How I Hedge WITHOUT Stop Losses – Turn Losing Trades into Wins! — Transcript

Full transcript

1. 0:00It amazes me how many traders overlook
2. 0:03this simple strategy. And what we're
3. 0:06going to look at is hedging. Now,
4. 0:08hedging can mean many different things
5. 0:11for many different traders, right? Cuz
6. 0:14there's many ways that you can hedge,
7. 0:16but I'm going to show you a very simple
8. 0:19methodology that I use with every single
9. 0:22one of my trades. And ultimately, what
10. 0:25it does is maximize profits and minimize
11. 0:28losses. Okay. Now, I'm actually going to
12. 0:31take later on in the vid, I'm going to
13. 0:33take uh a tutorial from our VIP Discord
14. 0:37and I'm going to share that with you.
15. 0:39But before I do, guys, we need to
16. 0:42understand how I hedge. All right? So,
17. 0:46let's start there. We're going to look
18. 0:47at how I hedge. We're then going to look
19. 0:49at the pros and cons and we're going to
20. 0:53help you make a decision as to whether
21. 0:55you want to add hedging into your
22. 0:58trading system or not. All right. So,
23. 1:00first of all, let's take a look at how I
24. 1:03hedge and what I mean by hedging. So,
25. 1:05firstly, let's understand how I hedge
26. 1:09and why I hedge, right? Why do I think
27. 1:11this is such a powerful tool? Let's
28. 1:14understand that. Now to understand it
29. 1:17you need to understand my entry right.
30. 1:21So let's understand that first. Now any
31. 1:24entry I
32. 1:25have I want to be with daily trend. So
33. 1:28this is Aussie dollar US dollar. This is
34. 1:30the daily chart and I've put this blue
35. 1:33line in right because this is the point
36. 1:35where we break these highs and this
37. 1:37becomes an uptrend. Okay. And at that
38. 1:42point it continues to be an uptrend.
39. 1:44Right? just following structure. If you
40. 1:47haven't checked out my price action
41. 1:49video, guys, go check that out. This
42. 1:51explains structure and trend. But we are
43. 1:54in an uptrend all the way until we break
44. 1:58that low, right? So from here to here,
45. 2:04right, I can look for buy
46. 2:06trades.
47. 2:08Okay. So I want to be with day trend.
48. 2:12Now the second thing we need to
49. 2:13understand is my entries right. So
50. 2:18normally guys I enter on H4 and or H1
51. 2:21but let's drop down to the H1 just to
52. 2:23keep it on one time frame and we can
53. 2:25understand. So in all of this price
54. 2:28action right I'm looking for the same
55. 2:31entry and I'm looking for a buy right
56. 2:34and my entry. Okay. So, you can see that
57. 2:38blue line, guys. That's where we had
58. 2:40that big bullish candle on the day
59. 2:42chart, right? Breaking these highs.
60. 2:44That's when that day chart uh day trend
61. 2:47starts now. What I'm looking for is
62. 2:50this. Right? If I just show you this
63. 2:52level through
64. 2:55here, right? I am looking for a piece of
65. 2:59price action where I
66. 3:02see price creating a level. Right? So
67. 3:06you can clearly see this has become good
68. 3:09resistance. Then it breaks that level.
69. 3:12It retraces and then what be what was
70. 3:15once resistance becomes support and then
71. 3:18we get a nice bullish candle which we
72. 3:21see here bouncing off that level. And
73. 3:24for added confluence I like to be above
74. 3:27the moving average 20. Right. So this
75. 3:30te's up. This is a pretty textbook A1
76. 3:33setup for me. Right.
77. 3:36Now, at this point, okay, let's zoom in.
78. 3:40Let's put in a couple of levels. So, I'm
79. 3:42going to enter on this bullish
80. 3:45candle. Okay. And I'm going to put my
81. 3:48stop
82. 3:49loss below this swing low here. So, I'm
83. 3:52going to give it a little bit of room.
