Disliked{quote} I'm also not sure about the usefulness of using of Calls and Puts to hedge open positions. I really am not sure because I trade intraday, I prefer just to be flat or stopped out. It is simpler for me. Hedging using options would mean having to interface between MT4 and InteractiveBroker's TWS and that would be very confusing and for what benefit?Ignored
My style is to have positions based on trends which last 10 trading days on average, sometimes up to 25. The big thing is I am building a position throughout at levels I relatively know will be important, so it is amenable to me hedging the worst case. IE I know where it will go about, I know the general period of trends, I can buy insurance when it is cheap and ahead of time. I buy something as insurance with a low delta far out and the size of what I want to protect. So worst case yeah, I should have some insurance. IE system breaks, delta to 1, broker closes me out on MT4, but my options went from 0.2 delta to 1 or something and made up for the account loss.
I'm basically using options (most times) to stay in the trend direction and not using SL since noise often kills you with them even if you are 110% correct.
But yeah, unless you are high grade awesome member of the markets, I really doubt anyone could swing this on the intraday level. =D
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