Any great idea about HEDGING positions welcome here - page 23

Fernando Carreiro
4849
Fernando Carreiro  
Keith Watford: I know that Fernando, but it it is important that somebody contradicts any strategy that has no substance. A lot of people that trade are dreamers and will eagerly follow anybody who claims to be successful.

I totally agree! Unfortunately the only ones that listen to us are the ones that have already learned the lesson the hard way. Most of the beginners will ignore our warnings, believing that we are just being bullies or trolls.

Marco vd Heijden
Moderator
9504
Marco vd Heijden  

It has to do with destiny.

You guy's are trying to describe color to a blind man.

Those that are destined to find the important info will do so.

The others will keep searching, forever.

CrisZind
630
CrisZind  

A message to all the enlightened people out there, if hedging is a way of losing money and any system that includes it is a 100% failure, then why does all brokers allow it, and what is your take on the couple of examples represented here with success over years "or several months"

There are lots of slips in your comments that is easy to point out when someone read enough about whats what and whats not, and a lot to be taken in the equation of a fully alert trader but eventually its for the reader to search and defy those ideas

Enrique Dangeroux
368
Enrique Dangeroux  

Hedging is not 100% failure by definition, it depends on how its used. Same as driving a Ferrari. Sure it goes 200MPH, but should you always be driving 200? Maybe 5 MPH would get your more chicks ;)

It is the *broker research* that comes up with these types of strategies. And in theory off course are sound given unlimited funds. Trading the market is a different thing (slippages, limited fills etc, the math is off).

Does not mean a *bad* broker. However a *decent* broker makes a living out of spread and or commission. Therefor their incentive is most of the time to induce their clients to trade more often and bigger volume = more profit for broker. The sure-fire *strategy* is a prime example.

CrisZind
630
CrisZind  
Enrique Dangeroux:

Hedging is not 100% failure by definition, it depends on how its used. Same as driving a Ferrari. Sure it goes 200MPH, but should you always be driving 200? Maybe 5 MPH would get your more chicks ;)

It is the *broker research* that comes up with these types of strategies. And in theory off course are sound given unlimited funds. Trading the market is a different thing (slippages, limited fills etc, the math is off).

Does not mean a *bad* broker. However a *decent* broker makes a living out of spread and or commission. Therefor their incentive is most of the time to induce their clients to trade more often and bigger volume = more profit for broker. The sure-fire *strategy* is a prime example.

Thanks, that's a fair answer

Attila Alp Oğuz
212
Attila Alp Oğuz  
CrisZind:

A message to all the enlightened people out there, if hedging is a way of losing money and any system that includes it is a 100% failure, then why does all brokers allow it, and what is your take on the couple of examples represented here with success over years "or several months"


There are lots of slips in your comments that is easy to point out when someone read enough about whats what and whats not, and a lot to be taken in the equation of a fully alert trader but eventually its for the reader to search and defy those ideas


If I owned a brokerage firm, I would allow it as well ;)

CrisZind
630
CrisZind  
Attila Alp Oğuz:


If I owned a brokerage firm, I would allow it as well ;)

Yeah i agree but my question wasn't to search the integrity of brokers, it was more towards a fair look at the hedging idea

Attila Alp Oğuz
212
Attila Alp Oğuz  

A simple question to hedgers here with two cases:


1. Let's say that you opened 2 lots long position in EURUSD when the quotation is 1,1108 - 1,1110.

    And, you closed 1 lot at 1,1098 - 1,1100.

    What would your loss be when the quotation is at 1,1090 - 1,1092?


2. And the same scenario implemented with the so-called hedging thing.

    Let's say that you opened 2 lots long position in EURUSD when the quotation is 1,1108 - 1,1110.

    And, you opened 1 lot short position at 1,1098 - 1,1100.

    What would your loss be when the quotation is at 1,1090 - 1,1092?

Keith Watford
Moderator
16236
Keith Watford  
CrisZind:

A message to all the enlightened people out there, if hedging is a way of losing money and any system that includes it is a 100% failure, then why does all brokers allow it, and what is your take on the couple of examples represented here with success over years "or several months"

There are lots of slips in your comments that is easy to point out when someone read enough about whats what and whats not, and a lot to be taken in the equation of a fully alert trader but eventually its for the reader to search and defy those ideas

if hedging is a way of losing money and any system that includes it is a 100% failure

I don't believe that anybody has said that. Please point me at a couple of posts where this has been said.

I have said that there is no point in "hedging" as it could man that you are paying extra costs with commissions, swaps and spreads.

Some people seem to confuse "hedging" with martingale and martingale can be very risky.

then why does all brokers allow it

They are in business to make money

 and what is your take on the couple of examples represented here with success over years "or several months"

What examples, I have not seen any. Please point me to the posts with these examples.

Seyedmajid Masharian
1828
Seyedmajid Masharian  

that statement i sent has gained 1900% in less than a year and yes that was not complete hedging because i closed my losing position then open an opposite trade

with higher lot but that method has it own cons because in choppy market it will fail.

so i think it doesn't need to close a position then open a new one your whole positions must make profit even in choppy market.

please start analyzing that strategy i sent and try to find a way to resolve its problems.

i will send my own thoughts on later posts. mean post