🛑Hedging Video | The Passive Income Guru | The Best Forex EA

Alan Solosh here, the passive income guru, and this video tutorial and webinar explains to you how to hedge and never blow another Forex account.

Before I get started, I just want to tell you that the information in this video is merely my opinion. I'm not a financial advisor. I'm not licensed to give financial advice. So this is just for information purposes only. If you do use any of my information, please do so at your own risk. Trade on a demo account, try my strategies out, see if they work for you. Once you are profitable, then you can go onto a live account and make your own trading decisions. Past results do not predict future profits.

So if you want to be a good trader, stop watching this screen over here, okay? You need to learn how to read a forex chart. That's how you stay sane. That's how people with big accounts. 18 million, 200 million. Can you imagine seeing a drawdown of $50 million? How do you cope? You can't. So the only way you can do that is by reading the chart. And that way you can stay sane and you can make competent decisions, the right decisions that will impact you in a positive way. So you take low risk trades with high potential profits, not high risk trades with low potential profits. And that's what, what I found on YouTube is that 99% of the people out there mentoring you, okay, are teaching you the wrong strategies. They teaching you on a 15 minute chart, a scalping strategy to risk 30 pips to make five. So let me repeat that risk, 30 pips to make five pips. How can that be a good strategy? That's insane. That's, that's bad money management. Yeah. What I do is I take very calculated trades and I make high profits. You know what the honorary irony is of today? The irony of today is that you guys are cucking yourselves and you say, I wish I wasn't in this trade. The different. And me, I'm saying I wish I was in this trade. I'm not in this trade. I'm not trading. I'm too busy. Unfortunately, I can't concentrate on my trading, so I'm not trading. And I wish I was in the trade. And I can't get in the trade because I don't know when it's gonna turn. So I think I'm gonna open up a 10 lot. Okay, later tonight or a 20 lot later tonight because I'm really convinced that the price of this currency is going there. I really do believe that it's going there. Let me just minimize this, okay? That's what I think. Let me minimize this. Cool. So I think it's going to this level here and it's basically peaked everywhere. Look at that. It's above, it's above here. If it breaks this, this, this fractal here, it's game over, we're going north. It's just a few more over here. There's this, there's nothing. This is, these are, these are resistance levels here. And if it breaks, it's going to go here, and if it breaks it, it's going to go here. And if it breaks that, it's going there. And that's what I think is going to happen. Let me just add this person because for some reason I have to add people. That's the way. Zoom. They've changed their whole setup. Okay, so how do you hedge? People want to know how to hedge. So let me explain to you how to hedge. What you do is. So let's say I'm going to actually open up my browser and I'm going to go to my calculator.

Okay? Right. So if you're using the ea, then this is what's going to happen. You're going to enter in your number over here the number of your first trade sequence. So let's say you started on the 0.5. 0.5. Okay. Now what, what's gonna happen is, is that these numbers are going to change. Okay. So we're gonna actually, when I leave this, so these numbers will automatically populate over here. Okay. So what you do is that you highlight all of these trades. So let's say you've got five trades open, four trades open, you highlight all of this. Again, the bottom right hand corner, it's going to give you what, your lot sizes. So you don't even have to calculate it. Because I know that in this state of mind when you're about to hedge, you're freaking out. And I totally understand that. Okay. It just. I get it. So instead of freaking out, use the tools that I've given you so that you're able to.

Think clearly without being having this negative psychology going on in your mind. Okay, so now let's say the ea, according to mine.

My.

Okay, so let's do it at 0.1, 0.1. Okay. Okay. So there is 0.1, 0.14, 0.2, 0.27, 0.38. So it's approximately that number there. Okay. I don't know why it doesn't round it off properly.

I didn't see that before. So it's the first time I've seen that. So my, so if it's, if I'm in a cell position, so all of these are cells, I'll then place one trade value of 1.09 or I'll work this out on my, on, on my, over here. So let's just do that. 0.1, 0.13, 0.19, 0.27, 0.38. I'll add it up. In the bottom right hand Corner it says 1.07 and over here it says. What's it? 1.09. That's strange. Don't know why it does that, but it is what it is. Okay, so that's what I would do. I'll take that number 1.07 and then I will do a buy trade of 1.07. Now what's going to happen is, is that your drawdown, your exposure is not going to change. Okay? The amount, this amount over here is not going to change and this amount over here is not going to change. It will fluctuate between like a half a percent or a couple of percent and that's it. But it's not going to get any big. So if the currency goes north, if the price goes north, what's going to happen? This trade over here is going to go blue. These trades here are going to go red. Okay? But these numbers don't change. It's like a balancing scale. Nothing happens. So you basically you, you balance the scale and nothing happens. And now we wait. We wait and we wait and we wait. Now if you were clever like I asked you to be and I sent you the email and I've said it many times on my telegram groups that we have a huge advantage being part of my organization. That's an agreement that I have with FPS that if you're part of my organization, you don't pay swap fees if you choose to. Now there's a good, there's a plus and a minus to the other swap fees. Now the plus is that you don't pay an overnight charge. It's an interest because you basically borrowed the money. That's what you've done, you've borrowed the money from.

From FPS. Now if your trades are in negative, you will pay an interest. But if you are a trader like me and most of the time your trades are in profit, then.

Obviously it's like having a bank account and FBS will then pay you interest. So it's a double edged sword and you need to.

