Anyone here use the fixed odds websites to hedge stop losses and the likes on their real trades? I believe I have come up with a way of doing this obviously it cuts your profit a bit but stops any big losses if your stop is hit. any thoughts?
Anyone here use the fixed odds websites to hedge stop losses and the likes on their real trades? I believe I have come up with a way of doing this obviously it cuts your profit a bit but stops any big losses if your stop is hit. any thoughts?
I use IG index and usually go for £20 per point on the currencies. I put my stop say 200 points away from the live level of EURUSD. I place my trade and then I go to bets for traders. I discovered this site on monday but as yet its not taking real cash. I buy what they call a one touch bet just say 1 point before my IG stop. usually for £50 to win £1000 and buy four of these. So for £200 I am now covered my full loss hence £3800 better off if my stop is hit.
Anyone any opinion or experience with this kind of thing?
No not yet, will go and look now. Do you use Betonmarkets?
Ignored
I have used it before but moved on, your method looks interesting though cause you can actually sell your bet back when you reached your target on the spot market. You could go for 10-20 points on 10 lots and still be able to sell back your hedge bet for a good price
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Joined Mar 2006
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Status: Pip Samurai
|975 Posts
Jones,
I need to understand what's happening here because it sounds interesting.
OK, so do you use 2 brokers? or what? Do actually trade a spot rate one broker, and then what? It sounds interesting, but I can't figure out exactly what you're doing. Can you provide just a little more detail?
1) Are you using 2 brokers and trading in opposite directions using one as a hedge against the other?
2) If so, how do you make money doing this?
I use IG index and usually go for £20 per point on the currencies. I put my stop say 200 points away from the live level of EURUSD. I place my trade and then I go to bets for traders. I discovered this site on monday but as yet its not taking real cash. I buy what they call a one touch bet just say 1 point before my IG stop. usually for £50 to win £1000 and buy four of these. So for £200 I am now covered my full loss hence £3800 better off if my stop is hit.
Anyone any opinion or experience with this kind of thing?
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Joined Mar 2007
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Status: Programmer/Software Engineer
|531 Posts
Having a better look at it BoM looks expensive for this kind of trading. What crossed my mind is that you could take multiple scalps. Once you reach your profit target then wait for price to retrace at opening level to take a new trade. Will have to do more thinking and testing...
I use IG index and usually go for £20 per point on the currencies. I put my stop say 200 points away from the live level of EURUSD. I place my trade and then I go to bets for traders. I discovered this site on monday but as yet its not taking real cash. I buy what they call a one touch bet just say 1 point before my IG stop. usually for £50 to win £1000 and buy four of these. So for £200 I am now covered my full loss hence £3800 better off if my stop is hit.
Anyone any opinion or experience with this kind of thing?
Ignored
Sounds too good to be true. So you are getting a £4000 stop 200x £20 for the bargain price of £200 ?
If that were true everybody would be doing it surely !
I've found the site you are talking about Jemma and played around with the bets. If you go long £20 per point and put your stop 200 points away for £200 yes you are covered if the market falls 200points in 3 days but if it falls only 195 points for example then you will still lose a lot of money, nobody has stops that wide!
OK its not fool proof and my example was not the best. You make a good point there Schoe, but I am going to do more investigating on this and post my findings. I will paper trade it and try out different stops and one touch bets. Hopefully I can optimize it in someway.
Could be good for some form of downside protection.
