Hedging Strategy for Minimizing Losses in Binary Options: A Step-by-Step Guide

 Hedging Strategy for Minimizing Losses in Binary Options: A Step-by-Step Guide

binary options signals

Hedging involves opening a reverse trade to minimize potential losses in binary options before expiration. This strategy is effective across various OTC technical approaches on Pocket Option. Here's how it works:

1. Open an Option: Use indicators like Donchian Channel (DC) and MACD to initiate trades. Call options are triggered by a price bounce from the lower DC boundary or an upward breakout, while Put options are triggered by the opposite signals.

2. Implement Hedging: If the market moves against the option, assess whether it's a pullback or trend reversal after 2-3 minutes. Open a reverse option (e.g., LOWER for a downtrend) to hedge and reduce losses.

3. Advanced Hedging Tactics: Pre-set hedging levels based on option entry price or last candle’s close. Adapt to the market quickly to minimize risk.

This strategy works best with cross pairs and during high volatility periods. Keep in mind money management principles, and hedge no more than 10% of your current option.

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