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Just learned about hedging, does anyone use it for scalping?
They simply know nothing, different from: STUPID FUCKING SHIT. Check their posts!I am here. And will torture you, my dear ignorants, when I want to and whenever I want to.
- #383
- Sep 8, 2020 10:23am Sep 8, 2020 10:23am
- Joined Oct 2009 | Status: . | 4,038 Posts
Congratulations ScalaFX for coming out of the closet!
{quote} There is a big chance at this moment!!!!
- #385
- Sep 8, 2020 10:30am Sep 8, 2020 10:30am
- Joined May 2009 | Status: Trader | 2,088 Posts
{quote} I'm not even going to comment on that childish statement. It's obvious that you are totally 'anti hedging' so why are you even here? If you have nothing constructive to say then why don't you just move on. Looks like Iv'e encountered another NumbNuts NubCakes, guess you're another one for the ignore list.
LUCKY golden trades, LUCKY gold investor trading style
And your equity how much % did you make on your equity. Your balance does not mean anything.
- #387
- Sep 8, 2020 10:33am Sep 8, 2020 10:33am
- Joined May 2009 | Status: Trader | 2,088 Posts
{quote} Didn't get round to answering your earlier question, so sorry. Just to confirm my balance is up 20% on the day but my equity is only up 15%. I hope that answered your question, after all as you said Balance means nothing however Equity means Everything.
LUCKY golden trades, LUCKY gold investor trading style
Final thought for STrading to mull over... Decided to call it a day, more important things to do. Market's pretty flat now anyway and not a keen fan on leaving trades open over night, better to start afresh at market open GMT tomorrow. Closed current basket of trades for an EQUITY increase of 15% on the day, not too shabby. Ended up with 4x Long positions + 3x Short positions before closing this final basket of the day.
Greatest feeling however is I encountered ZERO lost trades today, How many STOPS did you hit today and did you manage to increase your EQUITY..Just wondering
Final screenshot, I am sure that someone with as much experience as you will work it out.
Greatest feeling however is I encountered ZERO lost trades today, How many STOPS did you hit today and did you manage to increase your EQUITY..Just wondering
Final screenshot, I am sure that someone with as much experience as you will work it out.
- #389
- Sep 8, 2020 10:54am Sep 8, 2020 10:54am
{quote} I'm not even going to comment on that childish statement. It's obvious that you are totally 'anti hedging' so why are you even here? If you have nothing constructive to say then why don't you just move on. Looks like Iv'e encountered another NumbNuts NubCakes, guess you're another one for the ignore list.
{quote} Believe it or not i am not "anti-hedging" im just anti-hedging-bullshit"
Where is the bullshit I am supposedly peddling according to you? Where are the holes in my method, I have included screenshots based on todays trading, you can see that I use nothing more than a couple of trendlines and a couple of indies from another popular forum. This is it apart from monitoring higher timeframes for longer term trend direction.I have NO hidden agenda, I am more than happy to learn from you if you can provide me with ways that I can improve my trading no problem.
- #392
- Sep 8, 2020 11:22am Sep 8, 2020 11:22am
- Joined Mar 2016 | Status: Peace_To_The_World | 624 Posts
{quote} Fucking being used, again, as a convincing point or unlike my, makes the point more COHERENT?!?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...
Price goes up 200 pips
Makes a 75 pips retrace
Goes up 200 pips again
So first I'm net long, then I close my position, now net neutral, depending if I want to trade the retrace or wait for the next long, I'm short or out of the market. So if the price retraces my equity is either flat or goes up.
If you're on the first rise net long you do at some point lock your hedges to not lose money on the retrace right? So why not take the money and be out of the market? I honestly don't understand it
"Men Who Can Both Be Right & Sit Tight Are Uncommon" ~ Jesse Livermore
{quote} 15% on one day great for you, now are you going to show us how much you have made in the last 6 months, last year? I had days where i made above 200%, does it mean i am a great trader? No, you probably already know how that turned out after a while.
