Welcome to the Kiwi Forex Hobbyist. This is where I document my personal approach to trading AUD/USD using a simultaneous hedge strategy on my NZD-denominated account.
I've been trading forex as a hobby for several years in the US, but this is my first time trading in the New Zealand market. What drew me here is something US traders simply don't have access to — the ability to hedge trade. In the United States, simultaneous buy and sell positions on the same currency pair aren't permitted, so opening an account with a New Zealand broker opened up a whole new way of thinking about the market for me.
I'm focusing exclusively on the AUD/USD pair, which feels like a natural fit given the close relationship between the Australian and New Zealand economies. I've put together a structured trading plan that I believe is well suited to hedge trading, and after testing it — experimenting with different position sizes and refining my approach — I feel like I've got it dialled in.
I've also built a checklist app called the Kiwi Hedge App to keep me disciplined and on-plan. Now it's time to trade it properly and see how it performs.
A Hobbyist Trader Finding a New Edge
I'm not a professional trader — I'm a hobbyist who enjoys the process of building systems, testing ideas, and learning from the market.
What I love about hedge trading is that it reframes the whole experience. Instead of trying to predict which direction price will move, I'm focused on managing both sides of the trade and letting my plan do the work.
The Kiwi hedge trading plan is built around discipline, consistent position sizing, and a checklist that keeps me honest. If you're curious about how it all fits together, head over to the Plan section where I've documented everything in full.
Kiwi Forex Plan
Disclaimer
This plan is for personal reference only and does not constitute financial advice.
My Kiwi Forex Plan is my structured approach to trading AUD/USD using simultaneous buy and sell positions. By entering both directions at the same time, my strategy captures profit from movement in either direction while managing risk through disciplined position sizing and defined take profit levels.
The strategy is designed for my NZD-denominated account at my NZ broker, scaled from $3,000 to $50,000 NZD.
My Key Principles
• I open both a BUY and a SELL simultaneously if no trades are active.
• Position size is based on a scaling risk percentage × 500 leverage.
• Each side has its own take profit; I may re-enter after a TP hit.
• Drawdown on one side is offset by profit on the other.
• I only add positions every 50 points of drawdown on the losing side — confirmed by the checklist.
• I always follow my checklist before entering any trade.
I trade at any time during the day. My plan doesn't rely on specific global sessions, and I've found that my system works consistently regardless of whether the major markets are open or not.
For New Zealand, the forex market officially opens for the week at 5:00 a.m. Monday (NZST/NZDT) when the global trading week begins. From that point, the market runs continuously for five days.
The forex market then closes for the week on Saturday morning in New Zealand, when the New York session ends and global trading shuts down.
This means I can apply my plan at any time during the week, and I don't need to wait for a particular session. The structure of my plan allows me to trade whenever price presents an opportunity.
World Timebuddy
I use World Time Buddy if I need to confirm the current global forex market status.
My position size is looked up directly from a fixed scale table based on my account balance. The table steps up at each $1,000 boundary, with a fixed 6-pip take profit on every tier. I do not calculate sizes from a formula mid-session — I look up the table, enter the number, and move on.
Scale Table (v3.0)
| Account (NZD) | Trade Size (units) | TP (pips) | Take Profit (NZD) |
|---|
| $3,000 | 15,000 | 6 | $15 |
| $4,000 | 20,000 | 6 | $20 |
| $5,000 | 25,000 | 6 | $26 |
| $6,000 | 30,000 | 6 | $31 |
| $7,000 | 35,000 | 6 | $36 |
| $8,000 | 40,000 | 6 | $41 |
| $9,000 | 45,000 | 6 | $46 |
| $10,000 | 50,000 | 6 | $51 |
| $12,000 | 55,000 | 6 | $56 |
| $14,000 | 60,000 | 6 | $61 |
| $16,000 | 65,000 | 6 | $66 |
| $18,000 | 70,000 | 6 | $71 |
| $20,000 | 75,000 | 6 | $77 |
| $25,000 | 85,000 | 6 | $87 |
| $30,000 | 95,000 | 6 | $97 |
| $35,000 | 105,000 | 6 | $107 |
| $40,000 | 110,000 | 6 | $112 |
| $45,000 | 115,000 | 6 | $117 |
| $50,000+ | 120,000 | 6 | $122 |
How to Use the Table
• Look up my current balance in the table at the start of each session.
