine was 61% with my current hedging strategy which isn't good and also why I was hoping you would have given this guy a clear answer.

[@julesfaustin2512]

i’m facing the same problem i’m tryna work out of it

[@gojdff]

How do you convert the units to lost? I trade in lots.

[@theforexhedge]

Hey! I added a lot calculator! It’s in the description of the videos explains how to use it. Hope this helps! FOREX HEDGE CALCULATOR | Forex Hedging Strategy kzbin.info/www/bejne/gHbKmIeNrpafgs0

[@akashgedam6439]

In case of buy, do we have to close the position if the hedge sell order didn't execute, and current price is above 40 pips and we are holding 40 pips profits???

[@theforexhedge]

I would, I call that a clean trade. you just made 40 pips....and you did not hedge. good work!!!

[@akashgedam6439]

Keep doing the good work and guide us to grow more 🙂

[@decrypt2088]

awesome series and thank you for sharing your strategy with us. at the 23 min mark you closed a position for $180 profit, the 4,309 position was out of the $ by $119. Shouldn't the math be 180-119 = $61 profit? but you added 119 to the calc.

[@theforexhedge]

yes, this is correct. I'm really surprised I dont' make more of these mistakes...I get kinda nervous making the videos!!! haha.

[@decrypt2088]

@@theforexhedgealso the last trade at 33:45 when you had the 2 remaining positions sitting on top of each other. looked like the sell was in profit of over 100 pips. could you have closed that for %100 and trimmed the buy position before putting in your sell stop. would that have worked?

[@theforexhedge]

yes, I think I understand what your saying. I'm not completely sure. It was in the money 40 pips, closed it 100% and then closed the outside long position 100%.

[@manishsharmamahi8449]

Which software is this?

[@emmanuelochor9599]

what do you do whem you trim in lots and you get to were you your 0.01 lots is so large that you can.not vlose it

[@theforexhedge]

I would personally wait until a position is further in the money to get a bigger trim.

[@samzerker5315]

can anyone suggest youtube channels with the most simplified learning guide to forexhedging please ? Sorry @forexhedging, not that I am trying to divert your subscribers anywhere, just thought folks here would have found good educational channels already, as there tons of videos and not sure where to start lol

[@theforexhedge]

hey, no worries. I'm here for the fun and free info: just a heads up though, my hedging strategy is very unique. I have not seen anyone else doing this style of hedging. Have you watched this video...It is pretty detailed. kzbin.info/www/bejne/fKvLZZeEnb6al5I

[@samzerker5315]

@@theforexhedge that is the first video I watched, love youtube algorithms suggesting your video and channel! rewatching it again, I like the way you explain it all.

[@ykmarkykmark]

Sir im still waiting for an answer. The way i see you working from the inside positions only on demo account because oanda won’t let me close new positions first do to fifo rule? Are you trading on demo accounts???

[@theforexhedge]

Hey, sorry for the delayed response. I got to take my wife out for a date last night!! I couldn't take my eyes off her long enough to check my phone!!! I think I got your question answered on your other comment!! Let me know if you have any other questions.

[@stevezm100]

im new to forex, with this strat I guess we might leave trades overnight? and does that cost money?

[@stevezm100]

oh same question below! 🙂

[@theforexhedge]

yea, you will have fees from swaps

[@rayyoo2579]

You are amazing sir, can you plz tell me Which pair is best for this strategy ?

[@theforexhedge]

Any of them will work. I personally prefer the USD/CAD

[@rayyoo2579]

@@theforexhedge thanks

[@zentox6396]

I have another question :). I’ve been watching your videos recently and hedging from the inside was a struggle for me but now I’m getting the gist of it. As mentioned, there is one thing I don’t understand yet; Why didn’t you lower your buy stop again at 9:35 to 9:47? There was still a greater gap than 30 pips between your entry in the short position and the buy stop as well as between the market price and the buy stop. An answer would be appreciated 👍🏼 2nd question, why didn’t you close your 6553 unit short position at 34:09 to trim the long position?

[@theforexhedge]

First of all, I want to say awesome attention to detail!! really impressed....Now to try to answer your questions. 1- If you look at 9:35 I have squoze the hedge to close to 30 pips. I generally dont squeeze closer than that. I like to squeeze anything above that...but once I am at 30 pips from the position thats where it stays. So even though the hedge was eventually more that 30 pips from the market, it was only 30 pips from the position it was set to hedge. Hope that makes sense. I just do this naturally, didnt even think to bring it up in the video!! 2 - At 34:09 it did get in the money. But only by a 5 pips give or take. Thats not enough to pocket some profits and trim. I like to shoot for 40 pips in the money. hope this helps.....

