Many of the professional traders uses hedging strategy instead of stop loss system. This strategy is highly beneficial when market is moving against you and you take some orders in trend and close them after making some profit. This way you can support your loss orders by adding some balance in your account with small small profits while waiting for the original trade to come into profit.
In above picture as you can see that we have opened a buy order but unfortunately it has gone into loss. But to protect it we have opened a sell order with the same lots. So at this stage we have hedged both of the orders where the profit/loss won’t be changed. After a little time when market moved further down we have closed our sell order to book some profit. This way we have closed our hedge order. After that we waited a little for the buy order to get in profit to close it.
There are many indicators and many other styles of hedging concept that many professional traders use to make a good profit and avoid huge risk.
We also brought you a Forex Hedging Robot which is fully automatic and based on a professional hedging concept. This is highly profitable and very less margin using EA.