{"id":15978,"date":"2018-11-23T19:49:15","date_gmt":"2018-11-24T03:49:15","guid":{"rendered":"https:\/\/www.tradingheroes.com\/?page_id=15978"},"modified":"2024-12-27T23:09:22","modified_gmt":"2024-12-28T06:09:22","slug":"zen8-forex-hedging-strategy","status":"publish","type":"page","link":"https:\/\/www.tradingheroes.com\/zen8-forex-hedging-strategy\/","title":{"rendered":"End Stop Loss Anxiety with the Zen8 Hedging Method"},"content":{"rendered":"

Most trading strategies depend on you predicting the next market move. Choose wrong, and a series of losses can really start to mess with your head.<\/p>\n

But what if you could make money, even if you were totally wrong about what the market was going to do next?\u00a0<\/em><\/p>\n

Hedging…or trading longs and shorts at the same time, allows you to do this.\u00a0<\/strong><\/p>\n

 <\/p>\n

The Secret Sauce of Zen8 Hedging<\/h2>\n

The biggest benefit of hedging is the potential to become a very consistently profitable trader.\u00a0<\/strong><\/p>\n

Obviously, there are no guarantees in trading. But when traded correctly, this one concept can dramatically improve your trading results.<\/p>\n

A lot of hedging methods rely on trading more<\/em> to get out of a losing position. This can lead to a gigantic long or short position. At that point, it becomes very difficult to make up the losses without trading an equally large position size on the opposite side.<\/p>\n

This is the dark side of hedging.\u00a0<\/em><\/p>\n

Hedging can be very consistently profitable. <\/strong><\/p>\n

However, when you look at the results of traders who hedge, you will frequently see their account balance rise steadily.<\/p>\n

But at some point, their equity will usually start to drop like a rock, because of the accumulation of losing trades.<\/p>\n

If they let this get out of control, it can blow out their account.<\/p>\n

For a long time, I liked the benefits of hedging, but I was also afraid of getting trapped in a giant losing position.<\/p>\n

Then one day, I had and idea. I realized that it didn't have to be this way…<\/p>\n

So I started testing my idea in a small live account.<\/p>\n

I was skeptical because I wasn't aware of anyone who traded this way.<\/p>\n

But over the course of about a year, I found that my idea worked surprisingly well.<\/p>\n

The key lies in Roll-Offs<\/strong>.<\/p>\n

 <\/p>\n

How Roll-Offs Work<\/h2>\n

The mechanics of a Roll-Off are super simple, anyone can do it.<\/strong><\/p>\n

But like anything else, it takes some practice to master it in real-life trading.<\/p>\n

Here's how it works…<\/p>\n

Let's say that I have both longs and shorts trades in the USD\/JPY currency pair. The market drops and I wake up one morning to see that I have a $100 profit on one of my short trades.<\/p>\n

I decide to take the profit.<\/p>\n

Most traders would stop there and wait for another trade to become profitable.<\/p>\n

But that's exactly what leads to an accumulation of huge losing positions. <\/em><\/p>\n

In order to avoid that, I cut my profit in half…<\/p>\n

\"Half<\/p>\n

In other words, I take a loss on the losing side, equal to half of the profits of the winning trade.<\/p>\n

So in this example, since I made $100 on the short side, I will take a $50 loss on the long side.<\/p>\n

This still leaves me with a net $50 gain and<\/em> I reduced my market exposure on my long trades.<\/p>\n

That's how it's possible to be profitable on a high percentage of trades.<\/strong><\/p>\n

Remember…<\/p>\n

Pigs get fed, but hogs get slaughtered.<\/p><\/blockquote>\n

Don't get greedy.<\/p>\n

Be willing to give up part of your profits to reduce your market exposure.<\/p>\n

This pays off over the long run.<\/em><\/p>\n

The goal of Zen8 Hedging is to get to flat (no positions) as soon as possible.\u00a0<\/strong><\/p>\n

Now at this point, you might be wondering if US traders will be crying into their coffees because they will miss out on this hedging strategy.<\/p>\n

Not to fear, I've got US traders covered…<\/p>\n

 <\/p>\n

Yes, This Works In US Accounts<\/h2>\n

You can hedge in a US-based account.<\/p>\n

In order to do this however, you need to use the right broker and implement a couple of small extra steps to get it working.<\/p>\n

It's perfectly legal, you just need to know how to use the hedging rules to your advantage.<\/strong><\/p>\n

This course will show you exactly what to do if you are a US trader.<\/em><\/p>\n

If you are outside the US, then you probably don't have to take the extra steps that US traders do. Most countries outside the US have full access to normal hedging capabilities. But be sure to do your research, there may be obscure rules in certain countries that we may not be aware of.<\/p>\n

 <\/p>\n

Course Overview<\/h2>\n

\"\"<\/p>\n

The goal of this course is to help you become a consistently profitable Forex trader by leveraging the benefits of the Zen8 Hedging<\/strong><\/a> method.<\/p>\n

Here's what you get in the Zen8 course:<\/strong><\/p>\n