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Technical Analysis Fallacy

  • #6,661
  • Apr 19, 2009 7:09am Apr 19, 2009 7:09am
Quoting ukmanthailan
What NFA rule are you guys talking about?
You can read more about this news in these links:

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

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

The most ridiculous piece of crap I have seen since I started trading.
  • #6,662
  • Apr 19, 2009 3:09pm Apr 19, 2009 3:09pm
I'm sorry, I came in the wrong door, thought this was the TAF thread.
  • #6,663
  • Apr 19, 2009 6:23pm Apr 19, 2009 6:23pm
Quoting auxesis
I'm sorry, I came in the wrong door, thought this was the TAF thread.
In US based brokers TAF rescues will be impossible with the new rule.
  • #6,664
  • Apr 19, 2009 6:29pm Apr 19, 2009 6:29pm
Quoting Jairo
In US based brokers TAF rescues will be impossible with the new rule.
How do you figure, you can still close each entry separately, if you sell against your open overall long position then your first trades will be taken off first, but you can still close any single entry at any time, nothing has changed except you can not be long and short the same pair in a single account.

Your hedging is not a TAF rescue
  • #6,665
  • Apr 19, 2009 6:39pm Apr 19, 2009 6:39pm
Quoting auxesis
I'm sorry, I came in the wrong door, thought this was the TAF thread.
Me too...
I think I am in the hedging thread...
I'd better restart my browse....
Empty as water and soft as a facing wind mountain
  • #6,666
  • Apr 19, 2009 6:55pm Apr 19, 2009 6:55pm
Quoting auxesis
How do you figure, you can still close each entry separately, if you sell against your open overall long position then your first trades will be taken off first, but you can still close any single entry at any time, nothing has changed except you can not be long and short the same pair in a single account.

Your hedging is not a TAF rescue
Scouts will always be killed forcedly if this goes into efffect. "First in first out" will disrupt attacks and rescues. I think they are aiming at much more than this. All martingales and grids will be disrupted by this rule too.
  • #6,667
  • Edited 7:33pm Apr 19, 2009 7:14pm | Edited 7:33pm
Quoting Jairo
Scouts will always be killed forcedly if this goes into efffect. "First in first out" will disrupt attacks and rescues. I think they are aiming at much more than this. All martingales and grids will be disrupted by this rule too.
Jario,

If I sell,
1 @ 3000 and
3 @ 3050

I can take off either the 3 or the 1 at any time, if I buy 1 against my total 4 short then the first entry will be taken out. If I buy 2 against the over all then the 1 @ 3000 and 1 of the 3 @ 3050 will come off.

If I sell,
1 @ 3000 and then individual entries
1 @ 3050
1 @ 3050
1 @ 3050

I can take them off any time, any order i want by closing each individual order, if I buy against the overall position then they come off first in first out.

does this make sense to you?

First in first out is a common practice by most b roker s already, then only thing that will really change will be the ability to be both long and short from the same account.

If you must hedge open parallel accounts with your broke r and hedge between the two, just transfer accordingly when they become out of balance to keep from margin calls.

I must add I hate word links being added to my posts
  • #6,668
  • Apr 19, 2009 9:05pm Apr 19, 2009 9:05pm
I also cannot see how this affects attack or rescue strategy. You can open orders and close them as usual. I haven't read anything in the strategy that advocated taking contrary positions in the same currency pair. What would be the point of that in any case?
  • #6,669
  • Apr 19, 2009 9:10pm Apr 19, 2009 9:10pm
Hi All,

Anyone trading...USD Bull here...


being nimble...

V
  • #6,670
  • Apr 19, 2009 10:01pm Apr 19, 2009 10:01pm
it doesnt matter if its fifo or lifo ,
ur average position will be compensated in the profit / loss ...

hey V,
hows it goin ,
ill wait for london
To Live is the rarest thing in the world , Most people exist , that is all
  • #6,671
  • Apr 19, 2009 11:27pm Apr 19, 2009 11:27pm
That is what I was thinking too re. fifo, lifo. But again, unless you are in the habit of closing out your trades by entering similar sized trades in the opposite direction, how does it affect us?
  • #6,672
  • Apr 20, 2009 3:03am Apr 20, 2009 3:03am
Hi auxesis and ukmanthailan,

Maybe you are right in your understanding of first in first out. We will see in a few weeks. Good trading.
  • #6,673
  • Apr 20, 2009 4:53am Apr 20, 2009 4:53am
Quoting ukmanthailan
That is what I was thinking too re. fifo, lifo. But again, unless you are in the habit of closing out your trades by entering similar sized trades in the opposite direction, how does it affect us?
it doesnt and it shouldnt. like mahes has mentioned its our total average position in the market that matters. we are after all tracing the market pulse. so i really dun understand why the need of hedging comes into equation.

less we are talking options. like i said, i dun even know why the call it hedging in the first place. imo this thing exists coz the broker want to earn spreads from you. Id rather call it the, "you just gave the broker a 4pip trade off." heheh

Quoting fti
Hi ALL,

Sorry that I have not been active in the Trading Room. I had been very engaged at my thread at the common area, as well as some other personal chores.