I have no intention of doing what you said in your last post, I have simply shown today what was possible TODAY, tomorrow maybe totally different! One thing is for sure there is no way I would risk the amount of capital you did. I am not a great trader of course i'm not, I simply strive to be a better one today than I was yesterday
- #394
- Sep 8, 2020 11:45am Sep 8, 2020 11:45am
- Joined Dec 2015 | Status: Suuka Maadik | 3,630 Posts
{quote} What I don't understand is: Price goes up 200 pips Makes a 75 pips retrace Goes up 200 pips again So first I'm net long, then I close my position, now net neutral, depending if I want to trade the retrace or wait for the next long, I'm short or out of the market. So if the price retraces my equity is either flat or goes up. If you're on the first rise net long you do at some point lock your hedges to not lose money on the retrace right? So why not take the money and be out of the market? I honestly don't understand it
Yes, you are the first here, from the enemy camp, who describes it correctly.
If you Michi, can always nail any direction + distance-wise right, I am happy for you, then. I wish I could do the same, but I can't.
Instead, out of every whatever 1000 pips, I book a net of 500 for me. When basic hedging is applied. More complex hedging techniques increase the net booked pips from 1000 to 2000 pips. I am already entirely happy with the base hedging btw... what to say about the more complex alternatives?
One directional trading is a lot more difficult than hedging, as it requires knowledge where to exit at the most favourable peaks/bottoms. Same with where to enter to gain the most from the offered distance? While hedging locks what is offered instead and is maximized by the following inevitable expansions...
Maadik Hugiis. IQ 69.
{quote} What I don't understand is: Price goes up 200 pips Makes a 75 pips retrace Goes up 200 pips again So first I'm net long, then I close my position, now net neutral, depending if I want to trade the retrace or wait for the next long, I'm short or out of the market. So if the price retraces my equity is either flat or goes up. If you're on the first rise net long you do at some point lock your hedges to not lose money on the retrace right? So why not take the money and be out of the market? I honestly don't understand it
Try this on demo. Use as few indicators as possible, one or two at most, ones that you are familiar with. Observe the longer time frames for longer term trend direction, preferably 2 timeframe up from the one you wish to trade from. When you get a signal from your chosen indicator open your first trade in that direction, if the trade goes against you don't panic instead wait patiently for your next signal to present itself.
If the next signal is opposite your original trade then open this new trade in that direction (do not close the first trade) you are now NETT NEUTRAL
You are now hedged (obviously) and are in a position to sit it out stress free while waiting patiently for the market to show it's hand Again wait patiently for the next signal to appear and trade accordingly, do not close any of the previous trades, you should now be 2 trades one way and 1 the other!Hopefully the trend will continue in your favour and you can then add further trades in the direction of the trend. If the market reverses again then hedge again but stay on the sidelines until price breaks out of the range, you HAVE to be mindful of the available MARGIN in your account at ALL times.
Once the trend has established itself you can carry on building your positions until such time as you wish to close the 'Hedged' basket of trades for profit. A very simplified example I know but I am sure you will get the idea after trial and error, but please demo, demo and demo again.
PS. MoneyZilla not knocking your method, horses for courses and all that, I just find your explanations somewhat difficult to follow. English isn't your native language obviously
- #396
- Sep 8, 2020 12:23pm Sep 8, 2020 12:23pm
{quote} 200% in day, really WOW. I cannot compute such an increase WOW just WOW!!! I really hope that was demo trading and you have moved on from that experience. As I just said I would be more than happy to hear of any tips you could give (good or bad) that might improve my method. Actually if you have ANYTHING of interest regarding this topic of hedging then please bring it on (but please leave the Martingale behind)
Thats why im not completly against hedging, but to be honest im not really sure on this as sometimes i might think im making my life easier when in the reallity im just complicating things, but im aware that hedging wont give me any advantage if not from the one that i said before, it will even cost me more.
