Hi Mike, no I don’t use a hedge function like that. I’m wary of using hedges because I sense they can equally get you I trouble as save you.
But that’s not to say I haven’t built in risk management.
Firstly, my grid trader has a range limit to serve as a stoploss if a market moveable too far.
Secondly, I keep my sizing to a level that even if the market gaps my stoplosses, my position even at max trades of 10 can withstand a move of 1000 points and the damage to my equity is within my % tolerance limit.
Thirdly, I am always watchful of my total net exposure to any single currency amongst all my models, again so the exposure to a 1000 point move is within my tolerance.
