Asking for advice from knowledgeable people. About hedging to avoid MS - page 2
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Close and think about what to do to avoid this happening next time). Opening such positions is unacceptable. The hedge you mentioned was not unreasonable. If you have a small depo, trading with even the smallest lot, often hedging or partial lock is the only way to trade grammatically from the risk point of view.
So let's assume that the maximum loss is taken? Let's assume the global trend is clearly downwards... and we are almost 100% sure that the price will fall and if we close right now we will get the maximum possible loss.
This is not right.
You mean take the maximum loss? Suppose the global trend is clearly down... and we are almost 100% sure that the price will fall, if we close we will get the maximum possible loss.
This is not right.
If we close our position we will get the maximal loss, which is practically unavoidable. It so seldom happens) How sad it is. If the trading conditions allow, you can certainly try to use a partial lock, but it's just a partial fixation of losses, nothing more. This is the hard truth.
The maximum loss is the MC, which is virtually unavoidable if we behave differently) I would not consider the option that the price is about to go up and go where it needs to go. It so seldom happens) How sad it is. If the trading conditions allow, you can certainly try to use a partial lock, but it's just a partial fixation of losses, nothing more. This is the hard truth.
Suppose we deposit 400 pips more. There will be no MC with 98% probability. So, should we close or not, taking the maximum loss? If we hedge ("lock"), how do we get out of this lock, at what levels do we close it ("lock", although it is more correct to hedge it :)) )
Suppose we added another 400 pips to the deposit. MK will not be at 98% probability ... Do we close or not, taking the maximum loss? If we hedge (to lock), how do we get out of this lock, at what levels do we close it (although it is more correct to hedge it :)) )
Lock if you open an opposite position on the same symbol as the main and hedge if you open a position on a different symbol. Maybe this will help you on how to use a lock.
The text is not mine where I downloaded it I do not remember.
From experience, it is common that price captures a stop loss, goes down a few more points, and then moves in the right direction as if nothing had happened. Then you think - oh, I would have set the SL 10 points lower, I would have made a profit. The suggested variant allows solving this problem to some extent - "put 10 points below the SL" without (almost) increasing the risk.1. We bought at 1.3600.
2. Instead of a stop-loss at 1.3550 we place a sell order (though I am not a fan of the stop-loss, but in this case it is the most appropriate).
3. The price went down, we have a lock.
4. If the price keeps going down, the initial position was opened incorrectly, we simply close both positions, we get a total loss of 50, as if we just set the price at 1.3550 SL. (Of course, we also lose the second spread, but we ignore it for simplicity).
5. If the price went 10-15 points down and changed, it means that this is the case from the preamble. We wait when the position opened downwards will not return to its opening level (the level where we would have put the SL on the first position initially) - 1.3550 and close it at zero.
6. The price goes upwards and further into profit.
7. The result - the price goes under 1.3550, and we kind of took a stop-loss at 1.3550 and did not risk more than 50 pips, and we stayed in profit.
8. If the price got to 1.3580 and went down again, we may block there again, and then close the second position again and break even. This may be done until they get bored with it. Every operation eventually results in a spread, but you proudly hold an open position upwards, believing that it will reach its moment of glory.
Lock if an opposite position is opened on the same symbol as the main and hedge if a position is opened on a different symbol.
Why so peculiar ... :)) So this "lock" is not a hedge ... :)) And in general, it's not the point. What difference does it make what to call it.
Suppose we added another 400 pips to the deposit. MK will not be at 98% probability ... Do we close or not, taking the maximum loss? If we hedge (to lock), how do we get out of this lock, at what levels do we close it (although it is more correct to hedge it :)) )
If you will consider a lock as closing a position, and closing one direction of this lock as opening an opposite position, then you can apply your standard conditions for opening/closing a position, and I have not bound them to the margin levels. There is a thread on the board devoted to the Expert Advisor of Reshetov Yury (I do not remember its name, but it is quite recent) that trades on the brink of MC and successfully takes a long time to delay the approach of this particular MC. Look there.
NP, hi. Let's think about it. What is "200 pips to MK"? What lot should be opened on EURUSD at $1K depo to get 200 pips to MK at "crisis" Stop-out = 50%? A simple calculation shows that at the rate 1.2600 we need 0.38 lots at $1K (I will not get more precise, I'm too lazy to calculate it myself). Is it normal?
There is a thread on the forum by Yuri Reshetov devoted to his Expert Advisor (I do not remember the name, but it is quite recent), which trades on the edge of the MC, and has been successfully delaying the onset of this very MC for quite a long time. Look there.
It is an Expert Advisor not afraid of Margin Call
NP, hi. Let's think about it. What is "200 pips to MK"? How much lot should we open on EURUSD at $1K depo to get 200 pips to MK at "crisis" Stop-out = 50%? A simple calculation shows that at the rate 1.2600 we need a lot size in the area of 0.38 at $1K (I'm not going to calculate it more precisely, I'm too lazy to do it myself). Is it normal?
Hi, I'm taking a clean short position... It may not be 0.1... But for example 3x10K... I trade from the following formula 3000 -> lot 0.1 ( 10K) x6 (max) .... 6000 -> 20К.... In this case it holds 500 pips of net position. Approximately.
But not the point.
At 1K and 0.1 is a lot... :)) Or rather the edge.
But not the essence I am interested in how to get out of the "loca". For me it is not clear at all. It is more correct to refill the depo.
An advisor who is not afraid of a margin call
>> thank you, I'll be watching.