Any great idea about HEDGING positions welcome here - page 32

 
Keith Watford:

Not relevant at all. Simply close the Long instead of opening the opposite short. Absolutely no need for a "hedge".

Your opinion. Lockin' the profit & wait for a counter trend & if there's no counter trend, a long re-entry with minimal lot is enough to continue to grab some profit. This seems relevant to me.

Seyedmajid Masharian:
Yes this will be great too for example more than 200 pips move in 1s to 1m and your ea instantly close all losing positions and wait until the of crash. Or gap...

Even with 200 pips gap, it's not about closing the losing deals, it's about closing locked orders when a new trend has started.

 

Icham Aidibe: Your opinion. Lockin' the profit & wait for a counter trend & if there's no counter trend, a long re-entry with minimal lot is enough to continue to grab some profit. This seems relevant to me.

Even with 200 pips gap, it's not about closing the losing deals, it's about closing locked orders when a new trend has started.

It is not opinion, but a fact that has been shown here on this thread already at least 3 times with examples and with the math.

If you wish to use a "hedge" in your strategy, then you will just be throwing away money with extra transaction costs.

So take the time to actually read those posts and do your best to try to understand them and you will be saving yourself some money.

Here are my posts:

"Hedging" in Forex trading -Why do it?
"Hedging" in Forex trading -Why do it?
  • 2017.01.19
  • www.mql5.com
if I may offer my opinion..... Hedging is a method to limit risk. Consider this scenario...
 
Icham Aidibe:

Your opinion. Lockin' the profit & wait for a counter trend & if there's no counter trend, a long re-entry with minimal lot is enough to continue to grab some profit. This seems relevant to me.

You do realise that closing a trade locks the profit without the possibility of incurring additional costs such as swap, commissions and spreads?

It is not just my opinion, it is a fact proven by some very simple arithmetic. There is absolutely no advantage gained by opening a new trade in the opposite direction instead of simply closing the position.

 
Keith Watford:

You do realise that closing a trade locks the profit without the possibility of incurring additional costs such as swap, commissions and spreads?

It is not just my opinion, it is a fact proven by some very simple arithmetic. There is absolutely no advantage gained by opening a new trade in the opposite direction instead of simply closing the position.

Perhaps he means -until he is sure of trend direction- this could be useful when the trend continues 

 
Well there is one small advantage which is emotional in nature, when you have open two opposing positions, you no longer have to worry about being on the wrong side of the trade 
 
CrisZind: Perhaps he means -until he is sure of trend direction- this could be useful when the trend continues 

No it is not, because it is the same as closing the first trade and opening a new one at the level at which he would have closed one side of the "hedge" (or added to it, which is worse).

I have shown the math and have shown examples! Please people, read them and try to understand them.

If you have questions about the math or the examples then ask and I will do my best to explain them, but don't blindly continue to believe that a "hedge" (on the same symbol) is some kind of safety-net to "lock" your position until "better" times.

 
Fernando Carreiro:

No it is not, because it is the same as closing the first trade and opening a new one at the level at which he would have closed one side of the "hedge" (or added to it, which is worse).

I have shown the math and have shown examples! Please people, read them and try to understand them.

If you have questions about the math or the examples then ask and I will do my best to explain them, but don't blindly continue to believe that a "hedge" (on the same symbol) is some kind of safety-net to "lock" your position until "better" times.

closing the first and opening a new one puts of the idea of "protecting your original profit" and adds the idea of "potential new loss due to trading the retracement" its not the same


Actually im going to question this part a bit >>


Marco vd Heijden:
Well there is one small advantage which is emotional in nature, when you have open two opposing positions, you no longer have to worry about being on the wrong side of the trade 

That is quiet true and a big part of trading is to control your emotional side, having both sides of the trade open will give a bit of extra profit when retracement happens + once the trend go back to the original direction then you don't have to "re-open for the second time" and pay extra cost of commission and spread


If you know what you are doing enough number of times you will be profitable with the way you trade, you will use the hedge many times and you will have only a few losses, thats what happens anytime to any successful trader, few losses that doesn't count and many wins that takes the account to higher profit

 
CrisZind: closing the first and opening a new one puts of the idea of "protecting your original profit" and adds the idea of "potential new loss due to trading the retracement" its not the same

Actually im going to question this part a bit >>

That is quiet true and a big part of trading is to control your emotional side, having both sides of the trade open will give a bit of extra profit when retracement happens + once the trend go back to the original direction then you don't have to "re-open for the second time" and pay extra cost of commission and spread

If you know what you are doing enough number of times you will be profitable with the way you trade, you will use the hedge many times and you will have only a few losses, thats what happens anytime to any successful trader, few losses that doesn't count and many wins that takes the account to higher profit

Incorrect! You will have no extra profits with "hedging".

I gave you the opportunity to go over my posts to try to understand them and learn something, and even opened the door for more explanation on my part, but you continue to blindly cling to your beliefs.

Well, your money and your loss!

 

CrisZind:

.........closing the first and opening a new one puts of the idea of "protecting your original profit" and adds the idea of "potential new loss due to trading the retracement" its not the same

Meaningless

.......... having both sides of the trade open will give a bit of extra profit when retracement happens + once the trend go back to the original direction then you don't have to "re-open for the second time" and pay extra cost of commission and spread

You've already incurred the possible additional costs when you opened the "hedge"

..........If you know what you are doing enough number of times you will be profitable with the way you trade, you will use the hedge many times and you will have only a few losses, thats what happens anytime to any successful trader, few losses that doesn't count and many wins that takes the account to higher profit


If you know what you are doing, you will realise that there is no additional profit created by opening opposite trades. Something that has been proven here many times already.

Reason: