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Why is hedging not discussed as much?

  • #21
  • Jun 9, 2014 7:07am Jun 9, 2014 7:07am
Quoting justin7
{quote} then what about delta hedging that you just mentioned??
look up LTCM who used such complex formulas to lose 4.6 billion in 4 months, you need to be educated to do that. and then laugh at the suckers who invested trusting their strategies.
  • #22
  • Jun 9, 2014 7:11am Jun 9, 2014 7:11am
Quoting justin7
{quote} lol i see your myfxbook all buys on eurchf. nothing else. broker arbitrage eh?
No, it's just regular scalping.

You lol all you want, while I have yet another $10K profit month.

This is another really big mistake that retail traders make: instead of finding a trading instrument or situation where all the stars are aligned in their direction, that they can exploit to bring home the bacon with minimal risk, they want to prove that they are Soros or Gekko, and that they can trade any and all markets, while forgetting that even these two traded in the most limited of ways.

If you find laughable the fact that I make a ton of money just by taking EUR/CHF longs, well, that's your right.
  • #23
  • Jun 9, 2014 7:14am Jun 9, 2014 7:14am
Quoting Adal
{quote} No, it's just regular scalping. You lol all you want, while I have yet another $10K profit month. This is another really big mistake that retail traders make: instead of finding a trading instrument or situation where all the stars are aligned in their direction, that they can exploit to bring home the bacon with minimal risk, they want to prove that they are Soros or Gekko, and that they can trade any and all markets, while forgetting that even these two traded in the most limited of ways. If you find laughable the fact that I make a ton...
every single trade is a buy on eurchf obviously somethings up.

yeah yeah be cocky all you want just because you're not taking any risk with your "trading". Just another arbitrage ea guy
  • #24
  • Jun 9, 2014 7:27am Jun 9, 2014 7:27am
Quoting justin7
{quote} every single trade is a buy on eurchf obviously somethings up. yeah yeah be cocky all you want just because you're not taking any risk with your "trading". Just another arbitrage ea guy
Ha ha, so naive. If it's an arbitrage ea, why is the average trade duration 2 days and average trade length 14 pips?

Anyway, you say "arbitrage" and "no risk trading" as they are bad things. You actually want to risk when you trading instead of having a system so good, that on average you always win.

I guess that you also dismiss as not real traders the HFT guys who can trade for 4 years with a single losing day.

Now this is the losing retail traders mentality - not searching for a trading system where the edge is on you. Of course, you would need to know statistics to do that.

OF COURSE I'M TRYING NOT TO TAKE ANY RISK WHEN TRADING. This is a business for me, not a casino.
  • #25
  • Jun 9, 2014 7:46am Jun 9, 2014 7:46am
Quoting Adal
{quote} Ha ha, so naive. If it's an arbitrage ea, why is the average trade duration 2 days and average trade length 14 pips? Anyway, you say "arbitrage" and "no risk trading" as they are bad things. You actually want to risk when you trading instead of having a system so good, that on average you always win. I guess that you also dismiss as not real traders the HFT guys who can trade for 4 years with a single losing day. Now this is the losing retail traders mentality - not searching for a trading system where the edge is on you. Of course, you...
if it's just scalping why only buying on eurchf?

it's not that it's bad. it's because you're trying to claim that you actually trade lol. every single one of your trades is a buy on eurchf. its obvious you're not taking risks with your trading. I'm pointing it out because you're trying to con yourself and your boasting off as actual trading skills. you're not actually trading.

lmao you get so defensive about the whole concept of HFT traders. so that must be what you're doing. why not just admit it?

