Any great idea about HEDGING positions welcome here - page 3

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Fernando Carreiro
4333
Fernando Carreiro  
Seyedmajid Masharian: that is completely wrong because i have made such trading strategy . i have made it and looking for a professional trader to code it.

Well, if you "have" it, why are you asking for "comments" and "ideas" instead of just posting a job request in the Freelance section?

The answer is that you don't have it, because "hedging" on the same instrument always results in an equivalent net trade effect in a single direction. You will NEVER EVER find a viable or profitable solution by using "hedging" on a single instrument as it is mathematically not possible long term. Hedging is only viable and profitable when the trades are on different instruments.

There are hundreds of threads on this site and thousands more on other sites of traders trying to get "rich" by using "hedging", "recovery", "grids" or whatever you wish to call it, and the end result is always the same - it just does not work because the math does not support it.

If you were truely a professional (aka profitable), then you would NEVER have need to search for a "hedging" solution. The only traders that goes that way are the ones that are NOT PROFITABLE!

So, just be humble enough to admit that you are not profitable (nor a professional) and just maybe you will get the true advice that will help you out in your search for facts and ideas from fellow traders to help improve your odds.

Seyedmajid Masharian
1641
Seyedmajid Masharian  
Fernando Carreiro:

Well, if you "have" it, why are you asking for "comments" and "ideas" instead of just posting a job request in the Freelance section?

The answer is that you don't have it, because "hedging" on the same instrument always results in an equivalent net trade effect in a single direction. You will NEVER EVER find a viable or profitable solution by using "hedging" on a single instrument as it is mathematically not possible long term. Hedging is only viable and profitable when the trades are on different instruments.

There are hundreds of threads on this site and thousands more on other sites of traders trying to get "rich" by using "hedging", "recovery", "grids" or whatever you wish to call it, and the end result is always the same - it just does not work because the math does not support it.

If you were truely a professional (aka profitable), then you would NEVER have need to search for a "hedging" solution. The only traders that goes that way are the ones that are NOT PROFITABLE!

So, just be humble enough to admit that you are not profitable (nor a professional) and just maybe you will get the true advice that will help you out in your search for facts and ideas from fellow traders to help improve your odds.

You think i dont have it do you have any idea welcome if dont be scilent. Do you think i must show my hard earnd strategy here .  If a big hedge fund or bank reveal its strategy i will reveal too
CrisZind
446
CrisZind  
Seyedmajid Masharian:

i am a professional trader that have been in the marketplace since 9 years ago .

check tens of thousands of EAs , indicators , strategies like price action , ichimuko etc...

and can assure you 99% of them not work in long term.

because market is unpredictable and full of uncertainty. so no one can predict the

market direction with %100 accuracy even big players like central banks.

( remember George soros and the bank of England , https://www.investopedia.com/ask/answers/08/george-soros-bank-of-england.asp  )

i said %99 of systems but %1 can make consistent money a part of those is hedging i think.

if you have any idea about hedging come here and give your comment.

There are three answers for this question:-


1- you have to test as much as possible until you come up with something that is suitable to your trading style 

2- what is your style is it short term or long term? if you have a 9 years of experience do you think that when someone says "i use this hedging strategy ...etc" do you believe it can be used on one currency or on all of them?

Im asking because your question will for sure attract some answers but in order to give something you need to be more specific

CrisZind
446
CrisZind  
Enrique Dangeroux:

Maybe first establish what is your definition of hedging. There seems to be a lot of confusion about what it is really, especially among forex traders.

Then establish when to employ a hedge. In other words, in what scenario it would make sense and at what cost, because it will come at a price, not only taking into account additional trading fees, but also the capital used for the hedge cannot be utilized until the hedge position is closed.

Hedging itself is not a strategy in itself, it can only be a part of it.

Did anyone notice how smart and specific this answer is!!

