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Day trading Vs Longer term holding FX

  • #41
  • Sep 6, 2017 8:53am Sep 6, 2017 8:53am
Quoting Piphunter00
{quote} Will you also touch more on your hedging methods?
I believe hedging will be automatically required. It depends how it goes and what the crowd wants...

I am using hedging not as a defence, as many here misunderstand hedging. Hedging is a very agressive attacking trading approach.

The folks here, all of them, want to trade just one direction only. Place a trade and forget. What are these guys? They know where the rate is going to NOW? Really? Are not they lunatics? Maybe that is why the deposits of a really large broker, about $10 mil USD each month deposited to the accounts get melted down to $0 USD at the end of the 6th month? This thing goes for years, already...

I do not know where the rate is going to. I am not shy to admit it. I want to make money. I want to catch the direction. I hedge. Will never stop hedging. That is how I catch a direction. Good luck to all folks that do know where rates are heading to. I am unlucky. Prefer to hedge...
Maadik Hugiis. IQ 69.
  • #42
  • Sep 6, 2017 9:20am Sep 6, 2017 9:20am
Quoting MoneyZilla
{quote} I believe hedging will be automatically required. It depends how it goes and what the crowd wants... I am using hedging not as a defence, as many here misunderstand hedging. Hedging is a very agressive attacking trading approach. The folks here, all of them, want to trade just one direction only. Place a trade and forget. What are these guys? They know where the rate is going to NOW? Really? Are not they lunatics? Maybe that is why the deposits of a really large broker, about $10 mil USD each month deposited to the accounts get melted...
Great! I defo understand the power of the hedge/counter so im all ears for how you apply it. Forget the guys who dont want to hear otherwise and are only interested in one dimension of thinking, they would only ruin the thread anyway!

The whole hedging being a no no seems like a convenient myth told to the little guy. Most professional traders will hedge or average in and buy/sell more but one thing they have in common is they dont see any particular position/trade as a black and white outcome. Im sure everyone can testify to having a stop loss hit then the market politely returns to your prior target like you where never there lol
  • #43
  • Sep 6, 2017 9:46am Sep 6, 2017 9:46am
Quoting Piphunter00
{quote} I defo understand the power of the hedge/counter so im all ears for how you apply it.
The older i get, the more i hate people, cause i see how stunningly stupid they actually are... Cutting the trees which keep the Planet cool and produce the oxygen we breathe? Then wonder why the sea levels rise and why the flood just visited the neighbourhood? Why the tornado pick up the whole house? That is how embarrasingly stupid people are...

So, I do not care what people think anyway.

Here is an example of a hedge. Usually opening about 50% buys and 50% sells. This is what left... B is buy basket, S a sell one. Then is lot (0.01). P is profit in USD. Pips is pips. seq is lotsize sequence. 6-5 is 6 lot sequence and 5 is 5 flips. i do not use multipliers. Session is in profit $350 or so. remember, it all have started with 50/50 b/s...

this is a snapshot of my baskets in the objects list of the chart:
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it does not appear hedging not to be working...