• Use the matching trade size for every position that session — both sides, all adds.
• Move to the next tier only when my balance reaches that milestone. Never mid-session.
• My broker displays "Points" which equal traditional pips (0.0001 price move). 6 points = 6 pips.
Minimum Account & Margin Hard Stop
• Plan minimum is $3,000 NZD — do not trade below this balance.
• If available margin falls below $200 NZD — no new trades, regardless of any other condition.
Before placing any trade I run through my checklist. If the checklist confirms a trade should be taken, I open my hedge with the following steps:
1. I calculate my position size from my Scaling Table (Section 3) based on my current balance.
2. I use the checklist to confirm any BUY or SELL.
3. I place a BUY on AUD/USD at current market price and set my take profit to my TP-per-side value.
4. I immediately place an equal SELL on AUD/USD at current market price with the same TP-per-side value.
5. Both orders are now live. I do not set stop losses — the hedge protects both sides.
Broker Note
My current NZ broker supports simultaneous BUY and SELL on the same pair. If I change brokers, I must confirm that hedging is permitted before using this plan.
The core cycle of my strategy is simple: when a trade hits its take profit, I bank the profit and may re-enter in the same direction if the checklist confirms it. This allows me to continue capturing profit as price moves, while the opposite side of my hedge accumulates manageable drawdown.
• When my BUY hits take profit → I bank the profit → I open a new BUY at current price with the same trade size and TP.
• When my SELL hits take profit → I bank the profit → I open a new SELL at current price with the same trade size and TP.
• Each re-entry is independent.
• I do not adjust my trade size mid-session — I use the size calculated at the session open.
Example: Price is falling on AUD/USD. My SELL keeps hitting take profit and re-entering. After seven or so SELL wins I have banked multiple trades of profit. My BUY position has drawn down approximately 50 points — this is my signal to add a second BUY.
Note
The checklist is the governing controller and must always be used.
If price continues strongly in one direction, one side of my hedge will accumulate drawdown. To improve my average entry price and reduce recovery distance, I add one further position on the losing side — but only after 50 points of drawdown.
How I Apply the Rule
• I monitor drawdown on the losing side continuously.
• After 50 points of drawdown → I add 1 position.
• This is a one-time add per side — I can never hold more than 2 positions on the same side.
• Each new position uses the same trade size from the scale table.
• Each has its own standard 6-pip take profit.
• The checklist confirms the trigger — I never add manually without running it first.
Example Scenario (Downtrend)
TP per side: $26 NZD ($5k account). Price falls — SELL positions win repeatedly while BUY builds drawdown.
Open: 1 BUY + 1 SELL
SELL keeps hitting TP → re-enters each time
BUY reaches 50 points drawdown → Add 2nd BUY (maximum)
Reversal occurs → BUY positions recover → all close at TP.
Position Limits — Hard Rules
• Maximum 2 positions per side (original + 1 add)
• Maximum 4 total positions at any time
• Example: 2 SELL + 2 BUY = max exposure
• No new trades if 4 positions are already open
• Never add beyond 2 positions on a losing side
I can trade at any time of day, and I close trades based on profit status — not on a fixed session clock. The key rule is simple: I never close a trade that is in drawdown. I only close trades that are in profit.
• If a trade hits its take profit target, I close it and bank the result — this is the ideal outcome.
• I can close a trade that is in profit at any time, even before it reaches the full target.
• I never close a trade that is in drawdown under any circumstances — I wait for it to recover.
• After closing a profitable trade, I run my checklist to decide whether to re-enter.
