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Just learned about hedging, does anyone use it for scalping?

  • #781
  • Jan 9, 2022 2:23pm Jan 9, 2022 2:23pm
Quoting indosupre
{quote} Mz , Thanks for your reply What do you mean with 25 to 50 % from open to close wick, is it hedged proportion based on candle before ? Meaning if now weekly position is opening wick we should hedged 25% , while 50 % while on body ? Sorry for my low iq . At first , after reading many of your post , my hedging journey started with static , based on simple ma crossover,i just keep reversing with 0.01 progression. After a while ,usually profit is made when the trend is long enough.making 1-3% /month looks possible . When trying to use dynamic...
I feel you IS. I understand your confusions.

Here is a thing.

Forget about hedging. For a moment. Might last a day, a week, a month, a year, maybe more. You need this. Desperately. Trust me on that one.

To become a good hedger, one needs to be able to trade one direction only. Quite impressively.

You need to practice this one in precise. Leran to trade one direction only. Historically. That should be easy. Looking at the past. Try to build a maximum returns. Surviving the inevitable pull backs. Set up a budget. Start improving the one directional returns.

Now, the hardest part. Learn how to manage the stops of the wrong directional trades/batches.

You should have equal conditions for both.

Improve the losing side, under the same conditions for the winning side. Improve the losing side untill you start feeling there is nothing more to improve in there (for you)...

You are now master hedger.

Sounds simple. For me it was hard as hell.

Best racing drivers make their difference in the braking sections (mostly). Everyone can pedal to the metal...
Maadik Hugiis. IQ 69.
  • #782
  • Jan 10, 2022 7:48am Jan 10, 2022 7:48am
Quoting MoneyZilla
{quote} I feel you IS. I understand your confusions. Here is a thing. Forget about hedging. For a moment. Might last a day, a week, a month, a year, maybe more. You need this. Desperately. Trust me on that one. To become a good hedger, one needs to be able to trade one direction only. Quite impressively. You need to practice this one in precise. Leran to trade one direction only. Historically. That should be easy. Looking at the past. Try to build a maximum returns. Surviving the inevitable pull backs. Set up a budget. Start improving the one directional...
I have shited to trading indexes because there is no need to hedge in same symbol.
All equity indices have at least two contracts and you can buy one 1 unit of index big contract and sell 5 or 10 units of small contract providing natural hedging.
You can release the lock at your own convenience. You can use it on a netting platform. Works in US too.
Indices mean reversion is good. All are trying to be in the good books of All Time High so if you have patience you can mint money by trading on both sides like you trade for a single forex symbol buying and selling in same symbol as long as the broker provides hedging.
It is like double grid trading with constant lot. Your skills of releasing lock and taking profits is all matters . Always try to be on the long side and manage by short side and keep releasing shorts at some point and wait for the Long to take off.
In Sideways environment it works very well. Generating pips on both sides as long as breakout does not happen on the short side.
Practice makes a person perfect
  • #783
  • Jan 10, 2022 10:12am Jan 10, 2022 10:12am
Quoting simnz
{quote} I have shited to trading indexes because there is no need to hedge in same symbol. All equity indices have at least two contracts and you can buy one 1 unit of index big contract and sell 5 or 10 units of small contract providing natural hedging. You can release the lock at your own convenience. You can use it on a netting platform. Works in US too. Indices mean reversion is good. All are trying to be in the good books of All Time High so if you have patience you can mint money by trading on both sides like you trade for a single forex symbol...
That is correct. You can do only buys in indexes, too. For example, on UT100, we are testing on a demo, buys only in one account and sells only into another. Took us some time to understand and set the desired pip values, as there are NO standards for that, as far as we know. We've chosen $1 to be 1 pip. Then we had to adapt with the lotsize, as we used 1 lot on one broker and now this one offered 0.10, the account went from 10k to 50k in less than a week. But now finally we understand pips and lots on this index and with 0.10 this is what would have happened, if we knew them right at the time of the buy only test. Currently, from a point we knew what is what, which was not the top at ~16,600, but below it, the buys lost -$1.4k and the sells won +1.8k. This is pretty normal for hedging. Sells will eventually lose their full balance of 10k, in a long run, and the buys, in UT100, highly likely will do over 100k in 1-2 year period or so.
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Maadik Hugiis. IQ 69.
  • #784
  • Jan 10, 2022 10:31am Jan 10, 2022 10:31am
Quoting MoneyZilla
{quote} That is correct. You can do only buys in indexes, too. For example, on UT100, we are testing on a demo, buys only in one account and sells only into another. Took us some time to understand and set the desired pip values, as there are NO standards for that, as far as we know. We've chosen $1 to be 1 pip. Then we had to adapt with the lotsize, as we used 1 lot on one broker and now this one offered 0.10, the account went from 10k to 50k in less than a week. But now finally we understand pips and lots on this index and with 0.10 this is what...
You don't have to use two accounts if you want to achieve capital efficiency
Practice makes a person perfect
  • #785
  • Jan 10, 2022 5:11pm Jan 10, 2022 5:11pm
THIS journey especially in the last reply of this trhead drive me really far away from all my hedging concept/convinction that i had before ...maybe i should wipe out all the rubbish that i collected in those Years here and there....restart from the begin again..
  • #786
  • Apr 3, 2024 7:32am Apr 3, 2024 7:32am
Quoting simnz
{quote} I have shited to trading indexes because there is no need to hedge in same symbol. All equity indices have at least two contracts and you can buy one 1 unit of index big contract and sell 5 or 10 units of small contract providing natural hedging. You can release the lock at your own convenience. You can use it on a netting platform. Works in US too. Indices mean reversion is good. All are trying to be in the good books of All Time High so if you have patience you can mint money by trading on both sides like you trade for a single forex symbol...
Indices on futures are good but you need hell lot of money for example 1 min NQ needs 20K USD as margin where as CFD might need 1K with 500:1 leverage.
  • #787
  • Apr 3, 2024 9:42am Apr 3, 2024 9:42am
Quoting sampat
{quote} Indices on futures are good but you need hell lot of money for example 1 min NQ needs 20K USD as margin where as CFD might need 1K with 500:1 leverage.
Not quite correct. Look at Micro Futures where the likes of Ninja Trader and AMP brokers ( and others if you look them up) allow $50 day trade margins for Nasdaq etc.......BUT you would be very wise to have at least $1000 in your account to allow for losses or incompetence.
Example:

