Hugging Trade's Trading Strategy

At Hugging Trade, our trading approach is designed to achieve consistent profitability through disciplined and objective trading. We’ve created a plan that outlines specific trading conditions, strategies, and principles to guide decision-making, risk management, and execution. Our aim is to achieve 10% profit per trade, which translates to at least 30% profit per week with three trades. We utilize strategies like news trading, reversals, and breakouts to capitalize on significant market movements triggered by economic events, price reversals, and breakout points.

Our Beliefs about the Market:

Consistency is born from a carefree and objective state of mind, where we remain fully open to whatever the market offers.
Objectivity means that we at Hugging Trade maintain full conscious access to everything we’ve learned about market behavior, unaffected by emotional biases.
Availability in trading means approaching the market with no personal agenda—neither trying to win, avoid losing, nor seeking revenge. Instead, we let the market unfold naturally, prepared to seize opportunities as they arise.
Trading in the moment is a core principle, ensuring we make decisions based on the present market situation without letting past experiences cloud our judgment.
Not knowing the future is key to properly managing our expectations, which helps us stay adaptable.
Belief in consistency is essential—our traders must instill an unshakeable belief in their ability to perform consistently.
Flawless execution is part of our culture—our goal is to train our traders to execute systems without emotional influence.
We aim to eliminate fear, euphoria, and self-evaluation, maintaining a mindset that thinks in probabilities rather than certainties.
Preventing errors starts with catching ourselves in the act of thinking about them.
Consistency in trading is not just an outcome but a mindset that we instill and cultivate daily.

Trading Conditions:

Lot Size:

At Hugging Trade, we ensure all trades maintain a consistent 1:100 leverage, with no more than three trades open per setup.

Note

Leverage allows traders to control a large position with a smaller initial investment. A 1:100 leverage means for every $1 you invest, you control $100 in the market.

Stop Loss:

First Order: We set a stop loss at 2% of the initial balance.
Second Order: Once the first trade hits 4% profit, we adjust it to breakeven. The second trade’s maximum risk is capped at 4%.
Third Order: Both the first and second trades must reach a cumulative 8% profit, and we ensure the overall loss never exceeds 4% of the cumulative profit.

Note

Stop loss protects trades from excessive losses by automatically closing the trade when the market reaches a predefined loss level.

Take Profit:

Initial Target: We manually take profits once the trade hits 10% if the market begins to reverse after reaching 12%.
Extended Target: If the market moves beyond the 12% mark without reversing, we let the trade run and manually close at 15%.
Position Closure: After hitting our profit target, we don’t add any new positions until the next setup. If a stop loss is triggered, all positions are closed, and we wait for the next opportunity.

Note

Take profit allows traders to lock in gains when the market reaches a predefined target.

Leverage:

Hugging Trade always maintains a 1:100 leverage on all trades, ensuring a balance between risk and reward.

Note

Leverage allows you to control a large position with a relatively small amount of capital. For instance, at 1:100 leverage, you can control $100,000 with just $1,000 of your own money. This amplifies both potential gains and losses.

Leverage vs. Margin: Leverage and margin are related but refer to different concepts. Leverage is the ratio that shows how much you can multiply your exposure to the market, while margin is the amount of money required to open and maintain a leveraged position. In other words, margin is the portion of your funds held as collateral to support the leverage you're using.

Entry Point Strategy:

At Hugging Trade, we base our entries on breakouts, news releases, and reversals:

Breakouts signal when prices move beyond support or resistance, suggesting strong momentum.
News releases create immediate market reactions, giving us opportunities for quick profits.
Reversals occur when the market shifts direction after a sustained trend, providing advantageous entry points.

Note

Breakouts signal a potential strong price movement beyond previous highs or lows, while reversals mark the point when a trend changes direction.

Our Consistent Trading Principles:

Edge Identification: We always aim to objectively identify a trading edge.
Risk Acceptance: At Hugging Trade, we fully accept the risk of every trade and are prepared to let go if necessary.
Risk Predefinition: We clearly define the risk involved before entering any trade.
Edge Execution: Our traders act on their trading edges confidently and without hesitation.
Profit Taking: We make it a point to lock in profits as soon as the market presents the opportunity.
Error Monitoring: Continuous monitoring for potential trading errors is a crucial part of our process.
Principle Adherence: For consistent success, we never deviate from these principles.

Common Trading Errors We Avoid:

Hesitating: Delaying entry or exit decisions.
Jumping the Gun: Entering trades too early, before confirmation.
Risk Negligence: Failing to define the risk before entering a trade.
Loss Aversion: Refusing to accept small losses, which can lead to bigger ones.
Profit Mismanagement: Allowing a winning trade to turn into a loss or exiting too soon, cutting off potential profits.

Market Behavior and Psychology:

At Hugging Trade, we recognize that market movements are heavily influenced by traders’ collective emotions, such as fear, greed, panic, and euphoria. These emotions often lead to exaggerated price movements, and our team is trained to navigate these psychological challenges with discipline.

Note

Fear and greed can cause traders to make impulsive decisions, such as exiting trades prematurely or holding onto trades for too long, exposing them to higher risks.

Conclusion

Our trading strategy at Hugging Trade is built on a foundation of discipline, structure, and consistency. By adhering to these principles, we empower our traders to navigate the complexities of the market with confidence and achieve long-term profitability. Our goal is to ensure every member of our community grows as a trader while maintaining professionalism and emotional control throughout the process.

Happy Trading! 🙌

Team Hugging Trade