Way up, you know which account of yours is going to be swap free or have or have swaps. So if you're trading like me, then don't trade on the bot account. Rather get your swap fees removed on your bot account and then trade manually on another account and have that account with swaps so that you can earn interest. Okay. And how you enable interest is that you just tell the tell FPS that you want to enable swaps on that specific account. To get your swap fees removed, you need to send FBS an email like I've structured for you and get your swap fees removed. I'll tell you a little story of what happened to me five years ago. I had a million rand in an account and I over leveraged the account and I had to hedge and I was about 80, 88% or so.

Drawn down. I was a novice trader, I didn't know what to do. And I was like most people. I took advice from the Forex company from their master trade that was supposed to be managing my account. And he said put more money and put more money and put more money in of which I did. Eventually I was in terrible trouble. And the swap fee, the overnight charge is what killed my account. So my account was hedged but because there was a swap fee and my lot sizes were so large, the equity margin went down every single day until there was no margin percentage left and I was bombed out of the market and I lost a million rand. So that was my entry into into Forex. It was the most painful, excruciatingly painful exercise I've ever gone through in my life. So I feel your pain when you say that you've blown an account and you've had a margin call. I really do. I understand where you're coming from. I empathize. So and this is why I find that hedging is such an amazing tool. But you need to use it properly. Okay? Don't close your trade in the middle of a candle. And you mustn't close your trade, your hedge until you are 100% certain that the currency has turned. So my new rule is to hedge at 5%. That's my rule. I don't care 5%. I'm hedging because I now know how to use the hedge properly and I know how to use it to my advantage. So as you've seen from my accounts, let me pull up my account for people that don't know who I am. This was an account that really I did in two weeks. My other account at 178% profit in 60 days so this is my one account and.

That'S, let's try to fix that.

Right here it is 46% in about two weeks. So from the, from the 18th to it was over here that it really spiked the 28. So it's 10 days. I did 46.91% profit in 10 days with a drawdown of 6.92%. So a lot of people that over leverage their accounts usually have a very high drawdown. 20, 30, 40%. I don't have that. I'm a very safe trader. I've learned to be a safe trader. You know why? Sick and tired of losing money. There it is. Sick and tired of losing money. Had to find a way of never to lose money ever again. And the only way I can do that is by hitting hedging. And it's such a, it's a sick strategy if you know what you're doing and you know how to do it. And that's what we're going to teach you tonight, which is very exciting. Right. So let's go to the chart and let's show you what's going to happen. Okay.

Groovy. Let me close this down so you don't get distracted. Let's open that. So.

What'S happening in euro US dollar? Okay, so Leilani, do you want to unmute yourself and tell them what you were thinking and your thoughts and you almost closed out a trade and you can speak from experience.

This is when you can unmute yourself.

There you go.

Yeah. This afternoon I'm about 5, I was about 5%.

Drawn down on the pound versus the US dollar and opened a hedge yesterday and the hedge went nicely blue by, it was a buy that I put in, so it went nicely blue. But today there was a bit of a pullback and it came very close to the entry point.

So.

But it hadn't, the candles hadn't.

Come close to the eight ema yet. So obviously the reverse strategy being the second candle opening under the atma. So that hadn't happened yet, but it was dangerously close to the break even point and even going into.

The red again. So I was, I was frantically voice messaging Alan saying what should I do? Should that, should I been, should I close the hedge in a small profit and then.

While it's still in a profit and then just ride it down and the next moment, and this was I think at about 4 o' clock or 5 o'. Clock. So it was in the middle of a four hour candle and the next moment the price spiked upwards on both the currencies that I was trading. So the Aussie yen and the pound dollar.

Okay, so they both spike. Let's discuss that. So, okay, so let's say this is your, let's say the 371 is your hedge, okay? And this is basically the candle or this is the candle that you're working on, okay, the four hour candle. And this is Aussie yen. So what's happening is, is that you open the hedge and then the price goes up. We'll actually work on this candle because it goes below that, it goes below the hitch. So the price goes up and then the price retraces down below your hedge. The hedge then goes red, not blue. And you think, let me close out the hedge because you're about to go into red. And let me tell you what's going to happen is that the price will then go up. Now I'll show you what's going to happen. In a numbers point of view, you close out your hedge. As you close out your hedge, you lose percentage margin there, okay? It eats into your margin percentage level. Then your negative trade.

This negative trade here goes more red and that eats more into your margin percentage. You've now got less margin percentage to use. Then you think, oh my God, I need to hedge again. So then you open your hedge over here and that then eats more into your margin percentage. So from opening to closing to reopening your hedge will probably cost you 300%. You've now got 300% less margin to play with. So and this is why people say this is a double edged sword and you need to be very careful with your hedge and how you open it and when you open it and you need to know that you can open it at the wrong time and you open it on a support resistance level, it hits that support resistance level and then immediately shoots down. And then you've got both trades in negative. Both my trades here have been a negative since March. I haven't been able to.

Relieve $18,000 worth of equity from this account since March. Okay? And sometimes it could be longer. What do you think a hedge fund is? You have heard of hedge funds? So a hedge fund is exactly that. They hedging. They've got two trades open and they hedge against each other. This is how that's what I hedge fund is, okay? And it can be very dangerous for you. And that's why I didn't want people to open their hedge a couple of days ago because we were right over there and I thought, don't open your hedge And I know you're in trouble, and I know you're freaking out. And everybody had a large drawdown. I said, don't open your hedge until this fractal is broken. And then open your hedge. When that's broken, then we know that this thing is going north because we had seen it go three times. Okay. So my. My Western American analysts call that a triple top.

I don't use that sort of analysis. It's never really worked out for me, but some people swear by it. So the triple top was broken. And.

As far as I understand it, when we've got a triple top, it usually reverses. So this basically broke the laws of the triple top. Anybody here use Western analysis of triple tops and triple bottoms and pendants and that type of thing? Do you use that, Nalani?

Yeah, I do. Look at the.

So if you see it. So if you see a triple top, the normal consensus is that it's going to reverse, correct?

Yeah.

Okay. So this defied gravity and went north. So you need to be very careful and strategic, and that's why analyzing the chart instead of looking at the numbers is very, very important. Okay, Now, Leilani asked me yesterday, how do we. How do we draw support and resistance lines? Because it's very difficult on a.

Candlestick chart to draw your support resistance lines because there's a lot of clutter and interference because you've got wicks. The wick is this little thin line here, the cat. That's the candle. Then you've got the wick. So I found a very clever way of doing that to remove the clutter is to change your chart. So let me go back to the settings. I'll go back to the settings. And in charts here, you click on charts. I'm on an iPhone, so on an Android, it may be slightly different in the settings. You just need to play around and find. And then you've got a line chart. Okay, you can mute yourself. And then.

You go back to the chart, and then you'll see that the chart now is in the line chart. And now you can see where your support resistance lines are very clearly indicated on the chart. So there is your first support resistance line. It's actually a resistance line which has now become a support line. So resistance means if you think of a house, the roof resists you. You can't go through the roof support. When you're standing on the floor, the floor supports you. That's how you know the difference between support and resistance. This. Okay, so let's do that again.

So let's Draw another support. Support line. So there is a support line. There's one support line. It's not really. That's the bottom of the channel. So let's rather go. It's two, two or three points of touch. Two to three or more points of touch.

Counts as a supporter resistance line. So there's a support resistance line. And within the channel there. Support resistance line. Here it is over there. Okay, so where is it? It's there. It's here. Slack just peaked above it. It's over here. It's over here. So it's within those channels. And when those channels are broken, okay, I like to use the fractal. When the fractal is broken, that's when I know that the direction has been changed. And I can then go. I can go, go long, provided that the candle, the second candle is open above the atma. And it's. And it's a tough one because sometimes you may get a huge spike. Let me change my chart back to a candlestick. To candlestick.

Use those.

Okay. Chart. So like over here. So I mean, it's like the first is this. The first is the first candle that opens above the atma. Okay. And it's this huge, huge spark over here. And you've missed this whole run. And that whole run is massive.

It's 70 pips that. That candle. So, you know, once you get above like the 200 moving average and it's still trending and it's like strong trending for like 15 minutes, the chances of it coming back are very slight. And that's why a lot of the analysts and mentors out there say to you after a news announcement, wait 15 minutes, then you'll know the direction. And it's the same thing here. So if you've got that spike, wait the 15 minutes out. Usually there's that volatility within the first 15 minutes. It's usually up. And then if there's no momentum and no buyers, then it'll just come. It'll just come straight down again. So you need to just like take.

Take that into consideration as well. Unfortunately, there's no hard and fast rules in Forex. The banks control the markets. We got no say. We just got to follow what the banks are doing. That's why they say 15 minutes to 30 minutes. The candle still running. You can take the trade. But a general rule of thumb for me is waiting for the second candle above the atma to either or below the atma to go long or short. Okay, so now that you've hedged okay. And the, and the.

The trade is blue, hopefully, and remains blue. Yo, I'm gonna make money. Yeah, this is gonna be such a trade. Can't wait for it to turn. And I can then close out my hedge and I'll make 3, 2,000, maybe $3,000 on the hedge and then I'll write it all the way down and I'll clear this 18. So when it starts going down, this is what's going to happen. Number one, because I've closed out my trade, I'll alleviate some of the margin percentage because it's in positive, my margin percentage level will go up. Okay, Then what's going to happen is this number here is going to start decreasing and that is then going to affect my margin percentage level some more and I'm going to get more margin back. Okay? And this is where it gets exciting on the chart, and this is why you must watch your chart is that when it goes south and you know that the second candle is open below the atma, okay. And it's dropped below a fractal. Bill Williams says you can be aggressive. Now, a lot of the mentors out there say don't risk more than 1% of your capital in any trade. I don't believe in that philosophy. You see, you're then saying that you're expecting the price to reverse and you're not trading with confidence. It means that you actually don't know what you're doing. You don't know the direction of the currency. And that's why I use the second candle below the atma. Because if you go back in time through the chart, do this in your own time, go back and go look at the charts, okay? And 95% of the candles, this of the, the second candle that opens either above or below. That's the trend. It's very seldom, okay, that the second candle opens and it then shoots down again. So I can't believe I've been speaking for 30 minutes.

If it will get cut off and then you'll rejoin the.

Chat. Okay. In 10 minutes, okay? So go back in time and go and check. I mean, you'll see that when it's in a choppy market, this. And when you're in a choppy market, a sideways market, Here's a prime example. This is a good example.

Yeah, we're sideways market. The reason we use the second candle and not the first market is because if you're in a sideways market, you get these false positives, okay? It's one candle above and then one candle below. And then you get in and you get out, and you get in and you get out, and you're losing money. And all that's happening is, is that you're eating into your margin percentage, okay? And your equity is going down and down and down. You're losing money, okay? What? You're losing money on the spread, and it's gone down maybe 5 or 10 pips, or maybe 15 pips, because that's what everybody says. Put your stop loss at 20 pips and it goes down 20 pips and you get stopped out, and you're just eating into your capital. And that's why I'm saying the second candle above the atma, that's the candle. And here it is. Here's your first one. Here is your second one. Okay. And here is your third one. And it's up. And if you go look anywhere else. Let's have a look here. So it's one.

