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Just learned about hedging, does anyone use it for scalping?

  • #21
  • Aug 22, 2020 9:29am Aug 22, 2020 9:29am
Quoting pa18
{quote} So you don't trade then? You just talk it?
Lol. Just consider me a dumb dumb who knows nothing. Maybe I can learn how to hedge from this thread. Big brains: Engage! Please use the same crayons you normally use so I can keep up.

Classic Factory. At least 11 years in this game and this thread is something you felt the need to post? Just amazing! FF never fails to entertain.

Maybe by 2035 you'll be ready to ask about scalping with Fibs!!! Imagine that! That's parental-pride levels of graduation!
Congratulations ScalaFX for coming out of the closet!
  • #22
  • Aug 22, 2020 12:05pm Aug 22, 2020 12:05pm
Quoting pa18
Let's say your target is 10 pips, as a scalper. Your normal risk per trade is 2%. Don't worry about the RR, scalpers normally aren't but say 10 pip emergency stop. For hedging, you spilt the risk, 1% risk buy, 1% risk sell. You place a perfect hedge, once you open a buy position, a sell position is also opened. It goes up 5, close sell position, let it ride to target. Obviously, lower profits but the point is that it's safer IF the market conditions such as slippage and spread are perfect. Anyone tried? Sounds fun but messy.
On the serious side ... I do hedge trade levels, but on daily timeframes. As an aside you will find that there is no such thing as a perfect hedge - your buy and sell trades will get filled at different prices. This will be even more obvious on lower timeframes.

With hedging you are at best only going to win 50% of the trades. Of course, not all trades work so the win rate is even lower. To compensate for the low win rate you must be able to have a high r:r ratio (i.e. more than 1:2) on winning trades. So yes you absolutely must worry about r:r.

To hedge trade you need room for the winning trade to work.

Can this be done at lower timeframes. Sure, why not. But if the target is only 10 pips you are looking at an extremely tight SL (i.e. 2-3 pips) on each side of the trade to make the money management work. That would be tough to manage and I think the whipsaw in price (i.e. in a 4-6 pip range) would kill most trades to the extent that the win ratio would be extremely low.

My 2 cents based on experience.
  • #23
  • Aug 22, 2020 1:28pm Aug 22, 2020 1:28pm
Quoting nubcake
{quote} Lol. Just consider me a dumb dumb who knows nothing. Maybe I can learn how to hedge from this thread. Big brains: Engage! Please use the same crayons you normally use so I can keep up. Classic Factory. At least 11 years in this game and this thread is something you felt the need to post? Just amazing! FF never fails to entertain. Maybe by 2035 you'll be ready to ask about scalping with Fibs!!! Imagine that! That's parental-pride levels of graduation!
You're so successful... in talking a lot about trading, right?

No need to defend yourself. It shows insecurity. Says a lot.
  • #24
  • Aug 22, 2020 2:09pm Aug 22, 2020 2:09pm
Quoting pa18
{quote}No need to defend yourself. It shows insecurity. Says a lot.
Which is why I didn't, not that you seem to be able to read and understand this, along with so much more.

What do you plan to learn next week?
Congratulations ScalaFX for coming out of the closet!
  • #25
  • Aug 22, 2020 3:15pm Aug 22, 2020 3:15pm
Correct me if I'm wrong, but wouldn't a perfect hedge, the act of buying and selling at the exact same price, be identical to not buying or selling anything.

Sure with the hedge you have the option of closing the winning side, but you'll have an equal losing side left over.

If you're betting on there being a retracement that would mitigate that loss, then isn't it also equivalent to just trade that retracement without the hedge?
  • #26
  • Aug 22, 2020 6:04pm Aug 22, 2020 6:04pm
Quoting Rennaissance
{quote} Is this what you call a genius idea?! How long have you been trading again?

Dumb(cake) is more dumb than you could ever imagine. I will nail him in the next couple of days. Busy with family these days...

