Back in 2008/2009 i did many experiments involving trades with scalps using predetermined Stops. It when smoothly as the equity gains almost 100%. But sooner rather than later a dry spell hits. As always with trend trading,S&R methods the consecutive loses are expected. But i didnt expect a 10 losing streak in a row. This has taken me back..which i dropped the whole strategy together.
Fast forwards years later, I slowly developed ways of hedging which allows me to minimize the risk and increasing the rewards at the same time. It almost always happens like this...a trade goes -200pips on Eurusd... trades on Eurgbp and Gbpusd ..+70+20+30+45 +80=205pips in total. Do the math as the loss is cut at the end..leaving in breakeven or a small profit. This is a far cry as whipsaw always hit SL years ago.
The pros of hedging:
1) Psychological advantage..hard to explain but its there
2) Protected from whipsaw action
3) Tight risk management
4) You can sleep at night instead of having closing the day in negative if your using SL
5)Make money first ..cut losers later...but there is no runaway trades
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