non-USD account hedge

Porentius

New member
Dec 19, 2017
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#1
Hi all,

I have just created my own MetaTrader EA and stepped up from backtestting phase to online trading on a DEMO account. So still time to improve.

What I am concerned abount and looking for an advice on is account ccy hedging.

I will be trading EUR/USD pair, however my trading account is denoted in CZK. As all of you might be surely interested, CZK is expected to strengthen towards all currencies in the following year because Central Bank tightens its moentary policy by raising rates.
Nevertheless, possible strengthning of the CZK would narrow my expected profits because I will get less CZK for 1 USD/EUR/... when closing positions compared to what I invested when opening the position.

How can I hedge against this effectively = cheaply?
Only thing that came to my mind was to open bear position in EUR/CZK pair simultaneously with my whatsoever position in EUR/USD creating something like synthetic USD/CZK position. However I am not sure whether this might work as hedging, or I wil just lose money...

Do you have some experience with this kind of hedges?

Thank you very much for any relevant comments.

All the best,
Porentius