Hedge saved you, who will save Hedge ? - page 2

To add comments, please log in or register
SanjayBalraj
39
SanjayBalraj  
Enrique Dangeroux:
Hedge on same pair does not make any sense.  In fact it is not a hedge in the true sense of hedge.
It's the best possible example of a hedge in the true sense of a hedge, and it makes sense in a lot of ways provided you never close the orders individually.
Enrique Dangeroux
621
Enrique Dangeroux  
No, it does not offset risk. It is a lock down / status quo only your broker is happy with, you pay double the spread, double the commission. Maybe only useful in a carry trade.
Icham Aidibe
11680
Icham Aidibe  
It's a true puzzle.
Chris Mukengeshayi
1705
Chris Mukengeshayi  
Icham Aidibe:

No kidding! My question isn't about how to open a trade, or what's the best shampoo for traders.

Hedging is very popular across traders and very tempting since it can recover losing trades. There's no ultimate guide for hedging, and one can find some fun perfectionning his hedge method.

That's my case : on the graph I posted above, all positions have been opened - trust or no - perfectly randomly, with no signals - cause it should work in all circumstance - if you can see a clean curve, with some fails there or there, it's because I'm perfectionning it, a strategy, based mainly on hedge. 

Can you help Chris ? 

I in particular use to hedge my trades when I had started to trades and I had some good and bad time, I had blown so many account back then, then I got wise to learn how to trades the market, I now try by all mean to only enter the market at the highest high or at the lowest low and I trade on Higher time frame in order to catch big trend and once I catch the trend I follow it. I make use stop loss in case the market decide to go against me, and take the lost like a strong man " Mentally, Physically and Emotionally :-) as we are not allowed to get emotionally I had decided to keep the emotion for my family ", and will plan to re-enter the market later on by first studying the market, calculating and place my pending order and take profit. Sorry I don't Hedge my trades any more, my trading principles turns my trades into profit.

Enrique Dangeroux
621
Enrique Dangeroux  
Icham Aidibe:
It's a true puzzle.

Try hedging with a negative correlated pair. Don't google as to which pairs are correlated, calculate the correlation at the time the decision is made, correlations change over time. And if your trading short term, it is the short term correlation you would be interested in.

SanjayBalraj
39
SanjayBalraj  
Enrique Dangeroux:
No, it does not offset risk. It is a lock down / status quo only your broker is happy with, you pay double the spread, double the commission. Maybe only useful in a carry trade.

Sir, no it does not provided you know what you're doing.

It only costs you double when you close orders individually, which is utterly moronic unless the goal was to freeze/reverse a position AND keep the position size greater than the current free-margin can accommodate.  Otherwise, you can strategically use hedge orders to:

  1. Close multiple positions with a single order (speed).
  2. Reverse a position (netted orders) with a single order - instead of closing all position orders first then opening reverse position (speed)
  3. Scale out of a position (multiple TP or SL levels) with pending orders (money/risk management).
As I said before, as long as you use closeby/multiple-closeby either manually or programmatically, the orders will be reconciled as closed-by-hedge and you will not be charged double spreads or commissions.  
Icham Aidibe
11680
Icham Aidibe  
Chris Mukengeshayi:

I in particular use to hedge my trades when I had started to trades and I had some good and bad time, I had blown so many account back then, then I got wise to learn how to trades the market, I now try by all mean to only enter the market at the highest high or at the lowest low and I trade on Higher time frame in order to catch big trend and once I catch the trend I follow it. I make use stop loss in case the market decide to go against me, and take the lost like a strong man " Mentally, Physically and Emotionally :-) as we are not allowed to get emotionally I had decided to keep the emotion for my family ", and will plan to re-enter the market later on by first studying the market, calculating and place my pending order and take profit. Sorry I don't Hedge my trades any more, my trading principles turns my trades into profit.

Great for you Chris. Lost is definitively part of the "game". 

But yeah ... secretly I wish I could ... avoid to watch at any chart when trading manually, because my hedge script will cradle my money. And I'm sure anyone would, including you - provided it's foolproof

I've made some progress on today, it's stable (at least for year 2018) but I'm gonna leave that aside and come back to break my teeth on later :-) 

Enrique Dangeroux
621
Enrique Dangeroux  
SanjayBalraj:

Sir, no it does not provided you know what you're doing.

It only costs you double when you close orders individually, which is utterly moronic unless the goal was to freeze a position AND keep the position size greater than the current free-margin can accommodate.  Otherwise, you can strategically use hedge orders to:

  1. Close multiple positions with a single order (speed).
  2. Reverse a position (netted orders) with a single order - instead of closing all position orders first then opening reverse position (speed)
  3. Scale out of a position (multiple TP or SL levels) with pending orders (money/risk management).
As I said before, as long as you use closeby/multiple-closeby either manually or programmatically, the orders will be reconciled as closed-by-hedge and you will not be charged double spreads or commissions.  

Regarding the double spread/commission i stand corrected.

SanjayBalraj
39
SanjayBalraj  
Enrique Dangeroux:

Regarding the double spread/commission i stand corrected.

Neither spread nor commission, only net swap if one forgets to closeby before rollover
Alain Verleyen
38707
Alain Verleyen  
SanjayBalraj:
Neither spread nor commission, only net swap if one forgets to closeby before rollover

The point of the "hedge" in this topic is to NOT close the orders in losses.

To add comments, please log in or register