Forex hedging expert advisors

The use of a forex hedging expert advisor by forex traders is a good way to reduce losses in forex trading. This forex robot is used by forex traders who intend to protect an existing or estimated position from an undesirable move in the foreign currency exchange rate. This software utilizes a forex hedge and protects a long foreign currency trade from experiencing a downside rick and a short trade from upside market risk. A forex hedging expert advisor hedges currency trades through the methods of spot contracts and foreign currency options. 

In using this expert advisor, if an initial forex trade will be lost, the hedge trade will win but if the initial trade wins, then the hedge trade will not be activated and will automatically cancel. This is the major trading logic used by a forex hedging EA. It is seen as a substitute for stop loss and can be utilized to have buy and sell positions at the same time. This EA reduces drawdowns by bolting in losing positions until they get back to winning positions, convert losing forex trades into profitable forex trades by methods of hedge to hedge system and rises winning ratio and profits by methods of adding winning positions.


1.    Forex traders who embarks on a hedge trading system needs a forex hedging expert advisor to facilitate their trades. This software can open hedge trades robotically and manage the trades based on a forex traders settings at all hours of the day without being tired. It gives forex traders room to take care of other matters and prevents them from sitting in front of a system at all times. 

2.    With the help of a forex hedging expert advisor, forex traders need not to place hedge trade orders manually, calculate the accurate stop loss, be stock in computer screen nor take profit price rates themselves. The software automatically takes care of all these without the direct participation of the forex trader.

3.    A forex hedging expert advisor can be effective in opening hedge orders for an existing order or a trade with a higher lot size which results to a trade group beating the take up profit at all times. It have the ability to open hedge trades when an original forex trade reaches a specific loss point and when an initial trade is closed, the forex hedging expert advisor can delete awaiting hedge orders automatically when it is not initiated.

In conclusion, before using a forex hedging expert advisor, forex traders should make sure they understand what they are about to purchase because an improperuse of the EA can damage a trading account forever and bring more loss than gain. Forex traders need a lot of practice and information which can be gotten from reading books or online available resources if not, hedging positions can turn into losing positions. 

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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