Hedging/averaging trades without prediction | Page 98 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Mathematical hedging strategy without a stop loss 22 replies

'Averaging Down Is for Losers' - valid or not? 27 replies

Fast Averaging versus Slow Averaging 1 reply

Averaging 7 replies

Martigale and Averaging Down 4 replies

Attachments: Hedging/averaging trades without prediction
Exit Attachments

Hedging/averaging trades without prediction

  • #1,941
  • Jan 17, 2023 6:13am Jan 17, 2023 6:13am
how to enable that buy and sell icon and footstep ?
  • #1,942
  • Jan 17, 2023 6:29am Jan 17, 2023 6:29am
i averaged, that didnt worked. then i hedged, closed the averages with a loss. then averaged again and it worked out.
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSDM1.png Size: 26 KB
trading is like dancing, don't think and just listen to the music!
  • #1,943
  • Jan 17, 2023 8:04am Jan 17, 2023 8:04am
Quoting Tronis
My trades at the moment with almost no drawdown. {image}
So what do you do to control drawdown? I pretty much gave up on this. If I accept losses, there are better directional strategies for that. I have to limit my drawdown, but not to the point where I'm not making any money.
1.02^200
  • #1,944
  • Edited 1:42pm Jan 17, 2023 10:39am | Edited 1:42pm
Quoting d5400
{quote} So what do you do to control drawdown? I pretty much gave up on this. If I accept losses, there are better directional strategies for that. I have to limit my drawdown, but not to the point where I'm not making any money.
I think the issue at hand is the overlooked fact that Rob stated that he has losing trades opened for months and won't close these trades unless the trade basket has been successfully averaged into profit (or at least BE), or he can offset those losing trades by using the aggregate of winning trades over the same time period- and not necessarily only winning trades from the same pair. It seems that many who are trying this method are panicking with the DD and closing trades by the end-of-day, or after a few days.

As I mentioned above, Rob is not trading one pair, but rather multiple forex pairs and indices and treating the entirety as one large trading basket (this info is well discussed by Rob in the GBPUSD and Real Trading threads). His trade size is extremely small relative to his bank (he stated earlier in this thread that his trade size is 0.01% of his bank not withstanding the leverage used) so he's able to open lots of trades (Rob has mentioned several times on the GBPUSD thread that he'll have 100 trades opened at any given time) and has more than sufficient equity to cover the margin on these trades as well as any trades running a loss. Despite the small size of individual trades, he has repeatedly posted real-time screen shots of his daily trading results on the GBPUSD thread... quite impressive indeed.

Again, the overlooked statements from the third post in this thread:

5. BIG bank and trade the smallest lots you can
6. I work on average price and hedging
7. I don't use stoploss but do use target price
8. Market can move in any direction at anytime
10. Concentrate on your equity as you bank profits early and let losses run, so profit and loss will mainly be in the red (something to get use to)
11. This is not for everyone and it's not easy
12. Open trades can go on for months
13. Patience is the key

Best,

Dave
  • #1,945
  • Jan 17, 2023 11:10am Jan 17, 2023 11:10am
Quoting davelansing
{quote} I think the issue at hand is the overlooked fact that Rob stated that he has losing trades opened for months and won't close these trades unless the trade basket has been successfully averaged into profit (or at least BE), or he can offset those losing trades by using the aggregate of winning trades over the same time period- and not necessarily winning trades from the same pair. It seems like many trying to follow this method are panicking and closing trades by the end-of-day, or after a few days. As I mentioned above, Rob is not trading...
Wow hell of a post, all correct looks like you done your homework, good to reiterate every now and then, if others are successfully that makes me successfully, many thanks to all...
  • #1,946
  • Jan 17, 2023 11:53am Jan 17, 2023 11:53am
Quoting Tronis
{quote} Closed all earlier and opened a new round {image}
Two more rounds again today closed Started another oneI won't be posting as much now, found a new project which will keep me busy for a week or two. Have all loads of
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Screenshot 2023-01-17 174742.png Size: 42 KB
Click to Enlarge Name: Screenshot 2023-01-17 175519.png Size: 20 KB
  • #1,947
  • Jan 17, 2023 12:03pm Jan 17, 2023 12:03pm
Quoting d5400
{quote} So what do you do to control drawdown? I pretty much gave up on this. If I accept losses, there are better directional strategies for that. I have to limit my drawdown, but not to the point where I'm not making any money.
It will always be some drawdown but if you add trades to the direction where price is moving strongly than you can limit your drawdown and avoid trading red news. Of course it's easy said than done and also lot size is important as well.
  • #1,948
  • Jan 17, 2023 2:18pm Jan 17, 2023 2:18pm
Iam thinking about something similiar since sunday...

