How do you get out of your Hedge trade? | Page 4 | Forex Factory

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How do you get out of your Hedge trade?

  • #61
  • Jul 14, 2008 12:19pm Jul 14, 2008 12:19pm
How difficult is it to spell 'the' or 'that' or 'this'? Do you think people are going to respect you more because you write like someone with a speech impediment sounds? Or do you think it makes you sound 'street'? Because if you do, you are wrong on both counts. Type English retard.


Steviet, I wasn't calling you an idiot. Far be it from me to criticize someone else's method, especially if it serves them well, I just hoped someone could explain the logic behind it. As yet nobody has even attempted a reasonable explanation.

Philanthropy has got nothing to do with my point earlier. Trading is about making money, and thus you should aim to maximize profits with respect to certain limitations (leisure time, probability of gaining profits etc).. I believe many people hedge as they can not mentally handle closing losing positions. By hedging on the same currency to the same value in the opposite direction it postpones the realization of the loss, minimizing the emotional pain of losing money. The objectives of the trader have diverged from the profit seeking to the pain minimizing, making decisions based on emotions and fear.
  • #62
  • Jul 14, 2008 12:23pm Jul 14, 2008 12:23pm
Quoting robertsonakp
dont mind them, i advice dem to just improve their IQ on this subject matter, try to see a sense in it, try to see tactical approaches that can be made to it AND NOT KILLING THIS WHOLE IDEA ! INFACT IF THEY CAN DO, AT LEAST DEY WILL BE LIKE US SUCCESSFUL TRADERS !
And on that note, I'm off. Best of luck boys.
  • #63
  • Jul 14, 2008 12:35pm Jul 14, 2008 12:35pm
as at this writing , i have another hedged positions on gbpusd which i opened at 1.9750 and 1.9753 respectively. i am going to use d previous tactic which i have been saying. the two trades are sill on. i hope to post the result in here to proove dat i have made another net profit.
know thy edge and abide by it ! 4 in it shall thou be successful !
  • #64
  • Jul 14, 2008 12:46pm Jul 14, 2008 12:46pm
Quoting robertsonakp
as at this writing , i have another hedged positions on gbpusd which i opened at 1.9750 and 1.9753 respectively. i am going to use d previous tactic which i have been saying. the two trades are sill on. i hope to post the result in here to proove dat i have made another net profit.
Why do you always spell "th" as "d"?
Take a report.
  • #65
  • Jul 14, 2008 1:29pm Jul 14, 2008 1:29pm
After reading this thread I am reminded as to why I do not frequent message boards except for entertainment purposes.

To respond to the original post. Hedging for me is not an option. For me it is much to stressful,but that's me. Thankfully, the system which I employ, for the past 9 months has afforded me an opportunity get out at worst break even on almost every trade.

If your TA is right on you should not have to hedge. If by chance your TA doesn't work out and the trade goes against you..Regroup and find out where it is going and take a second position. Your average entry should allow you to a least break even.

When I am not sure I will enter 1/3 position if it goes...Great... if not 1/3 at next S or R it if goes I add the final 1/3 on first pull back and take all to the target.

If you completely miss on your TA and the trade goes very wrong nothing is stopping you from closing at a loss and jump in in the right direction. This will depend on how badly you missed.

If one is constantly hedging them maybe one should learn to read charts.
Learn to use money management and be patient. Don't chase the trade let it come to you...If it goes without you so be it there will be another one.
Learn to accept the losses as part of the equation and learn from them.
Also learn from your successes.

MONEY MANAGEMENT MONEY MANAGEMENT MONEY MANAGEMENT

This is just my opinion and feelings on the subject..Anyone taking offense to this post ,to bad, it is not targeted at anyone who posted or reading this
and this will be my only post...So haters save your breath.......

Everyone has thier own tading method if it works for you continue until it doesn't work then find something else. I know that I cannot trade alot of the systems that people profess to use on these forums but it works for them and that's all that counts. Pips in the bank is the only thing that counts no matter how they got there....

GLTA
  • #66
  • Jul 14, 2008 1:40pm Jul 14, 2008 1:40pm
Quoting birdt
Steviet, I wasn't calling you an idiot. Far be it from me to criticize someone else's method, especially if it serves them well, I just hoped someone could explain the logic behind it. As yet nobody has even attempted a reasonable explanation.
Hi birdt,

Sorry, I know you weren't - was just feeling a little mischievous when I popped home for lunch to check on my trades.

I've traded in a more conventional manner with reasonable success but I guess I prefer to trade the way I do. Yes, I realise I pay the spread twice which may seem counterproductive. I don't pay commission on my trades as my position size is large enough not to.

I don't know if you've ever read 'Bird Watching in Lion Country' and nor had I until someone pointed out that there were similarities to the method I use.

For my trading, I'm looking at a single currency pair (GBPJPY) which lends itself well to the way I trade due to it's volatility. I use a large stop loss - really a 'disaster stop' and aim for just 50 pips a trade.

I do see the argument of not facing up to taking losses but whilst a pair stays within a large range of say 1000 pips, why take that loss when there's an excellent chance of taking profit? My position sizes are small in comparison to my account balance and I'll often 'net off' all positions when my equity reaches a certain level. It is at that point that I'm effectively taking a loss on open positions but I choose when to do that.

