From my ebook...

To illustrate the effectiveness of this betting strategy, I took an average trend-following trading system on the GBP/JPY currency pair and then back-tested the signals in OPPOSITE directions. These particular trade signals had a 75 pip stop-loss and 75 pip profit target so it was nearly equal odds on both sides (like betting red or black on roulette). I say “nearly” equal odds because the dealer's spread works against us in each direction just like the green zeros on a roulette wheel. Here are the results of the two OPPOSITE trade signals BEFORE applying my money management strategy. A $314 profit in one direction and an -$879 loss in the opposite direction.

Now here's the identical trade signals from the example above but this time with the Cumulative Wins Strategy applied to each with a cycle target of 5 units. Remember... the 2 graphs below are OPPOSITE trade signals EACH with money management applied so you can compare their winning and losing streaks.

Top Equity Curves (above & below): The first trade signals  went from a mere $314 profit to a whopping $2356 profit while starting with the same lot size and risk per trade. That's a 650% improvement with a much better profit to draw-down ratio too!

Bottom Equity Curves (above & below): The OPPOSITE trade signals in the bottom graph went from an -$879 loss to a $540 profit. That's a +$1319 improvement! It actually turned a horrible losing trading scenario into a nice profit! And not only that, the max draw-down was reduced by half! This example had worse statistics than a Roulette table on a bad run, and yet it cleared $540 in profit!

As these are opposite trade signals, notice that one shoots into profit while the other preserves capital by taking very small losses. Before applying my money management strategy, the net total for the two opposite trading signals combined was -$565. After applying Roulette Trader Money Management, the combined net profit was +$2896. To put this into perspective, you could have simultaneously traded these two “opposite” trade signals from a single $1500 account, which would be 193% profit in just 2.8 months, all while trading in opposite directions simultaneously on every trade! How cool is that? And what better way to diversify your portfolio? When one is losing a little, the other is making A LOT! With a hedging system like this, you don't need to predict the next market move. You just need to be in it!
[End of ebook excerpt].

By combining a Trend-Following and Consolidation trading strategy, which use opposite signal logic, you can profit from both of these very common market conditions. However, your signals do not need to be the exact opposites. You can get much better results by optimizing the settings of each robot to favor one market condition over the other. So while the signals may not be identically opposite, there will be a lot of hedged trades due to the opposite signal logic (Trend-Following vs. Counter-Trend/Consolidation).

Using the Roulette Trader Money Management System, the robots will automatically increase lot sizes on the robot doing better to capitalize on the favorable market condition for that robot, while the one doing poorly will quickly reduce the lot sizes to preserve capital in the unfavorable conditions.

Now let's compare the results of the Trend-Following Robot and Consolidation Robot using the same primary moving average on a GBP/USD 1-Hour chart...

GBP/USD Trend-Following Robot (Preset 1b)
using Signal Envelopes around HMA 70 

GBP/USD Consolidation Robot (Preset 2a)
using Signal Envelopes around HMA 70 

Below is the combined non-compounded equity curve of the 2 robots & strategies shown above (Trend-Following & Consolidation). The date range is July 1, 2022 through Oct 31, 2023. (See more details below).

The graph above shows the non-compounded equity curve when combining Preset 1b of the Trend-Following Robot and Preset 2a of the Consolidation Robot on the GBP/USD 1-Hour chart. The equity highs and lows of each robot were included to show the maximum draw-downs in the combined daily results. These strategy presets are included with the EAs for quick & easy setup & replication of this hedging strategy.

Both robots were using Moving Average Signal Envelopes following HMA 70 but at different spacing to favor opposite market conditions. Both robots were using Cumulative Wins Money Management with a 12 unit cycle target and 0.01 unit size. This means that with a 12 unit cycle target, the lot sizes can increase up to 0.12 lots on a winning streak.

This is a hypothetical simulation using a constant 2-pip spread. It does not account for rollover interest or variations in spreads that occur in a live price feed. Past performance is not indicative of future results and individual results may vary. Please read the full risk disclosure at the bottom of this page.

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Clearly understand this: Information contained in this product are not an invitation to trade any specific investments. Trading requires risking money in pursuit of future gain. That is your decision. Do not risk any money you cannot afford to lose. This document does not take into account your own individual financial and personal circumstances. It is intended for educational purposes only and NOT as individual investment advice. Do not act on this without advice from your investment professional, who will verify what is suitable for your particular needs & circumstances. Failure to seek detailed professional personally tailored advice prior to acting could lead to you acting contrary to your own best interests & could lead to losses of capital.

*CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN