DislikedI don't ever use the "feature", as my brokers don't allow it, but just had a quick question to those that do, or understand it better maybe.
I'll keep it simple for the sake of keeping it "light reading" and quicker to sus what I'm inquiring about.
I had a conversation (argument with a friend about this and this is how he seems to use it. (I'll try and use what's on the charts now) I'm GMT by the way, so if I say morning/afternoon etc. you now where I'm coming from.
Let say you're long g/u [email protected] from this morning. Your target's 1.9600.
During the day price retraces some of the run up just after lunch, and you short @1.9530 (1lot/2lots doesn't matter, although he said he doubles up on his "hedge"), clip it for 30 pips down to 1.9500 close and continue about your business with the long still running.
That hits tp @1.9600 late afternoon during NY session.
Arguably, two separate transactions, twice the spread still counts, but kind of an interesting concept, no?
Granted, I still don't call this a hedge in it's true form, but it seems there is some kind of method to the madness. If your broker allows it, and you want to do it, it's weirdly profitable. Unless I'm just not seeing something here.
I know that at the time you have both that long and short open you've zero'd your position, but if you can tp on both, have you really at the end of the day? As they are not placed at the same time. Also the double-up on the short is an interesting spin on it.
Didn't steviet say he does something like this too? Could you confirm mate?Ignored
So many tell me that it can't be done, my risk reward ratio is crazy, what about paying the spread multiple times etc etc but all I can say is it works for me and works very well. I'm confident in what I do so it's all water off a duck's back to me.
I have posted what I do elsewhere in the forum previously but it's so far away from how most 'conventional' traders look at the market that few seem to 'get it'. No worries, plenty of ways to make money consistently and I choose to do it my way
Kind Regards
Steve