Zee Zhou Ma
1443
Zee Zhou Ma  

When you have a strong feeling the market is going up, but suddenly a high impact news release (not calendar) cause it to spike the other direction way past the bottom price. A hedge can be placed as a safety catch all.

The same "insurance" can be accompolished with FX options.
Fernando Carreiro
4333
Fernando Carreiro  
Zee Zhou Ma:When you have a strong feeling the market is going up, but suddenly a high impact news release (not calendar) cause it to spike the other direction way past the bottom price. A hedge can be placed as a safety catch all.

That would be exactly the same as a Stop-Loss and in fact a normal S/L would save you more money in trading costs than applying a "safety hedge trade".

As I have already stated, and total number of concurrent trades whether they are in one direction or in both directions, can always be "netted" into a single equivalent position. For example, that is how MT5 "Netting" works.

So, mathematically speaking, there is no way that any kind of "hedging" can save your position and the best solution is the the S/L.

You may argue that the "hedge" is there only until the market returns to your original position, but it is still the same "net" equivalent as carrying out single trades at the appropriate time.

EDIT PS! Please understand that I am describing "hedging" on the same instrument and not True Hedging where the trades are on different instruments and markets.

Zee Zhou Ma
1443
Zee Zhou Ma  

For a trade, it is always accompanied by a stop loss.

In addition to that, a hedge is placed below the stop loss with 2x, 3x the inital lot size, with the aim to recover the initial loss that would have been suffered due to the initial trade.

Hope that clarifies.

Basic Principles - Trading Operations - MetaTrader 5
Basic Principles - Trading Operations - MetaTrader 5
  • www.metatrader5.com
is an instruction given to a broker to buy or sell a financial instrument. There are two main types of orders: Market and Pending. In addition, there are special Take Profit and Stop Loss levels. is the commercial exchange (buying or selling) of a financial security. Buying is executed at the demand price (Ask), and Sell is performed at the...
Seyedmajid Masharian
1641
Seyedmajid Masharian  
Fernando Carreiro:

That would be exactly the same as a Stop-Loss and in fact a normal S/L would save you more money in trading costs than applying a "safety hedge trade".

As I have already stated, and total number of concurrent trades whether they are in one direction or in both directions, can always be "netted" into a single equivalent position. For example, that is how MT5 "Netting" works.

So, mathematically speaking, there is no way that any kind of "hedging" can save your position and the best solution is the the S/L.

You may argue that the "hedge" is there only until the market returns to your original position, but it is still the same "net" equivalent as carrying out single trades at the appropriate time.

EDIT PS! Please understand that I am describing "hedging" on the same instrument and not True Hedging where the trades are on different instruments and markets.

The true hedging is hedge in one instrument because different instruments sometimes go together  and sometimes go aganst each other and understanding this is completely related to deep understanding from fundamental. For example eurusd previously gone  with gbpusd but after brexit they dont go together.
Seyedmajid Masharian
1641
Seyedmajid Masharian  
Zee Zhou Ma:

For a trade, it is always accompanied by a stop loss.

In addition to that, a hedge is placed below the stop loss with 2x, 3x the inital lot size.

Hope that clarifies.

Hedging can be suitable more than only a stop loss. It can make your losing trades to winning trades.
Fernando Carreiro
4333
Fernando Carreiro  
Seyedmajid Masharian: The true hedging is hedge in one instrument because different instruments sometimes go together  and sometimes go aganst each other and understanding this is completely related to deep understanding from fundamental. For example eurusd previously gone  with gbpusd but after brexit they dont go together.

For a so-called professional with 9 years of experience, you certainly don't know what True Hedging is about, at all.I suggest you do some MAJOR research on the matter or in the very least read @Keith Watford's thread that he supplied right at the beginning of this thread:

Forum on trading, automated trading systems and testing trading strategies

any great idea about HEDGING positions welsome here

Keith Watford, 2018.09.16 09:27

There is never a reason to "hedge" trades in the way of just opening opposite orders with the same instrument.

https://www.mql5.com/en/forum/167337

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