84. 3:54I'm going to put my stop loss down here.
85. 3:57Okay. So, I've marked them on the chart,
86. 4:00guys, because this is where I entered
87. 4:02the trade. This is my buy. And this is
88. 4:05where most people would have a stop
89. 4:07loss. But at this point, I am going to
90. 4:11have a sell
91. 4:16stop, not a stop loss. And this is how I
92. 4:20hedge. So let's say we buy one. If price
93. 4:25goes against me, I will sell one of the
94. 4:30same
95. 4:32value. Okay.
96. 4:34Now, let's just say for argument's sake,
97. 4:37my
98. 4:38target was up here, right? So, I'm
99. 4:42looking for roughly one once. Let's say
100. 4:45my target was up here.
101. 4:49Okay, so let's zoom in. There's my
102. 4:51trade, right? It's set. I've entered. I
103. 4:55want price to come up here and hit that.
104. 4:57Or worst case scenario, it will come
105. 4:59down and hit my sell trade. Not a hedge.
106. 5:03uh not a stop loss, sorry. Okay. And as
107. 5:06you can sorry, just drawing random
108. 5:08lines. As you can see, guys, right, this
109. 5:12trade doesn't work
110. 5:14out. Okay. So, you can see we tried to
111. 5:17come up, price actually broke structure
112. 5:21here, right? But price continues to come
113. 5:24down and bang. At that
114. 5:27point I am entered into a sell trade.
115. 5:32Right? So I bought
116. 5:34here and now I am in a sell trade of the
117. 5:38same value. So I am
118. 5:40holding this as a loss, right? And it
119. 5:44will be 1%. That's my risk
120. 5:47management. And I will just hold this 1%
121. 5:51loss. I'm still in it. A normal stop
122. 5:54loss would mean you're totally out of
123. 5:55the trade, right? And you've lost 1%.
124. 5:58But I will hold this trade open with a
125. 6:01buy and a sell until I get another
126. 6:04setup, right? It's as simple as that. So
127. 6:07hedging allows me to have another bite
128. 6:10of the cherry, right? So to speak. And
129. 6:15remember guys, in all of this price
130. 6:16action that I'm showing you, I'm looking
131. 6:20for a buy trade. Uh, I'm looking for
132. 6:23buys because we're in a daily uptrend.
133. 6:26So, let's just follow price action,
134. 6:28trend, and structure, right? So, this is
135. 6:31where we're
136. 6:33at. Um, okay. So, this is coming down
137. 6:36here, right? And
138. 6:39then we can see a new level forms here,
139. 6:42right on the H1.
140. 6:46So, if I put this level in, and remember
141. 6:48guys, if you remember my first entry up
142. 6:51here, I'm looking for a break of that
143. 6:53level. Comes back, retests it, nice
144. 6:56bullish candle, away we go. It just so
145. 6:59happens that trade didn't play out,
146. 7:01right? But let's zoom in on this trade
147. 7:04now. Right, you can see I have the same
148. 7:08setup, right? It's proving to be good
149. 7:10resistance. We break it, we retest it,
150. 7:14we get a nice bullish
151. 7:16candle.
152. 7:17Okay, so it doesn't matter what your
153. 7:21trade entry criteria is. The idea of
154. 7:24hedging is the same. If my first one
155. 7:26doesn't work out, let's see if my second
156. 7:28trade works
157. 7:30out. Now, at this point, right, I'm
158. 7:33going to draw this in again.
159. 7:37Right, I will
160. 7:40close this sell trade. Right, cuz
161. 7:44remember I don't want to look for sells.
162. 7:46I'm looking to buy the market,
163. 7:49right? And at this point, I will close
164. 7:53this sell trade at this point because
165. 7:56it's a new setup. It's a buy
166. 7:59setup, right?
167. 8:02So at this
168. 8:04point all the way down to roughly
169. 8:08here, I have made profit on this sell
170. 8:12trade. Okay, that is profit on the sell
171. 8:16trade and I've closed it. But remember,
172. 8:20I'm still in this buy trade all the way
173. 8:23up
174. 8:24here.
