GBP/USD focus
The strategy concentrates on the GBP/USD currency pair. Concentration on a single market means results depend heavily on how that market behaves.
Trading strategy
The EP Rock Capital Hedging EA
The strategy is a GBP/USD-focused forex strategy executed by an Expert Advisor (EA) — a rules-based trading algorithm — and supervised by Daniel Hancox. The descriptions below are provided by EP Rock Capital and have not been independently validated.
How the strategy is intended to operate
Algorithm-driven execution
Trades are opened and managed by the EA according to pre-defined rules, reducing emotional or discretionary decision-making.
RSI
The Relative Strength Index is used to identify conditions where price may be stretched relative to recent movement.
Market structure
Support, resistance and the broader structure of price action provide context for where entries are considered.
Mean reversion
The strategy seeks situations where price may revert towards a recent average. Markets can keep trending instead, which is a key source of loss.
Hedging and scaling
Positions may be hedged and scaled as price moves. Scaling increases exposure and can enlarge losses if the market continues against the position.
Trade duration
Typical trades are described as lasting between one and three days, though individual positions can remain open longer.
Risk first
Every position sized and protected before it is opened
Defined risk parameters
A threshold is not a guarantee
The strategy is operated with a stated drawdown threshold of around 25%. This is an operating parameter used for risk control. It is not a guaranteed maximum loss: market gaps, slippage, liquidity shortages, broker or platform issues and rapid volatility can all cause losses beyond this level.
Human oversight
Daniel monitors the strategy and can intervene — for example by pausing trading around major economic events or adjusting parameters when conditions change. Human intervention can also be wrong and does not remove risk.
How the strategy can lose money
- Sustained trends where price does not revert
- Sudden news-driven volatility or weekend price gaps
- Widening spreads and slippage in thin liquidity
- Accumulated exposure from scaling into losing positions
- Technology, connectivity or broker execution failures