I do something around that but it requires no hedging as the OP asked about. From what I have read somehwere, they use hedging because they get in both sides and when the account goes up or down a certain amount they close one leg and ride the other. A good way to pay more in spreads, lol. It would be better for them to have an indicator but you need to program it. On another forum, on guy said he use hedging if he his short on the weekly and want to hedge for a couple hours if there is going to be a short term reversal.
I have tried, but you really need to have a program dedicated for that kind of stuff. What I have found is that if one thing is diverging, all thats happening is its moving back to a non-diverged state because it was already diverged in a different time frame.
The forex, more than anything else, can stay irrational than you can stay solvent. But with the proper betting size and risk management, there are things to be done.
Yep - precisely. And, if you really, really think about what was said here, you can design "things" to lock-out risk to a point of virtually becoming moot long-term. As long as the market moves - and the currency market is one of the best at doing that - then there are "things" that can be done, indeed.