[@zentox6396]

@@theforexhedge Yes thank you, this helps👍🏼👍🏼

[@theforexhedge]

Your very welcome!!! @@zentox6396

[@mohantyshekhar5]

There are a few things, they i would like to be answered, probably in the next video or something,, 1. what should be the risk management for a person ,for example, he is holding account of 10K USD. 2. is there any scenario, where a person can make a loss ? its very difficult to think of one for me. Thanks. loved the channel.

[@theforexhedge]

Great questions.....some thoughts 1. I would start out small. you could go in with a small size and get your feet wet. remember, you can always size up as you go by trading on the inside. 2. The only scenario I have found where I lose money is....making a dumb mistake. Check out the video 1.5 if you haven't already! ugh.... sometimes we just get in our own way..... Thanks for the comment!!!!

[@jimdwo-gm2vr]

One problem i encounter is, when i need to close for example 600 units, and i trade with lots. That is 0.006lots. Its too small to close, my broker only allows 0.01lots minimum... How should i handle this?

[@theforexhedge]

solid question!!! I would wait until you can close the .01 bigger profits than losses!!! name of the game!

[@voodster]

Do we need a VPS to do this? Do you use a one?

[@theforexhedge]

hey there, I'll be honest. I dont know what a VPS is???

[@voodster]

@@theforexhedge traders use an external location that is always on. When I put my PC to sleep I dont think the stops are working anymore so I have to leave my computer on all day when trying this hedging stuff. Do you keep your PC on all day or does Oanda maintain your stops while your PC isn't on?

[@theforexhedge]

@@voodster ahhh, a virtual private server....correct??? Oanda keeps my positions live so I dont have to worry about keeping my computer on!!!!

[@RockhoundBlack]

@@voodster if you have stop orders in place they should always be in the market, so you don’t need your PC on. As long as your broker shows it as an order on your account, you are protected.

[@voodster]

@@RockhoundBlack thank you

[@evildeathXXX]

Question 1- can this hedge strategy be used on 1 min and 5 mins for scalping, i bet it will provide more entry opportunities that the 4 hr charts you traded that took weeks. Question 2- if i trade the 1 min and 5 mins then the tp and hedge pips insteade of 30 and 40 what shoud it be? Question 3- somewhere i think u said that this trade is of 4%, form -400 pips you brought back it to almost 0 pips and in the way you showed a profit of around 300 usd, so you brought the losing trade to breakeven after weeks and on top made around 300 usd, so how much in % was that around 300 usd. Please clarify that, in my mind its saying that it took weeks to breakeven and made some pocket changes. Question 4- what are you thoughts and suggestions to open and manage trade on more that 2 pairs if i trades on higher time frame, because i dont want to miss big opportunities in other pairs or two. Question 5- you ended the video with the hedge still on the play with around 300usd in profit, so when do i stop the hedge ? When your hedge is still running in this video and made profits, what if you just closed it right there and then, will you make a lose and still stay with that around 300usd profit. Question 6- how long have you been using this hedging strategy and how did you approach this ways of mathematical genius. Question 7- when using this strategy without any mistake on our calculations, will a time ever come that i may blow up the account when opening positions not with big percentage but less that 3% because other hedging strategy is like gambling that in the long run it will definitely blow up your account. Question 8- with this strategy you use, on average how much % you make on monthly basis and how much % you risk and what timeframe you analyse and open trade on and what is your entry criteria you place a trade on. Request- with lost sizes and units you mention to define the sizing of the accounts and trades,please also mention in % form, when you were taking about 100,000 units, lots and numbers, etc it got little difficult to follow because many people does not speak in units forms but in % forms. Thanks alot.

[@theforexhedge]

Wow, this is a lot of questions!!! I love it! Anyone out there want to help me out on some of these???

[@theforexhedge]

1- Yes, you can use it on any time frame! 2-I would not change the TP or HS on a lower time frame unless you want to trim more often. I still think it would apply on lower time frames 3-not sure I understand this question, can you clarify? 4-I trade a few different pairs. I dont do it for big opportunities, I do it because I enjoy it. I find myself focusing more and more not the CAD though. 5-I only ended it because it was getting very long. I would never close a trade and just lose money. I would for sure keep working the hedge. Trim, Squeeze and work from the Inside!! 6-I have been using this strategy for a while now. I am for sure no mathematical genius....but that was a super nice compliment!!!! 7-this is not gambling. You will never see my double down, average or hold and hope. It's very much a calculated decision when to close a position and how much to trim another position. In the long run, you would just keep working the hedge. Trim, Squeeze and work from the inside. 8-I average 3-5% return on a monthly basis. I budget for 300 pips of drawdown on the original position. I use support and resistance levels for my entry I am not sure I understand the request. If you are asking how much money you need per unit. This will be different for everyone. so many variables. Where you live, the pair you trade what your leverage is. etc. Hope this helps.....sure do appreciate the questions and the dedication!!!