Starting with a buy and sell order. Instead of setting up a TP of 5 pips open another order in that direction and so on.
On a decent move you are able to keep the DD small while gaining at the same time. At some point you can close all profit orders and start averaging the loss order, or close the loss order if you are fine with the profit of all winning orders together...

That kinda sounds like a plan
  • #1,949
  • Jan 17, 2023 2:22pm Jan 17, 2023 2:22pm
Quoting Mr.Moe
Iam thinking about something similiar since sunday... Starting with a buy and sell order. Instead of setting up a TP of 5 pips open another order in that direction and so on. On a decent move you are able to keep the DD small while gaining at the same time. At some point you can close all profit orders and start averaging the loss order, or close the loss order if you are fine with the profit of all winning orders together... That kinda sounds like a plan
Go for it, please post results...
  • #1,950
  • Jan 17, 2023 3:34pm Jan 17, 2023 3:34pm
Quoting Mr.Moe
Iam thinking about something similiar since sunday... Starting with a buy and sell order. Instead of setting up a TP of 5 pips open another order in that direction and so on. On a decent move you are able to keep the DD small while gaining at the same time. At some point you can close all profit orders and start averaging the loss order, or close the loss order if you are fine with the profit of all winning orders together... That kinda sounds like a plan
Yeah, that's what I've been doing for the past 3 weeks... SLOW and steady...but relatively stress-free. I guess I won't be turning my $400 to $10k in 6 months, lol (although yazzie did turn $30k to $160k in a year trading in the same manner). The big bucks will come once I can add substantially to the account... until then with LOTS of PATIENCE, "slow and steady fills the bucket".

Best,

Dave
  • #1,951
  • Jan 18, 2023 12:42am Jan 18, 2023 12:42am
All been closed at night, added $700 to my account. Today lots of red news, I won't be doing next round at the moment. I'm still trading 3 pairs but I wasn't trading JPY pair yesterday because of red news and switched to GU instead. In 1 week 20% profit
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot 2023-01-18 063505.png Size: 33 KB
  • #1,952
  • Jan 18, 2023 3:59am Jan 18, 2023 3:59am
only one quick "scale in"- trade today, 20min work;-)
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSDM1.png Size: 18 KB
trading is like dancing, don't think and just listen to the music!
  • #1,953
  • Jan 18, 2023 5:09am Jan 18, 2023 5:09am
Nice trading goin on here.

Had an early finish this morning as well!

Sum:
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot 2023-01-18 120409.jpg Size: 73 KB

GU:
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot 2023-01-18 120556.jpg Size: 181 KB

GJ:
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot 2023-01-18 120620.jpg Size: 210 KB


Had also a 30 Pips TP from last night on EJ trading the range...
  • #1,954
  • Jan 18, 2023 5:27am Jan 18, 2023 5:27am
Quoting Mr.Moe
Nice trading goin on here. Had an early finish this morning as well! Sum: {image} GU: {image} GJ: {image} Had also a 30 Pips TP from last night on EJ trading the range...
ah you ignored the CPI red numers on GU, but it worked out;-)
trading is like dancing, don't think and just listen to the music!
  • #1,955
  • Jan 18, 2023 7:02am Jan 18, 2023 7:02am
Quoting birdland
only one quick "scale in"- trade today, 20min work;-) {image}
what is your reason to just take some buy here ?
  • #1,956
  • Jan 18, 2023 8:24am Jan 18, 2023 8:24am
Quoting iejf
{quote} what is your reason to just take some buy here ?
the main reason was a strong uptrend. i only trade GU so i know the behaviour of that pair very well.
trading is like dancing, don't think and just listen to the music!
  • #1,957
  • Jan 18, 2023 10:03am Jan 18, 2023 10:03am
Quoting birdland
{quote} ah you ignored the CPI red numers on GU, but it worked out;-)
Made 47 pips out of two trades on the CPI move
  • #1,958
  • Jan 18, 2023 10:14am Jan 18, 2023 10:14am
Quoting Mr.Moe
{quote} Made 47 pips out of two trades on the CPI move
yes i saw just the shorts, my eyes;-)
great trade!
trading is like dancing, don't think and just listen to the music!
  • #1,959
  • Jan 18, 2023 10:53am Jan 18, 2023 10:53am
You peeps are killing it, jumping in making some coin then going enjoying yourselves, this is what it's all about, no stress trading, well ok sometimes
  • #1,960
  • Jan 18, 2023 1:20pm Jan 18, 2023 1:20pm
Quoting Waveskierrob
You peeps are killing it, jumping in making some coin then going enjoying yourselves, this is what it's all about, no stress trading, well ok sometimes
Just because you came across with this simple and effective way of trading
Thank you!!!
3 traders viewing now