Just learned about hedging, does anyone use it for scalping? | Page 19 | Forex Factory

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

  • #361
  • Sep 8, 2020 5:51am Sep 8, 2020 5:51am
Quoting moodybot
{quote} How could I miss you, you monitor everyday... office hours..
I've already told you I only get paid by the letter from my cabal overlords. For someone clearly so hot for me you aren't paying attention.
Congratulations ScalaFX for coming out of the closet!
  • #362
  • Sep 8, 2020 5:54am Sep 8, 2020 5:54am
Quoting MoneyZilla
{quote} Fucking being used, again, as a convincing point or unlike my, makes the point more COHERENT?!? What a nice try... but NOT EVEN CLOSE... Net long does not explain, as the rate does RETRACE, you know. What happens when the rate retraces and someone is a net long/short?!? The equity curve... does WHAT? You see? Here, the equity is flat. There is no net long/short when flat... Almost flat. Then jumps up? This is the place where I close the hedge, allowing the net long to GROW THE...
Yep, just what I said. Jeesh...
  • #363
  • Sep 8, 2020 6:45am Sep 8, 2020 6:45am
Quoting TimeTells
{quote} Cheers BW. I guess if we could all get to a point in the middle where there is no massive POLARITY then there is some progress. polarity example YES ‘hedging’ is a marvellous strategy/tool that will NEVER let you lose. NO hedging cannot work out positively EVER and is a trick of the mind. In the past I have seen traders on here intelligently, through their use of whatever assessment basis, determine that a pairs price will rise. So they initiate a BUY trade at a ‘point’ in the market where they believe a directional up movement “should”...
Silent lurker on this thread. The above quote just about nails it and is the most intelligent post thus far by a country mile! The old adage there is no 'RIGHT or WRONG' way to trade is so, so, true in this instance. The likes of NUBCAKE (alias 'NumbNuts' someone who has been on my 'ignore' list since way back in 2010 never has anything positive to add and takes great pleasure in disrupting threads just for the sheer hell of it).

Those of you who are so 'blinkered' and not willing to 'think outside of the box' should consider setting up a demo and experiment a little. Maybe just maybe you will find that hedging (in a sensible way) can be just as profitable as the way you currently trade.

Just my 2 cents for what it is worth.
  • #364
  • Sep 8, 2020 7:01am Sep 8, 2020 7:01am
Quoting wingate
... The likes of NUBCAKE (alias 'NumbNuts' ....
I don't know if Nubcake uses any other aliases on this forum, but I'm not one of them. Numbnuts is the only name I have ever used in FF.

I do agree with what Nubcake has had to say in this thread though - if you can't clearly and immediately see the stupidity of simultaneously buying and selling the same currency pair, you have picked the wrong hobby.
si hoc legere scis nimium eruditionis habes
  • #365
  • Sep 8, 2020 7:22am Sep 8, 2020 7:22am
Quoting numbnuts
{quote} I don't know if Nubcake uses any other aliases on this forum, but I'm not one of them. Numbnuts is the only name I have ever used in FF. I do agree with what Nubcake has had to say in this thread though - if you can't clearly and immediately see the stupidity of simultaneously buying and selling the same currency pair, you have picked the wrong hobby.
I only go by nubcake, cakefart, and Twee... I mean moodyb....um... fuck.
Congratulations ScalaFX for coming out of the closet!
  • #366
  • Sep 8, 2020 7:36am Sep 8, 2020 7:36am
I don't believe I've ever seen retail traders discuss or use any sort of hedging. However, it's an absolute necessity with professional traders. Minimizing risk in any trade is the top priority. You can offset with a currency pair that has an inverse correlation, futures contract (such as 6E for EUR/USD), NADEX binary options (in the USA) or FX options in Europe.

You will appreciate the insurance a hedge provides when you're trading large sums of money that require you to scale in. Conversely, getting out of a large position doesn't happen instantaneously either. Even if you don't have large sums of money you can increase the size of your trades with good stop loss management and hedges. Hedging increases confidence.

Ignore the replies on this thread that don't provide value.
  • #367
  • Sep 8, 2020 7:52am Sep 8, 2020 7:52am
Hi Numbnuts,

Apologies for any confussion caused and just to clarify I was not referring to you!! I was not aware that a member on this forum went by the name of 'Numbnuts'. That name was my pet name for 'Nubcake' because he was such a pain in the ar*e.

It is obvious that you are also unable to look and more importantly 'think' outside the box. You are wrongly assuming that I am 'simultaneously buying and selling the same currency pair' WRONG, I am hedging but NOT in the conventional way and in a similar but different way to MoneyZilla.

Oh by the way I am certainly not stupid and NO this IS NOT a hobby. Another intelligent post above. Don't you naysayers ever 'think' to wonder WHY professional traders hedge their positions or is it they are just plain stupid? Don't knock it until you've tried it, you may just be surprised (in a good way)!
  • #368
  • Sep 8, 2020 8:12am Sep 8, 2020 8:12am
Take this for what it's worth...