There is not a i hedge and this happens, and i have no losses, i am aware of the limitations that hedging gives, i am aware that when i hedge the losses are still there, and i am aware that by hedging i have no advantage in terms of profits compared with someone who does not hedge.
- #397
- Sep 8, 2020 12:49pm Sep 8, 2020 12:49pm
- Joined Jan 2010 | Status: overcaffeinated.... | 1,345 Posts
si hoc legere scis nimium eruditionis habes
- #399
- Sep 8, 2020 12:55pm Sep 8, 2020 12:55pm
- Joined Dec 2015 | Status: Suuka Maadik | 3,630 Posts
{quote} Hedging might just make your life a little easier for you to manage your positions, to track your trades if you trade several pairs. Thats why im not completly against hedging, but to be honest im not really sure on this as sometimes i might think im making my life easier when in the reallity im just complicating things, but im aware that hedging wont give me any advantage if not from the one that i said before, it will even cost me more. There is not a i hedge and this happens, and i have no losses, i am aware of the limitations that hedging...
Your first MEANINGFUL POST!
I do trend trading, just to makeup my hedges. I am using both ways to trade. Trend+Hedging.
It is not that hedging is meaningless. Hedging is wonderful way to trade. Wonderful as much as trading with opening and closing one sided trades for Michi, GE, Dumby, LD, you and many others IS.
It is what fits oneself most.
You can't call the guys who do sport pistol shooting, being fools, only because you do sports rifle shooting on the Olympics?!? Hello?
But it is good, you did not curse and that post sounds honest. Congratulations for that!
️I hope I am not wrong here.
Maadik Hugiis. IQ 69.
- #400
- Edited 4:16pm Sep 8, 2020 3:55pm | Edited 4:16pm
{quote} Hedging might just make your life a little easier for you to manage your positions, to track your trades if you trade several pairs. Thats why im not completly against hedging, but to be honest im not really sure on this as sometimes i might think im making my life easier when in the reallity im just complicating things, but im aware that hedging wont give me any advantage if not from the one that i said before, it will even cost me more. There is not a i hedge and this happens, and i have no losses, i am aware of the limitations that hedging...
I applaud your honesty Sir and I accept that hedging is not for you... no problem, each to their own and peace
You of course are perfectly correct, losers are inevitable even when hedging, I cannot dispute this you are 100% bang on. However...the losses will only effect your overall equity/balance if the 'loosing trades' are closed either INDIVIDUALLY at a LOSS OR as a NEGATIVE BASKET as a whole.This I believe is how MoneyZilla trades, He will hedge a trade gone wrong and then wait for an opportune moment to 'un-hedge' when the trend resumes. He will then close the loosing trade/trades for a LOSS and then add positions to the winning side to hopefully recoup the original loss plus some (I hope I have understood him correctly, apologies if not).
My method is somewhat different, I will continue to build my basket of trades with any number of BOTH buy and sell trades. I WILL NOT un-hedge my basket at ANY time. I have 2 primary goals either 1. The trend is in my favour in which case I will add to winning trades with new positions and take profits along the way when appropriate (increasing my margin availability for new trades) OR 2. On ranging days I will aim to build a basket of buy/sell trades until a trend is established and then close the ENTIRE basket when in profit. The only time I will incur loosing trades is WITHIN a POSITIVE WHOLE BASKET closure, these losses are over shadowed however by the winning trades. Someone earlier pointed out...These are THE COSTS of doing business.
On a side note I stopped trading today around 6.30pm. My final basket was a LOSS (3x Long trades + 4x Short trades), as you know I had already increased my overall balance by 15% on the day so a £6.00 loss was no big deal obviously. However if you study the screenshot below taken just before 12pm midnight you will see that if I had continued trading the trend turned back SHORT and I could have closed another POSITIVE BASKET at approximately 11pm this evening having added another 3 or 4 sell trades (I would have closed with 3x Long trades + 7/8 Short trades).
Apologies for the long post
