Where's Ace...

I'm talking about delta neutral hedging with options against the spot market, not pairs trading (cointegration or correlation)...

This may not be appropriate for this thread, or most spot fx threads/forums for that matter... Nonetheless, the whipsaw range action over the last few weeks has been a glaring confirmation to me that dynamic hedging is needed - especially in the ...

If you don't mind sharing, what's your modified version that allowed you to pull +150 pips in profit? Are you averaging down, as opposed to reverse in the opposite direction when the 1st trade gets stopped out? thanks, Walt

I'm sorry PJ, but I don't see how hedging helps. If you have two opposite positions, when you close out the winning side, the losing side may easily continue. unless a solid retracement occurs, you're simply dying a death of a thousand cuts... Walt

thanks...

Which post has Droloand's variation on it? I tried to ask about his variation a couple of time, but I suppose I was overlooked. I trust that his 2nd trade is in the same direction as the 1st trade... Is that right? thanks, Walt

When was the last time the eurusd & the gbpusd had a higher ATR than gbpjpy??? UNBELIEVEABLE!!!!!

Please check out "4H Box Breakout" thread...

Is this an accurate dipiction of Droland's variation???

If I understand correctly, instead of a "stop & reverse" approach, you have an "average down" approach. In other words, if the 1st trade was long, and was stopped out, then the 2nd trade will also be long... Although you would enter your 2nd trade ...

Although there are unscrupulous individuals trying to sell this system or promote this system as their own on other websites, they are still missing a key component inherent to this thread. There are several individuals who've taken the time to ...

Hi Ace, I wonder how such wide risk:reward ratios would perform in some of the less volatile years (i.e. 2002 & 2005)... Walt

Good work Sandy... it appears that your testing reaffirms the notion of not entering a 2nd trade if the 1st trade was a loss. However, if the 1st trade was b/e, then it would be o.k. to enter the 2nd trade. An intuitive challenge that I see with the ...

I agree completely!!!! Using slightly different trade rules that Ace's, but essentially the same thing, the second trade lost at an extremely high rate. Here are the results from my slightly modified version for 2009: 1st Trade of the week: total: ...

I used a scaled approach, starting with 1 lot. After two losses in a row, I would increase the size only by 1 lot. Also, everytime I had a successful trade, then I would scale back to the previous lot size. Typically, I would not go past 4 lots. On ...

The results with the semi-martingale (see post #2785 & #2790) from danno's download, as compared to Ace's method without the semi-martingale are as follows: [in pips] 2002: +1555 vs. -519 2003: +5303 vs. +3468 2005: +2685 vs. +49 2006: +2340 vs. ...

Using danno's excel file from post 2654 (reposted by Jesper on #2764), 2002 would have been profitable by 1555 pips instead of losing 139 pips with this semi-martingale approach. The essense of the approach is to increase the lot size every time ...

Any thoughtst on using semi-martingale, especially during years with small profits... It is able to convert a mild year into a very successful one.

I believe that increasing your lot size after every two consecutive losses, then reverting back to the prior lot size after a win would have turned 2002 into a very successful year... For example, the 1st & 2nd weeks were traded at 1 lot, and both ...