Any great idea about HEDGING positions welcome here - page 19

 
hbmiles2000: 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.

If it only has one trade open at a time, then it is not Hedging. There is no such thing as a “non-hedging hedging” - it is either "hedging" or it is not, in the same way that another poster here called the "Stop & Reverse" method "hedging" when it is not.

Irrespective of it being "hedging" or Stop & Reverse, or "netting" or whatever, the fact remains that most kinds of so called "recovery" methods to "save" a loosing trade, don't work. They may seem to work for a certain amount of time due to the conditions being favorable, but sooner or later there will be a case where the conditions are not met and the end result will be a very large loss. These methods just delay the inevitable.

So, please don't elude yourself. Study the process and do the math. Find or develop a proper strategy that has a sound foundation on which it is based and use proper money management. Don't rely on these useless "recovery" techniques!

EDIT: I updated my original post #177 with information of the build-up of Potential Catastrophic Loss that can occur should things go wrong at some point.

 
hbmiles2000:
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.

Which currencies do you trade using that method if i might ask?

 
Keith Watford:

Your statement just shows how little you know about trading. "Hedging" is not a strategy and can never make money in any Market conditions. Proper Hedging is a method to minimise risk, not a strategy. The "Hedging" that you refer to just freezes profit/loss, but possibly with additional and unnecessary costs with commissions, swaps and spread.

Show a simple "strategy", using "hedging" that makes a profit. Of course, you can't because one does not exist.

Seyedmajid Masharian:
You can think as you want i am little trader show us your statement if you are a big trader. If you can not resolve a problem its up to you not that problem if your brain is not too fast to resolve such problem it is not reason that anothr traders brain can not do that...

Please do not try to "fudge the issue" with replies that do not relate to my post. Nowhere have I stated that I have a problem and nowhere have I stated that I cannot resolve any problem. I can prove that "hedging" cannot create profits and I have proved it in my thread that I posted a link to earlier.

Of course I can think as I want, everyone is entitled to their opinion, that includes you.

I will respond to your posts in a way that you may not like, but it is important that somebody challenges the falsehoods that you keep repeating. There may be many new traders reading this thread and they need to know that what you are saying is simply not true.

 
Seyedmajid Masharian:
You can not Determine the assignment for another people . If you and keith dont like this thread get out of here. I previously asked this from you but it seems you and him are here not as moderator but as Distractors and make people confused.

Yet you try to force your ideas on to others

I will not get out of here as I will continue to make comments about a topic that I disagree with. That is the beauty of a discussion, we are allowed to challenge something that we disagree with. I am here as a person, not a moderator.

I think that you might find that Marco still believes in "hedging" so he is not disagreeing with the principle of "hedging" but your repeated claims that it is the only way to make profit. Also you have not actually added anything useful to your own topic. You want other people's ideas, but contributed none of your own. Just rhetoric.

 
Seyedmajid Masharian:

are you another people's lawyer , did they selected you as their lawyer ,if they don't like my thread they simply ignore that or place negative comment here, they don't need your guide . i am not hungry for attention ,(but it seems you are) i am hungry to share something with another people that are willing and agree with my opinion you and those that are not willing to this thread can escape from here,  no one push you here.

you as a moderator only have duty to surveillance that mql5 rules will not deny by users but no one give you grant that force you ideas to all people.

you don't have right to ask people to don't share their ideas here you are moderator not god.

i don't have free time like you and Keith (that have free time from morning to evening and from evening to morning)  to discuss with you about these useless comments.

you don't like hedging simply be quite and quit here , i don't have to coordinate my thoughts with you and Keith.then create a thread here.

this time you or him will Annoying this thread and forcing your ideas to other people and ask them do not share their thoughts here if you will continue
Divert the discussion i have to send a claim that to service desk and wanted them to making a serious decision about both of you. it seems you want to generate a dictatorship here.

 i am hungry to share something with another people that are willing and agree with my opinion

Yet so far you have not actually shared anything factual, not shared any ideas or anything.

you as a moderator only have duty to surveillance that mql5 rules will not deny by users but no one give you grant that force you ideas to all people.

