hedge forex positions with no loss

ilqar200

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Hello. Please excuse me for my newbie question. I want to hedge my forex positions (i.e buy or sell ) with other financial instruments with no loss to my capital. Is it possible anyway ? How i can do this if this possible ? Thanks.
 
if u best known about support and resistance then hedging stragty is the best .u should also aware retrancement level..
 
Hello. Please excuse me for my newbie question. I want to hedge my forex positions (i.e buy or sell ) with other financial instruments with no loss to my capital. Is it possible anyway ? How i can do this if this possible ? Thanks.
I use a Correlation Hedge strategy with a good level of success. It involves two positively correlated pairs with at least an 80% coefficient, and a method to identify which pair is strong and which is weak. I buy strength and sell weakness. Achieving around 75% accuracy to date. It is not risk free...no strategy is risk free!
 
I use a Correlation Hedge strategy with a good level of success. It involves two positively correlated pairs with at least an 80% coefficient, and a method to identify which pair is strong and which is weak. I buy strength and sell weakness. Achieving around 75% accuracy to date. It is not risk free...no strategy is risk free!

To each their own, but to me this sounds like 1) you have no conviction to a trade, rather you just want to trade 2) you are doubling your costs by doing this long/short strategy 3) if you want to hedge just hedge in opposite directions and forget about the correlation part. Why don't you just pick a direction based on whatever reasoning you have, set a clear SL/TP level and get out quick if its not going in your direction. This keeps costs down and does about the same thing.
 
To each their own, but to me this sounds like 1) you have no conviction to a trade, rather you just want to trade 2) you are doubling your costs by doing this long/short strategy 3) if you want to hedge just hedge in opposite directions and forget about the correlation part. Why don't you just pick a direction based on whatever reasoning you have, set a clear SL/TP level and get out quick if its not going in your direction. This keeps costs down and does about the same thing.

I totally agree. I can never understand the utility of hedging as a trading strategy. The idea of no risk is simply delusional. There is always risk except you don't know until it hits you. It is known as uncertainty. You cannot identify or quantify the event as they operate outside of your historical bands. It means those historical correlation simply disappears due to market dislocation events.
If you are unable to manage or handle risk, I suggest you look for another hobby.
 
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