I think this, this has opened. It's because this is such a sharp north that it looks like it's below. But in actual fact, this candle is above the atma. So it's your first one, your second one, and then we went off. So let's go back in time. Here's another choppy scenario over here. One, two, north. Okay. There's not. If it's one candle.

You'Re gonna. It's usually. You're usually gonna get stopped out. So let's check here.

I'll do over here. Okay.

So it's 1, 2 and then up. So it's. It's 1, 2. And we're out of this band here. So there's a. Can you see the band? It's like a little block here. Okay. It's almost like a pennant. It is a pennant. Okay, so it's the first, the second, and then we were north. So if you did so over here, you were 1, 2. Then here's a false positive over here. But here you had a doji anyway, so you wouldn't have been in the market anyway. And it's at 12 o' clock at night. This is probably at 12 o' clock at night. They told you so. Very, very seldom do you get that false positive on the second candle or above and below the atma. Okay? Just rely on that second candle. Once you've got that, then you can go north. Second candle above you going north, second candle below. You're going south. Okay, so nothing's happening. All we know is that it's going north. We're probably going to retrace now back to the atma. The prices could probably going to retrace back here, if not today, then tomorrow. So what will happen is, is that the moving averages will start moving up and then the next candle will open here and then it'll come down and then it'll probably shoot back up again. And possibly it may, we may get a false breakout tomorrow of a going down and the banks driving it down. And then all of a sudden it's just going to shoot north because of the results that are going to come out of America. Okay, so can I just ask you a question quickly? Yeah, yeah, yeah.

Yes. Just say the first candle that breaks through the at ema. Yeah. Do you open that trade when the second candle opens or do you wait for that second candle to close? When the second candle opens above the atma, you can go north.

Good.

So I'm a little bit more aggressive and sometimes.

Sometimes I open.

About. On the first candle, I open a small one above, like the atmo, one small trade above the atma. And then when the second candle opens above the atmo, I think go aggressive. When I, when it breaks the fractal, then I open like my third candle, my third, my third trade. And then when it retraces back to the. Once it's broken that fractal. Okay. It usually retraces back to the atmo and when it hits the atmi, I open up my fourth one.

So I'm very aggressive with that. And it's to get back to my conversation about risking 1% of your capital. There's no right and wrong here. You've got to feel it out and say, what am I prepared to lose.

From a monetary perspective? How much am I prepared to risk on money in a trade? And it's going to take you time to work that out and say.

I'm prepared to lose.

$500 or $1,000 or. I mean, my trades are huge. I mean, I'm using 20 and 30 and 50 and 77 lot sizes on a center count, which is still. It's a seven lot on a micro. When it goes south, it goes south. And you can. It does get frightening. And this is why you need to know how to read the forex chart. Because it is a calculated. It's a calculated risk. It's like walking into the casino and counting cards where you know, okay, that the next. Or being the croupier and spinning and roulette and you're a good croupier and you can spin within two numbers. I don't know if you've ever seen that. Okay, good croupier can spin within two numbers. They'll tell you, okay, put your money on 38 and like 70 to 80 to 90% of the time, you'll hit, you'll hit that number. That's what this is. And the only way you can do that is if you study.

The strategy and it works.

It's the cleverest strategy I've ever seen in my life. There's no other strategy to beat this. I haven't seen it. When you, when you, when you find it, please tell me. I'd love to learn it. So it's the second candle above, okay, so when are we going to get out of this trade? You're just going to let it route. It's not costing you anything, so leave your trade alone. So last night, yesterday my number here was changing from 350 to 0. Okay? I was thinking, oh, my God, please go north. Please go north. This has to go north. I want to get out of this trade. And this morning, today it's like $2,000 plus. So pretty, pretty sure that I'm going to be able to get out of this hedge, which is very exciting. Okay. And hopefully we're gonna make a ton of cash. So you're gonna wait until the second candle opens below the atma, and then you will close your, then you will close your, your hedge and then you will. If you want to, and if you have enough margin percentage, you will then go south. Now, just opening and closing the hedges, if you get it wrong, you're just going to eat into your margin percentage. So you must make sure that the currency is going to go down so that you do start gaining margin percentage level. I don't just want to gain margin percentage level and crush the, the hedge. I want to make money. Okay? I don't just want to break even here. That's not what I'm doing. Okay? I want to make money. Breaking even just gives me my money back. It does. It's like betting on black and then, and then you lose black and then you bet another one on black and then you win black. You've broken even. And that's 15 minutes of your day gone. I don't want to do that. So that's why I'm saying on the second candle below the atma, you can be aggressive, okay? And you can start like, you can start playing properly once you get this right, okay? You're going to love trading, love, addicted, I assure you. And you're gonna, you'll, you'll start trading you'll start trading manually a lot more than the ea. The EA is lovely, okay? It's nice. It makes you a nice passive income and everything and you can rely on it. But when it goes crazy, the ea, it is a huge advantage. It is such an opportunity for you and people are saying, oh my God, I'm gonna lose my money. You're not gonna lose your money. You're gonna lose your money if you, if you do nothing. If you do nothing, you guaranteed to lose your money. Guaranteed you're gonna lose money. Okay, Here is an opportunity where the EA is just buying and taking and getting you into a position for you to make a ton of cash, take advantage of it.