I'm not saying it's bad I'm pointing it out because you're trying to deny it
  • #26
  • Jun 9, 2014 7:49am Jun 9, 2014 7:49am
Quoting Adal
{quote} Ha ha, so naive. If it's an arbitrage ea, why is the average trade duration 2 days and average trade length 14 pips? Anyway, you say "arbitrage" and "no risk trading" as they are bad things. You actually want to risk when you trading instead of having a system so good, that on average you always win. I guess that you also dismiss as not real traders the HFT guys who can trade for 4 years with a single losing day. Now this is the losing retail traders mentality - not searching for a trading system where the edge is on you. Of course, you...
Hi Adal, nothing wrong with a 27% gain over the past 2 months. I was just wondering though if you think a loss of equity of around 10% (your high in April to your low in May) is low risk considering the size of the gains you are making? At least you only chewed slightly into your original equity. It would be nice though not to have a losing day for the next 4 years and onwards and thanks for your openness on this.
  • #27
  • Jun 9, 2014 7:50am Jun 9, 2014 7:50am
Quoting Adal
{quote} Now this is the losing retail traders mentality - not searching for a trading system where the edge is on you.
no the problem is the ones that do have these things the "hft" traders as you say aren't going to divulge their scripts and programs so of course retail traders won't find it. It's not for lack of trying that's for sure.
  • #28
  • Jun 9, 2014 7:52am Jun 9, 2014 7:52am
Quoting Adal
{quote} Ha ha, so naive. If it's an arbitrage ea, why is the average trade duration 2 days and average trade length 14 pips? Anyway, you say "arbitrage" and "no risk trading" as they are bad things. You actually want to risk when you trading instead of having a system so good, that on average you always win. I guess that you also dismiss as not real traders the HFT guys who can trade for 4 years with a single losing day. Now this is the losing retail traders mentality - not searching for a trading system where the edge is on you. Of course, you...
why you even getting so mad and defensive? You're getting a lot of free money. good job by doing your research and knowing what to look for and being creative enough to come up with a little formula. Enjoy your free riskless money.

But from now on you can stop the boasting you're not fooling anyone. you're not a real trader
  • #29
  • Jun 9, 2014 7:59am Jun 9, 2014 7:59am
Quoting TranceTrader
The complete lack of any financial knowledge across these types of threads no longer surprises me but what does surprise me is the non existent appetite to understand these topics. The time wasted in pursuit of riches using the garbage across this forum... you'd think it could be put to better use by just simply learning & understanding finance and the markets in general. {quote}
I can see you are online trance, so it looks like it is up to you to spill the beans on the holy grail of the Hedge Trade.
  • #30
  • Jun 9, 2014 8:01am Jun 9, 2014 8:01am
Quoting surfbeach253
{quote}It would be nice though not to have a losing day for the next 4 years and onwards and thanks for your openness on this.
I wish I was that good. I was not talking about me, but about HFT firm Virtu - http://www.businessinsider.com/virtu...ing-day-2014-3

Justin, to understand why I only take longs on EUR/CHF you need to understand the history of this pair in the last 3 years. It's a heavily manipulated pair (by theirs central bank). This is why my trading is "riskless". Because I have a central bank backing me up.

But I see your point. I don't want to be a trader. I want to make money. If I could find a trading asset that has the price of 7 in the morning, and 8 in the evening, I would trade only that, day after day, year after year. I couldn't care less if people said that that is not real trading, that the movement is obvious and that there is no real risk involved. I would just be puzzled that they would view such a thing as a bad thing.

I'm not trying to be Cramer, I don't want to have an opinion on whether EUR/USD goes up or down. I don't care. I want money.

But you should also question the reason why you are trading - do you want to make money, or do you want to feel good about guessing the future direction of EUR/USD?
  • #31
  • Jun 9, 2014 8:04am Jun 9, 2014 8:04am
Quoting justin7
{quote} Pretty sure the appetite is there. The problem is people that boast or brag without actually telling anyone the real information
I think it's safe to say everyone knows how to use google on this forum.

Having an understanding of a specific topic and pointing it out is not boasting, if you feel it is then you must really dislike knowledgeable people. Don't be lazy and do the research yourself, I'm merely highlighting that you're on the wrong track.
  • #32
  • Jun 9, 2014 8:06am Jun 9, 2014 8:06am
Quoting surfbeach253
{quote} I can see you are online trance, so it looks like it is up to you to spill the beans on the holy grail of the Hedge Trade.
There is no "holy grail" in hedging, it's specifically a risk offsetting strategy.

