up to you. If it did reverse, the move would be smaller forex fund managers in india than in the EUR/USD. If I had to pick one single trading technique in the world, this would be the one! How to Hedge in a US Account This video is a little old, so bear with.
Conclusion A word of warning about this method It can be very easy to start seeing profits right away. To get maximum benefit, you should do both at the same time. You can trade whichever pair you are most comfortable with. NZD moves are about 20 smaller than AUD, so when entering the hedge the NZD trade size would be 20 bigger, therefore making the 200 pip profit a 2,400 USD profit. I've been there and it sucks. Trade conservatively and Zen8 can be a lot of fun. If you are able to look at a chart and identifywhen the market is trending, then you can make a bundle using the below technique. Unlike other traders on the internet, I will never blindly tell you that any one trading strategy is the only one you need, because that is simply not true.
I would define a bad situation as having a position that is down 500 pips or more. Hedging is meant to eliminate the risk of loss during times of uncertainty it does a pretty good job of that. The tighter the spread, the more likely you will win.