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

  • #141
  • Sep 2, 2020 7:31pm Sep 2, 2020 7:31pm
Quote from RickM:

it allows me to trade with larger trade size without fear of ever having one losing position in a trading day.

I think the op is now vindicated. Congratulations.
  • #142
  • Sep 2, 2020 7:55pm Sep 2, 2020 7:55pm
Quoting RickM
{quote} I use hedging every day when scalping the M1 chart with good profitability. Quite simply, if I get a trade signal and enter, I know 85% of times it will move very quickly into profit to reach my profit targets. If price breaks the high or low of the setup and moves more than 5 pips, it’s a failed setup. I hedge and re-enter on the next signal which is normally within 30 minutes to clear the hedge and close position for a small profit. It should only be a short term hold of draw down if you are sure you will receive multiple signals within...

Lots of emotion on this thread Rick.
Makes me wonder why some are so vociferous...
  • #143
  • Sep 2, 2020 8:21pm Sep 2, 2020 8:21pm
Quoting RickM
{quote} I use hedging every day when scalping the M1 chart with good profitability. Quite simply, if I get a trade signal and enter, I know 85% of times it will move very quickly into profit to reach my profit targets. If price breaks the high or low of the setup and moves more than 5 pips, it’s a failed setup. I hedge and re-enter on the next signal which is normally within 30 minutes to clear the hedge and close position for a small profit. It should only be a short term hold of draw down if you are sure you will receive multiple signals within...
Great post. This makes a lot of sense, and is just another creative example of how hedging can help if it is PLANNED and used properly as a money management tool.
  • #144
  • Sep 2, 2020 8:23pm Sep 2, 2020 8:23pm
Quoting moodybot
{quote} Lots of emotion on this thread Rick. Makes me wonder why some are so vociferous...
The reason for the emotion is due to these traders probably having a negative experience with hedging in the past. Mastering hedging certainly does prove to be worthwhile though in my opinion. Not only, just if you are trading off lower timeframes as the OP, and Rickm suggest, but also for longer term swing positions.

Just look at how institutional level money managers trade. They are very very rarely in a one sided position, they are in effect always in a hedge, holding positions both long and short for any currency.
  • #145
  • Sep 2, 2020 8:30pm Sep 2, 2020 8:30pm
Quoting moodybot
{quote} Lots of emotion on this thread Rick. Makes me wonder why some are so vociferous...
And pardon me, but from a while ago, it clearly seems that you finally lost your interest to continue sharing/contributing in any meaningful way, both here and in the other possible "place" from which you already know about, along with your old buddies...

So what happened with all that previous keen enthusiasm?
  • #146
  • Sep 2, 2020 9:08pm Sep 2, 2020 9:08pm
Quoting Viktory
{quote} And pardon me, but from a while ago, it clearly seems that you finally lost your interest to continue sharing/contributing in any meaningful way, both here and in the other possible "place" from which you already know about, along with your old buddies... So what happened with all that previous keen enthusiasm?
Enthusiastic as ever.., life rolls on.
There is no other possible place, I haven't conversed with anyone on Skype etc for quite sometime.
The negativity that pervades the forum, quite frankly, I just haven't got time for it.
  • #147
  • Sep 2, 2020 9:58pm Sep 2, 2020 9:58pm
As a few have already mentioned. hedging isn't easy. Once you have done it for a while and know what to do, then it's click click click but if someone is looking for a miracle by clicking, they might be disappointed like some of the ones here have been and are so angry about it. I personally started at the level that the op mentions. I never got it until years later and am still learning.

My beef is with the ppl that discourage you to take even the first step. I understand that they don't want you to waste your time and they want you to go watch TV or pick up bubble tea with a few buddies or do something that is worth more than pursuing this idea but that would have been ill advised to me when I first tried this. Or maybe they think you are so stupid that you are going to bet the farm on 3 clicks and they are trying to save you from certain ruin.

They have demos nowadays and no one is going to learn the wrong thing and go straight to losing money in a real account if they try this or any number of the other methods that are deemed dangerous or stupid or useless. Just think, some 20 years ago or so, there were no demos. Maybe the 'oh no. don't do this' attitude is the tail end of that bygone era. Most of the time, in the process of following a stupid hunch, I discover something totally new and unrelated that just makes my day. I might even find a new indys or EAs or manage to make a trading method better by inserting what had been called 'a stupid idea' into the new method. I'd say don't curb your creativity.

