How to Hedge in Forex Trading Without Breaking the "No He...

http://www.forextradingseminar.com Find out how to accomplish hedge trading with better results and never break the no hedging rule.

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Howto & Style

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• hedging
• nfa
• cftc
• forex
• compliance
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• 43

[sanosi1982]

but i still not understand how can i trade according to these information......can u explain more by an example...just give an example

[tradeartist]

@sanosi1982

Yes it is relatively simple. Check the charts for the EUR GBP on the daily 4 hour and 1 hour time frame. Is that pair now going up or down? If the EUR GBP is going down the EUR would be better for shorting for instance against the Yen and the GBP would be better for going long against the Yen. Then while you are trading using your usual methods, when you see an entry to go long enter it on the GBP JPY. When you see an entry to go short enter it on the EUR JPY.

[tradeartist]

@sanosi1982 You may enter these trades in the opposite direction at the same time and you will actually get better results with more PIPS than if you did the same thing on one of these pairs. Of course trading with a broker that is not affected by the new regulations is best.

[oldguitardude]

EURUSD and XAUUSD move in the same direction. I see strong correlation.

[tradeartist]

@oldguitardude

Yes and there is a tendency for Gold to move in the opposite direction of the USD (Gold metal commoditey and USD Index). But the patterns of Gold are rather chaotic when I look at them and I see no benefit in trading Gold as opposed to trading a currency pair.

[joshmohoboob]

This doesn't make any sense. You say at the end to short the EURusd and long the GBPusd. Why not just take a short on the EURGBP?

Secondly you say that you can look at the 'contrast' of currency pairs. This is something which constantly fluctuates along with volatility. You can't rely on past data amalgamated into an estimated off the cuff extrapolation (which hasn't even been quantitively plotted) without a quantitative connection found to make a trading decision.

[tradeartist]

A good way to discover the reality behind the "off the cuff" extrapolation would be to look at some charts. If you look at charts every day on mulitple time frames you will discover that many pairs move simultaneously in the same or opposite directions making similar patterns. No rocket science is required to see that.

[aprizm]

also EUR/USD and USD/CHF have a strong inversed correlation. (these days) thanx for the video I can wait to try this project :D

[sanosi1982]

but i still not understand how can i trade according to these information......can u explain more by an example...just give an example

[tradeartist]

Hello Josh. Sorry that you didn't quite get this. The point is that if you normally trade either the EUR USD or GBP USD you could check the EUR GBP to see which of these two pairs would be better for any short entries this week and which would be better for long entries based on the relative strength of the EUR vs. the GBP. If that doesn't makes sense, nevermind.