He is so simple. We won't see the dumbest(cake) anywhere near to a hedging tread ever again. He is a pure bullshitter who knows nothing about hedging and he won't be able to predict, ever, what is coming on his way ALREADY...
Maadik Hugiis. IQ 69.
  • #27
  • Aug 22, 2020 10:11pm Aug 22, 2020 10:11pm
You must be joking. Are U?
There are huge number of smart people out there and they have tried everything under the sun. Do you think they missed this simple strategy? It doesn't work. Period.
Simplicity is the ultimate sophistication - Leonardo da Vinci
  • #28
  • Aug 22, 2020 10:58pm Aug 22, 2020 10:58pm
Quoting nubcake
{quote} Which is why I didn't, not that you seem to be able to read and understand this, along with so much more. What do you plan to learn next week?
It's like talking to a child.

This is a forum for chatting about trading.

Where would I go?

To a shopping website??

Then in comes a insecure child telling everyone he knows everything but does not contribute in any way to the conversation.

Then he tries to defend himself and even then, defends his defending.

That's insecurity.

I have never seen a successful insecure trader.

Nub must talk about trading not actually trading himself.
  • #29
  • Aug 22, 2020 11:40pm Aug 22, 2020 11:40pm
Quoting MoneyZilla
{quote} Dumb(cake) is more dumb than you could ever imagine. I will nail him in the next couple of days. Busy with family these days... He is so simple. We won't see the dumbest(cake) anywhere near to a hedging tread ever again. He is a pure bullshitter who knows nothing about hedging and he won't be able to predict, ever, what is coming on his way ALREADY...
Baby, do I need to stretch first?

Quoting heispark
You must be joking. Are U? There are huge number of smart people out there and they have tried everything under the sun. Do you think they missed this simple strategy? It doesn't work. Period.
It only took the guy over a decade to come up with this brilliant idea. It'll take another few decades for him to catch up to the basics.

Quoting pa18
It's like talking to a child.
You are projecting. And then you go off on a fantasy... so very cliche.
Congratulations ScalaFX for coming out of the closet!
  • #30
  • Aug 23, 2020 12:08am Aug 23, 2020 12:08am
Quoting nubcake
{quote} Baby, do I need to stretch first? {quote} It only took the guy over a decade to come up with this brilliant idea. It'll take another few decades for him to catch up to the basics. {quote} You are projecting. And then you go off on a fantasy... so very cliche.
Hey nub, how to hedge when scalping?
  • #31
  • Aug 23, 2020 12:51am Aug 23, 2020 12:51am
Quoting pa18
{quote} Hey nub, how to hedge when scalping?
Hey pa18... why don't you teach us all since this is your brand new discovery? Nobody has ever thought of this before, right? We need your big brain thinking to explain this to us with your crayons. I mean, just look at the thread. Nobody has been able to follow your ingenious concept, and it's just you trying to argue with me about nothing.

A part of me truly hopes this is a Poe-level joke thread in which case you deserve an award, but this is FF so...
Congratulations ScalaFX for coming out of the closet!
  • #32
  • Aug 23, 2020 2:12am Aug 23, 2020 2:12am
Quoting nubcake
{quote} Baby, do I need to stretch first?

You better do, yes. But don’t think it will help you anyway...

Hedging, like this example, is coming to for you, dear. I will prepare more examples, when I want to, but I see you already are digging your hedging grave yourself?

I really hope, you have at least a little knowledge on equity curves? ... and what an equity curve like this really means?
Attached Image (click to enlarge)
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Maadik Hugiis. IQ 69.
  • #33
  • Aug 23, 2020 5:14am Aug 23, 2020 5:14am
Quoting MoneyZilla
{quote} You better do, yes. But don’t think it will help you anyway... Hedging, like this example, is coming to for you, dear. I will prepare more examples, when I want to, but I see you already are digging your hedging grave yourself? I really hope, you have at least a little knowledge on equity curves? ... and what an equity curve like this really means? {image}
Oh, give me more, baby. Fill me up with your enlightenment.
Congratulations ScalaFX for coming out of the closet!
  • #34
  • Aug 23, 2020 5:16am Aug 23, 2020 5:16am
Quoting nubcake
{quote} Oh, give me more, baby. Fill me up with your enlightenment.