The op really got leveled for this topic. Basically bullied for so enthusiastically pointing to a door that you may want to open. Anyhoo, good progress so far.
  • #148
  • Sep 2, 2020 10:23pm Sep 2, 2020 10:23pm
Quoting moodybot
{quote} Enthusiastic as ever.., life rolls on. There is no other possible place, I haven't conversed with anyone on Skype etc for quite sometime. The negativity that pervades the forum, quite frankly, I just haven't got time for it.
Yes, you're right. I agree with the issue of general perpetual negativity, clash of big EGOS and foolish "pride". A big waste of energy most of the time.
...

https://www.forexfactory.com/thread/post/13140987#post13140987

Rick is inside too. And there's a room for swing trading
  • #149
  • Sep 2, 2020 10:34pm Sep 2, 2020 10:34pm
Quoting OutThere
As a few have already mentioned. hedging isn't easy. Once you have done it for a while and know what to do, then it's click click click but if someone is looking for a miracle by clicking, they might be disappointed like some of the ones here have been and are so angry about it. I personally started at the level that the op mentions. I never got it until years later and am still learning. My beef is with the ppl that discourage you to take even the first step. I understand that they don't want you to waste your time and they want you to go watch...
The same protagonist has been around the forum for yrs, one mention of hedging and it usually invokes a rabid response. ... just follow the history.
Forex is most definitely not governed by a nanny state, its dog eat dog, and its down to the individual to decide if they want to pursue this avenue.
The US banned hedging...apparently to save us....or at least those that reside there.
The ignore button works wonders..
  • #150
  • Sep 3, 2020 2:51am Sep 3, 2020 2:51am
Can someone who knows from trading answer me, as long as the stop loss is used on all of the open trades why someone can't hedge profitable?
Looking for profitable short term trades ...|
  • #151
  • Sep 3, 2020 4:45am Sep 3, 2020 4:45am
Quoting Js3mwtRc
Can someone who knows from trading answer me, as long as the stop loss is used on all of the open trades why someone can't hedge profitable?
They can. There are numerous, stupid, if not pointless, ways a person can make money (or lose it).

But that's not the point. The point is that opposing orders cancel each other out, i.e. THEY CLOSE THE FUCKING TRADE. When you go long, or short, you are swapping one pair of currencies for another... and to make a profit or loss (i.e. to unwind the position) you do the opposite. So, what the fuck has actually been achieved by opening a new ticket in DumbDumb4 of the opposite type?

Obviously some people get a right hard-on by seeing more and more lines on their screen. It's gets them diamond in the no-no region. More lines = expert! More colours in forum posts, bolds, irregular font sizes = super genius expert extraordinaire.

We have some big brains here saying they "hedge" (tip: this isn't hedging. It's just not, and never will be) by having opposing trades because "It LoCkS iN pRoFiTs".

You know what locks in profits? Closing the fucking trade!

But, hey, clearly we are just a cabal of anti-profit insiders trying to steer all of the big brains away from fortunes. I, personally, work for 2,433 brokers and I get paid by the letter to dissuade the geniuses here from using the super-Scooby-Doo-secret "HeDgInG" technique. It's so dangerous that some brokers won't let you do it! Clearly that says it all, right!?

Recently, GEfx has been activated via subliminal bitcoin hashes, enabling the dormant MK Ultra programming to take over, and now GEfx has joined our mission to keep you all from making any money.

The big brains have found us out, and our mission is in jeopardy!
Congratulations ScalaFX for coming out of the closet!
  • #152
  • Sep 3, 2020 1:08pm Sep 3, 2020 1:08pm
Quoting RickM
The question many ask me is why don’t you take the loss and win it back on the next trade. My answer is it allows me to trade with larger trade size without fear of ever having one losing position in a trading day.
I don't understand how hedge can help with your fear of trading with larger lotsize. Care to explain.
Know what you trade
  • #153
  • Edited 1:32pm Sep 3, 2020 1:21pm | Edited 1:32pm
Turns out there is more to hedging than clicking a buy and a sell and waiting for the money waterfall to deluge your wallet.