175. 8:26Okay? Right? But my target is still the
176. 8:29same because I'm with the day chart,
177. 8:33right? And then I still need to protect
178. 8:36myself, right? I'm not using a stop
179. 8:38loss. But below
180. 8:40here, I will put in a new sell stop,
181. 8:44right? I need to protect myself. I've
182. 8:46closed this sell stop over here. I need
183. 8:50to put a new sell stop in here. And this
184. 8:52was a buy one. This will be a sell stop
185. 8:55one again, right? And I've taken profit
186. 8:58on the way down. And then I'm just
187. 9:00looking, you know, for this trade to
188. 9:02play out as well.
189. 9:05Right. And then if we just play things
190. 9:07along, right now you've got some great
191. 9:11options. Okay, remember your buy trade
192. 9:14was up here, right? And now you've taken
193. 9:17all of this profit here on the sell
194. 9:20trade. Now, even if you just hold this
195. 9:23trade back up to the buying level,
196. 9:27right, you
197. 9:29have a profitable trade, even if you got
198. 9:32out of break even, right? And at no
199. 9:36point did this did this trade break
200. 9:40structure. Okay? Right? And then it
201. 9:43breaks down again. But that's my point,
202. 9:46guys. Right? It gives
203. 9:48you another option to enter the trade.
204. 9:51Now, just to
205. 9:54recap, if we just let this trade get
206. 9:57stopped out, right, that would have been
207. 9:58a losing trade minus 1%. Okay. Now, as
208. 10:04it happens, we didn't do a stop loss and
209. 10:07we hedged and we started selling all the
210. 10:09way down to here, right? And then we
211. 10:12closed that sell hedge.
212. 10:15Now if this was
213. 10:171% right then
214. 10:21this was
215. 10:23also roughly 1%. So we made 1% on this
216. 10:27sell trade and then it come
217. 10:30back to break even and you know you've
218. 10:33got decisions to make. You can get out
219. 10:35of break even you could perhaps let some
220. 10:37profit run etc. But you can see we
221. 10:41turned a losing trade back into a
222. 10:44profitable trade if we close this at
223. 10:46break
224. 10:47even. And while the market is in this
225. 10:51uptrend, I will continue to do that,
226. 10:54right? I will continue to do that
227. 10:57looking for H1 structure breaks, right?
228. 11:01And just keep following that system. If
229. 11:03we go back to the day chart now, right,
230. 11:07you can
231. 11:08see right eventually, right, all the
232. 11:11trades because we're with the day chart,
233. 11:14right, you could have potentially left
234. 11:16some of it and we would have had a
235. 11:18really nice trade. So that is why I
236. 11:23hedge and that is how I hedge. I have
237. 11:27the same trade entry. I take the first
238. 11:30entry. If it doesn't work out, I hedge
239. 11:33and then I wait for another entry. You
240. 11:36do need to be careful, guys, with, you
241. 11:38know, increasing risk, right? Every time
242. 11:41I move my sell stop, my hedge, I'm
243. 11:45increasing risk, right? And you got to
244. 11:48be careful of commissions. All right?
245. 11:50But I just wanted to simplify what I
246. 11:53look for when I hedge. Now guys, we're
247. 11:55going to try and we're going to look at,
248. 11:57you know, the positives, uh, some of the
249. 12:00drawbacks, and we're going to look at
250. 12:01some examples that I actually shared in
251. 12:04the VIP trading academy. All right, so
252. 12:07let's go check out that video now. Um,
253. 12:09and it gives you real life examples
254. 12:12again. Hello traders, trader Tom here
255. 12:15from Simply Forex, the channel created
256. 12:17to help you succeed at trading. In
257. 12:20today's tutorial vid, we are going to
258. 12:23look at the good, the bad, and the ugly
259. 12:26of hedging. Okay, I'm not talking about
260. 12:29ex-girlfriends. We're talking about
261. 12:31hedging. And the good, the bad, and the
262. 12:33ugly is also an excellent western film
263. 12:36starring Clint Eastwood. Check it out.