Google will offer a far more robust overview than I could in one forum post.
  • #33
  • Jun 9, 2014 8:06am Jun 9, 2014 8:06am
Quoting Adal
{quote} I wish I was that good. I was not talking about me, but about HFT firm Virtu - http://www.businessinsider.com/virtu...ing-day-2014-3 Justin, to understand why I only take longs on EUR/CHF you need to understand the history of this pair in the last 3 years. It's a heavily manipulated pair (by theirs central bank). This is why my trading is "riskless". Because I have a central bank backing me up. But I see your point. I don't want to be a trader. I want to make money. If I could find a trading asset that has the price...
I'm not saying that's a bad thing to only want to make money and not be an actual trader. I'm saying it's a bad thing for YOU because you're boastful about things that have to do with actual risk trading concepts like as if you actually do any of that.

And about that being the reason you only take longs on eurchf without hedging or arbitrage in some way you really think everyone will believe that?
  • #34
  • Jun 9, 2014 8:07am Jun 9, 2014 8:07am
Quoting TranceTrader
{quote} I think it's safe to say everyone knows how to use google on this forum. Having an understanding of a specific topic and pointing it out is not boasting, if you feel it is then you must really dislike knowledgeable people. Don't be lazy and do the research yourself, I'm merely highlighting that you're on the wrong track.
it's boasting yes because someone is asking for information and instead you're condescending without actually trying to help.
  • #35
  • Jun 9, 2014 8:10am Jun 9, 2014 8:10am
Quoting Adal
{quote} Justin, to understand why I only take longs on EUR/CHF you need to understand the history of this pair in the last 3 years. It's a heavily manipulated pair (by theirs central bank).
If this is the case theres no reason at all that shorts can't be applied here as well
  • #36
  • Jun 9, 2014 8:13am Jun 9, 2014 8:13am
I suspect his motives lay around the SNB currency peg announcement way back in 2011.

You'd have to broaden your horizons outside of classic technical analysis to be able to comprehend this information and act on it.

Quoting justin7
{quote} every single trade is a buy on eurchf obviously somethings up. yeah yeah be cocky all you want just because you're not taking any risk with your "trading". Just another arbitrage ea guy
  • #37
  • Jun 9, 2014 8:14am Jun 9, 2014 8:14am
Quoting surfbeach253
I was just wondering though if you think a loss of equity of around 10% (your high in April to your low in May) is low risk considering the size of the gains you are making?
I consider it acceptable. My system is not perfect yet. It's still a manual system. It's still way to low frequency.

Now I'm heavily into doing statistics for binary options trading. I know that the general opinion is that they are not "real trading" but gambling, and this is probably true for most, but like I said, I want money, and in this case the less beaten path is often the best path.
  • #38
  • Jun 9, 2014 8:18am Jun 9, 2014 8:18am
Quoting justin7
And about that being the reason you only take longs on eurchf without hedging or arbitrage in some way you really think everyone will believe that?
I see that you've made up your mind that I'm hedging and/or arbitraging. I can't prove a negative, I can't prove that I don't have other accounts in which I take the opposite side trades. The statistics of this account clearly prove that it's not arbitraging (if you know how to read them). But I could still be hedging. Anyway, if that is what people want to believe, ok.
  • #39
  • Jun 9, 2014 8:23am Jun 9, 2014 8:23am
Quoting TranceTrader
I suspect his motives lay around the SNB currency peg announcement way back in 2011. You'd have to broaden your horizons outside of classic technical analysis to be able to comprehend this information and act on it. {quote}
so eurchf can't go below 1.20 basically
  • #40
  • Jun 9, 2014 8:25am Jun 9, 2014 8:25am
I am trying to help. You're just not willing to do the ground work.

Surely you can deduce from the thread so far that the "hedging" discussed involving buying and selling the same asset is not real hedging as understood by the world of finance. Using that, you now know what to search for on google... just like the rest of us have done previously.

Quoting justin7
{quote} it's boasting yes because someone is asking for information and instead you're condescending without actually trying to help.
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