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Why is hedging not discussed as much?

  • #41
  • Jun 9, 2014 8:28am Jun 9, 2014 8:28am
Quoting TranceTrader
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. {quote}
well technically it is a form of hedging..but yes i know theres many forms of hedging
  • #42
  • Jun 9, 2014 8:31am Jun 9, 2014 8:31am
This is where you're misinformed as technically it's called being flat.



Quoting justin7
{quote} well technically it is a form of hedging..but yes i know theres many forms of hedging
  • #43
  • Jun 9, 2014 8:35am Jun 9, 2014 8:35am
Quoting TranceTrader
This is where you're misinformed as technically it's called being flat. {quote}
Also known as "not having a position".

TranceTrader is right, everything is there on google. I wasn't born knowing about delta hedging or gamma scalping.

But I had a desire to learn. And when you know that 90% of retail traders are losers, do you really learn from the forums where they hang out? The blind leading the blind.

I have downloaded hundreds of academic papers about trading. For example from here: http://arxiv.org/list/q-fin.TR/recent

And scanned through them. And every 20 or so papers I found something very valuable, which changed my trading style.

Now when I want to share those facts here, I go against the 90% of retail traders, who were indoctrinated.

I say "hedging is non-sense", they say "no it's not". I say "technical analysis doesn't work". They say "it's the only method that works".

I say "MT4 is not a good trading platform", they say "it's the best trading platform".

And then discussion stops.
  • #44
  • Jun 9, 2014 8:46am Jun 9, 2014 8:46am
Quoting justin7
Why is hedging not as discussed of a topic
//-----

now do you see why......h
to trade and code, keep both simple... no call to impress....h
  • #45
  • Jun 9, 2014 8:47am Jun 9, 2014 8:47am
Quoting TranceTrader
This is where you're misinformed as technically it's called being flat. {quote}
is hedging your primary style of trading?
  • #46
  • Jun 9, 2014 8:53am Jun 9, 2014 8:53am
What does "arbitrage" mean, i have seen this term many times in trading discussion, but i dont know what do you mean by that.Can anyone explain what does it mean exactly?
"There's a sucker born every minute" - P.T. Barnum
  • #47
  • Jun 9, 2014 8:57am Jun 9, 2014 8:57am
Quoting Proximus
What does "arbitrage" mean, i have seen this term many times in trading discussion, but i dont know what do you mean by that.Can anyone explain what does it mean exactly?
it's capitalizing off of price data feed inefficiencies. using scripts and programs to take advantage of slow broker feeds or data for quick in and out scalps over and over with hardly ever if any minimal losses. or it could be longer term who knows but yeah basically it's like a hacker or computer programmer type of stuff.
  • #48
  • Jun 9, 2014 8:58am Jun 9, 2014 8:58am
Quoting Proximus
What does "arbitrage" mean, i have seen this term many times in trading discussion, but i dont know what do you mean by that.Can anyone explain what does it mean exactly?
Here's an actual arbitrage that I've done a few years back, one Sunday evening when the markets had just opened.

Bought EUR/USD from Tradeville (big blue boxes) at 1.3794 and at the same time sold EUR/USD at Oanda (gray in the background) at 1.3812.

After 30 minutes the prices aligned, closed both positions and end up with a risk-free (true arbitrage) 18 pips profit.

https://dl.dropboxusercontent.com/u/.../arbitrage.png
  • #49
  • Jun 9, 2014 9:00am Jun 9, 2014 9:00am
No it's not, I trade long/short.

A couple of the ETF's I have money in use currency hedging when buying assets in other currencies such as bonds but I don't engage in hedging for the purpose of making money... and neither does the finance world. It's purely a risk offsetting strategy.

Quoting justin7
{quote} is hedging your primary style of trading?
  • #50
  • Jun 9, 2014 9:02am Jun 9, 2014 9:02am
i'm trading eurgbp in both direction all the time. i wouldn't consider this method edging. because it is the same pair and technically when i'm long and short at the same time, i'm flat. but i make much more money this way because i take small profit on every move. it also gives me some protection if ever the price move too far from my entry point.
  • #51
  • Jun 9, 2014 9:03am Jun 9, 2014 9:03am
Surely you can google that???