It's amazing that we've got this just by the way. I've never seen a trend like this before. Never. I've never seen it go up so much so quickly.

It's 335pips in like three days.

That's mental. That's more Ellen. I think the calls about to drop. Okay, cool. So then we'll, we'll connect again. It's 447 pips in three or four days. That's, that's, that's crazy. I've never seen that before. Not on euro, US dollar, on Japanese yen, EJ and gj. I've seen that. Not on, not on this.

Okay, groovy. So now what I'm going to do is I'm going to allow you to ask questions. Guys, you need to ask questions. You don't have me often, okay? And I don't like doing these zoom calls. And just by the way, I forgot to do my disclaimer. None of this is trading advice, okay? I'm not a financial advisor. I cannot give you financial advice. I'm not approved by the FSB to give you advice. So I don't advise you to do anything. You need to make your own decisions. I'm just telling you what I do and this is my strategy and how I do things. How you do things. You need to take responsibility for that. Okay? And I recommend that you trade on demo before you do anything. Or if it was me, if it was my account and I was a novice, I would trade on 0.01 to understand what the consequences are of these decisions and also to get au faith with these strategies. This is not a five second.

Watch, one video. And I'm a professional trader and I know what to do. So please note my disclaimer. Okay.

Do you guys want to ask questions?

I have a question.

Sure.

So when the, when the second candle opens below the.

The atma.

Yeah.

And your, your hedge is blue has gone back into red, right?

Do you.

Just leave it, leave it. You want. Don't, don't close trades in negative. This. Please God, this will be the last time you ever close a trade in negative. This. Closing trades in negatives and having a stop loss. Yes. Have a stop loss. I agree. Not a stop loss. Instead of having a stop loss, have a hedge trade.

Why would you want a stop loss? Why would you want to lose money?

Change your thinking. Everybody needs to change their thinking. So if you're gonna go to bed and you're concerned, okay, and the currency's here and you think, okay, I don't want to lose money. Let me rather put a stop loss here. Why would you do that? Don't put a stop loss. Do I do a sell stop? So if the currency does go down and reverses, you've got your hedge in place. So this trade, your set, your bar will go negative, your sell will go into positive, okay? By the time you wake up, you'll be below a fractal, okay? Wait for the retrace back to the eight. Place another aggressive trade. This is what I would do. Place another aggressive trade, okay? Ride out, make profit on the way down. Your one sell, your one bar trade is going to go red. You're not going to see this often. This is a, this is unprecedented. It doesn't happen, okay? It's just because the countries are in chaos. I mean, you're going to have a 21, 21% unemployment rate in America. It's going to be bigger than the Great Depression. What America has done by funding their economy of $4 trillion has just created the biggest recession the world has ever seen. You cannot do that. You cannot fund.

Just fork out cash without consequences. There's major consequences to just giving of printing money. And the consequence is inflation, okay? And deflation of contraction of the economy. It's just ridiculous. And the only ones that get rich, okay, of the pumping of the money are the corporates. Us people, we don't make any money. We see nothing. Nothing. So Shell and Exxon and all these corporates, okay, they'll go to the government to say we need a bailout, okay? And then the owners of those banks and the directors, they get fat salaries. It doesn't filter into anywhere. I don't know if you saw the latest one. One of the banks, they got a bailout. And what they did was they increased their salaries. It was advertised. They increased their salaries. I Mean, that's just like ridiculous. And they, and they still, and they still retrenched. So what was the point of the bailout? Where did the money go? So it's the only one that, the only people that get rich is corporate America in these situations. So now, now we're going to see the brunt of this whole.

Printing of cash that is just, that has just occurred. And we'll see it on Friday where I'm telling you this currency is going to go to 1.48. So hedge, hedge and let's make money. Okay, so again, so if you, if you're gonna go to sleep, instead of placing a stop loss on your trades, rather put a sell stop. And if you, if you, if you self, instead of putting a stop loss above, rather put a bar stop. And if it goes and it activates your buy stop. Wonderful. What an opportunity.

You're not going to lose money. You're going to just make money. It's just like this is. I don't know why people aren't talking about this. More like it baffles me and people are scared of hedging. Just, just start trading. That's what happened to me. Get your feet wet on demo. Check it out. Try. My mentor said to me, just trade. Not on demo. Trade life. That's when you really feel it. You don't feel it on demo. He said to me, don't feel it on demo. It's different emotions when you're trading live. You're shaking, your heart's palpitating, you're nervous, your palms are sweaty. You think, am I going to make a mistake? Have I made the wrong. Have I made a mistake? Have I made the right decision? Did I count up the lots right? You know how many times I counted the lots wrong because I was under pressure. You see, this is why people make mistakes.

Instead of freaking out, plan, okay? Know where you are. So when a new trade opens, have a piece of paper or an Excel spreadsheet and say, right, a new trade is open. Let's add the trade. So if it does go against you, you've already got your calculations and you calm even better. Open up the trade section and put in Your lot size.

1.07 and close it. It's there, it's safe. So when you open it again, it's there. When a new trade opens, you'll then plug in the new number, whatever it is, 1.27. Make sure that you're on the right currency. Because when I close this, when I close out.

