Sunday, December 6, 2020

A Hidden Danger of Hedging - Update 2



I learned the Rule of the Doji from Steve Bigalow, a candlestick guru. The Rule of the Doji is that price action will continue in the direction of how the candle after the Doji moves. You can see our second 15 minute candle broke to the downside.

So, I implemented my strategy:

"Thinking if we open heading down, take off the long hedge and just trade the original short position from there, using a Stop of course. And never hedge again."

So I exited the long hedge and added a Stop Loss to the original short trade just above the high of the Doji at 1.2136.

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