Forex hedging strategy with 96 percent winning ratio

This hedging forex strategy is aimed to achieve very high winning rate, while keeping the risk manageable. This difficult feat is achieved by hedging at the end of the trend, instead of closing the losing trade at a loss. We switch directions of trading upon trend reversal and we will look to close both our existing trades at once in profit. Resulting system will fight to win each entry and it will succeed in 96 percent of cases. Loss is accepted only when second (hedging trade fails). 
 

System switched directions on trend reversal. Hedged and overcompensated for losing trade. Losing long trade was closed together with hedging trade in overall profit of 1USD.


System works for multiple variations. This one being the most conservative and most suitable for smaller accounts. Growth can be fluently scaled by adding multiple first level positions. Rules vere verified by RED King MT4 Expert advisor on historical data from 2003 to february of 2018. Expert advisor can be used for testing , optimization and trading of this, and multiple others scalping/hedging forex strategies. 
 
Used tools and indicators

  • Exponential moving averages tandem (EMA slow 600. fast 200): Trend filter. EMA slow must close below EMA fast for long entry and vice versa for short trade.

  • Price signal: Price must close above fast EMA for long entry or below fast EMA for short entry (while meeting the trend condition). 

  • We allow opening one first level trade and up to three second level (hedging) trades. 

  • Lot Size for second level trade (hedging) is multiplied by factor of 9.

  • Target profit: 1 USD for each 0,01 of lot size used. 

  • Max loss: We accept loss when second level trade fails (trend reverses back in the direction of initial trade). Initial trade will remain valid, we close only the second level trade.

 
Forex strategy rules
SELL

 

EMA fast trending below EMA slow. Downtrend. Entrer short trades only.
Price closing below EMA fast.We enter the trade short on new candle open.
Once we enter the initial sell trade two things can happen: trade moves to green - we take profit and repeat the entry. 
Trade fails and trend reverses - we enter the hedging trade long.


Hedging trades:

 


Lot Size is increased by 9x. Same entry rules applied as for the first level trade + first level short trade exists.
If hedging trade moves to green we close both opened trades in defined profit.
If hedging trade moves to loss, we close it once trend reverses back in the direction of initial trade.
 
BUY

EMA fast trending above EMA slow. Uptrend. Entrer long trades only.
Price closing above EMA fast.We enter the trade long on new candle open.
Once we enter the initial buy trade two things can happen: trade moves to green - we take profit and repeat the entry. 
Trade fails and trend reverses - we enter the hedging trade short.


Hedging trade:

Lot Size is increased by 9x. Same entry rules applied as for the first level trade + first level short trade exists.
If hedging trade moves to green we close both opened trades in defined profit.
If hedging trade moves to loss, we close it once trend reverses back in the direction of initial trade.
 

Get MT4 expert advisor trading this forex strategy

 

  

For best results, use this forex strategy with one of our trusted forex brokers

(STP/ECN with MT4 bridge).

To win you must trade with broker on your side.

 

 

Disclaimer:  Expert advisor was tested for profitability on historical data. All screen shots provided are displaying real results of the test. However past data will never guarantee future success. Every expert advisor needs to be tested properly on demo account. LIVE use only on your own risk. Read full disclaimer. TheForexKings Team does not give any financial advice. TheForexKings does not take any responsibility for any user’s investments and investment decisions. All rights reserved. Strictly for personal use.

 

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Only in 2016 - 2017 we have created more than 400 forex strategies. During this period we have also developed and published +200 MT4 Expert advisors based on those strategies. We are dedicated to provide you with viable and complete trading systems that have thrived in extensive historical testing. We want to give you complete and transparent trading solutions, that once mastered ,will set you financially free. We want to give you a fighting and winning chance in the market. ” 

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