Titan Hedging Strategy

Titan Hedging Strategy


When a trade set up using titan goes against you and you're worried about DD etc, this strategy has two goals...

1. to reduce DD to allow time for the trend going against you

2. if needed, to earn profits from the winning side to "pay out" trades on the losing side

Deploying this early enough can allow you to weather any storm - at the moment this cant be automated with titan unfortunately (hopefully in the future) so any major trends when you're not around to deploy this still carry major ris.

This works best with a lot mult 1.0 which is used on the BSI / tradingview / titan combo strategy - its good to make a 4th set file (as well as the: buy/sell/pause) for a hedge set up so if needed you can just load the hedge set up file.

IMPORTANT - the hedge set file isnt a set and forget set file, you will need to manage titans settings to get out of the setting using the hedging strategy



Settings to hedge


1. increase pipstep x4 eg if your pipstep was 20, take it to 80 (if titan allows in the future to control a buy and sell independently, have the original on 20, hedge on 80, eg if you originally did a buy, and its now 20 ladders deep that had an original pipstep 20, the sells would be on pipstep 80)

2. increase lot size x2, eg if the starting lot size was 1.00 it would be 2.00

With the above, x4 pipstep makes it x4 less risk, but the x2 lot size is double risk, so the net result is the hedge if half the risk of the original trade set up

3. mark MT4 / MT5 or trading view before you do the above with where the current TP is on your orignal trades if your TP was set to TP0 - with this we dont want to make profit, we want out of the situation to survive another day, mark the TP0 position so when you do step 4 you still know if its rebounded back to where you can take profit on the original trades

4. set your TP high, eg TP100, now set a trailing stop loss that deletes the TP when it fires, so the trailing stop loss and trail by, to be the same as the original pipstep, eg if the original pipstep was 20, the trailing stop loss would be, start trail at 20 pips, trail by 20

5. for every hedge trade that happens, add half again to "trail by" keeping the trail start the same, if your original pipstep was 20 pips then...

trade 1 TSL (trailing stop loss) 20/20 (meaning start trail 20, trail by 20)

trade 2 TSL 20/30

trade 3 TSL 20/40

trade 4 TSL 20/50

trade 5 TSL 20/60

.. etc, the goal here is we want to make it harder and harder to titan to hit the SL but without losing money when it does. For example, if we did a buy and it drops 1000 pips, every 20 pips it adds another lot thats twice as big as the losing lot sizes, and as we make the trail by bigger and bigger, we could be at eg trail by 100 pips, or 200 pips (and if it did we'd break even or make a little profit) but the goal here is to ensure our profits get bigger than the growing draw down from the original trades to protect the account



If the hedge then rebounds and hits the SL any profit made should be used to close out / partial close the oldest losing side trades first. Its very important that you use profits on the hedges on the oldest first. If you think the hedge situation, when doing X profit, is likely to turn around, ie at a major support/res zone, major news, candle patterns, etc then you could lower the trail by to make more profit in this situation, use that profit to close out more of the losing trades, and set the hedge running again.

You also need to think about when to stop the hedging, you could stop it when the original trades have won, or all paid off, or if the price is now getting close to your take profit at TP0 on the losing side you might decide to stop the hedges here (you can always fire up the hedges again if needed)



How to get out of the hedge trades


Once the losing trades have won, or have all been paid off, and you find yourself left with the hedge trades, remember these are at x4 your pipstep, so even though they were double lot sizes, its half the risk, so now you can set the lot mult to 1.1 or 1.2 to make it easier for the hedge side to win

Hedging early enough means you should be able to get out of any nasty situation, and if in the future this can be automated in titan to be able to start this process for us when we're asleep for example, we should be untouchable - the only downside is, it could takes time, eg weeks until both the original trades and hedge can both be closed so the hedge is a protection IF needed, but i wouldnt leave it to late to deploy as you need room on the account for the additional investment amounts and to be able to increase the drawdown more and more before the situation "balances" out

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