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

  • #81
  • Sep 2, 2020 7:17am Sep 2, 2020 7:17am
I love the ignorance pouring from The Coherent Traders, here...
Maadik Hugiis. IQ 69.
  • #82
  • Sep 2, 2020 8:49am Sep 2, 2020 8:49am
Quoting GEfx
If you live in the USA, it is against the law to "hedge" (having an buy and a sell trade open, at the same time, on a pair) a currency, so nobody does it. If you live anywhere else on earth where "hedging" is allowed, it is simply stupid to "hedge" a currency. Therefore, this stupid act is only happening outside the USA. There are lots of stupid things happening in the USA right now, but thankfully, "hedging" is not one of them.

How you can hedge, when you don't have any experience with foreign currencies, in a first place?!?

I hope this helps, Masta General Electric...
All you need to know about multi currency accounts in the USA

Alternatively, just search the web for "currency accounts in the USA"?

Anyway.

To avoid further speculations on why hedging is not allowed for the USA citizens, here is some light on the matter?

What are the best personal foreign currency accounts or dual currency accounts?
Unfortunately for those who want them, few US banks offer personal foreign currency or multi-currency accounts. Bank of America, Wells Fargo, and Chase, for example, don’t have multi-currency products available for regular personal banking customers. And though neither HSBC USA nor Citibank US offer foreign currency accounts themselves, as large international institutions, they do have specialist offshore operations that may be of service.
Maadik Hugiis. IQ 69.
  • #83
  • Sep 2, 2020 8:59am Sep 2, 2020 8:59am
Lol, this fucking guy.

Let your crazy flag fly.
Congratulations ScalaFX for coming out of the closet!
  • #84
  • Sep 2, 2020 9:03am Sep 2, 2020 9:03am
Dumbie, you can't make your self more coherent than that, can you?
Maadik Hugiis. IQ 69.
  • #85
  • Sep 2, 2020 9:06am Sep 2, 2020 9:06am
Quoting MoneyZilla
Dumbie, you can't make your self more coherent than that, can you?
No.

I just can't look away. It's like watching a dog eat its own throw-up.
Congratulations ScalaFX for coming out of the closet!
  • #86
  • Sep 2, 2020 9:07am Sep 2, 2020 9:07am
Let me take a moment away from actual trading to explain why holding a buy and a sell position is stupid, whether you are in the US trading multiple accounts, or trading in non-USA locations (fyi -- I am currently trading with two brokers and have 3 open accounts, not to hedge but to get around FIFO rules).

I am currently shorting the E$, with a total of 6 standard lots. These positions "cost" my margin account $14,400, leaving me with enough free margin to trade other opportunities. If I decide to take profit, I will exit these trades, freeing up my margin to trade other opportunities. If I were to "hedge" the 6 standard lots, I would need to use an additional $14,400 of my margin account to execute the buy orders. This "hedging" approach will cost my margin account $28,800 to lock in profits, versus taking the profits and leaving my margin account free to trade elsewhere. Holding opposing trades is wasteful, provides no tactical or strategic advantage, and limits your ability to take advantage of new opportunities.

"Hedging" is not offered in the USA not because big banks don't offer it (???). The CFTC does not allow brokers to offer the capability to "hedge", because the CFTC knows that it is stupid and wasteful.
  • #87
  • Sep 2, 2020 9:08am Sep 2, 2020 9:08am
Quoting nubcake
{quote} No. I just can't look away. It's like watching a dog eat its own throw-up.
It's compelling on so many levels! lol...
  • #88
  • Sep 2, 2020 9:14am Sep 2, 2020 9:14am
"Hedging" as discussed 99.9% of the time on forsaken forums (FF for short) is like unzipping your fly, taking your tiny dick out, zipping up your fly Ben Stiller style, then pissing down your leg. The insanity is to the point you don't even realize you aren't even in a bathroom - too busy reading tech signals up in the clouds. Try not to take a shit when you see a doji-cloud.
Congratulations ScalaFX for coming out of the closet!
  • #89
  • Sep 2, 2020 9:22am Sep 2, 2020 9:22am
I see even the Masta Traders have huge difficulties to understand how hedging is like over a thousand times better way to trade, when compared to all other trading techniques.

Maximising Profits. That is all.

When hedging, one does not have to know where the top or the bottom will be. The hedge locks that missing part in the trader's knowledge. Plus, trading can't be more lazy than that.