My account balance is currently up 10% today with a floating balance fluctuating between plus £10-20 I have 3 sell positions open. I have had both Buy & Sell positions open at different times this morning since 8am GMT this morning. My largest drawdown at any one time was £13. I am currently waiting (patiently) for the trend to reverse LONG (have been since 12pm), there was one signal long about an hour ago but it came to nothing hence me still in the short trades currently (increasing my balance). As and when the trend changes I will go long and build positions WITH the trend whilst taking the 'occasional' sell position when the opportunity presents itself.

Experiment! Go figure.
  • #369
  • Sep 8, 2020 8:27am Sep 8, 2020 8:27am
Quoting MoneyZilla
{quote} It does appear, hedging works, and it is profitable, as looking at the provided equty curve, there is no mystery of which trade to be closed, when needed...
Hi MoneyZilla!

Could you please tell me when and how you decide to close all? For example if we imagine eurusd spring uptrend. There were few short hedges and tons good longs. But since you hedge only lower-lower higher-higher the reversal can be very dangerous... Or I missed smth?
Observer effect
  • #370
  • Sep 8, 2020 8:57am Sep 8, 2020 8:57am
Quoting ryuryu
{quote} Hi MoneyZilla! Could you please tell me when and how you decide to close all? For example if we imagine eurusd spring uptrend. There were few short hedges and tons good longs. But since you hedge only lower-lower higher-higher the reversal can be very dangerous... Or I missed smth?

Don't continually hedge when price is against you as that would lead to financial ruin! Hedge once or twice but no more. Add positions in the direction of the 'main' trend and take profits along the way (reduces margin which is a good thing). Close 'whole basket of trades' when you have either a) Made your target for the day or b) You believe a trend change is imminent.

DO NOT trade this live until you have practiced this method and are confident of 1. Consistently increasing your balance and 2. Just as importantly manage drawdown and preserve margin!

Practice, Practice, Practice until this method becomes second nature.

As always just my 2 cents for what it is worth...
  • #371
  • Sep 8, 2020 9:13am Sep 8, 2020 9:13am
2 hours past since last signal Long. New signal Long and taken so now I am currently equal i.e. 1 Long + 1 Short. Depending on whether the market goes up or down makes no difference. I will follow the current trend be it an upcoming reversal of the 'main' trend or simply a reversal, I follow without fear and will add positions accordingly...
  • #372
  • Sep 8, 2020 9:44am Sep 8, 2020 9:44am
Currently neutral 2 Long + 2 Short, which way is it going? No problem just follow the trend...
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  • #373
  • Sep 8, 2020 10:18am Sep 8, 2020 10:18am
Quoting wingate
. New signal Long and taken so now I am currently equal i.e. 1 Long + 1 Short
You are currently out of the market. You are net flat
  • #374
  • Sep 8, 2020 10:35am Sep 8, 2020 10:35am
Quoting STrading
{quote} You are currently out of the market. You are net flat
Excellent observation I am indeed net flat, there is a reason for that but I am sure you have no idea why?
  • #375
  • Sep 8, 2020 10:42am Sep 8, 2020 10:42am
Quoting GEfx
{quote} This morning I was short the GJ at 138.71 and 138.36, 4 standard lots each, and performed the equivalent of your "hedge" at 138.10. As a side note, I shorted the EJ at 125.32 and performed an equivalent of a "hedge" at 124.93. So in reality, we are both flat the GJ. My equity curve increased today, and my balance never went negative, as if that matters. My account is currently net long the $CAD and net short the $J. So you see, there is no magic in "hedging".
Not trying to be clever and never said there was any MAGIC involved. Just trying to illustrate that there is an alternative way of trading the norm which can be extremely profitable if implemented sensibly. Geeze take it or leave it, as previously said there is no RIGHT or WRONG way, trade the way you are most comfortable with that makes you money.
  • #376
  • Sep 8, 2020 10:56am Sep 8, 2020 10:56am
Quoting wingate
{quote} Excellent observation I am indeed net flat, there is a reason for that but I am sure you have no idea why?
I do know why you do it.
  • #377
  • Sep 8, 2020 11:01am Sep 8, 2020 11:01am
Quoting wingate
{quote} Not trying to be clever and never said there was any MAGIC involved.
"Just trying to illustrate that there is an alternative way of trading the norm which can be extremely profitable if implemented sensibly."
And this is you not trying to be clever, imagine if you did try? You say one thing and then contraticd yourself on the next sentence.
  • #378
  • Sep 8, 2020 11:05am Sep 8, 2020 11:05am
And your equity how much % did you make on your equity. Your balance does not mean anything.
  • #379
  • Sep 8, 2020 11:05am Sep 8, 2020 11:05am
Why do I do it prey tell.
  • #380
  • Edited 12:22pm Sep 8, 2020 11:39am | Edited 12:22pm
I really must be stupid? I cannot see how I contradicted myself in that post? I believe what you were really saying was... I (as in you) do not believe for a moment that you (i.e. me) can possibly trade, hedge whatever in that way and still be 'net' profitable at the end of the day. Well guess what
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