In Forex trading, trader should not rely on forex indicator 100% in deciding entry. This is because, in forex, everything is possible. No body can predict forex market 100%. There stil be false signal even we follow 100% forex indicator rules. Why is it happen? it might be because of fundemental element. So, in forex, there must be fundemental + technical analysis in deciding our entry.
For me, as newbie in forex trading, in order to minimize lost but at the same time maximize my profit, i choose to use hedging as my backup in my entry. i choose Harry hedging style. My aim to use this hedging is that, i will make it as my backup if forex market go against my entry.That's all. Surprisingly, it really work very2 well.
Here the example how to use hedging:
For example: let say we buy using lot 1. then,immediately after we enter buy, we make a backup entry SELL STOP. but here, we multiply lot with 3. so, we use lot 3 for sell stop. if after that, our sell stop activated become instant order, here we should open another backup but this time is BUY STOP. Lot here should multiply with 2+1 (eg: 3x2=6 +1 =7). if this buy stop also become activated to instant order, we have to do another SELL STOP using lot 15 (7x2=14 +1 =15). And so on until price hit our target TP.
Preferred pair: GBPJPY
Prefered TP (buy/sell) :60pips
Preferred SL (buy/sell):127(120+7spread)
Recommended lot for starting:(0.01 for USD100) / (0.02 for USD200) / (0.03 for USD300).....and so on.
Use Forex MBT system for entry.
Here an example regarding lot usage:
As far as i concerned, this hedging technique had its own weakness. We should avoid entry forex market during SIDEWAY!!!! This is because, it will cause us to open post for many layer and because of that, we need to have large capital to avoid loss. So. in order to avoid sideway, i used this technique together with Forex MBT system. so far, it is very effective in avoiding sideway market and hence, avoiding loss in Forex trading.
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