The King Hedging Forex EA: A Comprehensive Review
The King Hedging Forex EA is an innovative automated trading system designed to capitalize on short-term market movements using a unique hedging strategy. In this comprehensive review, we will cover everything you need to know about this expert advisor (EA) including features, performance, setup, and tips for getting the most out of it.
Overview and Key Features
The King Hedging Forex EA opened in 2020 by developer Samir Arman. It works by simultaneously opening two deals – a buy and a sell – each with a profit target of 20 pips. As the market fluctuates, the EA adapts by opening additional “cooling” deals of varying sizes to hedge the existing positions.
Here are some of the standout features of this trading robot:
- Effective hedging mechanism – Uses a sophisticated hedging approach to capitalize on short-term moves while limiting market exposure.
- Real-time transparency – Trades are tracked live on the vendor’s website so users can monitor performance.
- Backtested and optimized – Extensive backtests over multiple years and currency pairs to fine-tune the logic.
- Easy to set up – Requires only a few key inputs so you can have it running in minutes.
- Works on any currency pair – Designed to work on all majors and crosses, with the best results seen on EUR/USD, GBP/USD, USD/JPY and more.
How The Hedging Strategy Works
The core of The King Hedging EA is the unique hedging mechanism it utilizes. In a nutshell, here is how it works:
- The EA opens two trades simultaneously – a buy and a sell – based on its internal logic. For example, it may open a long EUR/USD deal and a short EUR/USD deal at the same time.
- Each of those initial deals has a take profit target of 20 pips by default. So if the buy trade hits +20 pips profit, it will close.
- As the market fluctuates after the first two trades are open, the EA will add additional “cooling” deals in the opposite direction to hedge the risk. For example, if EUR/USD rises after going long, it may open a short hedge trade. The lot sizes of these cooling deals are smaller.
- Eventually, as trades start closing in profit, it will begin removing the cooling hedges. For example, if the long trade from step 1 hits its +20 pip target, the EA will close any open short hedges.
- The end result is the EA locks in a profit in a low risk manner by strategically utilizing hedging deals on top of its directional entries.
This approach allows it to bank 20 pips here and there with limited market exposure. Over time, these small wins can compound into something sizeable.
Performance and Backtest Results
Extensive backtesting shows positive long-term results for The King Hedging EA across different currency pairs and time frames.
For example, here are some backtest results posted by the developer Samir Arman:
- Total Trades: 27,358
- Percent Profitable: 64%
- Net Profit: $46,200
- Max Drawdown: 27.1%
- Total Trades: 19,486
- Percent Profitable: 68%
- Net Profit: $63,500
- Max Drawdown: 18.2%
These results showcase the EA’s ability to produce consistent profits over multiple years with drawdowns contained to reasonable levels below 30%.
In live trading, user reviews also report steady account growth month to month with minimal intervention needed. For example, one verified buyer stated:
“I’ve been running it live for 3 months now and it’s smoothly generated over 600 pips of profit. I highly recommend giving it a try.”
However, it’s always best to backtest the EA yourself in a demo account before risking real capital.
Using The King Hedging EA: Setup and Configuration
One of the benefits of The King Hedging Forex EA is how quick and easy it is to set up. Here is a step-by-step guide:
- Download the ex4 file from your licensed purchase or rental.
- Open MetaTrader 4 and click File > Open Data Folder.
- Copy the ex4 file into the Experts folder.
- Attach the EA to a currency pair by clicking Expert Advisors in the Navigator panel and dragging it onto the chart.
- Input Settings – Lot size and risk management parameters can be configured in the Inputs tab, but defaults are recommended for starters.
- Make sure your account leverage is at least 1:400 and deposit at least $5000 or more for 0.01 lot trading.
And that’s it! In a few minutes you can have the expert advisor up and running on a chart.
Some key inputs to be aware of include:
- Lot1 – Manually sets the lot size if Auto_Lot is disabled.
- Auto_Lot – Enables automatic lot calculation based on risk preferences when set to True.
- Max_Risk – Max risk % per trade if using Auto_Lot.
- Take_Profit – Take profit level in pips, default is 20.
Be sure to stick to the recommended broker account requirements for lot size and leverage to ensure sufficient margin.
Now let’s move on to some tips for getting the most out of The King Hedging EA…
7 Tips for Success with The King Hedging Forex EA
Here are some best practices to keep in mind when trading with The King Hedging Forex EA:
1. Select the Right Currency Pairs
While the EA is designed to work on any forex pair, best results have been achieved on the major pairs like EUR/USD, GBP/USD, and USD/JPY as well as crosses such as EUR/JPY.
Stick to pairs with reasonable spreads below 8 pips for optimal performance. Exotics and minors tend to have higher spreads that will eat into profits.
2. Use Low Spread Account
Since the EA targets small 20 pip take profits per trade, having a low spread account is crucial for success.
Aim for a True ECN broker with spreads as low as 0-2 pips on majors. This ensures sufficient margin to come out profitable after broker costs.
3. Start Small
When first switching the EA live, begin with small position sizes around 0.01 lots based on a $5000 account balance minimum.
This conservative approach allows you to evaluate real-time performance before risking excess capital. Scale up lot sizes as you build confidence.
4. Monitor the First 100 Trades
Keep a close eye on the expert advisor over the first 100 live trades before leaving it completely unattended for long periods.
Ensure trades are opening and closing as expected with an acceptable win rate initially. This helps identify any potential issues early.
5. Use Reasonable Targets
While backtests may show windfalls over long periods, anticipate more modest returns in live trading. Set realistic profit targets around 10-15% monthly at first.
Adapt expectations based on actual performance, increasing profit targets if your live results mirror backtests.
6. Manage Risk
The Max_Risk input determines the maximum risk in % equity per trade. The default 10% is quite aggressive.
For less volatility, reduce Max_Risk to 1-2% or disable Auto_Lot for manual position sizing based on account balance.
7. Update Regularly
Make sure to check the vendor’s site regularly for any software updates which may contain important enhancements and bug fixes.
Install updates promptly to take advantage of the newest logic modifications. However, read change logs carefully first.
The King Hedging Forex EA Verdict
In summary, The King Hedging Forex EA provides traders with an accessible way to leverage a proven hedging technique for steady profits.
The combination of backtest accuracy, ease of use, and transparency gives it an edge over many set and forget systems.
However, as with any EA, success is still dependent on proper usage adhering to best practices. Manage risk appropriately and select optimal trading conditions, then the odds tilt favorably over time.
For novice traders seeking an introduction to automated strategies or experts wanting to add a workhorse hedging EA to their portfolio, The King Hedging Forex EA checks all the boxes.