As with all methods, it's about knowing what you're doing and keeping to the plan you have made as well as being absolutely comfortable with what you are doing. Apart from that I'm a firm believer in whatever method you choose to employ is absolutely fine as long as you end up profitable long term.

Again, apologies to you.

Kind Regards
Steve
  • #67
  • Jul 14, 2008 4:03pm Jul 14, 2008 4:03pm
Quoting CateFul
Why do you always spell "th" as "d"?

i'm here to make money and not to learn english spellings.
know thy edge and abide by it ! 4 in it shall thou be successful !
  • #68
  • Edited 5:27pm Jan 17, 2011 5:26pm | Edited 5:27pm
For retail traders, hedging with the same instrument seems to mostly provide psychological benefits (which can be worthwhile).

However hedging with an option can sometimes provide more tangible performance benefits by improving the risk to reward ratio of your trade. For example buying an ATM (at the money) protective put on a long position can allow you to take a lot more heat for the same amount of risk as placing a stop loss. There is a cost, of course, in decreased potential profits, but in some trading plans, it can be well worth it to give up some potential profits for a reduced risk of losing. This also tends to stabilize your equity curve (less losses, smaller wins) which in most cases is desirable.
  • #69
  • Jun 21, 2015 7:02am Jun 21, 2015 7:02am
The advantage of using a hedge instead of stoploss is you can follow the pair movement/trade even after getting it wrong first time. In case of a stoploss the trade ends right there and one looses track of it. The extra spread for a hedge is definitely worth it.
  • #70
  • Feb 4, 2017 5:15pm Feb 4, 2017 5:15pm
Question to those who are using hedging - how you close the trades when fully hedged price is not respecting the obvious support and resistance levels where you planned to close some position and open another (like in examples you have given)?
  • #71
  • Jun 17, 2017 5:40am Jun 17, 2017 5:40am
Frankly, I have worst experience on hedge trading system, by using hedging trading style I locked my trading account for 3 times! As a result, now I use all of trading styles in my live account without hedging! For me, swing trading style is the most effective one!
  • #72
  • Jun 17, 2017 5:58am Jun 17, 2017 5:58am
I read the first page or so, and please don't hedge the same freaking currency.

A couple of replies expressed why that is just stupid, in fact it's all to do with why you will never be successful if you trade like that. It's a psychological crutch you are using, and nothing to do with finance.

If you think the above is hedging, then you need to educate yourself a bit. Personally I'm not a fan so much of hedging, because I'd rather just close my trade and open it again when I have more information.

In one paragraph, you hedge by trading a negatively correlated derivative in order to compensate for a movement in the other way. No currency in Forex stands alone, if you want the hedge your risk with the Dollar you can literally trade gold, any other USD currency, anything. If you don't know how to do it, freakin don't.
  • #73
  • Jun 17, 2017 6:25am Jun 17, 2017 6:25am
Quoting steviet
{quote} I don't pay commission on my trades as my position size is large enough not to.
i dont understand this sentence.
normaly when you are small you dont trade a commission because you are with a market maker that has much bigger spreads and thatswhy dont use commissions.
or some brokers calculated commissions inside the spread, but this are not best price brokers and commission rebates because of turnover value is more difficult to recalculate .

so you think, you dont pay commission because you have big positions sizes? even with 5-30 yards turnover per month i have never heard about a company that offers zero commission. you can get to about 5/mio HT maybe. but are you really in this area?
  • #74
  • Jun 17, 2017 6:27am Jun 17, 2017 6:27am
Think Robin Hood were doing that, but that may just be stocks? The rest is just a bigger spread.
  • #75
  • Jun 17, 2017 6:32am Jun 17, 2017 6:32am
Quoting dukas_trader
{quote} i dont understand this sentence. normaly when you are small you dont trade a commission because you are with a market maker that has much bigger spreads and thatswhy dont use commissions. or some brokers calculated commissions inside the spread, but this are not best price brokers and commission rebates because of turnover value is more difficult to recalculate . so you think, you dont pay commission because you have big positions sizes? even with 5-30 yards turnover per month i have never heard about a company that offers zero commission....
Dukas_Trader,

Nice to see you after long time...

What is a yard?

Thanks
  • #76
  • Edited 8:55am Jun 17, 2017 8:40am | Edited 8:55am
Quoting aaven
{quote} Dukas_Trader, Nice to see you after long time... What is a yard? Thanks
1 yard= 1 billion
i was here often, but was nothing interesting or important to answer.

but i have to say, i did answer at a post from 2008, i did not look at this . so my answer will not help him a lot .
  • #77
  • Jun 17, 2017 11:24am Jun 17, 2017 11:24am
Quoting dukas_trader
{quote} 1 yard= 1 billion i was here often, but was nothing interesting or important to answer. but i have to say, i did answer at a post from 2008, i did not look at this . so my answer will not help him a lot .
  • #78
  • Nov 25, 2024 10:39pm Nov 25, 2024 10:39pm
Hi there, not sure this thread is still active. I am in a hedge at the moment - 1 sell, and 3 buys. Leverage is 1:100. I'm hoping someone can help me ... Thank you
  • #79
  • Last Post: Dec 19, 2025 12:56pm Dec 19, 2025 12:56pm
Quoting dand
Hi there, not sure this thread is still active. I am in a hedge at the moment - 1 sell, and 3 buys. Leverage is 1:100. I'm hoping someone can help me ... Thank you
Did you get out?
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