here is what happens after a month or so. need to improve the DD, but still...
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Maadik Hugiis. IQ 69.
  • #44
  • Sep 6, 2017 10:38am Sep 6, 2017 10:38am
Quoting MoneyZilla
{quote} The older i get, the more i hate people, cause i see how stunningly stupid they actually are... Cutting the trees which keep the Planet cool and produce the oxygen we breathe? Then wonder why the sea levels rise and why the flood just visited the neighbourhood? Why the tornado pick up the whole house? That is how embarrasingly stupid people are... So, I do not care what people think anyway. Here is an example of a hedge. Usually opening about 50% buys and 50% sells. This is what left... B is buy basket, S a sell one. Then is lot (0.01)....
thanks! very interesting. this is why id like to see your perspective on hedging. you do it in a very different way. ive only been exposed to throwing out the stop loss and hedging 200% on a setup that has good probability of two way action. this is a whole different beast
  • #45
  • Sep 7, 2017 2:41am Sep 7, 2017 2:41am
Quoting MoneyZilla
{quote} The older i get, the more i hate people, cause i see how stunningly stupid they actually are... Cutting the trees which keep the Planet cool and produce the oxygen we breathe? Then wonder why the sea levels rise and why the flood just visited the neighbourhood? Why the tornado pick up the whole house? That is how embarrasingly stupid people are... So, I do not care what people think anyway. Here is an example of a hedge. Usually opening about 50% buys and 50% sells. This is what left... B is buy basket, S a sell one. Then is lot (0.01)....
Thanks for the consideration moneyzilla! Ooo I love puzzles! First clue, how do most grid systems fail.. they can failthree ways I can think of, one is if you get the reversal every xx pips, then eventually you have a black swan moment and poof gone. second way, you're over leveraged, i.e. for every grid block you use 1 lot, instead of say 0.01 lots. 0.01 lots in a 5000k account can go a lot longer than 1 lot. third way, going with the break out style, but making the grid with a 1:1 sl. its eventually going to hit that sl if the grid is small, like 10 pips. many ways one can kill the grid. i've been looking at the 50% B and 50% S for some time, perhaps you can help me see the light!
  • #46
  • Sep 7, 2017 3:29am Sep 7, 2017 3:29am
Quoting MoneyZilla
{quote} The older i get, the more i hate people, cause i see how stunningly stupid they actually are... Cutting the trees which keep the Planet cool and produce the oxygen we breathe? Then wonder why the sea levels rise and why the flood just visited the neighbourhood? Why the tornado pick up the whole house? That is how embarrasingly stupid people are... So, I do not care what people think anyway. Here is an example of a hedge. Usually opening about 50% buys and 50% sells. This is what left... B is buy basket, S a sell one. Then is lot (0.01)....
quick question tho, what is your definition of a 'flip'
  • #47
  • Sep 7, 2017 5:26am Sep 7, 2017 5:26am
My trading capital is below 1K, so I am comfortable with day trading style! Yes, I know long time trading is much profitable but for doing long time trading, traders need to have good trading skill with enough amount of money!
  • #48
  • Sep 7, 2017 7:48am Sep 7, 2017 7:48am
Quoting cyguy
{quote} i've been looking at the 50% B and 50% S for some time, perhaps you can help me see the light!
My approaches are far from being perfect. Opening in both directions is wise. The results shows it is. But the B/S trades opening does not happen at the same time. They are almost 50/50, because the MM (market makers) do equal the B and the S pips/levels/candles/trades, yet, the B/S balance is not treated that way! We do not see it anyway, but it should not be brought down to 0, as anything else just described...:-)

Once opened the B/S trades, need to be properly flipped. The same number of trades remains, but the B/S ratio changes dinamically. Looking at the picture i have posted early on, it is visible, thanks to hedging, there are trades that did not flip or flipped a little. These are the guys who pays for the whole show. Since I have no idea, prior to the move which trades these will be, i have to hedge and they naturally do pop out... It is a lucky catch. It every move there is a lucky catch. Nothing has been changed during the last 8 years, except the pairs are driving at different gear...
Maadik Hugiis. IQ 69.
  • #49
  • Sep 7, 2017 8:14am Sep 7, 2017 8:14am
Quoting cyguy
{quote} quick question tho, what is your definition of a 'flip'
To change a trade's direction. This i call it a flip.

Here is something i have been monitoring during the last 5 weeks. Before a major news, when it suddenly does move, the trades do flip in such a way to support the movements direction prior to the moment of movement. This is very fishy!

The ea leaves snapshots on the chart about the P/L balance, lots, trades. At the end of the session prints the final result, together with a vertical line. My goal was set to $500, but the rate probably have jumped/spiked?!? The flips took place long before the news and they were prepared for the spike! 5 weeks already, it happens like that!