On my phone, it's going to revert to AUD USD. So when I got a trade, and I got a trade, you see that? Aud, nzd. Okay? So you need to have your wits about you. You need to know these things instead of being under pressure, okay? And then trading pressurized trade, calmly know where you are. Okay? So then you're gonna change it to aud Euro USD or whatever currency you're trading. And another tip, don't trade multiple pairs. How did I get good? Well, I traded one currency for three years. That's all. I traded one currency for three years, didn't trade any other currency.

You can't. You. If you trade more than one currency, you're going to get confused. You're going to confoculate yourself and get into a state. That's what you're going to do. So don't do that. Rather become an expert in one currency and get good at it.

Understand it. Understand where that your resistance and your support levels are. Understand how fast it moves, okay? Why it moves that fast. If you're trading, if you're jumping between different currencies, you can't, you can't do that. You can't know the speed of a candle.

Okay? That's why I say, when I talk about an engulfing candle. I know what I'm talking about here because I've seen it and we wait for it. Does it make sense? Everybody, do you have any questions?

Mind shift.

It is. It's a total mind shift. This, my whole trading strategy is very different to what everybody else is doing, okay? My strategy is it enables you to take full advantage of this trend, okay? Full advantage of the tree. If you followed it properly and you stayed in the trend and you wait and you didn't get out because you're only getting out when the second candle opens below the atma, okay? I didn't even listen to my rules because I was on that support resistance level and I thought, you know what? I've made my $2,000. Let's get out. You know how much money I just wasted here? I wasted about $10,000. That's what I wasted, $10,000 because I got out over here. And the candle. There was no candle that dropped below the. The second candle did not drop below the atma. And there is no candle, okay? There is no doji anywhere. Only time there was a Doji was at 12 o' clock at night. It was over here. Just check that out.

There. What is that? 12 o' clock at night. There it is. There's another one over here. 12 o' clock at night.

These dojis don't lie.

Okay? 12 o' clock at night, there's no liquidity in the market. Why would you get out? And I'm a doers. I got out, wasted $10,000 and I can't get back in because I don't know if it's going to turn. So I'm waiting for the candle to come back to the atma and then I'll jump in for a 10 lot because I'm. I got FOMO. I got FOMO big time. So that's, that's the story. So there was no reason for me to jump out. Nowhere was there a candle, two candles below the atm. I should never have jumped out. There was no sell. There was no sell signal anywhere. And I didn't listen to my rules. Sometimes you get emotional is what it is. Okay. But I'd rather not get in in the incorrect place. Okay. And lose money. So although I'm aggressive, I'm conservative, where I take calculated trades that are going to work out in my favor. Not a calculated, like a risky trade there, where I'm going to lose money. I'm sick of losing money. Tired of it. When you blow a million rand in the space of two weeks, it's sore, it's quite painful. So that's my story. Got questions. Let me help you with questions. What are your challenges? What challenges are you having? Now that we understand hedging?

Do you understand hedging? Do you understand when we're going to close the hedge?

Yes. Okay, so. And you understand when you're going to open the hedge?

Yes. My rules are different to your rules. You need to have. You need your rules. You need to, you need to say, okay, well, what am I going to risk? Am I going to risk 5%? Am I going to risk 10% or 20%? What am I going to do having these big drawdowns? I don't know if it's so necessary anymore. Now that we know that we have a handbrake. You have a handbrake. Use it. Yeah, there's a tool. Use it. Use the tool. It's gonna, gonna help you. Now that you know how to use it, you can use it. So now you need to decide what your risk factor is. It's 5%, 10%, 15%. Your time constraints, your lifestyle. You know me, my lifestyles, trading. I've never. This is the sickest industry I've ever seen in my life. Okay. I've never seen so much money in all my life. Never. Okay? Big businesses. But this. This is insane. This is where you can make. When you get to an account of $10,000, $20,000 and you doubling that every two. Every. Every month or every. Every two months. Let's be conservative. 25%. 25 to 30% a month conservative. Okay? You're doubling your account every three months.

So in a year, you've made 300%. So in a hundred thousand dollars, you've made 300,000. You made 400. $300,000 profit. Okay. $300,000. That's 6 million. Just below. Sorry. 500. 5 million. 500,000 rand. Okay. That's what this industry is. I've never seen that before, ever. It's a huge advantage. It's like. So my regime, my trading regime is as follows. I'll show it to you. Is it on this phone? It is on this phone. I have it on both phones. That's my. Oh, I don't have it on this phone. This is my trading regime. Have a look. Where is it? Do that again. Right? That's my trading regime. 3:00 o' clock in the morning. Okay. 5:30, I wake up. 7:00 clock is the next candle. 11:00 clock is the next Candle. 3:00 clock is the next Candle. 9. 7:00 clock is the Next Candle. 20, 300, the market closes. What happens? 3:00', clock, I'm up.

I'll do this for a couple of years and I'm done. I'll never have to work again. Neither will my family. Neither will my will, my kids. And my kids. Kids will probably never have to work ever again because of this. If you know what you're doing, so would it be worth it?

Gotta decide for you. You gotta decide for you. That's. That's my trading regime. And I'm cool with it. Okay? My mentor said to me a couple of years ago, he was standing up Matt Morris, okay? I was doing network marketing with a company. Loved it. Absolutely loved it. Loved the whole culture of it. And he stood up and he said, get good at something worth getting good at. Network marketing for me at that time was worth getting good at. And I got damn good at it. And I built massive teams. I built a team of 32. So I had massive teams, but I wasn't in control. The company crashed. I lost my income. I did that in four separate network marketing companies. And I'd say, I'm not doing this again. I've got to find something. And eventually got into the robot and learned how to trade. This is worth getting good at just go through my course, go slowly. It's not going to be five seconds. It's going to take you a little bit of time. But the question is, will it be worth it? Would it be worth. Okay. Giving the finger to your boss? Okay. Or living the life that you want to live? Would it be worth it.