It is more of a matter of your ignorance...
Maadik Hugiis. IQ 69.
  • #35
  • Aug 23, 2020 5:56am Aug 23, 2020 5:56am
Quoting MoneyZilla
{quote} It is more of a matter of your ignorance...
Clearly. You've bested me. I am, indeed, a dumbcake. Shame on me, for sure. I'll go ask my mum to request a late-stage abortion.
Congratulations ScalaFX for coming out of the closet!
  • #36
  • Aug 23, 2020 11:48am Aug 23, 2020 11:48am
Quoting nubcake
{quote} Clearly. You've bested me. I am, indeed, a dumbcake. Shame on me, for sure. I'll go ask my mum to request a late-stage abortion.

Self sarcasm is a sign of an intelligence presence. I do salute you for that!

Apparently, you and the most here were all wrong about the hedging.

Don't want to humilate you any further, as I see signs of presence of intelligence in you. When you did crucified me back there, because of my position about hedging, you did not know when to stop...

I will deliver, some days after Monday, some equity curves, only as evidence how powerful hedging is. I hope, you will understand, if you haven't already, how wrong your anti-hedging views were...

p.s. don't blame your mom. it is all your personal fault.
Maadik Hugiis. IQ 69.
  • #37
  • Edited 1:29pm Aug 23, 2020 1:06pm | Edited 1:29pm
What is the glory you guys take from kicking other people ideas? Just because the majority failed does It means It's impossible?

Instead of making use of the thread's owner energy to develop something, you guys just wipe out his idea.
  • #38
  • Aug 23, 2020 4:20pm Aug 23, 2020 4:20pm
Quoting Offujimori
Instead of making use of the thread's owner energy to develop something, you guys just wipe out his idea.

Me joining this tread is because of two reasons.

1. Unsuccessfully trying to hedge daily, still. Daily hedge in hedging is like scalping in the regular trading. The collected positive pips are there, in present, but the high number of trades, required to hedge daily and all the expenses involved in these, are making the overall money result a negative value. My research on the matter is still ongoing. Feeling there might be something in a dominance+range strategies combination, but not quite there, yet. On weekly and higher resets, that dominance+range combination works, but I still can’t tune it right on the daily hedge. The daily hedge is the most lazy way to trade in my view. Which makes it the absolute simplest way of trading. The more simple something is, the harder is to get to...

2. Spotted an old enemy being aggressively ignorant and arrogant. Just took the opportunity...
Maadik Hugiis. IQ 69.
  • #39
  • Edited 6:16pm Aug 23, 2020 4:52pm | Edited 6:16pm
Quoting MoneyZilla
{quote}2. Spotted an old enemy being aggressively ignorant and arrogant. Just took the opportunity...
Old enemy? lol this dude is like that since 2016? How is this possible?! I actually see it as valid considering his helpful posts.
Don't worry I was talking to those all-known dudes that simply say "it does not work'' because makes me wonder how many good ideas but not well developed came to this forum and were erased...


Quoting MoneyZilla
{quote}1. Unsuccessfully trying to hedge daily, still. Daily hedge in hedging is like scalping in the regular trading. The collected positive pips are there, in present, but the high number of trades, required to hedge daily and all the expenses involved in these, are making the overall money result a negative value.
Hmm... so without costs, it would work?... spread, slippage?
Maybe your daytrade fun may come from index futures like S&P!
There are some brokers with 0 cost
  • #40
  • Aug 23, 2020 11:56pm Aug 23, 2020 11:56pm
Quoting nubcake
{quote} Hey pa18... why don't you teach us all since this is your brand new discovery? Nobody has ever thought of this before, right? We need your big brain thinking to explain this to us with your crayons. I mean, just look at the thread. Nobody has been able to follow your ingenious concept, and it's just you trying to argue with me about nothing. A part of me truly hopes this is a Poe-level joke thread in which case you deserve an award, but this is FF so...
So... you know or don't know?

My original question was I didn't know. That's why I started this thread. Because I DIDN'T KNOW.
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