Any great idea about HEDGING positions welcome here - page 3
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Well, if you "have" it, why are you asking for "comments" and "ideas" instead of just posting a job request in the Freelance section?
The answer is that you don't have it, because "hedging" on the same instrument always results in an equivalent net trade effect in a single direction. You will NEVER EVER find a viable or profitable solution by using "hedging" on a single instrument as it is mathematically not possible long term. Hedging is only viable and profitable when the trades are on different instruments.
There are hundreds of threads on this site and thousands more on other sites of traders trying to get "rich" by using "hedging", "recovery", "grids" or whatever you wish to call it, and the end result is always the same - it just does not work because the math does not support it.
If you were truely a professional (aka profitable), then you would NEVER have need to search for a "hedging" solution. The only traders that goes that way are the ones that are NOT PROFITABLE!
So, just be humble enough to admit that you are not profitable (nor a professional) and just maybe you will get the true advice that will help you out in your search for facts and ideas from fellow traders to help improve your odds.
Well, if you "have" it, why are you asking for "comments" and "ideas" instead of just posting a job request in the Freelance section?
The answer is that you don't have it, because "hedging" on the same instrument always results in an equivalent net trade effect in a single direction. You will NEVER EVER find a viable or profitable solution by using "hedging" on a single instrument as it is mathematically not possible long term. Hedging is only viable and profitable when the trades are on different instruments.
There are hundreds of threads on this site and thousands more on other sites of traders trying to get "rich" by using "hedging", "recovery", "grids" or whatever you wish to call it, and the end result is always the same - it just does not work because the math does not support it.
If you were truely a professional (aka profitable), then you would NEVER have need to search for a "hedging" solution. The only traders that goes that way are the ones that are NOT PROFITABLE!
So, just be humble enough to admit that you are not profitable (nor a professional) and just maybe you will get the true advice that will help you out in your search for facts and ideas from fellow traders to help improve your odds.
i am a professional trader that have been in the marketplace since 9 years ago .
check tens of thousands of EAs , indicators , strategies like price action , ichimuko etc...
and can assure you 99% of them not work in long term.
because market is unpredictable and full of uncertainty. so no one can predict the
market direction with %100 accuracy even big players like central banks.
( remember George soros and the bank of England , https://www.investopedia.com/ask/answers/08/george-soros-bank-of-england.asp )
i said %99 of systems but %1 can make consistent money a part of those is hedging i think.
if you have any idea about hedging come here and give your comment.
There are three answers for this question:-
1- you have to test as much as possible until you come up with something that is suitable to your trading style
2- what is your style is it short term or long term? if you have a 9 years of experience do you think that when someone says "i use this hedging strategy ...etc" do you believe it can be used on one currency or on all of them?
Im asking because your question will for sure attract some answers but in order to give something you need to be more specific
Maybe first establish what is your definition of hedging. There seems to be a lot of confusion about what it is really, especially among forex traders.
Then establish when to employ a hedge. In other words, in what scenario it would make sense and at what cost, because it will come at a price, not only taking into account additional trading fees, but also the capital used for the hedge cannot be utilized until the hedge position is closed.
Hedging itself is not a strategy in itself, it can only be a part of it.
Did anyone notice how smart and specific this answer is!!
When you have a strong feeling the market is going up, but suddenly a high impact news release (not calendar) cause it to spike the other direction way past the bottom price. A hedge can be placed as a safety catch all.
The same "insurance" can be accompolished with FX options.That would be exactly the same as a Stop-Loss and in fact a normal S/L would save you more money in trading costs than applying a "safety hedge trade".
As I have already stated, and total number of concurrent trades whether they are in one direction or in both directions, can always be "netted" into a single equivalent position. For example, that is how MT5 "Netting" works.
So, mathematically speaking, there is no way that any kind of "hedging" can save your position and the best solution is the the S/L.
You may argue that the "hedge" is there only until the market returns to your original position, but it is still the same "net" equivalent as carrying out single trades at the appropriate time.
EDIT PS! Please understand that I am describing "hedging" on the same instrument and not True Hedging where the trades are on different instruments and markets.
For a trade, it is always accompanied by a stop loss.
In addition to that, a hedge is placed below the stop loss with 2x, 3x the inital lot size, with the aim to recover the initial loss that would have been suffered due to the initial trade.
Hope that clarifies.
That would be exactly the same as a Stop-Loss and in fact a normal S/L would save you more money in trading costs than applying a "safety hedge trade".
As I have already stated, and total number of concurrent trades whether they are in one direction or in both directions, can always be "netted" into a single equivalent position. For example, that is how MT5 "Netting" works.
So, mathematically speaking, there is no way that any kind of "hedging" can save your position and the best solution is the the S/L.
You may argue that the "hedge" is there only until the market returns to your original position, but it is still the same "net" equivalent as carrying out single trades at the appropriate time.
EDIT PS! Please understand that I am describing "hedging" on the same instrument and not True Hedging where the trades are on different instruments and markets.
For a trade, it is always accompanied by a stop loss.
In addition to that, a hedge is placed below the stop loss with 2x, 3x the inital lot size.
Hope that clarifies.
For a so-called professional with 9 years of experience, you certainly don't know what True Hedging is about, at all.I suggest you do some MAJOR research on the matter or in the very least read @Keith Watford's thread that he supplied right at the beginning of this thread: