Hedge help - page 2

[Alain Verleyen]

Icham Aidibe:

Fernando, locking strategies are efficients when some use it, including me - I don't care it didn't work for you, or nicholshen, you probably didn't apply it correctly, swap & commissions aren't an argument as it's drowned in only a hundred points of profit. 

I won't either interrupt my morning coffee, open a terminal and make few of them to prove something to someone somewhere.

That said, I'm bored by pointless polemics, so "OK YOU ARE RIGHT!", pass you way or let me pass mine.

Everybody here is free to post his opinion.

However if you don't want polemics don't publish an opinion (in essence it is subjective) as if it was a proven fact. Don't hope to get a free license to say anything and everything on this forum.

Objectively, locking ("hedging") has zero benefit at the best, all has been proven and demonstrated in this thread. If subjectively you like it, no problem, but please don't mislead people (mainly all newbies) with false assertion.

[Ahmet Metin Yilmaz]

nicholi shen:

if(trader_wants_to_give_money_to_broker_for_no_benefit)
   do_offset_order_hedge();

it is not completely true

[hasnat11]

hi brothers I am new to forex need coaching on hedging

[nicholish en]

Ahmet Metin Yilmaz:

it is not completely true

The only time offsetting orders don't waste money is when you use them to scale out of positions, and always used in combination with the CloseBy command. If you use them to enter a trade then you will waste money, guaranteed. "Close By Hedge" isn't "locking" or "freezing", it's a smarter way to manage your net position. Conversely, "locking" strategies are guaranteed to wasting money on extra fees. Also, any strategy that opens a position with offsetting orders can be reprogrammed to execute the same strategy without offsetting orders.

The ONLY benefit to a "locking" strategy is that it can be used to somewhat obscure large draw-downs behind a nice linear balance curve, and some traders use this to exploit unsuspecting signal subscribers. If you use "locking" in your strategy then you're either playing yourself or others.