Hedging/averaging trades without prediction
{quote} I would agree. Nearly every trader I talk to doesn't understand that they are ALL trading a grid. When I explain what they are actually doing, their ego gets crushed and a tiny light gets switched onor not if they are thick..
{quote} Showing your age there Fagin, don't see " thick* " used much these days, did make me chuckle. I wonder what the equivalent is in other languages, answers on a postcard please. * Full disclosue, in the UK we say "thick as two short planks* and in Latin this translates to "densissima ut duo brevia tabulae" which in turn is used on the crests of many of our government departments.
Hedging USDMXN and EURUSD at the mo, no real bias on direction but see more room for EU to drop than UM. Closed the first batch of trades in profit this morning, a few small scalps taken and those big recent moves have allowed me to place orders on both sides with some nice areas to start banking the pullbacks, both pairs pay spread so no rush. No stoploss, no predictions, no indicators; just trading what I see and what the markets give me.
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I had similar problems with an EA I was using some tine ago which used rigid grids, introducing an element of randomness always seemed to improve the results, On another note my 4 pair carry should really be called 2 pair as I’ve found I only need trade EU UM due to the continued correlation ratio. Sun’s out, forgot what it looked like.
, on another note once you start trading like this your P/L stays in negative all the time that's something folks can't handle, mine is -£600 at the moment on this account but has been there from the start (much much more on other accounts) but my equity and lot size has grown, focus on the equity and hide your P/L, these little tips do help...
...I'm still getting use compounding as my lot size has grown 50% in 3 weeks (did add £2000 though) something to think about, I have the ability to slow it down but want to see how it goes, maybe greed is showing its ugly head... As for greed, I’m also aware of that little devil (so many to keep an eye on), maybe rename him optimal trade size
{quote} I think the reason randomness works so well because there is no ego, we are never wrong as we never predict and as I'm hedging makes no difference to me which way the markets go, my edge is I decide when to open and closed, not some set up rules...
https://youtu.be/nYYkRaU0xh8?si=JZ0ecICUZ7Vfp4CX An interesting watch.
{quote} I'm guessing you've added to the account to deal with the margin requirements which is a problem I've seen as well. I'm trading live with a substantial amount (for me) and still have to keep an eye on the free margin. My initial trades start with 10-15x the amount I used to now, so probably not surprising.
{quote} Excellent will let that sink in before watching part 2.....Gamblers Fallacy : this is why I don't use charts e.g. if you were watching a chart say on an hourly and the last candle GREEN say 100 pips what's most folks thoughts of next trade I would say most would be SELL even though its still 50/50... coins, roulette, cards and markets have no memory ....
{quote} Yes, which makes me think I should halve my lots, which would lower my percentage from around 1% a week to 0.5% which is ok, plus side of lowering would be no margin calls so able to carry on placing trades, definitely something to think about...
