# Trading Strategy

It is no coincidence that automated trading generates recurring profits every day. The trading strategy is also a secret, but for those who are skeptical about "automatic trading", I will reveal the algorithm. I hope it helps. The program does not rely on economic indicators, but uses balances for currency pairs.

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The six currency pairs that are usually displayed on the screen are called the major currency pairs that are intensively traded. If you look at each currency pair of EUR/USD, GBP/USD, AUD/USD, USD/JPY, USD/CHF, and USD/CAD, you can see that there are three currencies with USD at the back and three currencies with USD at the front.

These currency pairs are not absolute, but generally show the same graph movement. If the EUR/USD chart goes up, the GBP/USD chart with the same shape also goes up, and vice versa, if it goes down, it goes down. The USD in front moves in the opposite direction. As I said before, it is not absolute, so there will be no misunderstanding in the explanation.

The "safest" trade in forex trading is a hedging trade. Hedging means taking a position opposite to an existing order. For example, if you place a buy order on the EUR/USD currency pair, you will also place a sell order as a hedge. This will protect you from losses due to price fluctuations.

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If you hedge on the same currency pair, you will never lose, but you will never make a profit either. That is why hedge orders are usually made using the opposite currency pair. If you place a buy order on the EUR/USD currency pair, you will place a sell order on the GBP/USD currency pair with the same symbol. Even if you do this, you will eventually see a profit. However, if this process is wrong and cannot be recovered, you will be in big trouble.

What is your current trading strategy? I also set up an "insurance order" on the counterparty currency pair. If there are buy and sell orders on the EUR/USD and GBP/USD currency pairs respectively, I set it up in case they move in the opposite direction. This is an insurance order for the currency pair with the dollar in front. For example, if there is a buy order on the EUR/USD currency pair, what happens if the graph goes down? The USD/JPY currency pair may show an upward trend. Of course, this is not absolute. It is not rational to predict prices in the forex market. An insurance order is literally insurance, and even if the prediction is wrong, the hedge transaction protects it again. The hedge transaction that is protected in this case is not the existing EUR/USD, GBP/USD order. This is the trading strategy.

The separate hedge order required for protection must be able to provide strength against price movements regardless of the direction of the USD/JPY currency pair. If it does not provide strength against price movements, the trade will not be easily liquidated and will face the so-called "broken" situation. We do not change "lots" for price movements. We also solve this problem through fixed lots.

<figure><img src="https://2386919419-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FotBtNwTygu5Gqg6KS06z%2Fuploads%2FSLLJuog67DufJ1BX8wUL%2Fdocs09.png?alt=media&#x26;token=9c47c9dc-0415-4eac-aa54-20780cd0d698" alt="" width="250"><figcaption></figcaption></figure>

To summarize the algorithm, ①→ The first entered "hedge order" is defended by ②→ "insurance order". This "insurance order" is defended again by ③→ "new hedge order", and the hedge order defending the insurance order plays the role of ①→ "first entered hedge order". In other words, the insurance order is applied to the currency pair that first performed the role of the hedge order, and this insurance order is defended by another hedge order. The important thing is that the currency pair is not added sequentially, but the first entered hedge order and the insurance order change roles in circulation. The transaction is terminated during this process.

I explained it precisely so that you can understand. The reason why you seem to know but don't know is because ③→ Which currency pair is used for additional hedging transactions for insurance defense and how to strengthen insurance were not added to the explanation under the name of "trade secrets." Other trading strategies were explained sufficiently. Those with experience will be able to guess.

<mark style="color:purple;">All trades and trading strategies are posted live on MQL5, and the technology is proven. You can monitor as much as you want, and if necessary, create a demo account to review it yourself. Watch the perfect trading strategy show!</mark>
