Hedging Strategy and whole Mathematics behind it




Back testing Martingale strategy Video: Using Mathematics and statistics in daily trading: …


27 Comments

  1. This strategy need to be traded in the levels, where its a consolidation area, and you know that after it will be a big move either up, or down.
    Like supertrend indicator.
    In the supertrend, you know that in a place, that the price will either form a new supertrend or continue the actuel supertrend.
    And with you knowing exactly where to enter the market, even if go wrong with the direction. You still can benefit from it using hedging startegy.
    Its even good, if you want to trade with real money, but you dont want to blow up your account, it will give you so much experiance why you pay little

  2. I have been trying to make money online and also tried to trade with Bitcoin and I was making losses while trying to make profit myself from trading…I thought trading on demo account is just like trading in the real market.. Can anyone help me or at least advise me What should I do? This is really interesting, I'm a business woman, I have a good sum of money in my savings account, I want to invest 60%, What is the minimum amount one could start up with?

  3. Good, clear video.
    However, at x number of hedges when there is not enough equity to buy the next opposing hedge the account is wiped out (if the market does not reverse again) via a margin call.
    And this will happen frequently.
    In other words, one is risking the entire account to regain the loss on the first trade.
    Any solutions, please?
    PS I have a simpler method of calculating lot sizes ….

  4. It always baffles me when people "don't believe" that something like this is possible.
    If you combine this understanding with a good entry strategy you'd be making as much money as you wanted. Check out Oliver Velez, everything he teaches is for free. I recommend this excellent summary: watch?v=DNm0MnW9phk
    6 steps, you take them every time and in the long run you'll be profitable.
    Combine those 6 steps with your hedging approach and you'll be invinicible.
    (in short, he teaches you how to identify sudden changes in prices and when to open the position)
    Also, take in to account market hours and you're set for life.

  5. Sir, Please do prop firms comparison based on no time limit,tight spreads,whether or not firm uses software to manipulate spreads against the trader, filmsy excuses to cancel the account,&not honoring its own written advertised policies & fair dispute resolution.We know most reviews are fake & many of them are getting paid to drum up business.Discounts do not pay bills in life–only sound fair business practices are honest service to the traders–everything else is SMOKE & MIRRORS

  6. VERY interesting. I was always intrigued by math! Would you create a simple excel spreadsheet for me to use on the fly as I am trading, so that I can simply put in the variables and then could see the # of contracts to buy or sell as it happens? I am presently trading the micro mini futures contract (/MES), and could really use something this helpful. Due to spikes in price from news events, I would need to navigate around them. Alternatively, perhaps best, would be an automated order entry program for NinjaTrader8, wherein the orders would execute based on the levels defined…wow, that would really be incredible! I’d enjoy working with you on this to that end!

  7. Here‘s an idea of preventing to wipe out your account in long sideways phases:
    you could say, that after x trades which have hit buy/sell orders, you turn around the calculation of lot size.

    This way, you are lowering the distance between LS and LB orders and probably end up in equality of lots invested in up and downside.

    That means they are equaling out themselves from that point on.
    That doesn‘t make you money, but at the same time you don‘t loose money and you get never margin calls again.

    Here‘s an example: let‘s say it‘s going up and down for 5 times. So 5 times LB and LS is hit (would mean a total of 10 open trades.

    LB1 = 1, LS1 = 1.1 etc.

    After 3 turns let‘s say we have invested 5LB and 3.5LS.
    From there we turn around calculation, so that after 5 tutns and 10 trades we end up in 12LB and 12LS invested.
    Then you can either close it (and you just paid commissions and spread) or you start closing single positions after the chart started trending again…

    What do you think? 🤔

  8. Very impressive work sir.
    My question is this strategy only works for the scenario when open buy and sell lots are not of same lot size i.e, one is greater than the other. What if sum of both open sell and buy lot have same lot size?
    It usually happens and we hedge it rather than closing all the trades. Please also guide about this scenario. Thanks

  9. Dear friend, thanks for the video. I went through the calculations. Here is what I got. Start with LB1=1 RtoR=3, LS1-1.5, no problem here….Tthen LB2=(4/3)*1.5-1)*1.1=1.1 ok so far, BUT LS2=(4/3)*(1+1.1)-1.5)*1.1)=1.43 ?? and NOT 1.6 as you show….. So, Am I calculating wrongly or is the formula wrong ?

  10. Excellent video, thank you for the hard work you put into your informative videos. I have a question, I am trading with IBKR, and I don't think they will allow for multiple BUY or SELL orders at various levels. When I initially go long, and the market goes against my position, do you mean to say that the so-called STPLOSS point I should open 1.5 Lot SELL position, whilst keeping my 1 Lot BUY position, or that it will be the net of 0.4 Lot SELL position? The former I believe is not possible at least with IBKR as the SELL order would CLOSE the BUY order and vice versa.

  11. Thanks for de video. Is very interesting, but you said eventually you will loose your account by doing this if i didnt misunderstand you. So what is the point of hedging if i will eventually loose all the account? Thanks a lot.

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