264. 12:39But let's focus on trading. Um, so yeah,
265. 12:42basically we're going to look at pros
266. 12:43and cons of hedging, guys. And if you
267. 12:45stay till the end of the vid, I'll show
268. 12:46you exactly how I hedged my trades this
269. 12:49week. So, I decided to do a hedging vid
270. 12:53because we found ourselves in a couple
271. 12:54of hedges. And as you can see, these are
272. 12:57my trades from my VIP trading academy.
273. 13:00So, we're going to look at Canadian
274. 13:02dollar Swiss Frank sells. Yeah, you
275. 13:05know, look at the entries, the
276. 13:08stop-loss, hedge position, etc. But
277. 13:10they're all mapped out on my charts,
278. 13:12which I'll show you in a minute. We got
279. 13:14hedged in that trade. I closed the
280. 13:16hedge, etc. We're going to discuss all
281. 13:19of that. That's more the bad and the
282. 13:21ugly. And then we're also going to look
283. 13:24at this trade as well. Euro pound. Okay.
284. 13:26And again, please check out entries uh
285. 13:30hedge positions. This also hit uh the
286. 13:34hedge as well. And we're going to see
287. 13:35how I've managed both of these trades.
288. 13:37This is more of the good. Okay. So,
289. 13:40let's get rid of them. Now, do you know
290. 13:42the trades that we're talking
291. 13:44about? Okay. And we're going to look at
292. 13:46these on the charts to make sense of
293. 13:48them. So, let's start with the bad and
294. 13:52the ugly. So, Canadian dollar Swiss
295. 13:54Frank um was a sell trade. And with
296. 13:57hedging, right, let's make this a bit
297. 14:00bigger. With hedging, right, the number
298. 14:03one rule like top rule is we must be
299. 14:07with day trend. Okay? And as you can see
300. 14:10guys, we are with daily trend. Okay, we
301. 14:15were getting lower highs, lower lows. I
302. 14:18will only hedge with daily trend. Okay,
303. 14:23this was in a downtrend. Okay, so check.
304. 14:25And look what's happened here. Come down
305. 14:27and hit our higher time frame target.
306. 14:30But we will look at this in more detail
307. 14:32in a minute. Now, if we drop down to the
308. 14:35H1, right? And I'm going to get rid of
309. 14:37this big price action on the left so we
310. 14:39can actually see the chart, right? And
311. 14:41I'm just going to, you know, discuss my
312. 14:44trade, okay? And how I got hedged. So,
313. 14:48if we follow H1 structure, there was
314. 14:50this big move down, you know, breaking
315. 14:53these lows over here. And I just waited
316. 14:56for a retrace. And as you can see, this
317. 14:59is S1. This is my first sell. Okay? And
318. 15:04I started selling with a view to price
319. 15:06coming lower. And what happened is it
320. 15:10hit my buy my buy order here. So most
321. 15:13people will put where I've put my buy
322. 15:16order will have a stop-loss here. Okay?
323. 15:19And price will hit that stop-loss and
324. 15:21the trade will finish. The trade is
325. 15:23over. We are done. Okay? And there's
326. 15:25nothing wrong with that either, guys.
327. 15:28You know, as long as you protect
328. 15:29yourself. If you use a stop-loss, no
329. 15:31problem. that is a good idea or we can
330. 15:34use hedging which I'm going to show you
331. 15:36now which also protects us and is a good
332. 15:38idea right they both offer protection
333. 15:43um so yeah I entered here with a view to
334. 15:46price coming down it didn't it come up
335. 15:49and it hit my buy hedge all right now
336. 15:53I'm in a loss and this here is the
337. 15:57equivalent of 1% this is important so we
338. 16:00can gauge our risk as this trade
339. 16:04continues. So that's 1% risk. All right.
