Hedge Calculator - page 9

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Enrty Questions

So when is the optimal entry time when placing all BUY orders together for example EUR/USD and USD/CHF.

Need to enter when when they are both in same direction. So what indicator to use to determine this

 

According to true north concepts admin, you can use their cross pair like; for example on eur/usd usd/chf hedge, you can use eur/chf pair to look for possible entry. They also gave me a set of indicators which I found very useful to look for precise entry on my hedge.

I highly recommend true north. Great support like most on the other forum (FF) are saying.

 

Hi,

I've entered a bit late in this discussion and I wanted to ask you how this method works. I could understand that we are buying to pairs at the same time and then we get profit on the swap or on the discrepancy between the two pairs.

For USDCHF and EURUSD, why to we have to wait for EURCHF to be oversold? And why can we buy only?

According to what was said at the beginning of this thread, it should be possible to get the same result using EURCHF only. How can we do it?

Any body knows the formula used by true north for the hedge calculation?

I hope you'll be able to help me.

thanks for the interesting thread!

 

I couldn't help noticing true north's statement, as displayed on their website, contained trades consistently from May 15 thru Jul 27 and then there isn't another trade until Sept 24th.

The missing period coincides with the credit crisis and subsequent meltdown in the carry trade which wreaks havoc on any currency correlation/hedging system. In addition, the final page of the statement conveniently ends right at the beginning of the second carry trade liquidation. Look at a daily chart of any yen cross and see for yourself.

Not accusing anyone of any wrongdoing but these guys are either very good at what they do by precisely predicting the start and finish of dangerous market conditions or they are scewing their results to their benefit.

Cavaet Emptor! (Buyer Beware)

 

good thread. any update so far?

 

Tip on entering hedge

Does anyone have tips on when to enter a hedge like

Euro/usd usd/chf what to look for , best time to enter

 

Hedged margin

Hello,

That may be a totally stupid question but I don't understand that hedged margin. As I am trying to define money management with my available margin, I wouldn't want to miss something important. Coudl someone explain ?

It seems this hedged margin is one of the strong point of the broket I am demoing with.

Thx,

Steven

 
Stevenl10:
Hello,

That may be a totally stupid question but I don't understand that hedged margin. As I am trying to define money management with my available margin, I wouldn't want to miss something important. Coudl someone explain ?

It seems this hedged margin is one of the strong point of the broket I am demoing with.

Thx,

Steven

Hedged margin is often the half margin needed to have two opposite positions on same product .

If you have One BUY and One Sell, each trade needs margin.

One BUY hedged (or inverse) it just need margin for the trade itself not for the hedged position.

 

Thx. So, when my broker is saying hedged margin = 1/2 of initial margin, how should i understand that ?

That, if i have an hedged position (sorry for the wording), only half of my available margin will be used on both the buy and the sell ?

 
Stevenl10:
Thx. So, when my broker is saying hedged margin = 1/2 of initial margin, how should i understand that ? That, if i have an hedged position (sorry for the wording), only half of my available margin will be used on both the buy and the sell ?

Half margin is only for hedged positions.

Available margin is how much margin do you have to keep opening trades or playing with your loses.

Hedge plays with position margin.

1 Lot Buy. Margin $50

1 Lot Sell. Margin $50

Total margin 100

1 Lot Buy. Margin $50.

Sell is Buy Hedge.

Total Margin 50

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