Dislikedyes of course DOM is fundamental for entering orders, I use Multicharts DT
DOM interface, it's rocks and it's free! Get a try!
regardsIgnored
I cant open MCDT and MBT Pro at the same time.
MB Trading Futures - Introduction
Unfortunately I've seen this debate play out too many times here in the past two years-- hedgers are pretty stubborn about this issue, and no matter how many times you explain that anything that is done with hedging can be done the exact same way by going flat and with less risk, it doesn't matter to them.
Having two open positions when you are trading different time frames is probably easier to keep track of then one position (long term) you close out when you want to take an opposite position (short term). Still doesn't change the fact that...
Exactly this. It's amazes me that this can actually be an issue.
- #7,211
- Apr 12, 2011 11:24am Apr 12, 2011 11:24am
If I am in a long-term position on a pair, and want to take a short-term position in the opposite direction to capitalize on a retraction, for example, with my long-term bias still in place, why would I want to pay spread and commission to close my long term position and then to re-open it after I close my short-term position? It amazes me that some folks would want to give away profits like this.
basic numbers for the sake of simplicity...
(1) buy long @ 1.4 ($1 commission)
(2) close long @ 1.6 ($1)
(3) buy long @ 1.4 after retracement ($1)
(4) close long @ 1.6 ($1)
hedging
(1) buy long @ 1.4 ($1)
(2) sell short @ 1.6 ($1)
(3) close short @ 1.4 ($1)
(4) close long @ 1.6 ($1)
four transactions, same commission structure, except going into daily rollover you would rather be flat than hedged-- if you are hedged, you WILL be paying more in interest than you make.
But I really don't want to get into a hedging argument, I apologize for bringing it up. You can hedge with two accounts with MBT, end of story.
(1) buy long @ 1.4 ($1 commission)
(2) close long @ 1.6 ($1)
(3) buy long @ 1.4 after retracement ($1)
(4) close long @ 1.6 ($1)
hedging
(1) buy long @ 1.4 ($1)
(2) sell short @ 1.6 ($1)
(3) close short @ 1.4 ($1)
(4) close long @ 1.6 ($1)
four transactions, same commission structure, except going into daily rollover you would rather be flat than hedged-- if you are hedged, you WILL be paying more in interest than you make.
But I really don't want to get into a hedging argument, I apologize for bringing it up. You can hedge with two accounts with MBT, end of story.
If I am in a long-term position on a pair, and want to take a short-term position in the opposite direction to capitalize on a retraction, for example, with my long-term bias still in place, why would I want to pay spread and commission to close my long term position and then to re-open it after I close my short-term position? It amazes me that some folks would want to give away profits like this.
Bottom line, hedging costs more money to make you think that your accounting is different than it is. Having said that, you just need to open two accounts and you can do the same thing.
- #7,217
- Apr 12, 2011 12:20pm Apr 12, 2011 12:20pm
I'll agree to disagree.
The reason hedging would work out better in my specific case, at least (I'm with MBT, so I can't hedge now), is that my short-term retraction trades are generally much larger position size than the long term trade they are in the middle of.
So, if the retraction that I am trading is 5 lots, as opposed to the 1 lot I'm in the longer term trade for, my profit on that same retraction is 5 times greater than what I "save" by going flat and re-entering at the same original position size when the retraction ends. Given the wider stop I'd have on the longer term trade, I almost certainly would not want to re-enter it with 5 lots, so I'm not making up the same by being flat during the retraction as I would be trading it with a larger position. Of course, that assumes I never lose - so there's some margin for error.
Maybe my style is different than most, but the accounting absolutely is different. And yes, I agree a second account accomplishes the same thing. It just saves a little time when tax time rolls around to not have keep records for two separate accounts.
Happy Trading.
The reason hedging would work out better in my specific case, at least (I'm with MBT, so I can't hedge now), is that my short-term retraction trades are generally much larger position size than the long term trade they are in the middle of.
So, if the retraction that I am trading is 5 lots, as opposed to the 1 lot I'm in the longer term trade for, my profit on that same retraction is 5 times greater than what I "save" by going flat and re-entering at the same original position size when the retraction ends. Given the wider stop I'd have on the longer term trade, I almost certainly would not want to re-enter it with 5 lots, so I'm not making up the same by being flat during the retraction as I would be trading it with a larger position. Of course, that assumes I never lose
- so there's some margin for error.Maybe my style is different than most, but the accounting absolutely is different. And yes, I agree a second account accomplishes the same thing. It just saves a little time when tax time rolls around to not have keep records for two separate accounts.
Happy Trading.