https://ninjatrader.com/futures/futu...emini-futures/
every Saint has a past. Every Sinner has a Future
  • #788
  • Apr 3, 2024 10:14am Apr 3, 2024 10:14am
Quoting turnip15
{quote} Not quite correct. Look at Micro Futures where the likes of Ninja Trader and AMP brokers ( and others if you look them up) allow $50 day trade margins for Nasdaq etc.......BUT you would be very wise to have at least $1000 in your account to allow for losses or incompetence. Example: https://ninjatrader.com/futures/futu...emini-futures/
Agree but point of having hedging is to allow price to move in certain direction and cut or add positions based on price action and it may take few days more than one day. With ninja trader you can't hold overnight it is strict daily basis which kind of defeats the purpose.
  • #789
  • Apr 3, 2024 3:41pm Apr 3, 2024 3:41pm
Quoting sampat
{quote} Agree but point of having hedging is to allow price to move in certain direction and cut or add positions based on price action and it may take few days more than one day. With ninja trader you can't hold overnight it is strict daily basis which kind of defeats the purpose.
One tries to help but one sometimes feel one is banging ones' head against a kin wall
every Saint has a past. Every Sinner has a Future
  • #790
  • Apr 3, 2024 4:58pm Apr 3, 2024 4:58pm
Quoting turnip15
{quote} One tries to help but one sometimes feel one is banging ones' head against a kin wall
No matter where you turn, there they are.
Life itself is a privilege, but to live life to the fullest is a choice
  • #791
  • Apr 4, 2024 8:36am Apr 4, 2024 8:36am
Quoting turnip15
{quote} One tries to help but one sometimes feel one is banging ones' head against a kin wall
Haha one should clear things with all aspects. Half backed help without proper explanation is like giving water on a glass with a hole is kind of self goal
I just said you can't hold overnight 1 NQ without 20K margin. If you are hedging you should know that sometimes (more often if you have traded long enough) hedge spans over days or week.
  • #792
  • Last Post: Apr 4, 2024 8:40am Apr 4, 2024 8:40am
Quoting vidvad
{quote} No matter where you turn, there they are.
Yea you need sanitizer to kill bacteria.
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