it does seem, the MM do know where the rate is goong to, quite long before the "news"...
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Maadik Hugiis. IQ 69.
  • #50
  • Sep 7, 2017 8:19am Sep 7, 2017 8:19am
Quoting MoneyZilla
Pete, i can tell you, trust me, during the last four years i have invested over $155k usd so far. In strategy developments. The most hard thing is day trading! This one comes last! And it comes the HARD way. Very few hobby traders, can day trade. These are the top hobby traders. Do not even think to day trade! Weekly/monthly trading is hard enough to learn. Go after it first! In a demo! Never leave the demo, until consistent with weekly/monthly profits. And Pete, leran to flip. Do not use SL! Flip instead! Do not day trade! Not in the next 4-5 years,...
I too like many started on the h1 and h4.
I only now trade the m1 based off m15 and m5 direction. I do not to need to use daily/hourly bias, i trade what is in front of me until it ends and that usually coincides with exchange opening hours.
Without getting detailed, i love long slow consolidation patterns, usually can take 10 or even 15 to one away per day.
Today was a diamond day with gbpjpy and eurjpy giving gift patterns on the m1, something all other traders ignore.
Yeah, way more stressful, but WAAAAY more profitabl
I could never go back to trading the H1
The more I learn the more I don't know
  • #51
  • Sep 8, 2017 6:51am Sep 8, 2017 6:51am
Here's the thing. A lot of traders including myself wanted to chase day trading because there is higher profit potential and lower capital required. However, longer term trading can be just as profitable (or close), but it just takes more time. The cash flows won't be fast enough for you to live on if you don't have a lot of capital, but the advantage is that you are able to trade many more pairs at once, which uses very little margin. It's almost like owning multiple dividend paying companies. They all take a while to pay, but since they pay at different times, you can eventually form a constant stream of cash flow when invested in enough of them. Same goes for long term trading. The other obvious advantages are of course spread and commissions don't matter much at all. News also has a very minimal impact as well so you can hold over weekends and through most news events without worrying about it.
  • #52
  • Sep 8, 2017 12:27pm Sep 8, 2017 12:27pm
Is it possible to day trade AND hold longer positions (a la 'legs' in the equity millipede method in the trading systems forum)? Or would it possible be confusing or require too many (frequent) shifts in perspective/mentality.

Curious to know since many traders tend to gravitate towards one or the other, or even have shared how they changed from day trading to swing/position trading or vice versa for whatever reason...

Enjoy the weekend ahead everyone
  • #53
  • Aug 31, 2020 5:13pm Aug 31, 2020 5:13pm
Quoting MoneyZilla
{quote} It all depends on the strategy in use. My plan B strategies, maybe more than 10 already, come up with a DD below -10%. The annual returns are in the range of +150% to +350%. But I am not happy. I do aim at 100% weekly (plan A), at least 100% weekly... If i cant make it with plan A, will not die poor for sure. However i hope to die super duper rich, shamelessly rich...
OMG Warren Buffet is sweating reading articles like 100% per week
  • #54
  • Aug 31, 2020 5:43pm Aug 31, 2020 5:43pm
depends on personality. Ilove the idea of long term trades but i sweat like a bitch holding. Id rather get in and out and get on with my day. Well now i do anyway. found my way.
  • #55
  • Sep 17, 2020 11:37am Sep 17, 2020 11:37am
Regardless of the time frame you trade from, most people will benefit from taking less trades and waiting for better setups.
Love to talk on Discord: DividendGamer#1324
  • #56
  • Sep 17, 2020 9:05pm Sep 17, 2020 9:05pm
im flexible, i can go short term and long term
with my trading strategy timeframe is irrelevant
i do not follow trend i follow where the candle goes
  • #57
  • Oct 16, 2020 12:37am Oct 16, 2020 12:37am
Quoting CosmoCrush
{quote} OMG Warren Buffet is sweating reading articles like 100% per week
Warren Buffet is not TRADER, but investor. It's quite different.
Simply put for long term trading you need larger account a you can scalp and day trade with smaller account which is hardly by used sufficient in long term trading.
Best way is use both method,if you are full time trader. Some positions are open on higher TF and while waiting for signal on higher TF you can scalp or day trade.
All depends on personality,personal preferences and account size.
Whether you think you can, or you think you can't,you're right. H.F.
  • #58
  • Oct 17, 2020 1:19am Oct 17, 2020 1:19am
Day trade can yield faster return with a good trading plan and working strategy, but most day trade strategies come with tight SL, which sometimes can be very stressful if you expose it to bigger risk.
Trading long term is less stressful but needs a lot of patience, however you will need pay overnight swap though.

It all depends on your style of trading.
  • #59
  • Last Post: Oct 17, 2020 2:47pm Oct 17, 2020 2:47pm
Day trading can be really hectic, i took a day trade on 13.10.20 ,you can have a look
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