We are not forcing our ideas on anybody, we are challenging yours.

i don't have free time like you and Keith (that have free time from morning to evening and from evening to morning)  to discuss with you about these useless comments.

I see a lot more useless and unfounded comments from you than from any body else.

you don't like hedging simply be quite and quit here , i don't have to coordinate my thoughts with you and Keith.then create a thread here.

This is a free discussion, please don't tell us to go away just because we disagree with your nonsense.

Annoying this thread and forcing your ideas to other people and ask them do not share their thoughts here if you will continue 
Divert the discussion i have to send a claim that to service desk and wanted them to making a serious decision about both of you. it seems you want to generate a dictatorship here.

You do realise that I am not taking part in this discussion as a moderator, but just as a forum user. If we wanted a dictatorship here, we as moderators, could have simply deleted the topic. That would be an abuse of our powers as moderators and it would not even occur to me. I believe in free discussion. It seems that you don't as you keep telling us to leave.

 
CrisZind:

Man leave this one to lead towards the goal

The moderators are here to cut off the nonsense and its not personal, you just continue with the main topic

As I said, and it is important to note, I am not here participating in this topic as a moderator, but a forum user, same as you.

My opinions stated here are my own personal opinions and not metaquotes'

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

That is a martingale strategy that includes "hedging", not a "hedging" strategy as such

 

<Moderators Note: The post quoted here has been removed by Ashton Robbins NOT by a moderator>

Ashton Robbins: Active trading (cost in AUD$ years of pain).

Another form of hedging, this may already have been mentioned is to use a demo account.

know your relevant support and resistance lines and draw

have your AO or MACD set up and volume 

  • Chart shouldv have at least 2 MA's
  • take out some 0.01 trades  or 1.00
  • on trades you feel are the best  50/50 , experience upwards of 60/40 
  • establish the current trend for 1hr to 4hr 
  • charts can be misleading,reversals, stop hunting reversals-spikes
  • time of day is important, London open, NY open
  • trading pattern, doji  etc are important along with trendlines.

after this manage trades by moving stop to BE or use trailing stop

from the above depending on chart take out a position

  • Watch out for reversals, fake reversals
  • cut losses max 10 for me, even 5.
  • then let profits run-run-run, look gapping away from MA and AO.
  • use fibonacci  and MA's for distance

What exactly does any of that have to do with "hedging" or even Hedging?

 

<Moderators Note: The post quoted here has been removed by Ashton Robbins NOT by a moderator>

Ashton Robbins:

A hedge is an investment position intended to offset potential losses or gains that may be incurred by a companion investment. In simple language, a hedge is a risk management technique used to reduce any substantial losses or gains suffered by an individual or an organization. A hedge can be constructed from many types of financial instruments, including stocks, exchange-traded funds, insurance, forward contracts, swaps, options, gambles, many types of over-the-counter and derivative products,

Your definition is absolutely correct, but I don't see any hedging in your strategy as you are not offsetting any potential loss with another instrument.

That apart, I am so pleased to see someone who does understand what hedging actually means instead of thinking that it is simply opening orders in different directions with the same instrument.

 

<Moderators Note: The post quoted here has been removed by Ashton Robbins NOT by a moderator>

Ashton Robbins: A hedge is an investment position intended to offset potential losses or gains that may be incurred by a companion investment. In simple language, a hedge is a risk management technique used to reduce any substantial losses or gains suffered by an individual or an organization. A hedge can be constructed from many types of financial instruments, including stocks, exchange-traded funds, insurance, forward contracts, swaps, options, gambles, many types of over-the-counter and derivative products,

I am well aware of that (as you may have reasoned from all my posts on this thread), but what does your prior post #189 have to do with that!

Reason: