Any great idea about HEDGING positions welcome here - page 45

Zee Zhou Ma
1920
Zee Zhou Ma  

I have been researching on hedging myself these days. 

The starting lot size has to be extremely small, and you have to time your trades slowly. 

A bad mistake is probably hedging with a trade that is opposite to the direction of the trend and allowing it to run with negative swaps.

And the worst of all mistakes is placing too many hedge trades hoping the resultant ends in profit.

The more hedge trades you have, the harder it is to manage the trades, so need to be thinking clear when placing a hedge trade.

Best is open a hedge trade on another currency pair rather than the same pair you are working with, on a different day.

If you are already planning to do a hedge trade, you have to size up your trades from the smallest to the largest and only use the largest lot size only when you are very certain it is where you are going to use.

I neither agree nor disagree with the use of hedging.

Just these points from me. Hope it helps.

Seyedmajid Masharian
1840
Seyedmajid Masharian  
Zee Zhou Ma:

I have been researching on hedging myself these days. 

The starting lot size has to be extremely small, and you have to time your trades slowly. 

A bad mistake is probably hedging with a trade that is opposite to the direction of the trend and allowing it to run with negative swaps.

And the worst of all mistakes is placing too many hedge trades hoping the resultant ends in profit.

The more hedge trades you have, the harder it is to manage the trades, so need to be thinking clear when placing a hedge trade.

Best is open a hedge trade on another currency pair rather than the same pair you are working with, on a different day.

If you are already planning to do a hedge trade, you have to size up your trades from the smallest to the largest and only use the largest lot size only when you are very certain it is where you are going to use.

I neither agree nor disagree with the use of hedging.

Just these points from me. Hope it helps.

thank you for your share after a long time i finally see in depth comment i appreciate that. i by myslef have about 15 years experience in the forex market and have checked thousands of strategies , indicators and EAs and see very rare phenomenon (like swiss national bank bob) and can say no one work in all market conditions that's why millions of them came and gone and this trend will continue until the end of the world dont forget widespread scammers in this market .so we as retail traders have to use hedging in order to escape from big whales mouth in forex ocean otherwise they eat us soon or late. markets are full of uncertainty and the only way to make consistent profit in such chaos is hedging. by using true hedging strategies you can make profit along with big institutions all times.

because true hedging works in trending market condition as good as sideways market.

whether for this we definitely need to design an EA not manual trading.

Keith Watford
Moderator
29051
Keith Watford  
Zee Zhou Ma:

I have been researching on hedging myself these days. 

The starting lot size has to be extremely small, and you have to time your trades slowly. 

You seem to be confusing "hedging" with martingale and/or grid trading.

A bad mistake is probably hedging with a trade that is opposite to the direction of the trend and allowing it to run with negative swaps.

With "hedging" isn't one always going to be against the trend? The buy + sell swaps will always be negative.

Best is open a hedge trade on another currency pair rather than the same pair you are working with, on a different day.

Maybe, but that is not "hedging".

Filip Pop
4811
Filip Pop  
Unless for technical purposes (of managing an already opened position), hedging is absolutely useless in trading (if it refers to the same traded instrument).
Seyedmajid Masharian
1840
Seyedmajid Masharian  
Filip Pop:
Unless for technical purposes (of managing an already opened position), hedging is absolutely useless in trading (if it refers to the same traded instrument).
Never emphasize with complete certainty what you do not have 100% control over, i by myself made a hedging strategy that can make stable profit during all market conditions using hedging on the same pair.
Keith Watford
Moderator
29051
Keith Watford  
Seyedmajid Masharian:
Never emphasize with complete certainty what you do not have 100% control over, i by myself made a hedging strategy that can make stable profit during all market conditions using hedging on the same pair.

Yet it is ok for you to claim that "hedging" can be profitable??

I have proven that it is mathematically impossible for "hedging" to be profitable. I have proven that "hedging" can result in increased losses/reduced profits.

I have challenged people who claim that "hedging" is profitable to show a simple example of how "hedging" can be profitable. So far nobody has shown such an example. I am not surprised by that as it is impossible to make profit by "hedging".

If you have a strategy that makes profit I can guarantee that it is not the "hedging" element that yields profit.

Seyedmajid Masharian
1840
Seyedmajid Masharian  
Keith Watford:

Yet it is ok for you to claim that "hedging" can be profitable??

I have proven that it is mathematically impossible for "hedging" to be profitable. I have proven that "hedging" can result in increased losses/reduced profits.

I have challenged people who claim that "hedging" is profitable to show a simple example of how "hedging" can be profitable. So far nobody has shown such an example. I am not surprised by that as it is impossible to make profit by "hedging".

If you have a strategy that makes profit I can guarantee that it is not the "hedging" element that yields profit.

in financial market pure mathematics doesnt work , because financial markets are working based on crowd behavior and no one can predict crowd behaviour using mathematical models only .

it is a complete chaos and in such random phenomenon the only thing that works consistently is adaptation and the best adaptation is hedging here because we never can predict crowd behavior %100 of times with high accuracy.

although i am completely agree with you when we use a pure hedging , because pure hedging is very dangerous specially with small account balance and a lot of aimless positions , but i am not using a pure hedging , i have developed a

very powerful strategy that it is very advanced and complicated (more than 300 pages in detail) in order to be adaptable with the latest market conditions no matter if it is a choppy , a sideways or a powerful trending market condition.

it can and should become automatic in order to work .

Keith Watford
Moderator
29051
Keith Watford  
Seyedmajid Masharian:

in financial market pure mathematics doesnt work 

Mathematics always works. If it didn't, coding would be impossible! just because it is related to the markets, 2+2 does not suddenly equal anything but 4.

although i am completely agree with you when we use a pure hedging , because pure hedging is very dangerous specially with small account balance and a lot of aimless positions , but i am not using a pure hedging 

As I said

Keith Watford:

If you have a strategy that makes profit I can guarantee that it is not the "hedging" element that yields profit.

Seyedmajid Masharian
1840
Seyedmajid Masharian  
Keith Watford:

in financial market pure mathematics doesnt work 

Mathematics always works. If it didn't, coding would be impossible! just because it is related to the markets, 2+2 does not suddenly equal anything but 4.

although i am completely agree with you when we use a pure hedging , because pure hedging is very dangerous specially with small account balance and a lot of aimless positions , but i am not using a pure hedging 

As I said

i didnt say that is not hedging i said that is advanced hedging.

Keith Watford
Moderator
29051
Keith Watford  
Seyedmajid Masharian:

i didnt say that is not hedging i said that is advanced hedging.

There is no such thing as advanced "hedging".

"Hedging" as described in this topic is opening an opposite order to one that you already have open in the same instrument. There is no way to make that more advanced.

All you can do is add something else that is not "hedging" and if you happen to make a profit then it is that something else that made it, not the "hedging".

All "hedging" does is locks the P/L for the "hedged" trade, but may incur additional costs. It can never turn a loss into a profit as that is impossible.