Simple Forex Strategy: “Hedge Hog”
Every trader wishes to get a stable income on Forex market without making too much efforts: not spend time for every-day technical analysis, wait for entry signals, monitor opened positions etc. That’s why everyone is trying to find such a strategy that will bring regular income and let do other things at the same time.
Very often traders wonder if there is the simplest Forex strategy which will not require special knowledge, education, skills and of course time. The answer is yes, such simple Forex strategy does exist and work. And today, we are going to share some examples of such strategies that can be used even by beginning traders without special skills and experience.
Really, why would somebody want to make Forex trading more complicated by adding different indicators and difficult rules? All answers are always on the surface and it is more than enough to follow simple instructions to receive regular profits on financial markets.
“Hedge Hog” Strategy
This particular trading system is used on stock markets yet it doesn’t mean that it can’t be used on foreign exchange market. The concept of this strategy is the following – the price can move only in one direction and rollbacks are followed by trends. To make sure, open any daily diagram of a currency pair. Almost every Japanese candle has tails in two sides. Therefore it is important to understand the rules of “Hedge Hog”.
- trading process happens every day on EUR/USD currency pair. No longer after the closing of a daily candle, it is necessary to open two contrary orders: buy and sell. If your broker or trading platform doesn’t let you “hedge” the positions, you can open similar orders on different trading accounts;
- “take profit” for each opened position should be 12 points. According to the calculations this is the best theoretical value. In 95% of cases, closing of trades happens with the help of “take profit” and as a result, you will be getting profits – 24 points a day.
- Trading system “Hedge Hog” doesn’t use “stop-losses”;
- If after an opening of an order, a trade isn’t closed with “take profit”, it is advised to close the trade manually, despite the size of a loss. Yet this happens very seldom;
- If there are some losses, next orders should be opened with double lot to compensate previous losses;
During one month testing of “Hedge Hog” strategy, such figures were stated: 456 profit points and only 76 loss-making points. Therefore, this simple Forex trading strategy that works is so popular among traders of all levels.