Firing your boss? To me, that's worth it. Any questions?

And I'm here, guys. I'm so active on the groups. You guys don't utilize me enough. You really don't. I've got knowledge. Some of you don't have the knowledge. You utilize it. If you want a zoom call again, you know, we'll do a zoom call. I'll put it on the group. We'll all have a zoom call together. And everybody learns that way. I'm available. I love it. I love you guys. Thanks for putting your trust in me. It's my pleasure to serve you. You pay me a lot of money for this to serve you, so take advantage of.

Alan. Can I ask, is there a relationship between the drawdown and the capital capital exposure?

Is there a relationship between the drawdown.

And the capital exposure?

It's the same thing, right?

Okay, so if it gets to 5%, that's when you step in and start.

Heading this number here, your exposure.

The red. This number here.

Oh, yeah, yeah, yeah, yeah.

That's your exposure or your drawdown. Okay. So there was. Somebody said that there was another difference to the word drawdown, and that's why we started using the word exposure. And I can't remember what it was. So.

So when the EA is trading, in the bottom corner, it shows your drawdown, which.

Yes. So that was before we learned what the word drawdown was. And I'm just not prepared to get the engineer to change it for us. It was something that I asked him to add in so that we could see what the total exposure was because some people didn't know how to work it as a percentage. So I said log into your survey and in the bottom right hand corner of the chart is your drawdown, your exposure. But it's the same thing. It's the same thing.

Okay, So I could just watch the EA working. As long as the drawdown figure. Exposure figure. Doesn't get to more than 5%, that's up to you.

My limit is 5%. Like five open. So. Yes, E.J. okay. So E.J. was going south and I thought, you know what? This thing is not gonna stop. I could see from the chart, see, I don't watch the numbers. Cars. Okay. I'm not watching the numbers. I'm on the chart. So let's go there. Let's go to which. Which phone am I. Let's go to ej.

Okay. I could see, okay, that this thing was, was just gonna. Was. There's my open trace. Here's where it started. Okay. I thought the. And then here's the candle. And I thought, this is it. It's broken the structure. It's above the fractal. This thing's going north and it ain't gonna stop. I thought, you know what? I'm hedging. I'm hedging and I'm gonna make my money. I'm gonna hedge and I'm just gonna make it going. Let it go north. Okay. When it reverses, okay, that's when I'll close out my hedge and I'll be aggressive and I'll go south and I'll. And I'll make my money there. So I'm just waiting. I'm doing nothing. So there. And it's. It's gonna pump. It's also. It's gonna go to the top here. And then probably because that's your support resistance level. There it is over there. Maybe it'll go more. Who cares? Don't care. Don't want to predict. Whatever it does, it does. Okay. When it turns, I'll then take advantage. When it turns, I'll get involved. I'll close my hedge and I'll take my profits and I'll write it all the way down south. Don't predict. No point. Most of the time when you predict, you're wrong. So don't predict.

Question.

I got a question. On the, on the videos you have mentioned some, some usage that you do on the awesome oscillator and the other indicators for closing the hedge. Do you use this as a confirmation or just opening the two candles above or below the exponential? They just. It's like people use the macd, the rsi, and the. What's the other one? The stochastic. So it's just another. They all basically the same kind of oscillator that just tells you the momentum of the. Of the currency. I don't like using them because it doesn't give you a clear indication. Oversold doesn't mean that it's oversold. Oversold just means that they're strong. This. There's strong momentum. So oversold means that it's. It's basically lots of people buying it doesn't tell you that it's over, overbought or oversold. It's, it's, it's. They useless indicators. They weak indicator, they lagging indicators. Okay, I'm using, you see all those indicators? All these indicators, everything on my chart are new indicators. They're 40 years old, no more than 40 years old. They brand new, okay. They created in the western, in the western world, in America, okay. They brand new candlesticks, 400 year old strategy.

There's so much data in this candle, okay. It's like a, it's like. What's it called, A CR code. What's the thing that, that, that picture, what's it called?

QR code.

QR code? Yeah, it's like a QR code. There's so much data in it. Okay. And when you look at two candles together, it's amazing. There's, there's so much information. You just got to learn what these reversal signals are, you know, created by the Japanese rice traders, the most successful traders in the world. Just go and learn them. There's 12 of them. I think they're on my, on my course in my frequently asked question section. There's a chart there with the, I think it's 1212 reversal candlestick reversal patterns. Just go learn that. But together with my moving averages, I've gotten an advantage in the market. I've now turned my lagging indicators into a predictive indicator. That's what I've done, especially with the atmi. I mean, I think you guys can concur. This ATMA is sick.

There's nothing to beat it, nothing. It's just, it's amazing now it works every time. And the other moving averages as well, like the 200 and the 50, they work. We don't know why they work, but they work. Thank God they work. We've now turned this minefield into a navigational atmosphere. We can navigate the waters, which is.

What an advantage. Fabulous. Any other question?

Alan, if you're expecting the market to go north, at the moment I'm sat with a little bit of a loss and I'm on sell trades. So obviously that would increase if it goes north. Can you just show us how to set.

A hedge for during the night? So you, you mentioned it before, not to do it now, but do it so that it goes up, you know, whatever, then, then the hedge will kick in.

