Technical Analysis Fallacy | Page 330 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

The Ultimate Fallacy in Technical Analysis 99 replies

"Technical Analysis Fallacy" thread people, I need your help 54 replies

Technical Analysis Fallacy Redux 23 replies

Statistical analysis fallacy 33 replies

Attachments: Technical Analysis Fallacy
Exit Attachments

Technical Analysis Fallacy

  • #6,581
  • Apr 13, 2009 8:16pm Apr 13, 2009 8:16pm
Quoting Marlon
Thank to all of you for the kind words.I am looking forward to partisipate in the discussion actively. Is everybody using LIFO to close the possitions ?
Can't speak of others, but that is what I do mostly.

Except in situation I wish to exit a few or all levels at the same time, I use a opposite order of the same total size to hedge (FXDD allows that, IBFX don't) and then individually close all the hedged orders.
  • #6,582
  • Apr 13, 2009 9:05pm Apr 13, 2009 9:05pm
I am not trying to be stupid but would you clerify why are you hedging and what are the advantages ? Or simple example will do it.
  • #6,583
  • Edited 9:34pm Apr 13, 2009 9:11pm | Edited 9:34pm
New NFA regulations will make it impossible to hedge the same account starting in May.

I'll try to find a link for everyone,the notice was emailed to me but you can probably find it using a google search.

edit, here's a copy of the proposal, go to page 6. under Compliance Rule 2-43(b) Offsetting transactions

http://www.nfa.futures.org/news/PDF/...Adj_112408.pdf

nfa notification link

http://www.nfa.futures.org/news/news...ArticleID=2273
  • #6,584
  • Apr 13, 2009 9:56pm Apr 13, 2009 9:56pm
Quoting Marlon
I am not trying to be stupid but would you clerify why are you hedging and what are the advantages ? Or simple example will do it.
I don't "hedge" for hedging, but I hedge to close a group of positions at a single price simultaneously.

Eg:

S 0.1x1.3300
S 0.2x1.3280
S 0.3x1.3260

As price reaches 1.3255, I would like to close the last 2 orders at the same time, but I am afraid that price will move away if I will to close the last 2 orders individually. So I enter B0.5x1.3255, once done, I right click on the B0.5 order to close, choose "close by", pick S0.3 and then S0.2. I am effectively closing S0.2 & S0.3 order at 1.3255, leaving scout S0.1 in place.

Pls note: FXDD allows this, but IBFX don't. Not sure about other brokers.
  • #6,585
  • Apr 13, 2009 10:18pm Apr 13, 2009 10:18pm
Quoting auxesis
New NFA regulations will make it impossible to hedge the same account starting in May.

I'll try to find a link for everyone,the notice was emailed to me but you can probably find it using a google search.

edit, here's a copy of the proposal, go to page 6. under Compliance Rule 2-43(b) Offsetting transactions

http://www.nfa.futures.org/news/PDF/...Adj_112408.pdf

nfa notification link

http://www.nfa.futures.org/news/news...ArticleID=2273
Hi, Auxesis:

Thanks for your info. So finally NFA stopped so called "hedging" in retail brokers. Such hedging is only a newbie's self-cheating. Glad NFA stopped that practice.

But as for price adjustment rule one, what about data-feed error? The price adjustment still has to be in favor of customers? Not fair to brokers.
  • #6,586
  • Apr 14, 2009 1:40am Apr 14, 2009 1:40am
Quoting hcong168
I don't "hedge" for hedging, but I hedge to close a group of positions at a single price simultaneously.

Eg:

S 0.1x1.3300
S 0.2x1.3280
S 0.3x1.3260

As price reaches 1.3255, I would like to close the last 2 orders at the same time, but I am afraid that price will move away if I will to close the last 2 orders individually. So I enter B0.5x1.3255, once done, I right click on the B0.5 order to close, choose "close by", pick S0.3 and then S0.2. I am effectively closing S0.2 & S0.3 order at 1.3255, leaving scout S0.1 in place.

Pls note: FXDD...
Hi all
... and that manner , me gives strategic possibilities.
(I do not want to present here may confuse other).

Regards
  • #6,587
  • Apr 14, 2009 4:42am Apr 14, 2009 4:42am
wer r the london boys ?
euro so lethargic...
is there some impending news this week ppl are waiting for?
To Live is the rarest thing in the world , Most people exist , that is all
  • #6,588
  • Apr 14, 2009 5:19am Apr 14, 2009 5:19am
Quoting maheswara
wer r the london boys ?
euro so lethargic...
is there some impending news this week ppl are waiting for?
Hi maheswara

Today is the feast USD

  • #6,589
  • Apr 14, 2009 6:36am Apr 14, 2009 6:36am
Quoting Gro
Hi maheswara

Today is the feast USD

wats feast usd?
yest was easter n I thought that was the last one ...
To Live is the rarest thing in the world , Most people exist , that is all
  • #6,590
  • Apr 14, 2009 6:53am Apr 14, 2009 6:53am
Quoting maheswara
wer r the london boys ?
euro so lethargic...
is there some impending news this week ppl are waiting for?
retail sales in half an hour
  • #6,591
  • Apr 14, 2009 7:05am Apr 14, 2009 7:05am
Quoting maheswara
wats feast usd?
yest was easter n I thought that was the last one ...
Hi maheswara

I think reference to the FF Calendar

Regards

  • #6,592
  • Apr 14, 2009 7:23am Apr 14, 2009 7:23am
Quoting Green_David
Hi, Auxesis:

Thanks for your info. So finally NFA stopped so called "hedging" in retail brokers. Such hedging is only a newbie's self-cheating. Glad NFA stopped that practice.
Hi David,

have no idea what the new NFA rules are saying in detail and if that way of hedging will be stopped, but you are not right with your opinion above. There is a very strong advantage with hedging the same account regarding your marging usage. Perhaps that could only be of interest when you are doing some very high leveraged trading/scalping like my way of PowerDancing ...

