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Hedging/averaging trades without prediction

  • #3,221
  • May 16, 2024 9:43am May 16, 2024 9:43am
Quoting T721
{quote} Sounds like you gonna need a bigger bank
Yes with IG anyway due to the high margin requirements. I can forget it. I have no idea how/if this can be traded with the other brokers. See my previous post. No idea anymore.
  • #3,222
  • May 16, 2024 9:48am May 16, 2024 9:48am
Quoting Waveskierrob
{quote} Definitely, will increase lot size each week as confidence grows...
Yep I'm up to 2 x £5 per point just really pisses me off if I want to trade £50 per point I'd need to leave £100k in the care of my broker thanks to the EU bollocks
  • #3,223
  • May 16, 2024 9:52am May 16, 2024 9:52am
Quoting T721
{quote} you can scalp it as well... leave your core position on then get 3 or 4 scalps for a few points each
Oohhhhhh....!

What's that I hear? It's a big penny dropping
  • #3,224
  • May 16, 2024 9:54am May 16, 2024 9:54am
Quoting Fagin
{quote} Yep I'm up to 2 x £5 per point just really pisses me off if I want to trade £50 per point I'd need to leave £100k in the care of my broker thanks to the EU bollocks
Margin for £100 is only £42,200 on IG

and 2 x £5 or £10 would be £4220
  • #3,225
  • May 16, 2024 9:54am May 16, 2024 9:54am
Quoting Fagin
{quote} Oohhhhhh....! What's that I hear? It's a big penny dropping
  • #3,226
  • May 16, 2024 9:56am May 16, 2024 9:56am
Quoting Fagin
{quote} Oohhhhhh....! What's that I hear? It's a big penny dropping
Some friends i taught this to trade @ £500 ---- 5 x £100 then they use 3 or 4 £50 positions for scalp wages
  • #3,227
  • May 16, 2024 9:56am May 16, 2024 9:56am
Quoting T721
{quote} Some friends i taught this to trade @ £500 ---- 5 x £100 then they use 3 or 4 £50 positions for scalp wages
Honestly there are thousands of ways to trade it and makes me more money in one year than you gonna get paid in a decent 9-5 job
  • #3,228
  • May 16, 2024 9:59am May 16, 2024 9:59am
Quoting T721
{quote} Some friends i taught this to trade @ £500 ---- 5 x £100 then they use 3 or 4 £50 positions for scalp wages
So yesterday dividend woulda made em over 10k on their initial positions if they got out exactly at gap fill. If they held for a few points more they mighta got another 1 or 2k plus their scalp money trades
  • #3,229
  • May 16, 2024 10:00am May 16, 2024 10:00am
Quoting Fagin
{quote} Yep I'm up to 2 x £5 per point just really pisses me off if I want to trade £50 per point I'd need to leave £100k in the care of my broker thanks to the EU bollocks
turn that to 5 x £2 ---- you can then use 2 of em for scalps then put em back on if it drops
  • #3,230
  • May 16, 2024 10:01am May 16, 2024 10:01am
Quoting griffc
{quote} "They start on June 11, 2018. So 5,9 years." Also, you can extrapolate gap close data from the start of IG data provision - Sadly I can't remember the dates for this image but for what it's worth it's a daily TF snapshot and the principle remains useful for visual confirmation if nothing else. My IG data goes back to November 1990. Sure I don't know what happened on the 2minute chart back in 1990 but I know that *if* the Wednesday gapped down then I can see on the daily TF if it closed the gap over the next few days. and get a worst...
This is very cool. Simple but I wouldn't have thought of it! Thanks.