340. 16:07So I'm carrying a 1%
341. 16:10loss. And then this area here is where I
342. 16:15closed my buy trade. Remember my bias is
343. 16:20to sell. So I don't want to be in a buy
344. 16:24trade. Okay? I want to be selling. So
345. 16:28why did I get out of this position here?
346. 16:30So if we go to the H4
347. 16:34now it become a bit of a H4 play. So
348. 16:38excuse
349. 16:39uh yeah excuse the the writing guys. It
350. 16:42becomes a bit distorted but this big H4
351. 16:45candle here right bouncing off of this
352. 16:48level here seemed to me like an
353. 16:51excellent opportunity for me to get out
354. 16:54of my buy trade. Right. So when price
355. 16:57retraced a little you can see this
356. 16:59yellow line. That's the the yellow line
357. 17:01I pointed out on the H1. I closed this
358. 17:05buy
359. 17:06order. Okay. And put a new buy order
360. 17:09here above this last
361. 17:12high. So, let's go back to the H1 so we
362. 17:15can see that more
363. 17:17clearly. Okay. So, this is where we're
364. 17:20at. All right. So, because of that H4, I
365. 17:23closed my buy pedge here, right? And at
366. 17:28this point you have to understand I have
367. 17:33closed basically half of this 1%. So I
368. 17:37have closed a 0.5 I have taken
369. 17:420.5% loss at this stage. Okay which I
370. 17:47was fine with cuz I still you know on
371. 17:49the back of that H4 you know it told me
372. 17:53that price could come lower right. It
373. 17:56didn't. Okay. So now, like I said, this
374. 17:59was that last H4 high. A few pips above.
375. 18:02I've put a new buy order. Still at the
376. 18:06same value of this sell order above that
377. 18:09last H4 high.
378. 18:12Right. So price action. It almost comes
379. 18:15up. It almost hits my stop and then it
380. 18:17comes crashing down a bit. And I'm
381. 18:19thinking, okay, great. Tom, you're a
382. 18:21genius. It's coming back down now. You
383. 18:23know, we're going to make a nice profit
384. 18:25on this trade.
385. 18:27this
386. 18:29happened. Okay. So at this point right
387. 18:34you have to understand your money and
388. 18:36risk management. The trade has gone
389. 18:39against you further. All right. And this
390. 18:42can happen in hedging. Okay. So now what
391. 18:45are we what's our risk now? So remember
392. 18:48I secured this 0.5%
393. 18:52uh loss. Yeah. earlier on, but now this
394. 18:58this original sell in here and this buy
395. 19:02order up
396. 19:03here, this is now at roughly let's say a
397. 19:101.3% loss. Yeah, if this was
398. 19:151%. Yeah, this is now
399. 19:171.3%. Back up to here. So right now I am
400. 19:22in a once this this buy order here gets
401. 19:27triggered here I am at a
402. 19:311.8% loss on this trade which is
403. 19:35absolutely fine in terms of my risk
404. 19:38management. Yeah, mine should be about I
405. 19:40I I won't go any any higher than 3%. 3%
406. 19:44is like my puking point and I will just
407. 19:46close the trade.
408. 19:48All right. So, this is where we're at
409. 19:50currently. All right. So, the hedge is
410. 19:53not going in our favor, you know, but we
411. 19:56need to manage it from a from a money
412. 19:58management point of view. Okay.
413. 20:02Now, that's bad. Now, the ugly, yeah,
414. 20:06with reference to my, you know, uh,
415. 20:08original good, the bad, and the ugly is
416. 20:11this guys. Right. So, this point here,
417. 20:14remember, I am still looking for sales.
418. 20:17The day chart is still in a downtrend.
