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The video tutorial discusses a hedging strategy to mitigate losses in trading. Using the example of the Australia New Zealand dollar pair, the speaker explains how unexpected real-world events can cause a sudden drop in value, making technical analysis ineffective. This unpredictability highlights the limitations of relying solely on charts and algorithms, as certain events cannot be anticipated based on historical data. The speaker emphasizes the importance of being able to react and adjust your position in response to unforeseen market changes.