Thinking of that one that went south.. I think 2 positions in with a bit of margin and if it gets called it gets called... hmm the stats are looking great though.
  • #3,231
  • May 16, 2024 10:01am May 16, 2024 10:01am
Quoting T721
{quote} turn that to 5 x £2 ---- you can then use 2 of em for scalps then put em back on if it drops
Just keep at it and you will develop your own way to trade it but by now you can see how powerful it is
  • #3,232
  • May 16, 2024 10:02am May 16, 2024 10:02am
Quoting T721
{quote} Just keep at it and you will develop your own way to trade it but by now you can see how powerful it is
And even when on hols you can still trade it from beach
  • #3,233
  • May 16, 2024 10:02am May 16, 2024 10:02am
Gotta go .... later guys
  • #3,234
  • May 16, 2024 10:09am May 16, 2024 10:09am
Quoting T721
{quote} turn that to 5 x £2 ---- you can then use 2 of em for scalps then put em back on if it drops
Thanks T I'll try this on CAC next week. Can't wait, love this
  • #3,235
  • May 16, 2024 10:50am May 16, 2024 10:50am
Quoting T721
{quote} Margin for £100 is only £42,200 on IG and 2 x £5 or £10 would be £4220
Sorry yes you are right I'm thinking of getting to £100 per point x2 positions would be £84k margin plus change leaving £15k ish for overnight and a few pips dip.

Either way with scalping there's no getting around the margin requirements. Still that's a way off for me yet , can't get my head round leaving that much in overnight with a broker, as big as IG is.. plus my mattress would sink
  • #3,236
  • May 16, 2024 11:19am May 16, 2024 11:19am
Quoting T721
{quote} you can scalp it as well... leave your core position on then get 3 or 4 scalps for a few points each
What’s the advantage of doing 3-4 scalps instead of placing a second core position or simply increase the initial position and let the market do the work?

Just because you „scalp“ you aren’t suddenly immune against price going the other way. It’s always interesting to see people here using the word scalping without further explanations as if this is some kind of free money.

So where do you place your stops on these 3-4 scalps would be more important to know and what you do then it you get stopped out. Doing another scalp? You‘re now running behind your money trying to recover first what you have lost + you‘re probably now even spending more time on front of the screen instead of enjoying your life.

I hope that isn’t too negative again…
  • #3,237
  • May 16, 2024 11:53am May 16, 2024 11:53am
Quoting lddd
{quote} What’s the advantage of doing 3-4 scalps instead of placing a second core position or simply increase the initial position and let the market do the work? Just because you „scalp“ you aren’t suddenly immune against price going the other way. It’s always interesting to see people here using the word scalping without further explanations as if this is some kind of free money. So where do you place your stops on these 3-4 scalps would be more important to know and what you do then it you get stopped out. Doing another scalp? You‘re now running...
You can trade it anyway you like. Just build a system round it that suits you, there are no hard and fast rules. the more experience you get trading it for the rest of the year will give you confidence in the process. Just keep at it each week with real money, take your time, add a small % each month or two and journal it live going forward ...... Its easy really. Good luck n let me know how you get on by end of August
  • #3,238
  • May 16, 2024 12:01pm May 16, 2024 12:01pm
Quoting Fagin
{quote} Sorry yes you are right I'm thinking of getting to £100 per point x2 positions would be £84k margin plus change leaving £15k ish for overnight and a few pips dip. Either way with scalping there's no getting around the margin requirements. Still that's a way off for me yet , can't get my head round leaving that much in overnight with a broker, as big as IG is.. plus my mattress would sink
The first person I introduced to this loaded up their account on a couple of credit cards just for the margin, said they were going to withdraw the core and pay off the cards in full each month so no interest charges, then reload the account for margin the next month. I just hope they remembered to do that

The IG margin is challenging !
always learning
  • #3,239
  • May 16, 2024 12:48pm May 16, 2024 12:48pm
Quoting griffc
{quote} The first person I introduced to this loaded up their account on a couple of credit cards just for the margin, said they were going to withdraw the core and pay off the cards in full each month so no interest charges, then reload the account for margin the next month. I just hope they remembered to do that The IG margin is challenging !
whoa! I like his commitment though 10/10
  • #3,240
  • May 16, 2024 1:15pm May 16, 2024 1:15pm
Here‘s what ICM answered to me about the dividend adjustments. I asked them why they only show a 3,4 Points gap on the latest ftse figure that came out at 20.80.

Quote
Please be informed that the Dividends adjustment that will be performed on the relevant Index is based off the points released as per the underlying market.

However, this does not necessitate that the dividend adjustment will be exactly the same figure as the adjustment. (such as in the link you have provided for this example)

The specific formula used to calculate dividend adjustments can vary between CFD providers, but it generally involves estimating the dividend yield of the index and adjusting the position's value accordingly.
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