• I am comfortable carrying open positions overnight and over weekends — drawdown positions stay open until they recover.
My Rules at a Glance
Profit Target: 100% of the TP-per-side value shown in my scaling table. I can close early if a trade is in profit, but 100% is always the ideal.
Hard Stop 1: If I do not have enough margin to place a new trade, I cannot trade — this overrides everything else.
Hard Stop 2: If I already have 2 positions on one side (BUY or SELL), I cannot add any more to that side.
Hard Stop 3: If I already have 4 positions open in total across both sides, I cannot place any more trades until one closes.
Weekend / Overnight: I carry drawdown positions over weekends and overnight. I do not force-close positions simply because of the time of day.
My risk management rules ensure that my hedge strategy remains controlled, consistent, and scalable. These rules protect my account and keep my trading mechanical.
• I never risk more than 2% of my account on any single trade cycle.
• I never exceed 500:1 leverage — this is my broker's maximum and my hard cap.
• I always calculate my position size using my Scaling Table before opening a session.
• I do not change my trade size mid-session — consistency is key.
• I keep a detailed trading journal and review it weekly.
• I practice any changes in a demo account before applying them live.
• My checklist is my primary decision-making tool — I follow it every time.
Hard Rule
If I do not have enough margin to place a new trade, I cannot trade. This overrides all other rules.
This table shows the full sequence of a typical session — from opening the hedge through to maximum positions and recovery.
| Step | Trigger / Condition | Action |
|---|
| 1 · Open |
Account is flat — no positions open |
Open 1 BUY + 1 SELL simultaneously at current size |
| 2 · TP hit |
One side reaches take profit |
Close that trade, bank profit, run checklist, re-enter same direction |
| 3 · Price continues |
Winning side keeps hitting TP; losing side builds drawdown |
Continue re-entering the winning side after each TP hit |
| 4 · 50-point add |
Losing side reaches 50 points of drawdown |
Add 1 position to losing side at current size — checklist must confirm |
| 5 · Max positions |
2 positions on each side = 4 total |
No new trades. Hold all positions. Wait for reversal. |
| 6 · TP hit again |
Reversal starts — losing positions recover and hit TP one by one |
Close each at TP, bank profit. When flat → return to Step 1. |
A fast-read summary of every decision point. Green = do it. Red = don't.
✅ Session Windows
Trade any time during the week.
Market open Mon 5am NZST → closes Sat morning NZST.
✅ Entry
Flat account → open 1 BUY + 1 SELL.
Always run checklist first. Use current tier size.
✅ Take Profit
Set TP to full target from scaling table (incl. commission).
Can close early if trade is in profit.
✅ Re-Entry
TP hit → close → checklist → re-enter same direction.
Same size. Same TP. No manual adjustments.
✅ Add-Position Rule
Losing side at 50 points drawdown → add 1 position.
Checklist must confirm. Max 2 positions per side.
✅ Closing Trades
Close only trades that are in profit.
Drawdown positions stay open until natural TP recovery.
✅ Overnight / Weekends
Hold all open positions over weekends and overnight.
Never force-close based on time of day.
🛑 Hard Stop 1 — Margin
If available margin is insufficient → no new trades.
This overrides all other rules.
🛑 Hard Stop 2 — Side Limit
2 positions already on one side → cannot add to that side.
🛑 Hard Stop 3 — Total Limit
4 positions open in total → no new trades of any kind.
I keep a log of completed sessions to track take profit points earned, session P&L, and drawdown behavior. This data is what I use to periodically review and confirm the 50-point add rule.
| Date |
Side Won |
Trade Size |
TP (pts) |
TP (NZD) |
Wins before Add |
Drawdown at Add |
Session P/L |
Notes |
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The 50-Point Rule
The drawdown add trigger is set at 50 points — confirmed through live trading data and refined in plan v3.0.
As I accumulate more completed trade data in this log, I can review whether 50 points remains the right trigger or whether it needs adjusting.