[@evildeathXXX]

Question 1- Instead of inside trimming the hedge, on the lower timeframe is it profitable to just use the outside hedge, because on the lower timeframe it doesn't range inbetween the hedge for a longer time so just using the outside will be a good start to get use to it and if profitable just using the outside hedge method for life. Question 2- in most hedging methods i have watched, they just keep on adding positions just increasing the %risk to be profitable where just starting with an open risk of 1% , they keep on hedging over and over again and when you realise the open risk exposure for those open hedge position is more than 5-10%. So your hedging methods if you're starting with 1% and the hedge activates whether inside or outside trimming hedge method, will the risk exposure of initial 1% will only reduce down as you trim down the hedge or when you keep on hedging the risk exposure of 1% will it keep on increasing as you hedge more like the other people hedging strategy?

[@theforexhedge]

1-I wold never recommend adding to your hedge on the outside. No matter the time frame. Only trim on the outside and work the inside! 2-This is so different than most hedging strategies. There is no adding to the original risk you have chosen. No double downs, and no averaging. If you have chosen 1% risk, that should be your max risk. For example. If you start with 100,000 units and you trim down to 50,000 units. You have margin back to work the inside with 50,000 units. In traditional hedging you may start with 100,000 units, then add 100,000 units over and over "hoping" for a turn in the market. This will almost without a doubt blow your account or the very least you will take a huge loss. Trim, Squeeze and work the Inside. I hope this helps answer your questions!!

[@franciz1010]

will this work in crypto? I don't think crypto exchanges allow multiple position with the same directions.

[@theforexhedge]

Great question, and one I would not be able to help with. I dont have any experience with crypto

[@franciz1010]

@@theforexhedge can you recommend me a list of good forex platforms?

[@theforexhedge]

I use Oanda!

[@RattlesnakeJ85]

Crypto uses ticks, you could adjust the spreadsheet our man offers to reflect ticks. Using this to lean out of a crappy solusd position (among others built up over months of normal hedging). The spread is a bit of a killer though in some instruments (like sol), for instance instead of 30 pips Stop limit, it's 4 ticks, and instead of 40 pips, it's 6 ticks. That's my best estimation.

[@stevezm100]

I would strongly not recommend crypto for this, unless I am mistaken crypto moves are way more dramatic than forex and means you need helluva lots more operating costs. think of this btc was at 60k last year and now around 30k it could takes years to get the gaps squeezed. btw I hope I am wrong......

[@newtrader387]

Thank you very much for all your videos. I have started trading with 0.05 lots (5000 units). My broker does not allow me to trade units currency as oanda. So i have to trim a minimum of 1000 units per trade. Unfortunately oanda is not available in the country where i live. Can you recommend me a good broker that allow to trade units currencies. If not, never mind. I know you are new to KZbin and don't have any sponsors yet. I wish to thank you for this out of the box strategy 🙏.

[@theforexhedge]

I dont have a recommendation. I wonder if you could search for a broker that offers micro lots/units or mini lots/units. I dont think Oanda is the only one. Some others might see this and know of one. Good luck!!!

[@lamine1526]

Where is the stop loss ?

[@Nikolaaa35]

Hedging is probably the most effective and stressless way to trade. Not to mention profitable!

[@theforexhedge]

I totally agree....and I think it is so much FUN!!!!

[@Nikolaaa35]

@@theforexhedge I learned hedging from Nick Shawn.. Love it! You make money even if you are wrong it doesn't get more amazing than that.

[@Tonydurns207]

what is the calculation for the lots closed?

[@Tonydurns207]

i have downloaded the calculator to my google drive but i can not edit it with my own inputs

[@theforexhedge]

I have put a lot calculator in the description of the video explaining the Hedge Calculator kzbin.info/www/bejne/gHbKmIeNrpafgs0si=LyUr3RVA_DY3b0cO Once you down load it, it will work if you have have numbers. If not, you can convert it to excel or google sheets. Good luck!!!

[@Tonydurns207]

@@theforexhedge I did download it but it won’t let me input my own values. I love the videos btw!

[@Tonydurns207]

I got it the formula is ((lots/units)/ out of the money)* amount to apply

[@theforexhedge]

@@Tonydurns207 hmmm. I’m not sure why that would be?

[@UnemployableFakeGuru]

So If I understand right: The real profit comes from the gab squeezing where you actually bank real pips?

[@UnemployableFakeGuru]

You create a gab to keep DD under control, than you try to reduce to 0 while creating a new one... Trading the gab... NO?

[@UnemployableFakeGuru]

And from situations where it doesn't pick up the hedge. Am I right?

[@theforexhedge]

No, The profit comes from trimming AND squeezing AND clean trades. There is no DD. Under the strategy new positions can be opened based on margin available. But never a DD.

[@UnemployableFakeGuru]

@@theforexhedge I’m kinda of a similar path, there is lots of good stuff in your videos that makes me rethink things.

[@toms8879]

how much floating drawdown on average can you expect.

[@theforexhedge]

great question....I think you can see 100s of pips, but hopefully you have trimmed the position. I'm not sure there is a definite answer...but I would recommend some breathing room!

[@julesfaustin2512]

@@theforexhedgei noticed that most of the time your “breathing room” gets runned into would it be better to just enter in the market right after taking profit and trimming. That way you are not risking more equity drawdown

[@julesfaustin2512]

@@theforexhedgealso you need to make a video on equity drawdown because mine is so far from my balance. I’m making profit but at what cost if i can’t lower down the equity

[@theforexhedge]

So you have made this comment a few times.... You mentioned your making a profit. Are you also trimming the opposite outside position or just keeping the profits? Are you trimming before 40 pips, of so what is your profit target. Are you keeping to much profit and not trimming the outside position enough, if not how much are you keeping compared to how much your trimming. I have gone over how I manage margin in another video, and this is key to running this type of hedging strategy. @@julesfaustin2512

[@theforexhedge]

You can if you chose to, I prefer to give it an opportunity to squeeze. I dont always, but often get more than the 30 pips of breathing room. @@julesfaustin2512

[@biguchungusu292]

what do you do if when you're squeezing a limit order it reaches your original order level but the original order hasn't reached 40 pips profit yet

[@theforexhedge]

I squeeze until it is 20 pips or whatever you have decided for you hedge and then leave it there.

[@biguchungusu292]

​@@theforexhedge i thought you trailed the order along with the price by 20 pips. what I mean is if you go long and then have a hedged sell 20 pips below and then the price goes up squeezing is when you move the sell order up with the price right? What do you do if the price keeps going up? Do you move the sell order above the buy position you aleady have?

[@theforexhedge]

I do not move the sell order above the buy position. I would stop at 20 pips below the buy position. @@biguchungusu292

[@biguchungusu292]

@@theforexhedge why do you stop at 20 pips?

[@theforexhedge]

no major reason....I am currently playing with 10 pips. This is totally up to you! @@biguchungusu292

[@jimmiandersen3099]

You are using stop losses with extra steps and extra fees due to more positions.

[@waynefisher4296]

For the amount of money made for the time spent in front of the screen, is it worth it. I can imagine to make a living from this strategy you would have to have a huge trade account and be placing much bigger trades.

[@postmanwithsnow]

After playing around with it for a day. Yeah definitely. I am using it for crypto and the fees eat a loooot of the profit

[@dexternjoku5196]

Use MEXC I just started this method with crypto and MEXC has the lowest fees and on top of that you get 0% maker fees I can open as many trades as I want for free the only thing is I have to use a vpn

[@onix5221]

Okay this is something else. You've beat the market. Period. Did you find a scenario in which your hedging method would blow your account? I don't see how that could happen unless you forget to enter a hedge. You should probably always use automated entries when hedging like this. Also, is there a reason you are doing this with such small numbers? Why aren't your profits like 100+ $ a day? I don't see why they couldn't be.

[@theforexhedge]

Hahah. It’s pretty cool huh!!! Glad you saw the big picture. To be honest. I scaled down to make the videos. It’s a lot to manage. Starting to get my rhythm so I’ll probably scale back up!

[@onix5221]

@@theforexhedge Awesome! I really think what you created here is something else. You'll definitely grow bigger on YT. I tried so many different trading methods from retail to SMC, ICT and many less known strategies. I never saw a strategy that lets you wiggle out of a losing trade, especially not with profits. That's like the holy grail of trading. I trade SMC and I'll see how I can incorporate what you teach in my strategy. Imagine having a 40% win ratio with trades that just work, and ALSO profiting off of those 60% that don't. Thank you for sharing your knowledge and experience. I'm subscribing right away and waiting for your future vids!! :)

[@theforexhedge]

Wow, thank you so much for this comment!!! I am super stoked for you!!! Can't wait to hear how ti goes as you incorporate it to your own system!!!

[@UnemployableFakeGuru]

Q: how much % does this net you monthly?

[@theforexhedge]

I average 3-5%

[@UnemployableFakeGuru]

@@theforexhedge in equity?

[@UnemployableFakeGuru]

@@theforexhedge got an fxblue? If not, can you connect it? Would love to have a look.

[@UnemployableFakeGuru]

Still curious to see that.

[@theforexhedge]

I average 3-5% of my equity. @@UnemployableFakeGuru

[@JohnEnergy2012]

Flat means no exposure. No gains possible.

[@neerajthakur8061]

i can't understand, its too tough to learn....