Spanish Hedge Trades

[Crap Buddist]

Hola ! Well I got the early "get short" dropping in today, just as NFP was approaching ! :cheesy:

So I thought I would deploy the "Spanish Hedge" technique and trade out of it on volatility on release of NFP.


It so happens when I "engaged" the hedge, I was +8 pips, but wouldn't of mattered if I was off 20/30 etc.

Pro's ,as it happens, My setup was saying trade shorts going into the avo, so good use of a hedge that one can drop a leg to exploit the action and make some pips.

GBPJPY usually gets yoyo'd about any over NFP so perfect use of the technique. Make sure you have no stops set prior to the figures coming out, then once you drop a leg at a favourable price, whack in a stop on the other position, then as that trade moves back towards its entry gauge an exit, and job done !

Ye olde Spanish Hedge technique pulls in a result. ohhhhh mate not larfin now are ya ? cry::clap:

yeah coulda held longer for the drop of the second leg? Well, easy with hindsight, lol realtime I was mentally thinking thats about 70 pips..... click.

Spanish Hedge over Non Farm Payrolls, done!

Maybe if "ever" you use a "spanish hedge" post in here.

Spanish Hedge Takes On Non Farm Payrolls

 

[foredog]

Or anywhere else other than crazy land

Sold it, missed the profit, closed it, waited shorted at the top?

 

[Crap Buddist]

Or anywhere else other than crazy land

Sold it, missed the profit, closed it, waited shorted at the top?

Well, thats a part of the technqiue, who knows what the figures will be when released ? Or what the market reaction will be to it ? News often results in spikes blowing out stops, and reactions.

So using the spanish hedge the market can gap 200 points up OR down and it will not effect your position at the time of hedge. Then trade the volatility on news release & market reaction.

One can use it to hold any position with then the opportunity (because, a) you have not been stopped out, b) you have not closed out due to fear of news ****ting on your previous position & c) you still have positions in the market from which you can profit .which way the market springs is irrelevant when using the Spanish Hedge as long as it does spring And Non farms does often bring on a good spring ,further with this pair it frequently gyrates like its having its arms pull out of it sockets so its a good op to make some pips on the volatilty with minimal risk ) .

It's a win win situation as I see it.

Also because the trader already has his trades entered, he is now free to wait, and focus on only exiting his positions in order to make his profit. and it's the exits which make the money. It's a very relaxed way to take on Non Farm Payrolls.