94939no kidding....in this instance buy lw market hello. . .or vice versa....adios
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94939no kidding....in this instance buy lw market hello. . .or vice versa....adios
94939Spot on. Hedging in itself is not a egy, it is merely a costly way (you pay swap differential) to stay out of the market. The only way to profit is to be net long while price is rising, and internet while it is decreasing, and that can be achieved by you as easily using rankings. Strategy is about leadership and timing, nothing more.
94939Simply because you don't know how to used scaled-in (partial lots of initial commerce ) hedging correctly, you really don't need to be be so negative and go on and on (like others) about how it does not work.
It works very well for offsetting transactions and temporarily restricting risk.
You just need the right mindset and some reasonable margin set up to permit the freedom to unwind the trade at a much smaller reduction, BE or just a profit. We have as much margin to hand, many individuals don't actually understand how to use it.
94939for starters you need to go back to basics and learn some Fundamental PA and technical analysis
That Could of saved your ass
to be honest I find the Euro abit of pig to Exchange, (too many Transaction it, Therefore its overmanipulated the Majority of the time)
there are easier trades in the market
Attempt Some of the other majors, they are technically easier to Exchange
94939@nefser
Hanover understands hedging however he was merely stating the facts.
Nothing he said was false.
If you apply hedging in this respect then that is your business.
Happy trading.
Rgds
94939As usual, folks misread a post and jump to their own conclusions, together with the customary ad hominems and assumptions (you do not know.... You need the ideal mindset...) without offering any actual proof.
Nobody has been negative or saying that it doesn't work. If I understand correctly, ingphil and therefore are examples of traders who use hedging and are profitable.
What is being said is that easy math demones that hedged positions can always be answered by single places, for equal P/L. This subject has been done to death** and I (and many others ) have provided many worked examples (e.g. here here here here and here). Again, I would challenge anybody to provide a sequence. Merlin provided $100,000 to anybody who might devise such a chain, and (as far as I know) nobody came forward.
EAs that formerly used hedging techniques have been re-coded to have around the NFA's no hedging principle, and continue to deliver the exact same P/L (and cover less swap). That's possible because no matter how you slice it, you may be net long, net short, or net flat. You can offset trades and limit risk by simply closing themand then later opening new places, for precisely the same result , same total exposure consumption of margin.
If you are scaling in, every element trade must be profitable, otherwise you'd be much better off without it. Again logic. All component orders generate P/L within their own right, and also the way you group these (and any other) orders mentally is nothing more than a random view. (A B) C = A (B C) = A B C
If you are net long while price is rising, or net short while price is falling, you profit. You lose money. It is as straightforward as that. Everything else is smoke and mirrors, or at least merely an operational convenience.
[EDIT]
Being short and long simultaneously in precisely the exact same pair is not hedging, in the genuine sense of the term. Appropriate http://www.finance-glossary.com/define/hedging/676 requires the holding of places in different instruments.
[EDIT2]
**Here are some prior threads on hedging in precisely the exact same pair:
https://www.cliqforex.com/trading-sy...ng-market.html
https://www.cliqforex.com/trading-sy...s-signals.html
https://www.cliqforex.com/general-fo...en-trades.html
https://www.cliqforex.com/trading-sy...ng-market.html
https://www.cliqforex.com/general-fo...-yr-notes.html
https://www.cliqforex.com/trading-sy...g-journal.html
https://www.cliqforex.com/trading-sy...g-journal.html
https://www.cliqforex.com/trading-sy...iders-den.html
https://www.cliqforex.com/trading-sy...ncleforex.html
Look for posts by, smittens4212, 7bit,,, birdt, capitalist88, philmcgrew,, LazyPawn, euclid others. All of them explain the math and logic much better than I do.
94939I agree - hedging can save the account and in fact like today I released the hedge and recovered 3000 in my equity - today if I did this with an ordinary trade based on equity I would still be adding new risk to the account- I think for me its easier through the Dollar
once I see EUR heading down I rehedge (at 10% ) then start the hedge bank the profit and profit equity when market goes up, then I consider the banked profit and cut a top buy positions decreasing my internet exposure and decreasing my price point on EUR USD
What do you think??
94939Totally agree to BenderTrader. You hedge at timing. You use profit from hedging in order to eliminate some loss etc.. Interesting to me. Like I am doing with EUR/JPY at the moment. lol.
Great luck to you.
94939well I'll say: never never give up...
Bender is meant by me for bothering you guys, but if all positions are hedged it.
Close positions or open - equity is exactly the same. Am I overlooking something here? What is the point to maintain positions open?
To unhedge that he is really likely to trade. If a person believes he understands when to unhedge exactly what position, this is knowledge. Lose again and he is going to fool himself.
BenderTrader! To your question - yes, it is possible to rebuild account even from several hundred dollars. Still, unwind and examine you mistakes, you have to step back and trade.
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