Any great idea about HEDGING positions welcome here - page 46

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Keith Watford:

There is no such thing as advanced "hedging".

"Hedging" as described in this topic is opening an opposite order to one that you already have open in the same instrument. There is no way to make that more advanced.

All you can do is add something else that is not "hedging" and if you happen to make a profit then it is that something else that made it, not the "hedging".

All "hedging" does is locks the P/L for the "hedged" trade, but may incur additional costs. It can never turn a loss into a profit as that is impossible.

it can make profit consistenly but i cannot describe my strategy in details here because it is highly guarded by me due to 15 years of experience , and i will never reveal that to the public whether you can think about it as you want.

there is not any pro traders that reveal their strategies in public forums.

 
Seyedmajid Masharian:

it can make profit consistenly but i cannot describe my strategy in details here because it is highly guarded by me due to 15 years of experience , and i will never reveal that to the public whether you can think about it as you want.

there is not any pro traders that reveal their strategies in public forums.

That's ok. I never asked for you to describe your strategy. I am not interested in any strategy that includes "hedging".

All I have ever asked for is that someone can show an example of how opening 2 opposite orders in the same instrument can lead to profit.

I have issued this challenge a number of times and as yet nobody has shown an example. 

Not surprising really as it is not mathematically possible.

Mind you maths is not your strong point is it?

because it is highly guarded by me due to 15 years of experience

When you started this topic under 2 and a half years ago

Seyedmajid Masharian:

i am a professional trader that have been in the marketplace since 9 years ago .

 
Keith Watford:

That's ok. I never asked for you to describe your strategy. I am not interested in any strategy that includes "hedging".

All I have ever asked for is that someone can show an example of how opening 2 opposite orders in the same instrument can lead to profit.

I have issued this challenge a number of times and as yet nobody has shown an example. 

Not surprising really as it is not mathematically possible.

Mind you maths is not your strong point is it?

When you started this topic under 2 and a half years ago

That's ok. I never asked for you to describe your strategy. I am not interested in any strategy that includes "hedging".

All I have ever asked for is that someone can show an example of how opening 2 opposite orders in the same instrument can lead to profit.

I have issued this challenge a number of times and as yet nobody has shown an example. 

because nobody except me and maybe a few traders around the world know how to resolve that problem. and there is no reason for anyone to show their profitable strategies on anywhere .

if you and most of traders could find that solution %99 of traders were winners in the long term not losers.

this is a very hard road and i think forex and all financial markets are designed for big players to steal our money as retail trades and even another big players (remember swiss national bank EURCHF flash crash).

so there is a very hard job to Grab a bite from a wolf's mouth.

Mind you maths is not your strong point is it?

it is not important because i have started trading forex since long time ago and i missed that time maybe 9 years or 15 years or ..., it is not imporatnt , what is important is our results not how many years we have been in the marketplace

and after several years , several months or even several weeks most of traders lose thier assets and They are thrown out of the market for always.


 
Seyedmajid Masharian:

because nobody except me and maybe a few traders around the world know how to resolve that problem. and there is no reason for anyone to show their profitable strategies on anywhere .

Sigh!

I repeat, once again, I am not interested in your so called strategy. I have not asked you to reveal your strategy.

I simply asked for an example of how having 2 equal sized opposite orders in the same instrument can lead to a profit.

Just because you keep claiming that "hedging" is profitable does not make it any more than a fantasy.

Here is an example.

You buy 1 lot EURUSD and unfortunately the trade goes into a loss of 100 USD.

You "hedge" your position by selling 1 lot EURUSD.

Your net position with these 2 trades is now locked at 100 USD loss.

Now, please explain how the net position with these 2 trades can ever go into profit (or even just reduce the loss).

You do not need to reveal anything about your strategy. Just tell us how it is possible that these 2 "hedged" trades with a net loss can miraculously change to profit.

 
Keith Watford:

Sigh!

I repeat, once again, I am not interested in your so called strategy. I have not asked you to reveal your strategy.

I simply asked for an example of how having 2 equal sized opposite orders in the same instrument can lead to a profit.

Just because you keep claiming that "hedging" is profitable does not make it any more than a fantasy.

Here is an example.

You buy 1 lot EURUSD and unfortunately the trade goes into a loss of 100 USD.

You "hedge" your position by selling 1 lot EURUSD.

Your net position with these 2 trades is now locked at 100 USD loss.

Now, please explain how the net position with these 2 trades can ever go into profit (or even just reduce the loss).

You do not need to reveal anything about your strategy. Just tell us how it is possible that these 2 "hedged" trades with a net loss can miraculously change to profit.

there are a few ways one of them is you should wait until EURUSD price goes above your buy position at least x pips or continue falling more at least x pips in order to open 2nd buy = 1 lot or 2nd sell = 1 lot. and continue ... each x pips open a new position in the market direction . but it is not that simple it is our 1st step .

 
Seyedmajid Masharian:

there are a few ways one of them is you should wait until EURUSD price goes above your buy position at least x pips or continue falling more at least x pips in order to open 2nd buy = 1 lot or 2nd sell = 1 lot. and continue ... each x pips open a new position in the market direction . but it is not that simple it is our 1st step .

In this scenario you are adding additional trades and relying on the additional trades to earn a profit.

You are not making any profit on the "hedged" trades.

You would get exactly the same result by closing the first buy position instead of "hedging" it. Then opening the new trades  later .

As I have already said a number of times, if your strategy makes profits, it is nothing to do with the "hedging" element.

 

Point taken on strict definition of hedging, 

You are right.

thanks, Keith.

 
As far as I am aware, the type of hedging referred to here is the "retail hedging" and has nothing to do with the original concept of hedging.

The main idea behind a hedge is to reduce the risk exposure of one position in the market by adding another position utilizing an negative correlated instrument.

This is the original definition of a hedge, or securing buy.

When applied properly, this can lead to profits, despite the first position moving negative or against the anticipated direction.

The fact that retail traders use hedging on the same instrument, is nothing more than stupid and has no real value what so ever.

At least thats my understanding of the definition of hedging.


https://en.wikipedia.org/wiki/Hedge_(finance)
 
Fernando Carreiro #:

I was just venting and releasing my frustration! I know that he will never understand, but maybe other readers will. For them, it might be useful and maybe they can learn something from it!

Your statement was from 2018 and it is 2022...but it is useful and made a lot of sense to me!

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