To Hedge Or Not To Hedge - MT4 vs. MT5

 

Hi,


I'm curious to know some convincing arguments for and against hedging, and therefor using MT4 instead of MT5.



Cheers, Tim

 
Convincing argument #1. It Works.
 
timkrug:

Hi,

I'm curious to know some convincing arguments for and against hedging, and therefor using MT4 instead of MT5.

Cheers, Tim

Not hedging means that you either use a SL and therefore accept the defeat from the beginning (psychologically speaking) or don't use one and endanger your account $$

Hedging is what professional traders do to manage losing trades. It works, if done properly.

 hedging

 
Robotfx Trading Tools:

Not hedging means that you either use a SL and therefore accept the defeat from the beginning (psychologically speaking) or don't use one and endanger your account $$

Hedging is what professional traders do to manage losing trades. It works, if done properly.

 

Hi Robotfx,


thanks a lot for your answer and the chart.

I wonder what do you mean by 'done properly', e.g. is it crucial that the counter position is larger than the initial position?

In case you have a web link on this topic I would appreciate a lot.


Have a good day and many pips!

 

depends on your strategy

some strategy depends heavily on hedging 

 

my advice to don't hedge in same strategies

you can hedge with two or more strategies

 

Actually hedging is used for controlling your losses temporary, 

but in some cases traders get benefit by hedging strategies, but not in regular basis.. they faced losses too

 
why hedge when you can use stoploss....
 
Francis Dogbe:
why hedge when you can use stoploss....
Oh no Francis, you've opened that can of worms!! :D
 
Francis Dogbe:
why hedge when you can use stoploss....

With a decent put together hedge you have the possibility that the other part of the trade can become profitable as well....

Try that with a stop-loss.

 
Depends on the trading strategy. Anyway; from my point of view, better to exit the trade instead of hedging if you are a day trader.