Any great idea about HEDGING positions welcome here - page 18

 
hbmiles2000:
With all due respect to some of those who replied, there’s much more to hedging than most believe.
 
Seyedmajid Masharian:

do you have any idea about the system i mentioned on that post i will be glad to hear?

it seems my questions are tough and no one can help.

i don't have an idea about a hedging system but i have a system that includes hedging and its not to "win" open trades but to minimize the losses and i don't "double the size on the hedge trade" its a simple same-size hedge on the opposite direction to let the price go where it should then chose to close one of the trades and let the other win, or close both with a minimum loss


i use this when the market turns the other way when my analysis is not right, just like the banks when they are not always 100% right ..


good to mention when banks start to lose they can go as far as asking the big companies to stop trading .. this is when the markets go radically against them, it can happen rarely but there is no use of hedging at this point .. so no matter what system you will find it will fail some times


I hope this gives a hint to the right path

 
CrisZind:

i don't have an idea about a hedging system but i have a system that includes hedging and its not to "win" open trades but to minimize the losses and i don't "double the size on the hedge trade" its a simple same-size hedge on the opposite direction to let the price go where it should then chose to close one of the trades and let the other win, or close both with a minimum loss


i use this when the market turns the other way when my analysis is not right, just like the banks when they are not always 100% right ..


good to mention when banks start to lose they can go as far as asking the big companies to stop trading .. this is when the markets go radically against them, it can happen rarely but there is no use of hedging at this point .. so no matter what system you will find it will fail some times


I hope this gives a hint to the right path

thank you for sharing

 
hbmiles2000:
With all due respect to some of those who replied, there’s much more to hedging than most believe.

what do you think about my questions? in mentioned post

 
edison
 
Seyedmajid Masharian:

thank you for sharing

There are several systems out there, depending on what your needs are... some as mentioned to be integrated into an existing trading system in order to minimize frequency and/or severity of losses & others are effectively standalone trading systems in their own right.  I know there are at least 2 EAs in the Market that are pure hedging EAs.
But otherwise I agree whole heartedly with your assessment of forex in general; it is without doubt the most challenging (and rewarding) of all the financial markets to trade... I speak from years of experience in equities, bonds, and commodities (only 3 yrs now in forex)....forex is just a different animal entirely... on just about every level... honestly, if anyone out there can claim he or she is profitable on a day-in, day-out basis without employing some form of hedging, kudos to them - they are my superiors when it comes to trading then.
Take care.
 
hbmiles2000:
With all due respect to some of those who replied, there’s much more to hedging than most believe.

In order to educate you and others, here is a breakdown of the so called "Sure-Fire Forex Hedging Strategy" (using up to 5 levels), presented in the video (and attached PDF), as well as the non-hedged netting equivalent (Stop & Reverse - look at the S/L placement). Remember to also have a look at the mathematical equations I presented in my post #91.

As you can see, the non-hedged netting equivalents offer better profits at the same volume, or equal profits at reduced volume that also reduces margin requirements and lower spread costs for the lower volumes.

Obviously, this Stop & Reverse equivalent is still not a true alternative for a properly devised strategy, because even with the non-hedging equivalent, this naive strategy still suffers from many other factors and problems.

However, my main goal here is to show that "hedging" is not a solution because there is always a better solution available with the "netting" equivalent.


EDIT: Added a column to the show the build-up of Potential Catastrophic Loss that can occur should things go wrong at some point (like computer crashing, EA or MetaTrader stops responding, Internet connection goes down, power goes out, critical news event causes massive widening of spread, etc.)

 

Yes ! it's famous people's quotes time ! 

Pythagoras is the KING of hedging.

Just not the hedging type / BS that @Seyedmajid Masharian is spreading here.

 
Fernando Carreiro:

In order to educate you and others, here is a breakdown of the so called "Sure-Fire Forex Hedging Strategy" (using up to 5 levels), presented in the video (and attached PDF), as well as the non-hedged netting equivalent (Stop & Reverse - look at the S/L placement). Remember to also have a look at the mathematical equations I presented in my post #91.

As you can see, the non-hedged netting equivalents offer better profits or the same volume at reduced volume that also reduces margin requirements and lower spread costs for the lower volumes.

Obviously, this is still not a true alternative for a properly devised strategy, because even with the non-hedging equivalent, this naive strategy still suffers from many other factors and problems.

However, my main goal here is to show that "hedging" is not a solution because there is always a better solution available with the "netting" equivalent.


Thank you for that Fernando!  I’ll most definitely check that out, as you’re right...the volumes can get a bit scary quite quickly with hedging.
Much appreciated & take care.
 
Fernando Carreiro:

In order to educate you and others, here is a breakdown of the so called "Sure-Fire Forex Hedging Strategy" (using up to 5 levels), presented in the video (and attached PDF), as well as the non-hedged netting equivalent (Stop & Reverse - look at the S/L placement). Remember to also have a look at the mathematical equations I presented in my post #91.

As you can see, the non-hedged netting equivalents offer better profits at the same volume, or equal profits at reduced volume that also reduces margin requirements and lower spread costs for the lower volumes.

Obviously, this is still not a true alternative for a properly devised strategy, because even with the non-hedging equivalent, this naive strategy still suffers from many other factors and problems.

However, my main goal here is to show that "hedging" is not a solution because there is always a better solution available with the "netting" equivalent.


Thank you again Fernando - I will counter however by saying that I’ve been successfully using a “non-hedging hedging” strategy for several months now .... I’m not sure if it is akin to your netting concept, but it’s basically hedging with the added restriction that you only have 1 position open at any given time, which effectively eliminates the volume issue that plagues a true hedging strategy.
Take care.
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