Have to do some research about the new rules.

Thanx @Auxesis for the info!

Regards,
MaMood
  • #6,593
  • Apr 14, 2009 7:47am Apr 14, 2009 7:47am
Quoting MaMood
Hi David,

have no idea what the new NFA rules are saying in detail and if that way of hedging will be stopped, but you are not right with your opinion above. There is a very strong advantage with hedging the same account regarding your marging usage. Perhaps that could only be of interest when you are doing some very high leveraged trading/scalping like my way of PowerDancing ...

Have to do some research about the new rules.
Thanx @Auxesis for the info!

Regards,
MaMood
Hi MaMood
... even though the new rules, always can be somehow circumvented

Regards
  • #6,594
  • Apr 14, 2009 8:29am Apr 14, 2009 8:29am
I entered the CFTC site and emailed them this:

Congratulations NFA and CFTC. Thanks to Compliance Rule 2.43(b) for forex transactions, I will probably move my funds away from USA and never look back. Surely, many will do the same. You don't know what you are doing. Those stupid bureaucratic minds that created this absurd ban seem to have no clue at all about how to make money in the forex market. They try to destroy what they don't understand. Go fight FRAUD, this is your true role. Don't tell people how to trade if you don't know it by yourselves.
  • #6,595
  • Apr 14, 2009 8:54am Apr 14, 2009 8:54am
just my thought ...
when u "hedge" , isnt it the same like closing the position thats already there ...
if ur argument is that u can remove the hedging position when market moves ur way again ,
isn't it logically equivalent to closing your first position instead of hedging it and then reopening it back when market moves ur way ...

I really dont see much usage in the hedge thing ... except maybe for what mammood has said ,the margin thing ... but again when u close ur position , aint ur margin usage becomes 0 ? that shld be lesser than whatever hedge margin requirement needs...

Am I missing any point or wrong in someway ?
To Live is the rarest thing in the world , Most people exist , that is all
  • #6,596
  • Apr 14, 2009 9:20am Apr 14, 2009 9:20am
Quoting maheswara
just my thought ...
when u "hedge" , isnt it the same like closing the position thats already there ...
if ur argument is that u can remove the hedging position when market moves ur way again ,
isn't it logically equivalent to closing your first position instead of hedging it and then reopening it back when market moves ur way ...

I really dont see much usage in the hedge thing ... except maybe for what mammood has said ,the margin thing ... but again when u close ur position , aint ur margin usage becomes...
Hi Maheswara,

You are right, it is the same thing. So, there is no point in discussing the "merits" of "hedging". It is a question of personal preference. For programming, it is much much much ... much much much simpler to implement "hedging" than stopping out. Nothing more than this. This is only my point of view, too. There is a false argument that "hedging" pays double spread. The costs are exactly the same. The results are exactly the same. So again, it is just a matter of personal preference. For me, simplicity is mandatory.
  • #6,597
  • Apr 14, 2009 9:30am Apr 14, 2009 9:30am
Quoting Jairo
Hi Maheswara,

You are right, it is the same thing. So, there is no point in discussing the "merits" of "hedging". It is a question of personal preference. For programming, it is much much much ... much much much simpler to implement "hedging" than stopping out. Nothing more than this. This is only my point of view, too. There is a false argument that "hedging" pays double spread. The costs are exactly the same. The results are exactly the same. So again, it is just a matter of personal preference. For me, simplicity is mandatory.
well, it is double spread..

i can only see psychological benefits.

this has been discussed a lot in this forum, no need for another round.
  • #6,598
  • Apr 14, 2009 10:13am Apr 14, 2009 10:13am
ah allrite
everyone got their own way I guess ,
K guys , those still trading , good luck
m off for today ,

good trade n good luck
To Live is the rarest thing in the world , Most people exist , that is all
  • #6,599
  • Apr 14, 2009 10:33am Apr 14, 2009 10:33am
Quoting MaMood

Have to do some research about the new rules.
NFA is US National Futures Association. That means new rules apply to US based brokers. For EU (and Swiss) based broker everything remains the same.
  • #6,600
  • Apr 14, 2009 10:43pm Apr 14, 2009 10:43pm
now if this "hedging" thing is abt shorting and longing the same currency at the same time, then i dun see why it should not be banned.

i believe fti has covered this once before.

anyway i dont ever know why they would even call this hedging, sounds more like pigging to me.

ah, dun wanna get into another argument on this, bottom line for me is this is a crap feature which only encourages pigging
70 traders viewing now