Any great idea about HEDGING positions welcome here - page 6

Seyedmajid Masharian
1834
Seyedmajid Masharian  
https://www.thebalance.com/introduction-to-forex-hedging-1344819    what i said here is hedging . See above please.
Enrique Dangeroux
757
Enrique Dangeroux  
Zee Zhou Ma:
Lolx you got me there. Yes it can be back tested. Will see how later.

No worries, you got yourself busted with soliciting for a job.

Do not bother with test for me, i know results already.

Fernando Carreiro
5137
Fernando Carreiro  
nicholi shen:

"Hedging" only increases trading costs when you don't use CloseBy either manually or programmatically. Hedging is actually the smartest way to manage net positions. For example, let's say you scaled into a net short-position of 10 lots with 10 separate orders. You could completely reverse that net-position with only one single order. How? You would send a buy order for 20 lots. Your net position is now 10 lots long.  From your terminal you use multiple closeby and the 10 lots that were net-hedged will be reconciled on the broker server as having been closed. There are no extra trading costs whatsoever and it only took you two clicks to make it happen instead of eleven. 

"CloseBy" was created to facility and reduce casts for implementation for "SAR (Stop and Reverse)".

Trying to use it for "hedging" is just complicating and hiding the fact that "hedge trades" offer no advantage what-so-ever verses a well planned and executed strategy with single net positions.

"Hedging (on the same instrument)" cannot save your losses in any way, but True Hedging (on different instruments) can!

Zee Zhou Ma
1913
Zee Zhou Ma  
Enrique Dangeroux:

No worries, you got yourself busted with soliciting for a job.

Do not bother with test for me, i know results already.

Sorry I do not do jobs at all. Moderators can check my past transaction history.
Fernando Carreiro
5137
Fernando Carreiro  
Seyedmajid Masharian: https://www.thebalance.com/introduction-to-forex-hedging-1344819    what i said here is hedging . See above please.

You are contradicting yourself again and cant seem to make up you mind of what "hedging" and Hedging is all about ...

Forum on trading, automated trading systems and testing trading strategies

any great idea about HEDGING positions welsome here

Seyedmajid Masharian, 2018.09.16 20:24

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.
Fernando Carreiro
5137
Fernando Carreiro  

Anyway, further arguing and discussing this here is just going to go the same way as it has on the countless other threads on the same subject.

Traders will just have to carry out their own research and learn from experience or knock their heads into a brick wall until they get it.

Best regards to all and have a good day!

Zee Zhou Ma
1913
Zee Zhou Ma  
Seyedmajid Masharian:
https://www.thebalance.com/introduction-to-forex-hedging-1344819    what i said here is hedging . See above please.

"Hedging is simply coming up with a way to protect yourself against big loss. Think of a hedge as getting insurance on your trade. Hedging is a way to reduce the amount of loss you would incur if something unexpected happened."

I think we have to agree on this definition first before debating further.

The debate here truly tests all our understanding and comprehension skills.

And I am assuming everyone understands what is a hedge.

There are many forms of hedging. No definite one. And there are many strategies of hedging.

There is no book that says you cannot combine it with a stop loss.

And each hedging method has a pro and a con.

If you accept the con, you go ahead with it.

Trading is discretionary thing. No right or wrong answer.

I am fairly neutral.

Be still always.

I go meditate.

Seyedmajid Masharian
1834
Seyedmajid Masharian  
Zee Zhou Ma:

"Hedging is simply coming up with a way to protect yourself against big loss. Think of a hedge as getting insurance on your trade. Hedging is a way to reduce the amount of loss you would incur if something unexpected happened."

I think we have to agree on this definition first before debating further.

The debate here truly tests all our understanding and comprehension skills.

And I am assuming everyone understands what is a hedge.

There are many forms of hedging. No definite one. And there are many strategies of hedging.

There is no book that says you cannot combine it with a stop loss.

And each hedging method has a pro and a con.

If you accept the con, you go ahead with it.

Trading is discretionary thing. No right or wrong answer.

I am fairly neutral.

Be still always.

I go meditate.

I think hedging is useful to protect your account plus make profit. MM is a key here . 
nicholish en
2744
nicholish en  
Fernando Carreiro:

"CloseBy" was created to facility and reduce casts for implementation for "SAR (Stop and Reverse)".

CloseBy is an instruction-set sent to the broker server to instruct it to reconcile two or more offsetting orders as -- one being used to close another. Just like a netting account where you send the opposite order to close your net position. Another way to think of this is like an options transaction where you would for example, "Buy to open -> Sell to close". It's important to remember that this is the SAME as a SL or TP because after-all a SL is a stop order and more importantly -- a TP is an offsetting limit order ("hedge"). The advantage to using an offsetting limit order(s) over a TP is you can use it to take partial profits. For example I could open an order and set three different TP levels for that one order and walk away from my terminal, come back at the end of the day and use "multiple-close-by" to reconcile that transaction. It would have the same net result had I done the same on a "netted" account.  I think the major problem with this style is a lack of education and a lack of creative thinking.   

Trying to use it for "hedging" is just complicating and hiding the fact that "hedge trades" offer no advantage what-so-ever verses a well planned and executed strategy with single net positions.

Agree and disagree. If you open with offsetting orders (hedge) you're either an idiot or a scammer. You either pointlessly wasted your money or you're intentionally using a strategy to lure in investors/signal-subs by hiding your draw-downs behind a linear balance curve (and you're still wasting money).

On the other hand, if you use offsetting orders (combined with closeby!) to close or reverse net-positions then you are smarter than your average EA dev. You'd be one clever guy.   

"Hedging (on the same instrument)" cannot save your losses in any way, but True Hedging (on different instruments) can!

I have to disagree with this but only because you can use offsetting orders to "freeze" a losing position without reducing the leverage applied to the original order. This is obviously a great way to blowup your account, but for the gamblers out there it's a great way to double-down without adding capital to the account. I definitely don't recommend it. 
Fernando Carreiro
5137
Fernando Carreiro  
nicholi shen:

CloseBy is an instruction-set sent to the broker server to instruct it to reconcile two or more offsetting orders as -- one being used to close another. Just like a netting account where you send the opposite order to close your net position. Another way to think of this is like an options transaction where you would for example, "Buy to open -> Sell to close". It's important to remember that this is the SAME as a SL or TP because after-all a SL is a stop order and more importantly -- a TP is an offsetting limit order ("hedge"). The advantage to using an offsetting limit order(s) over a TP is you can use it to take partial profits. For example I could open an order and set three different TP levels for that one order and walk away from my terminal, come back at the end of the day and use "multiple-close-by" to reconcile that transaction. It would have the same net result had I done the same on a "netted" account.  I think the major problem with this style is a lack of education and a lack of creative thinking.   

Agree and disagree. If you open with offsetting orders (hedge) you're either an idiot or a scammer. You either pointlessly wasted your money or you're intentionally using a strategy to lure in investors/signal-subs by hiding your draw-downs behind a linear balance curve (and you're still wasting money).

On the other hand, if you use offsetting orders (combined with closeby!) to close or reverse net-positions then you are smarter than your average EA dev. You'd be one clever guy.   

I have to disagree with this but only because you can use offsetting orders to "freeze" a losing position without reducing the leverage applied to the original order. This is obviously a great way to blowup your account, but for the gamblers out there it's a great way to double-down without adding capital to the account. I definitely don't recommend it. 
I am well aware of the function or are you forgetting the discussion on the thread where you discovered it and then deleted all your posts when it got too heated for you?