Cable Update (GBPUSD)

Quoting buffedmage

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{quote} mathematically, self-hedging positions is completely pointless for retail traders: 1) Double commissions 2) Double spreads 3) Trader takes 100% of the counterparty/exposure risk.

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Quoting buffedmage

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{quote} the majority of mt4 brokers are more than happy to continue to promote "hedging allowed".....mainly to take advantage of retail trader's ignorance. You just did your broker's job for them when you partially or "perfectly" hedge yourself. Including taking all the position risk. And that includes price spikes (like rollover) and negative swap. All because you didn't just close the position and re-enter correctly.

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Quoting buffedmage

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{quote} The correct default accounting method that matches the rest of the professional trading world (including your broker) is netting. e.g. You buy long EURUSD 1.00 lot and then offset that 1.00 long (or a portion of it). or you sell short 0.65 lot and then offset that 0.65 short (or a portion of it. Net exposure is what is most important). Or suppose you want to go in the opposite direction: currently long 1.00 EURUSD. You then sell short 2.00 EURUSD or you can do 2 separate orders of 1.00 + 1.00. And now you are net Short 1.00 EURUSD. But b-books...

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Quoting WizardTrade

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{quote} Mathematically? Well I dont agree with you on this coz when you are playing with proper money management rules, you will make money even if you have all these (i.e., which you mentioned) reasons to stop hedging. My TE will stay here for your research purpose. More comments are welcome but I would suggest you to wait till I have a sizeable number of trades in my TE to practically prove the point.

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Quoting billytt

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{quote} Hedging works when used correctly, do not listen to the negative response.

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Quoting billytt

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{quote} Hedging works when used correctly, do not listen to the negative response.

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Quoting Waveskierrob

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{quote} Hedging works for me, but again with everything need to master that tool, takes time, failure and patience, can't teach have to experience it

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Quoting WizardTrade

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{quote} That's where personal temperament is important for being a trader. Experience can't be taught. You can't tell how you feel in a swimming pool to a person who is out of it . You have to experience what others have been through to really enjoy the ride.

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Quoting buffedmage

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{quote} just wanted to point out that hedging is an extremely complex strategy that eliminates some risks as you say, but creates a whole set of new ones when you hedge a position perfectly (not usually possible in practise) you negate the exposure - now when you learn that if you are anything like me you will think hang on why dont I just hedge every position until it runs positive and never lose - this is a mistake. The swap fees and rollover spreads will eat you up. It is possible to end up in a catastrophic domino effect of closures when you...

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Quoting buffedmage

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{quote} just wanted to point out that hedging is an extremely complex strategy that eliminates some risks as you say, but creates a whole set of new ones when you hedge a position perfectly (not usually possible in practise) you negate the exposure - now when you learn that if you are anything like me you will think hang on why dont I just hedge every position until it runs positive and never lose - this is a mistake. The swap fees and rollover spreads will eat you up. It is possible to end up in a catastrophic domino effect of closures when you...

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Quoting WizardTrade

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{quote} These margin limits are touched when you are using either martingale for either side of the hedge. If you are playing out with only 10% of your capital then I believe it is not of a problem for a conservative or a moderate trader. Yeah you are right for the ones who may fall prey to over exposure if they are quite risky ones.

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Quoting buffedmage

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{quote} the truth is - 1)mt4 became de-facto retail fx platform. And had hedging as default. Mt4 Platform was originally designed to rip people off for market making brokers to handle deals directly with clients. backend is retrofitted with "bridges" to connect to ecn. This only happened with mt4 because of the popularity of it. Mt5 handles multi-asset natively. Other assets the client usually buys their own charting and connect to broker's api (although broker may have 1-3 popular charting options). 2) mt4 popularity convinced uniformed retail...

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Quoting Waveskierrob

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{quote} I use both Martingale and Hedging and have no TP, no SL and...no rules

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Quoting Indiara

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I have a Sell on UJ. May not be the ideal time to do this, just before NY market open, but it has a chance I think. {image}

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Quoting Indiara

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I have a Sell on UJ. May not be the ideal time to do this, just before NY market open, but it has a chance I think. {image}

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Quoting Waveskierrob

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Update still 5 x SHORTS underwater BE 1.1546 .....patience card being played

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