Practice Hedge Trade For Profit!


#1

Practicing my Hedge Trades. Put on this DEMO trade on GBPUSD to perfect the art of hedging spreads lastnight and the results turned out well. I used two daily spreads to place this trade (hedged one with the other). Profit target was hit on my directional trade giving me a 1:1 total risk reward Win on the trade. Details are in the screenshots below.


#2

Passing me for being dense, when you say 1;1 were you going for $28?


#3

The risk between the two spreads was $27. My hedge cost me $14. So my total risk that I put up for the trade was $41 assuming i let the trade play out and don’t monitor it. Therefore, my profit target was 41 ticks ($41) away giving me a 1:1 risk reward. Hope that makes sense.


#4

Ok I see it now!


#5

JP I also tried one on G/J Tuesday around 6pm for a 3pm expiration with hedge. It ended up profiting $153. So I will keep practicing also till I get these things down pat. Also I did not monitor the trade


#6

I actually had a gj trade on that night that won as well. I just forgot to take screenshots to post. Per usual, great job Gary. You da man!


#7

SO AWESOME! This is like adding Tiger Woods to our “Golf bags” LOL


#8

Okay my brain is not functioning. I see how your risk is $27 but how did the hedge cost you an additional $14? @jtpyfrom


#9

Because if the trade went his way then he is out what the hedge cost.


#10

Ha, I see it now! His bought entry at 1.2913 and the difference between that and the ceiling of the sold hedge at 1.2900 is 13 pips or the cost? Plus the total risk of the difference in bought price and sold price of the two entry prices added together. LOL I’ve done like 4 of these now and I was not considering that cost. Tell me if I am way off here? Thanks.


#11

That is correct lol. My hedge was actually the daily spread that I sold which is where the $14 that I factored into the trade came from. If I make the $14 plus the difference between the spreads, then no matter what the hedge does, it’s paid for once my TP is hit. So it literally becomes a stress free trade (that’s assuming my TP hits of course).


#12

Hey JTP I like your chart set up, it looks pretty simple. What are you using?


#13

That’s the VAD_simple template that’s in the apex toolkit


#14

thank you sir