No more questions like these:

1. Where to close my sell trade?

2. Did a close it too early?

3. Hell, I have missed to close it and now it goes against me! Did not reach my target by 3 pips!

I know I speak a language most here can understand. That is alright...
Maadik Hugiis. IQ 69.
  • #90
  • Sep 2, 2020 9:31am Sep 2, 2020 9:31am
I'm sorry, but I need more colours and inspired nicknames before I begin to take you seriously. Please try harder.

I want to believe!!!
Congratulations ScalaFX for coming out of the closet!
  • #91
  • Sep 2, 2020 9:47am Sep 2, 2020 9:47am
Quoting MoneyZilla
I see even the Masta Traders have huge difficulties to understand how hedging is like over a thousand times better way to trade, when compared to all other trading techniques. Maximising Profits. That is all. When hedging, one does not have to know where the top or the bottom will be. The hedge locks that missing part in the trader's knowledge. Plus, trading can't be more lazy than that. No more questions like these: 1. Where to close my sell trade? 2. Did a close it too early? 3. Hell, I have missed to close it and now it...
This is bullshit. The questions you posted are basic trading 101 issues. "Hedging" does nothing to answer them. Just change to question from trading to "hedging". Did I "hedge" too early? Where to "hedge" my sell trade? It's just stupid. You are suggesting that this wasteful and inefficient approach to managing your trades provides some unique advantage. Here's a idea: learn to trade. Learn where to enter, add, and exit trades. You are using this stupid technique as a crutch to your inexperience and low skill level to trading. It may feel good to imagine that you are really trading, but when you open your eyes you see that it's just your hand grasping hour dick and your just jerking off.
  • #92
  • Sep 2, 2020 9:51am Sep 2, 2020 9:51am
There is an hedge equity curve here. You can watch it all day, if you like.
Seeing it in order to believing it, is not obligatory, neither a rule...

Denying that curve, seems your only option to me...
You can say something about photoshop manipulations or other design software alternations? Just trying to be helpful... I know you have a poor imagination ALREADY...
Maadik Hugiis. IQ 69.
  • #93
  • Sep 2, 2020 10:02am Sep 2, 2020 10:02am
Quoting GEfx
{quote} This is bullshit. The questions you posted are basic trading 101 issues. "Hedging" does nothing to answer them. Just change to question from trading to "hedging". Did I "hedge" too early? Where to "hedge" my sell trade? It's just stupid. You are suggesting that this wasteful and inefficient approach to managing your trades provides some unique advantage. Here's a idea: learn to trade. Learn where to enter, add, and exit trades. You are using this stupid technique as a crutch to your inexperience and low skill level to trading. It may feel...

That is your point of view. Reality is very much different that that...

H to L is 2000 pips. The Basic hedging locks 50% of these. Just like that. Without any knowledge required about where H will be located and where L will be located. More advanced hedging locks 100% to 200% of these 2k H to L pips. I gave your buddy an example of an equity curve made by hedging.

And your margin example is wrong, btw. Hedging increases the available margin %... quite dramatically. But how would you know when currently knowing nothing about hedging?!?

That is why I am here. To inform and educate you.
Maadik Hugiis. IQ 69.
  • #94
  • Sep 2, 2020 10:12am Sep 2, 2020 10:12am
Quoting MoneyZilla
{quote} That is your point of view. Reality is very much different that that... H to L is 2000 pips. The Basic hedging locks 50% of these. Just like that. Without any knowledge required about where H will be located and where L will be located. More advanced hedging locks 100% to 200% of these 2k H to L pips. I gave your buddy an example of an equity curve made by hedging. And your margin example is wrong, btw. Hedging increases the available margin %... quite dramatically. But how would you know when currently knowing nothing about hedging?!?...
Again, this is just more bullshit. A complete picture is to net your gains/equity curve with the open negative positions. I know, I know. These open negative trades are your inventory of potential positive trades in the future. You're trading pennies and dimes but adding dollars to your account to keep this thing going. If you were a real trader, your equity curve would be a mark to market depiction of your trading account. But even if your curve is net, then you are spending at least twice to make what I would pay. That's the big fat reality of "hedging".
  • #95
  • Sep 2, 2020 10:22am Sep 2, 2020 10:22am
Quoting MoneyZilla
{quote} And your margin example is wrong, btw. Hedging increases the available margin %... quite dramatically.
That's interesting. In my example, when I open a buy to "hedge" my sell, instead of another $14,400 coming out of my free margin, it actually adds money to my free margin? Is that right? Show me how that works. Let me give you the exact trade I made today and tell me how hedging would add to my free margin. I had 6 standard lots in a short of the E$, and took profit of $1,650 this morning, at which time the $14,400 margin was returned to free margin, along with the $1,650. What you just said is, that had I "hedged" my position, then my free margin would not be reduced by $14,400 for the "hedge", plus the $1,650, but would actually increase? Explain that one to me.
  • #96
  • Sep 2, 2020 10:26am Sep 2, 2020 10:26am
Quoting GEfx
{quote} Again, this is just more bullshit. A complete picture is to net your gains/equity curve with the open negative positions. I know, I know. These open negative trades are your inventory of potential positive trades in the future. You're trading pennies and dimes but adding dollars to your account to keep this thing going. If you were a real trader, your equity curve would be a mark to market depiction of your trading account. But even if your curve is net, then you are spending at least twice to make what I would pay. That's the big fat reality...