Quoting Proximus
What does "arbitrage" mean, i have seen this term many times in trading discussion, but i dont know what do you mean by that.Can anyone explain what does it mean exactly?
  • #52
  • Jun 9, 2014 9:39am Jun 9, 2014 9:39am
Quoting Adal
{quote} Also known as "not having a position". TranceTrader is right, everything is there on google. I wasn't born knowing about delta hedging or gamma scalping. But I had a desire to learn. And when you know that 90% of retail traders are losers, do you really learn from the forums where they hang out? The blind leading the blind. I have downloaded hundreds of academic papers about trading. For example from here: http://arxiv.org/list/q-fin.TR/recent And scanned through them. And every 20 or so papers I found something very valuable,...

you really expect people are so gullible to believe that you read those rediculous articles?
  • #53
  • Jun 9, 2014 9:43am Jun 9, 2014 9:43am
Quoting justin7
{quote} you really expect people are so gullible to believe that you read those rediculous articles?
You're so funny. Do you actually believe that the whole trading world revolves around trend lines, fibos, PA and technical analysis? Do you really think that this is how HFT and hedge funds trade?

These papers teach you how to think in new ways, beyond what you see on these forums.
  • #54
  • Jun 9, 2014 9:55am Jun 9, 2014 9:55am
funny how people claim that these forums are just frequented by idiots, and then they frequent them.... there is some irony there no?
tradewith60
  • #55
  • Jun 9, 2014 9:58am Jun 9, 2014 9:58am
Quoting Adal
{quote} You're so funny. Do you actually believe that the whole trading world revolves around trend lines, fibos, PA and technical analysis? Do you really think that this is how HFT and hedge funds trade? These papers teach you how to think in new ways, beyond what you see on these forums.
so are you going to tell what script or program you use to arbitrage or just keep boasting as if you're a common retail trader and steer people in the wrong direction by posting those rediculous articles that 99% of people wouldn't understand?
  • #56
  • Jun 9, 2014 10:01am Jun 9, 2014 10:01am
Quoting 60minuteman
funny how people claim that these forums are just frequented by idiots, and then they frequent them.... there is some irony there no?
You have to know what the victims do to avoid doing the same thing. And there is some intelligent life here.
  • #57
  • Jun 9, 2014 10:02am Jun 9, 2014 10:02am
Quoting justin7
{quote} so are you going to tell what script or program you use to arbitrage or just keep boasting as if you're a common retail trader and steer people in the wrong direction by posting those rediculous articles that 99% of people wouldn't understand?
99% of people don't understand how a computer is made. Does this mean that the guys making the computer don't? Or that the computer is not real?

But you're right, I'm not a common retail trader - I'm a profitable one. Which is one of the most uncommon things here.

Does anyone believe that you could get on a running track and run against Usain Bolt?

But why does then everyone believe that they can trade? Trading is one of the toughest jobs in the world, where you are against the smartest people. How can anyone believe that a simple method could win here, that "every system works".
  • #58
  • Jun 9, 2014 10:10am Jun 9, 2014 10:10am
Quoting Adal
{quote} 99% of people don't understand how a computer is made. Does this mean that the guys making the computer don't? Or that the computer is not real? But you're right, I'm not a common retail trader - I'm a profitable one. Which is one of the most uncommon things here. Does anyone believe that you could get on a running track and run against Usain Bolt? But why does then everyone believe that they can trade? Trading is one of the toughest jobs in the world, where you are against the smartest people. How can anyone believe that a simple method...
Stop using metaphors.

You must think everyone is gullible to believe what you say.

it's easy for you to be cocky because you have a non risk program to how you're making your money. Congrats. Do you have to steer people in the wrong direction though?
  • #59
  • Jun 9, 2014 10:12am Jun 9, 2014 10:12am
Quoting justin7
{quote} Stop using metaphors. You must think everyone is gullible to believe what you say. it's easy for you to be cocky because you have a non risk program to how you're making your money. Congrats. Do you have to steer people in the wrong direction though?
Why is it so hard to believe that I trade manually?

I am working on an HFT system. But it's not done yet. I believe HFT are the superior form of trading.

BUT I AM TRADING MANUALLY ON THIS ACCOUNT

Anyway, since you believe I'm a lier and a deceiver, there is no point in this discussion anymore. Good luck to you
  • #60
  • Jun 9, 2014 10:13am Jun 9, 2014 10:13am
Quoting Adal
{quote} You have to know what the victims do to avoid doing the same thing. And there is some intelligent life here.
oh of course, everyones an idiot except you.... now I wonder what the trading psychologists would say about that mindset.
tradewith60
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