419. 20:20Nothing has changed on the higher time
420. 20:22frame, the day chart. Okay, but
421. 20:24obviously we're going to get movements
422. 20:26on the lower time frames, which is what
423. 20:28we're
424. 20:29seeing now. I'm hedged, okay, at a 1.8%
425. 20:35loss, right? But now look at this last
426. 20:38H1 swing low here. Right? If I take all
427. 20:41of this away now, because you know where
428. 20:42we're at, okay, this is closed. This is
429. 20:46open and this is open and we're at a
430. 20:501.8% loss in terms of
431. 20:53risk. All right, but it's not lost until
432. 20:56I close the trade, which is the beauty
433. 20:58of hedging. You can continue to manage
434. 21:00the
435. 21:01trade.
436. 21:03Now, looking at H1 structure, right,
437. 21:08okay, if price breaks that level, I'm
438. 21:12interested. Now, if we zoom out now and
439. 21:14go down to this crazy price action
440. 21:16because everything gets a bit distorted.
441. 21:19So, that H1 area
442. 21:22here, I would have closed this buy
443. 21:25trade. Yeah. So, let's say price came
444. 21:28up. Let's say we got a nice bearish
445. 21:30candle. Let's say this one was bearish
446. 21:32and it closed here, right? I would have
447. 21:35closed this buy trade and put a new buy
448. 21:38order above here. Okay. again further
449. 21:43increasing my risk but still within 3%.
450. 21:46All right, I would have you know closed
451. 21:49that buy order and then it would have
452. 21:51come crashing down and this original
453. 21:54sale over here would be nicely in
454. 21:56profit. You know hedging's the holy
455. 22:00grail. I'm a genius. Everything's
456. 22:02wonderful, right? But that didn't
457. 22:04happen. What has
458. 22:06happened is this. Yeah, I wasn't awake.
459. 22:10I have woken up to price down here.
460. 22:13Yeah. And I was thinking price what's to
461. 22:15hap happening with the markets and
462. 22:17basically all the flight to say the
463. 22:18currency pairs have gathered strength
464. 22:21right and Swiss Frank is one of those.
465. 22:23So now once price gets down to here you
466. 22:28know and it's hit this this is a weekly
467. 22:30support level this blue line it the
468. 22:33trade is just kind of over for me. All
469. 22:36right. So, I have actually closed this
470. 22:39trade for a minus
471. 22:421.8% trade uh loss, sorry. Yeah, minus
472. 22:481.8%. All right. Which is not what you
473. 22:51want, but it's okay. It's well within my
474. 22:53risk management. The trade is just gone.
475. 22:57Yeah, there's there's there's no value
476. 22:59in this trade anymore for me. Yeah, it's
477. 23:01hit the higher time frame target. We'll
478. 23:04see what happens from here. So that's
479. 23:06it. I This is Canadian dollar Swiss
480. 23:08Frank. This is how I have finished my
481. 23:10hedge. All right. Minus 1.8%.
482. 23:13Roughly. Now that's the bad and the
483. 23:16ugly. Okay. And I would have gotten out
484. 23:19of this trade, but should have, would
485. 23:20have, could have are the words of a fool
486. 23:23when it comes to trading. And that's
487. 23:24also a
488. 23:26song. Now, let's look at Euro pound
489. 23:29because that was the next trade we were
490. 23:30going to look
491. 23:31at. All right. And this is in real time
492. 23:34as well. And you know, we don't know how
493. 23:36this is going to pan out. Yeah, we we'll
494. 23:38keep an eye on it. Right. But again, if
495. 23:41we start with the day
496. 23:43chart, I am with trend. Let's get rid of
497. 23:48that. Rule number one of hedging, right?
498. 23:51We are in an
499. 23:52uptrend stroke range. So for that
500. 23:56reason, we are with trend. Yeah. These
501. 23:59are the last lows of the range. These
502. 24:02are the highs. We're in an uptrend
503. 24:04stroke range. It makes sense to look for
504. 24:06buys from here. Okay, we've got a nice
505. 24:10big bullish candle. A wick bounced off
506. 24:12that level. You know, everything's
507. 24:14telling me to take price back up to
508. 24:16here. All right, so we're still with the
509. 24:19day chart and what it's telling me. We
510. 24:22must be in order to hedge. I would not
511. 24:25hedge against trend. You could be in a
512. 24:28world of hurt.