Well, my education class continues, obviously...

The balance goes -negative. The locked profits grows +positive, a lot more and a lot faster than the account balance goes in a negative. That is why the equity stays locked and from time to time, increases slightly or not so slightly. What is more important, the equity curve does not allow significant losses to alter it. Just the operational tiny draw-down is the only thing that bothers that kind of hedging equity curves... until the next kick in the price is made and more pips/money are being locked.

Currently profitable positions might turn into a locking ones. The current locking positions, might turn into a profitable ones, if the rate flips around, without any warning whatsoever. That is the hedging beauty. Maximising Profits.

This is how a proper hedging operates.

The whole process of hedging is endless. It has a beginning, but does not have an end...
Maadik Hugiis. IQ 69.
  • #97
  • Sep 2, 2020 10:30am Sep 2, 2020 10:30am
Quoting MoneyZilla
obviously
Obviously.

Quote
The locked profits grows +positive

Great lock. Best lock.

Quote
This is how a proper hedging operates.

That is how a retard takes his retardation and applies it to "trading". I've seen roadkill with more smarts than has been applied here.

Some day some of these people MUST reveal themselves to be KenM level master trolls. I no longer want to believe people can be this fucking stupid. It's truly impressive.
Congratulations ScalaFX for coming out of the closet!
  • #98
  • Sep 2, 2020 10:33am Sep 2, 2020 10:33am
Scalping and hedging are just two techniques that dedicated traders use on a relatively frequent basis. In other words, hedging is a form of safeguarding our portfolio. Now scalping, on the other hand, is a form of trading. Roughly, it entails investing large sums in very short-lived positions and profiting by a few pips each time (beyond the spread).
  • #99
  • Sep 2, 2020 10:34am Sep 2, 2020 10:34am
Quoting GEfx
{quote} That's interesting. In my example, when I open a buy to "hedge" my sell, instead of another $14,400 coming out of my free margin, it actually adds money to my free margin? Is that right? Show me how that works. Let me give you the exact trade I made today and tell me how hedging would add to my free margin. I had 6 standard lots in a short of the E$, and took profit of $1,650 this morning, at which time the $14,400 margin was returned to free margin, along with the $1,650. What you just said is, that had I "hedged" my position, then my free...

Simple. Here is my live trading example.
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot 2020-09-02 at 18.28.24.png Size: 69 KB

23.0 sell lots vs 11.5 buy lots. Equity 353k. Margin 345%.
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot 2020-09-02 at 18.28.46.png Size: 21 KB

If there are 34.5 buy or sell lots, just one side, the Margin will fell down to around 230% I think.

If I add another 11.5 buy lots and now we have 23 sell lots vs 23 buy lots, the Margin will grow up around 450% I think.
Maadik Hugiis. IQ 69.
  • #100
  • Sep 2, 2020 10:37am Sep 2, 2020 10:37am
Quoting nubcake
{quote} Obviously. {quote} Great lock. Best lock. {quote} That is how a retard takes his retardation and applies it to "trading". I've seen roadkill with more smarts than has been applied here. Some day some of these people MUST reveal themselves to be KenM level master trolls. I no longer want to believe people can be this fucking stupid. It's truly impressive.

Your ignorance has no borders.

Amazing.

You never delivered anything as a proof that hedging is not working. Cause you have nothing handy anyway.

Being rude does not help you either, as you are losing already against the facts...
Maadik Hugiis. IQ 69.
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