Any great idea about HEDGING positions welcome here - page 38

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James Newman
131
James Newman  
Keith Watford:

Not at all. The global financial crisis 10 years ago hit my portfolio very hard, wiping out years of gains. If I had been trading with leverage, it might have wiped me out completely!

Leverage can be very dangerous if not treated with respect. It can really take a chunk out of your a**  :)

agree... I hope you were not shorting those Porsche shares :)

Keith Watford
Moderator
14015
Keith Watford  
James Newman:

agree... I hope you were not shorting those Porsche shares :)

I never short shares except in the way that I mentioned earlier (with CFDs)

Icham Aidibe
11287
Icham Aidibe  
nicholi shen:

Very well said. I also attempted to roll my own tri-arb system for giggles, and I even successfully implemented asynchronous orders in MT4... If only I had my time back lol. In my experience hedging (offset orders) is only useful for the following:

  • Managing overall "net position". Always used in combination with CloseBy. 
  • Concealing the true position duration. Gaming a broker that disallows scalping and requires n hold time.  (also used with closeby, but with time offset to show hold duration)
  • Luring in unsuspecting signal subscribers with a nice linear balance curve while obscuring the draw-downs. (I don't personally do this as it is unethical)
  • Gambling. Freeze/reverse a losing trade and preserve the leverage of the original trade. 
  • Lazy programming. 

Absolutely ! There's a popular example of hedging - briefly - during the 2k crisis in the USA, investors bought at CDO, this derivative gone wildely volatile & unsafe- and many of those who invested in, start betting against. 

But here, there's only ONE hedge which is just about no getting out totally naked of the position - it never has been or only by extension about looping long - sell - long - sell - long - sell on the same product.

Hedging goes with coverage, not profit.

Rafael Grecco
452
Rafael Grecco  

I have developed a EA that uses hedge (and several other strategies). It is still in development, but already running fine.

The most important thing when using hedge is identifying ranging market and stop opening hedges. In this condition, you should use Averaging.

Also, one of the most powerful strategies is to analyse the market as a whole (I mean, all pairs that you trade), not each pair separately. Usually, when a pair is ranging you can find a pair that is trending (as long as they are not correlated). You can use this to your advantage to close trades at profit.

Mohammad Zahirul Islam
254
Mohammad Zahirul Islam  
I also searching different kind of hedging system for profitable forex trading.But unfortunately till now I could not found any system for this. 
Attila Alp Oğuz
191
Attila Alp Oğuz  
Mohammad Zahirul Islam:
I also searching different kind of hedging system for profitable forex trading.But unfortunately till now I could not found any system for this. 


Not having found in the past does not mean that you will not be able to find a good one in the future.

Search more ...

And, improving your searching capabilities may help a lot in the course of your search.


Good luck.

Seyedmajid Masharian
1645
Seyedmajid Masharian  
https://www.mql5.com/en/forum/237763
Experts: Hedging_Zone_Recovery_Area
Experts: Hedging_Zone_Recovery_Area
  • 2018.04.16
  • www.mql5.com
Hedging_Zone_Recovery_Area: Author: Aharon Tzadik...
Seyedmajid Masharian
1645
Seyedmajid Masharian  
Seyedmajid Masharian:

lets finish useless debates and  start focusing on hedging systems...

see the picture please.


this is a sure fire hedging strategy ...


the 1st problem is 1.this system only works on trending markets and in middle term or long term choppy market it will fail if will not blow up your trading account.

question: which strategy is better for that to don't fail in choppy markets and even make money in such conditions .?


the 2nd problem is by opening each new position you have to bring your tp point further to make the same amount of profit as initial trade.

question: what to do to decrease trade opening number in long term choppy market.?


the 3rd problem is spread and its widening by broker.

question: what to do if broker widened its spread so recovery zone will be wider . so some opposite trades in both directions will be closer to each other

here is the image


and some of them will be further from each other.


the 4th problem is fast market movement and price gaps that causes opposite orders open further that trader wanted.

question:what to do if between 1st buy and 1st sell or 2nd buy and 2nd sell or any other consecutive trades market will make a huge price gap ?

because this causes 2 consecutive orders placing far from each other while another orders are close to each other.

how to manage such situations?


these are not all problems that we must resolve them but an important part of them i will add further question later...

don't forget using trailing stops can improve you success by increasing your winners and decreasing your risks.



please answer each question on its place.

welcome here to post and give your precocious ideas.

Keith Watford
Moderator
14015
Keith Watford  
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