513. 24:31All right. So, this is Euro pound. Now,
514. 24:33if we drop down to the
515. 24:35H1, let's now look at this hedge. All
516. 24:38right. So, let me get rid of some of
517. 24:41this. Yeah. Okay. Let's let's zoom in
518. 24:43here. Now, after this big move, yeah, I
519. 24:48said as soon as we get a bullish candle
520. 24:52that uh forms above the moving average
521. 24:5520, I will look to buy it. Okay. I did.
522. 24:58I bought it here. Okay. Trade broke this
523. 25:02level which is where my my hedge was
524. 25:05this sell. And remember these are at the
525. 25:07same value. So B1 let's say this is one
526. 25:11lot. My sell will be one
527. 25:14lot. All
528. 25:16right. Okay. So they're the same. Now
529. 25:20this buy ID didn't go according to plan
530. 25:23on the H1. It's come down and I'm now in
531. 25:27buy one and sell one. Okay. And again,
532. 25:31that is
533. 25:341% of
534. 25:36risk.
535. 25:38Okay. Now, price has come down. We're in
536. 25:41a H1 downtrend at this point. Okay. And
537. 25:44price price got to here. Okay. So, this
538. 25:47next line here, why is this important?
539. 25:50This is where I closed my cell
540. 25:56hedge. All right. This is where I closed
541. 25:59my cell
542. 26:00hedge. Okay. I then put a new sell hedge
543. 26:06down
544. 26:06here. So why did I close this sell hedge
545. 26:10here? And in this scenario, this sell
546. 26:12hedge is like two pips in profit. But if
547. 26:14you take out commission, it's break
548. 26:16even,
549. 26:17right? Why did I close it out here? If
550. 26:20we look at the
551. 26:21H4, you can see that was because of this
552. 26:25H4. Look at H4 structure. That was
553. 26:28because of this H4 wick that bounced off
554. 26:31of this support. Yeah. And I closed I
555. 26:35closed this sell
556. 26:36order on that candle. You know, it with
557. 26:40hedging, I'm still trading price action
558. 26:43and the chart. Nothing changes. That's
559. 26:45what I'm looking at,
560. 26:47right? So that's why I closed it. It was
561. 26:49a H4. So the H, if you think of it like
562. 26:51this, guys, the H1 trade didn't work
563. 26:53out, right? But now the H4 trade so far,
564. 26:58yeah, it could all change. Looks like
565. 27:00it's working out, right? Okay, we shall
566. 27:03see. And my target is still up
567. 27:06here. Okay, so we go back to the H1,
568. 27:10right? I've done a couple of things
569. 27:11here. So, I close
570. 27:15this sell hedge
571. 27:17here for a small profit. Let's say just
572. 27:20say break even. And I move my stop loss,
573. 27:24my hedge, sorry, down to here. Okay,
574. 27:28this is still a sell one,
575. 27:30right? Um, and I'm in this trade, right?
576. 27:33I've still protected myself. So this was
577. 27:361% from here to here and this has become
578. 27:40roughly another 1%. So if price had come
579. 27:44down and taken out of this this sell
580. 27:46order I would be at minus 2%. Again
581. 27:51within my risk parameters when it comes
582. 27:54to hedging no problem. Yeah 3% is my
583. 27:58let's get out of here numbers. All right
584. 28:01but now now price action has developed.
585. 28:04Okay, price action has moved up, right?
586. 28:06I've also seen a H1 structure break. So,
587. 28:10we're breaking these highs in here. We
588. 28:12even just about broke this high with
589. 28:15this candle, right? Then price retraced
590. 28:19a little. Let's get rid Let me get rid
591. 28:21of all of this now.
592. 28:23Right. Okay. So, we've got a sell. This
593. 28:28is closed. Yeah. this this hasn't this
594. 28:31sell order here hasn't been triggered
595. 28:33right now we're in this H1 uptrend it's
596. 28:36broken these highs this high and even
597. 28:39this high just so when I see this candle
598. 28:43you know I'm I like the entry yeah my
599. 28:47Euro pound idea is still to buy because
600. 28:49of the day chart I still like the entry
601. 28:52and there's a bit of a level through
602. 28:54here I haven't actually drawn it in but
603. 28:56there's a bit of a level through here
604. 28:58okay so when price retraced to this
605. 29:01level. I did another buy. Right? So now
606. 29:05I'm in buy one and buy
607. 29:10two. So therefore I need to adjust my
608. 29:14sell hedge down here. Now my cell hedge
609. 29:17I have moved up from here to here. Why
610. 29:20did I do that and move it to there?
611. 29:23Well, this for me
612. 29:26here is the last swing lows in here,
613. 29:30right? This could potentially become the
614. 29:32new swing low and I'll move my stop up
615. 29:34again. We shall see, right? But this was
616. 29:37the this was the last swing low on the
617. 29:39H1. Therefore, I have put a new sell
618. 29:42stop sell hedge here. But this time, it
619. 29:45has to equal buy one and buy two. So,
620. 29:50this is what this means.
621. 29:52Okay, it has to equal the same as the
622. 29:55buy. Whatever you whatever lot amount
623. 29:58you have as a buy, the sell stop should
624. 30:01be the
625. 30:02same. And this is where we're at, guys.
626. 30:05Right? So, you know, if this carries on
627. 30:08up and hits target, yeah, we'll see,
628. 30:12right? The targets up here. I will then
629. 30:14make, you know, a little bit over 1% on
630. 30:18this buy and a little bit over 1% on
631. 30:23this buy. All right. So, you know,
632. 30:26potentially, you know, two 2 and 12%
633. 30:30profit up here if it hits target. Okay.
634. 30:33And, you know, and it's an if. Yeah.
635. 30:34It's this trade hasn't finished. If it
636. 30:37comes back down
637. 30:38here, right, you then need to understand
638. 30:41the risk. Okay.
639. 30:44So remember this plus this. Now we have
640. 30:49to add this. So this is a little bit
641. 30:52under two 2% with this trade. So let's
642. 30:57say this is roughly
643. 31:001.8%. But now we've got buy two and this
644. 31:05is 1%.
645. 31:07So if this trade came crashing down and
646. 31:10went against me, this entire trade would
647. 31:12be
648. 31:17minus2.8%. All right? So you really need
649. 31:19to understand that you need to keep
650. 31:21tight control of that money management
651. 31:23and risk. And I'm fully aware of that
652. 31:27risk if price goes against me. I'm not
653. 31:29just adding to a trade willy-nilly,
654. 31:31right? I I have to have tight control of
655. 31:34that money management. All right? and we
656. 31:36and we'll see what happens to this Euro
657. 31:38pound trade. All right, so guys, yeah, I
658. 31:41wanted to show you that cuz we've had a
659. 31:42couple of hedges this week. Um, you got
660. 31:45any questions, please ask and please
661. 31:47don't forget to subscribe, like, um, uh,
662. 31:51to the channel. All right, guys. Um,
663. 31:53hope you've enjoyed the tutorial and
664. 31:54I'll see you next time. So, guys, I hope
665. 31:56that gives you a good insight into
666. 31:58hedging and if you think that could
667. 32:00potentially be a useful weapon in your
668. 32:03trading arsenal. And if you do and you
669. 32:06would like to delve a little bit deeper
670. 32:08into hedging, then please come join our
671. 32:11VIP Discord channel, guys. We've got
672. 32:13loads of tutorials in there that
673. 32:15explains it in even further detail. All
674. 32:18right, check out the links below. Don't
675. 32:20forget to subscribe, like, and share.
676. 32:22See you later, guys.