Hedging strategies that make $10,000 a month PART 2

All this strategies was taken from some experts ,

2-GMT Package Hedge

This strategy we don’t need two accounts, and we don’t need interest free account. In fact, we need to find a bank/broker that pays the highest interest (difference bank/broker pay difference rate). Make sure the gap between the interest we pay them and interest they pay us is as small as possible, so that we can keep more of our net interest.

GMT package hedging strategy, we buy the highest interesting paying currency pair (GBP/JPY), and we hedge it with a lowest interest paying pair (CHF/JPY) so that after they paid us and we paid them, we still have a good chunk of net interest to keep.

The best time to enter GMT hedge is during negative swing. We can use demo account to determine the swings or use Daily Bollinger Band 20,2 of GBP/CHF to determine the place for enter and exit GMT hedge. Enter only when GBP/CHF price at or near the bottom of daily Bollinger Band and exit GMT hedge when GBP/CHF price at the top of daily Bollinger Band.

Advantages: We don’t need two accounts to hedge. No need for interest free account. Need smaller investment capital to collect more interest than the 100% hedging method. No need to transfer fund to rebalance the account. Best of all, we can liquidate the hedging pair for profit when market swing positive to our side.

Disadvantages: A little higher risk than 100% hedge due to the uncertainty of currency correlation. But if we keep enough margins to hold the trade during negative swing, eventually, it will swing back to positive side.

GMT Package Hedging strategy detail:

Buy 100k GBP/JPY and sell 180K CHF/JPY at the same time. Make sure you keep enough margins for about 200 pips swing. I never have more than 200 pip swing against me, but I reserve enough margins in the account just in case.

You can do dollar averaging technique. Instead of buying all at the same time, you can buy 1 lot each time. The ratio is 1 GBP/JPY and 1.8 CHF/JPY. Enter the hedging pair at the same time. The best time to enter is during negative swing.

To view my GMT package hedging in action:

1-Download FXDD Meta ersonname w:st="on">Traderersonname> 4 Demo at : http://www.fxdd.com/meta_trader.html
2-Log in to account id: 409412
3-Password: Gmt12


Once you log in, you can view my trades.