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Hedging/averaging trades without prediction

  • #981
  • Nov 3, 2022 6:40am Nov 3, 2022 6:40am
Quoting birdland
{quote} thank you for your valuable contribution! good point with the cutoff point in a runaway market;-) when you say you dont need to hedge, do you mean averaging can be enough in a losing position?
Exactly. But you need to do it the smart way.
You got to strike when the moment is right without thinking
  • #982
  • Edited 12:10pm Nov 3, 2022 9:08am | Edited 12:10pm
Quoting birdland
{quote} now i understand, thx. in this situation i wait 5-10 minutes, maybe the other side of the hedge hits also TP and i have 2 winners (1 hedge closed) now we could have a runaway market and the market can in 5 minutes easily make -30 pips on the LONG loss position. then i will have to short again, lets say if the long position is minus 15-20 pips. then i play safe and watch the market. but we dont know if this is a runaway market, or call it freight train. thats the problem. so i would rather try to buy again a LONG to get a good average price....

Thanks for the detailed answer! I spent a while trying to visualize this.

" then i will have to short again, lets say if the long position is minus 15-20 pips. "

So at that point you'd have 1 long and 1 short, about 15 pips apart, right? So, -15 pips that are 'frozen' until your next order.

Then, if price starts to go up, you place another long. If the long averaging works, good. If not, when it goes down again you add another short?

Did I understand that right?

Maybe I'm pointing something obvious and it's just part of it, but every hedge that doesn't 'work' is increasing the drawdown until you dig the whole 'batch' out of the hole, right? (Nothing wrong with that necessarily, just trying to be on the same page)
  • #983
  • Edited 10:07am Nov 3, 2022 9:35am | Edited 10:07am
Quoting Rfs199
{quote} Thanks for the detailed answer! I spent a while trying to visualize this. " then i will have to short again, lets say if the long position is minus 15-20 pips. " So at that point you'd have 1 long and 1 short, about 15 pips apart, right? So, -15 pips that are 'frozen' until your next order. Then, if price starts to go up, you place another long. If the long averaging works, good. If not, when it goes down again you add another short? Did I understand that right? Maybe I'm pointing something obvious and it's just part of it, but every hedge...

yes exactly you got it!

and the hole can grow but thats part of the game.

and if you are not in the mood anymore to fight, then just balance the position to a hedge and come back later or the next day fresh;-)
trading is like dancing, don't think and just listen to the music!
  • #984
  • Nov 3, 2022 5:48pm Nov 3, 2022 5:48pm
I've been testing this for a few hours. My first impression is that it feels more 'natural' or intuitive placing the trades. The one thing that's a bit troublesome for me is that it can get a bit convoluted once you have a few hedges running (and I'm still using only 1 pair).

Once the hedging starts and the drawdown is there, the only way out to close the whole thing in profit is by pushing the winning side, but it's a bit tricky to keep the averaging under control . Maybe knowing the average entry (or where the average long and average short positions are), and knowing the distance to BE can help, but still not too sure.

Open to tips and ideas
  • #985
  • Nov 3, 2022 7:14pm Nov 3, 2022 7:14pm
Quoting Rfs199
I've been testing this for a few hours. My first impression is that it feels more 'natural' or intuitive placing the trades. The one thing that's a bit troublesome for me is that it can get a bit convoluted once you have a few hedges running (and I'm still using only 1 pair). Once the hedging starts and the drawdown is there, the only way out to close the whole thing in profit is by pushing the winning side, but it's a bit tricky to keep the averaging under control . Maybe knowing the average entry (or where the average long and average...
NFP tomorrow. Enter it with a hedge. Try to win.
1.02^200
  • #986
  • Nov 3, 2022 9:57pm Nov 3, 2022 9:57pm
Is this the new Grid Trading Billionaire‘s Hangout?.

Oh man, I did it all wrong. So you just have to place some random trades, „hedge“ if things go wrong and financial freedom here we go.

Brilliant!
  • #987
  • Nov 4, 2022 1:46am Nov 4, 2022 1:46am
lets try something new (for me).

a 10pip rectangle, pending LONG&SHORT....tp will be 4 pips
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSDM1.png Size: 31 KB
trading is like dancing, don't think and just listen to the music!
  • #988
  • Nov 4, 2022 1:48am Nov 4, 2022 1:48am
Quoting birdland
lets try something new (for me). a 10pip rectangle, pending LONG&SHORT....tp will be 4 pips {image}
short triggered:
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSDM1.png Size: 33 KB
trading is like dancing, don't think and just listen to the music!
  • #989
  • Nov 4, 2022 2:01am Nov 4, 2022 2:01am
Quoting birdland
{quote} short triggered: {image}
+4, long canceled
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSDM1.png Size: 29 KB
trading is like dancing, don't think and just listen to the music!
  • #990
  • Nov 4, 2022 2:04am Nov 4, 2022 2:04am
and again, tp now +5
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSDM1.png Size: 31 KB
trading is like dancing, don't think and just listen to the music!
  • #991
  • Nov 4, 2022 2:11am Nov 4, 2022 2:11am
Quoting birdland
and again, tp now +5 {image}
+5 lucky again;-) other part canceled
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSDM1.png Size: 28 KB
trading is like dancing, don't think and just listen to the music!
  • #992
  • Nov 4, 2022 2:12am Nov 4, 2022 2:12am
Quoting birdland
lets try something new (for me). a 10pip rectangle, pending LONG&SHORT....tp will be 4 pips {image}
I like it, make it your own ...thanks for all your posts and success...
  • #993
  • Nov 4, 2022 2:13am Nov 4, 2022 2:13am
i want to know it;-)
again tp5
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSDM1.png Size: 30 KB
trading is like dancing, don't think and just listen to the music!
  • #994
  • Nov 4, 2022 2:16am Nov 4, 2022 2:16am
Quoting Waveskierrob
{quote} I like it, make it your own ...thanks for all your posts and success...
i would like to return this, thank you!
trading is like dancing, don't think and just listen to the music!
  • #995
  • Nov 4, 2022 2:34am Nov 4, 2022 2:34am
Quoting birdland
i want to know it;-) again tp5 {image}
+5, short canceled.
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSDM1.png Size: 31 KB
trading is like dancing, don't think and just listen to the music!
  • #996
  • Nov 4, 2022 2:36am Nov 4, 2022 2:36am
lets force my luck;-)

tp5
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trading is like dancing, don't think and just listen to the music!
  • #997
  • Nov 4, 2022 2:40am Nov 4, 2022 2:40am
LONG@SHORT triggered
trading is like dancing, don't think and just listen to the music!
  • #998
  • Nov 4, 2022 2:44am Nov 4, 2022 2:44am
Quoting birdland
lets force my luck;-) tp5 {image}
+5 from SHORT
Attached Image (click to enlarge)
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trading is like dancing, don't think and just listen to the music!
  • #999
  • Nov 4, 2022 2:50am Nov 4, 2022 2:50am
SHORT@1199, no tp...now the fun starts;-)
trading is like dancing, don't think and just listen to the music!
  • #1,000
  • Nov 4, 2022 2:57am Nov 4, 2022 2:57am
SHORT@1192, no tp
trading is like dancing, don't think and just listen to the music!
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