155# Red Dragon Hedging (No Loss Strategy)

Submit by Joy22

Red Dragon Hedging (No Loss Strategy) is a trend following strategy based on exponential moving average channel , Awesome and Parabolic Sar. Signals are generated when all indicators agree. This strategy also fits hedging with a soft martingale.

Setup Strategy

Currency: EUR/USD, AUDUSD, AUDJPY, EURJPY, GBPUSD, NZDUSD, S$P500, NASDAQ100, Gold

Time Frame: H1 or higher. Best 4H 6H 8H 12H 24H. (4H or higher.)

Indicators:

EMA 14 applied to high,

EMA 14 applied to low,

Parabolic SAR (step 0.01, 0.2),

Awesome default setting.

Trading rules Red Dragon Hedging (No Loss Strategy)

LONG

Place a buy order when price closes above the 14 high , PSAR is under the candle and Awesome is above zero level.

SHORT

Place a sell order when price closes below the 14 low , PSAR is upper the candle and Awesome is below zero level.

Exit Position

Place initial stop loss below the previous swing high/low.

Profit Target with predetermined profit target that depends by time frame and pairs, or close position whe there are opposite conditions.

Hedging Rules

When placing an order do not place the stop loss, but the market changes direction to open an opposite order of the same amount as the first. When the market reverses direction, open an order of the same quantity as the first in the direction of the first order. The positions are all closed in profit.

The cycle ends with a maximum of 5-6 orders being placed.

Optional martingale starting from the third order the positions can be increased by one unit compared to the first here is the sequence: 1, 1, 2, 3, 4, 5, Order sequence without martingale 1, 1, 1, 1, 1, 1.

It is recommended to apply hedging from the time frame of 4H and higher.

Examples of trades.