Has anyone skateboarded? (not me) You stand on the board, you make sure you are balanced and suddenly you are a skateboard champion because you did what it took.
Inserted Video


Weeeeeeeee, it was so easy to become a champ...kinda like how Neo learned all his skills. Just got it plugged in. I am looking forward to the day I get a freaking cable attached to the plug in the back of my neck and the knowledge of all sorts goes right into my brain and I'll be like Neo stopping bullets.
  • #154
  • Sep 3, 2020 1:24pm Sep 3, 2020 1:24pm
Quoting RickM
{quote} The question many ask me is why don’t you take the loss and win it back on the next trade. My answer is it allows me to trade with larger trade size without fear of ever having one losing position in a trading day.
Its a very simple concept i wonder why people have so much trouble understanding this.
You open a position lets say buy 1 lot, you close the position the brokers sells 1 lot for you.
You open a position lets say buy 1 lot, you hedge the position, sell 1 lot.
Its the exact same fucking shit that as been done in both situations, the rest is just bullshit.
  • #155
  • Sep 3, 2020 1:28pm Sep 3, 2020 1:28pm
Quoting STrading
{quote} Its a very simple concept i wonder why people have so much trouble understanding this. You open a position lets say buy 1 lot, you close the position the brokers sells 1 lot for you. You open a position lets say buy 1 lot, you hedge the position, sell 1 lot. Its the exact same fucking shit that as been done in both situations, the rest is just bullshit.
Buy 1 lot and sell 1 lot at the same time?
  • #156
  • Sep 3, 2020 1:31pm Sep 3, 2020 1:31pm
Quoting renkotop
{quote} Buy 1 lot and sell 1 lot at the same time?
Its the same thing whether you do it at the same time or the next hour, the next day.
  • #157
  • Sep 3, 2020 1:37pm Sep 3, 2020 1:37pm
Quoting STrading
{quote} Its the same thing whether you do it at the same time or the next hour, the next day.
If you close the buy lot and the sell lot at exactly the same time you will make no profit because of swap. Am I right?
  • #158
  • Sep 3, 2020 1:43pm Sep 3, 2020 1:43pm
Quoting nubcake
More lines = expert! More colours in forum posts, bolds, irregular font sizes = super genius expert extraordinaire.
The latest Ballon d'Or trader is live calls in private skype room dressed up with the prettiest trade explorer. Messi is done!
Know what you trade
  • #159
  • Sep 3, 2020 1:48pm Sep 3, 2020 1:48pm
Quoting renkotop
{quote} If you close the buy lot and the sell lot at exactly the same time you will make no profit because of swap. Am I right?
I dont quite understand your question, you might have a hedged trade in the same day and you wont pay swaps, if you leave it from one day to another then you will pay swaps.
  • #160
  • Sep 3, 2020 1:49pm Sep 3, 2020 1:49pm
Understanding simple things is DIFICULT for the sophisticated brains that roam high here...

Tc-tc-tc-tc....

Now, there are few ways to hedge.

1. Static hedge. Everyone here understands it and some like my warm friend mumscake and the general electric broker hate it for their own reasons.

2. Dinamic hedge.
a. One sided. A tp is limited to a certain volume of pips. Like our mumscake says it: close the damn trade! Well, here, we have one buy and one sell trade. Buy is below. Sell is above. Does not matter the direction as what happens in between these two? Does not affect them. Both. They wait for the next expansion to whichever of the directions. What is their locket pips profit? WOW! Anything! The sky is the limit! Now, here what is given for free, by the price app itself is 50% from H to L. But it can be extended to over 200%, by unpopular strategies. I guess it can grow even higher, but I cant reach higher, at the moment... Any annual trend is around 1,5k to 2k pips on average. So, mumyscake closes these as a tp? Yeah, right!!!

Lock->unlock->lock->unlock->lock->ext.

Profit is generated when the price reaches any of the hedged trades and is locked when the price gets in between them, not affecting what's being won.

Closing the damn trade?!? This is probably the most stupid idea that could ever cross one's empty brainless head. This is my view. I don't sell cheap myself. But that is just me...

b. Two sided hedge. That one offers even higher positive locks, but is also accompained by a higher draw-down. The hedge acts as two trades into the last direction (usually, the trend). Unlike the one sided hedge where the loser has to close in order for the winner to collect (then locks whats being collected), here both trades are pointing into the last direction (only in the trend, once the direction develops), still one of them acts like a lock. It is a higher risk hedger, but also brings higher returns.

There are numerous techniques to point the two sided hedge to collect together. That is an individual journey for each lazy trader, who would like to practice the most lazy trading style - to hedge.

Before becoming lazy, hedging can be hard as hell, as it is simple as hell, but those are the hardest to reach things in life. The simple ones. Starts complicated, ends simple.

That is it folks. I could not find any better way to maximise the collected pips, rather than to lock the maximum pips offered by the chart...

Unlike the electric guy and the mumscake, I have never quoted that closing at tp is for idiots, like they curse the hedge traders, using arguments for lunatics, just because all they know about hedging is the static hedging type... Bad. Does not speak good for the quility of their brain cells and how they are using them...
Maadik Hugiis. IQ 69.
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