Using a long and short combined position with frequent use of averaging down can play a universal role that adapts to any market.
A hedging strategy often involves preserving losses or preserving gains, but
even while hedging, using averaging down or pyramid-building can be quite effective
This is because traders are inherently troubled
and thus do not become very proactive in the market
However, if you trade in the market while hedging
there are people who can eliminate such concerns
You can actively trade with both trend-following and mean-reversion
and incorporate them into your own strategy
You can turn your weakness in trend-following or mean-reversion
into a strength by changing to a strong strategy
Hedging is often perceived as a defensive trading strategy
but depending on how you trade, it can become an offensive trading strategy
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