Initially , I had this same issue bugging me, about the retail Fx broking accounting standards.

Having being a spot fx man and a futures exchange member in my career, I find it disturbing that this erroneous accounting practise is being adopted by the retail fx brokers.I thought that this was the practise only by bucket shops.This surely is not the practise of good houses and banks of...
http://www.forexfactory.com/showpost...&postcount=128

Quoting fti
I hope that I do not overstep myself to request, if forexfactory, can start a sticky to identify all the brokers who are practising this mode of book accounting. And brand them as practising bad accounting and thereby clean up the act of all this malpractise from this industry which is in its's infancy. In doing so, send a message to brokers to be aware that not all retail forex traders can be suckered into brokerage wasting, self deceiving trades. And hiding actual losses by masking them as unrealised losses.
thank god forexfactory dun have to do it, seems that nfa and america is finally cleaning up their mess
  • #6,674
  • Apr 20, 2009 5:47am Apr 20, 2009 5:47am
Quoting jest1081
it doesnt and it shouldnt. like mahes has mentioned its our total average position in the market that matters. we are after all tracing the market pulse. so i really dun understand why the need of hedging comes into equation.

less we are talking options. like i said, i dun even know why the call it hedging in the first place. imo this thing exists coz the broker want to earn spreads from you. Id rather call it the, "you just gave the broker a 4pip trade off." heheh



http://www.forexfactory.com/showpost...&postcount=128...
Hi, Jest:

Well said. The so called "hedging" can never happen in futures market since it has a clearing house. The MM retail forex is a new business model providing forex trading access to retail traders --- most of them are newbies. So there was a strange and abnormal "hedging" stuff.

But who cares? The losers keeping losing no matter "hedging".
  • #6,675
  • Apr 20, 2009 5:51am Apr 20, 2009 5:51am
No problem. I am flying away. But... will adapt to single sided trades too. I don't know if this change will spread overseas... Good trading to all.
  • #6,676
  • Apr 20, 2009 8:01am Apr 20, 2009 8:01am
just a question about dealer from this thread and an attempt to create a healthy discussion around here ...

an excerpt-

For dealers, its a different game, because when markets are going up in a BEAR market, customers keep making them short,
their book keeps getting bigger short, but their average cost of being short keeps going up.
all they have to do is to wait for the trend to enforce and
when the market returns to the point where the buying started ,
he would make nearly the amount of money that made him short in the first place.

does this mean a dealer expects market to return to the swing starting point ... market would return to that point , if the swing was against the overall trend (he mentioned in the beginning up in a bear market),
when the swing is with the trend , high chance it wont return to the swing starting point, what would a dealer do at such instances ?
To Live is the rarest thing in the world , Most people exist , that is all
  • #6,677
  • Apr 20, 2009 10:58am Apr 20, 2009 10:58am
Quoting maheswara
it doesnt matter if its fifo or lifo ,
ur average position will be compensated in the profit / loss ...

hey V,
hows it goin ,
ill wait for london

Hey Mahesh,

I booked a 0.1% loss as it was late like 1.30 and i was in battle in like 4 hours... will post the chart when i go home today...


V
  • #6,678
  • Apr 20, 2009 3:23pm Apr 20, 2009 3:23pm
Anyone here short EU?
  • #6,679
  • Apr 20, 2009 6:19pm Apr 20, 2009 6:19pm
Quoting maheswara
just a question about dealer from this thread and an attempt to create a healthy discussion around...
My intepretation:
Bear market - the main overall daily trend is to go down.

when markets are going up in a BEAR market, customers keep making them short - currently, its goinging up, so many market participants are long and the dealer is taking the counter-trade which is short.

all they have to do is to wait for the trend to enforce and
when the market returns to the point where the buying started - the dealers would wait until the market turns around and heads back to the starting point because the overall trend is down.

What happens when there is a swing thats really strong in the opposite direction and there is no more room left for the dealer: I guess when he detects a change, he'll cut his loss.
Read 'The disciplined trader'.
  • #6,680
  • Apr 21, 2009 4:10am Apr 21, 2009 4:10am
ya hpr,
maybe they cut losses when its against the trend ,

btw zew shows first positive value since Aug 2007 ...
To Live is the rarest thing in the world , Most people exist , that is all
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