So what you would do is you would add up your lot sizes. So, so let's say you only had, you were working on EJ and these were your trades over here. These are the open trades that you have. You'd add up these trades over here. So mine comes to a 1.07. And then you can say, you can then place the bar trade of 1.07 or you could say on the chart at X place on the chart.

We could say, you can put a line over here. We don't get cut off. You can put a line like over there and say okay, at 122.634, you put a bus. A bar limit. When the price hits that and penetrates it, your. Your hedge will be active activated.

Okay.

So just by drawing the line on the chart.

No, no. You'd need to actually place the trade manually. So how you place the trade manually is in the top right hand corner of MT4. It says they trade. So you click on trade. If you, if you're on market execution, it'll activate the trade immediately. So I'm going to change over my accounts just to show you exactly how that works. I want to do it on that account.

Okay. So on this, on here, if you, if you place a trade 0.01, okay. And you press buy or sell.

We'Re gonna do a buy because we're in a bar market. So if we place a bar before I do that, I just want to add this up. We've done it already so we hedged. Okay, so if you place the trade at market execution and click on buy, it places the trade immediately. Okay. If you. And there it is, there's the trade. Okay. So if you place. If you want to place a trade, let's say at. We want to draw a line, you can either hit the cross or you can get a line alarm and you can say okay, so there, that's the peak which is. Are we on the wrong chart? So let's go to the right chart.

So we'll say there's the peak there. So let's say when that peak is broken. 1, 2, 12515. Okay, so we'll say 1 2, 51 5. We'll say buy limit. 1.12515. So it's not a bar limit. It's a bar. It's a. It's a bar. Stop. One, two. I can't remember what it was. Can you tell me?

1, 2, 5. 12525. So 1252-612526-12526. Okay. And you place it now your order is placed. So when you go back to MT4 in your trade section and the bottom here, there is your buy stop. Okay. If you go to the chart, you'll see that the line has been drawn over here. There it is at the top. So if I zoom out there.

There is your bar stop. You can't really see it because it's on top of. I'll change the number. I'll change the number so that you can see it. Let me just. I'll put it at this level here, 3493.

So to edit it, you swipe right, you swap left, okay. And then you can click on the pencil.

Okay, Click on the pencil on the, on that, on the tray to edit it. So I just want to get my line again. Give me a second.

3750. So you edit it and you say.

3750 and you say modify. And if we go to the chart, you'll see.

You'Ll see there's the trade and says their bar stop. So when the price hits that, okay, Goes through this, through that price, the bicep will activate.

Okay? Same thing. You'll do the same thing for a cell. So if you want to do a sell, it's a sell limit or a cell stop. So you click on market execution to drop it down. And here your different types of orders. Market execution will trade immediately. And now your different types of.

Orders. So buy limit, okay, is basically if you're at the. If your buy limit is this.

A buy limit is if you press. If you put the buy limit below the candle, okay, you can place the buy limit. So what that means is when the price retraces back to the eight. So if I put a bar limit here, I can put the bar limit on the 8 exponential moving average. So when the candle comes down to the 8 exponential moving average and I put a buy limit here, the trade will activate, I'll be in the bar, and then hopefully it'll go north. So I do that sometimes at night when I'm sleeping, if I'm really tired and I don't want to wake up at three o', clock, I'll then put my bar limits over here. A bar order is when you put it above the candle. The same will the opposite. The converse happens in the cell market. You've got your sell limit in your cell. Okay? Okay. That's. That's the difference between the different orders. All right?

Okay, good.

Any other questions?

No other questions.

Okay, guys, thanks very much. This is you making a reaction. Yeah.

Yes. Who's talking?

Nobody. Got a question?

Can I end the call?

Thank you very much. Okay, cool. Thank you. Thanks so much. I'll publish the video and take advantage of it. I'll put it on one of my YouTube channels and just take advantage of this hedging thing. It's to you gonna once you start, it's such an advantage, use it. Okay, Sweet. Guys, have a good evening. We'll say we'll see you on another call. Take care. Before you go, if you'd like to earn a little bit of bitcoin, I give away 0.0045 of a Bitcoin every single Friday to a random subscriber. If you'd like to earn that, there's a couple of things that you need to do. You need to subscribe to my YouTube channel. And how you do that is you just mouse over the video that you're watching and in the bottom right hand corner of the video is a YouTube icon. Click that icon now. So please pause the video, go and do that step. Now once done, you can come back to this video and resume the video. Now if you're not already logged into your Gmail account, then you need to log into your Gmail account. Now. Below the video that you're watching on YouTube there is a subscribe button. So what you do is you click on that subscribe button and then next to the subscribe button is a bell icon. You can click on the bell icon. So please pause the video, go and do those steps. Now, once done, you can come back to this video and resume the video. The next thing that you do is you need to give a thumbs up. And then in the comment section, which is over here, you can leave a positive comment with together with your bitcoin wallet address. Now you have to follow the steps exactly to be able to get that prize. So you need to subscribe, you need to hit the bell icon, you need to give a thumbs up and you need to leave a positive comment with your bitcoin wallet address. Only then are you entered into the competition and are legible to win a prize if chosen. So if you want to win 0.005 of a bitcoin, I highly recommend that you follow those steps and then you'll be eligible to win that prize. So good luck and I hope you win that prize. And if you do, remember to invest it in a passive income stream and I'll see you on the next video. Girl, you know that I'm a doctor.