Hedge like a madman... | Page 2 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

learn how to trade like hedge funds through my live account 93 replies

So you wanna trade Forex like a Hedge Fund? 2 replies

Learn to trade like a Hedge Fund Manager 3 replies

Scalping DOW like a madman 8 replies

Hedge strategy (not a hedge fund) 13 replies

Hedge like a madman...

  • #21
  • Jun 9, 2014 2:41am Jun 9, 2014 2:41am
We lost 1 the canadian long, so the price moves down, we must win the short, and also i tightened the SL, because we are exposed now without cover.

Risk minimized, so cross the fingers.

Remember that this system is a very professional approach to trading, we will focus on minimizing risk, what newbies would do here is to increase the SL, which would be a mistake since we already lose 1 trade, we should not lose more pips.
"There's a sucker born every minute" - P.T. Barnum
  • #22
  • Jun 9, 2014 6:50am Jun 9, 2014 6:50am
Check out this guys, 4 consecutive losers and the equity is still bigger than the balance, how is this possible ?

Feel the power of hedging

Also the risk is still 3% of the account so we lost only 5% because i miminized some of the risks so it was even smaller than 3%.

If the market works out good, we can still make 10% growth today
"There's a sucker born every minute" - P.T. Barnum
  • #23
  • Jun 9, 2014 7:01am Jun 9, 2014 7:01am
Added 4 more positions, because we had some free margin now that those 4 losers got out.

We must make quick profits, there is no alternative here...
"There's a sucker born every minute" - P.T. Barnum
  • #24
  • Jun 9, 2014 7:19am Jun 9, 2014 7:19am
Quoting Proximus
Added 4 more positions, because we had some free margin now that those 4 losers got out. We must make quick profits, there is no alternative here...

Hedging with crosses is a good idea Proxy, I do it all the time. Be careful to keep your basket balanced. There is a max number of trades you should have going at any one time. I will let you figure that one out.
If you are good at something, never do it for free--Joker
  • #25
  • Jun 9, 2014 7:27am Jun 9, 2014 7:27am
Quoting jmn5611
{quote} Hedging with crosses is a good idea Proxy, I do it all the time. Be careful to keep your basket balanced. There is a max number of trades you should have going at any one time. I will let you figure that one out.
Yea about 8 trades at a time, but i concentrate more on the margin level to be always above 200%.

So if a trade closes and margin level decreases it should never ,even remotely, not reach 100%.

At this moment i fluctuate at 200%, if all my pair trades would close suddently (1 trade from each pair), thats 3 and the other trades are single, that would drop to 130% margin level or so, and it may drop to 110% before hitting SL. And the margin call is at 80% so thats still far from it, and the % of that happening is slim.

But you are right i should concentrate on maximum open trades, because now i have 10 trades open, and i will limit this to 8 in the future just to ease the tension in case of gaps or big spikes with slippage.
"There's a sucker born every minute" - P.T. Barnum
  • #26
  • Jun 9, 2014 7:37am Jun 9, 2014 7:37am
Quoting Proximus
{quote} Yea about 8 trades at a time, but i concentrate more on the margin level to be always above 200%. So if a trade closes and margin level decreases it should never ,even remotely, not reach 100%. At this moment i fluctuate at 200%, if all my pair trades would close suddently (1 trade from each pair), thats 3 and the other trades are single, that would drop to 130% margin level or so, and it may drop to 110% before hitting SL. And the margin call is at 80% so thats still far from it, and the % of that happening is slim. But you are right i...
If you are good at something, never do it for free--Joker
  • #27
  • Jun 9, 2014 8:41am Jun 9, 2014 8:41am
Quoting Proximus
{quote} Yea about 8 trades at a time, but i concentrate more on the margin level to be always above 200%. So if a trade closes and margin level decreases it should never ,even remotely, not reach 100%. At this moment i fluctuate at 200%, if all my pair trades would close suddently (1 trade from each pair), thats 3 and the other trades are single, that would drop to 130% margin level or so, and it may drop to 110% before hitting SL. And the margin call is at 80% so thats still far from it, and the % of that happening is slim. But you are right i...

I figure margin in terms of trades: if you trade the same size, and set yourself a discomfort zone to stay away from (you do this), then you know how many new trades you can put on. At a leverage of 50:1 , a margin of .02 ( mini lots) takes up ca $4.00 on margin. Multiply accordingly to get the lot size you wish to trade.


Suitable math can reduce this to how many trades do you have before hitting the uncomfortable margin level ( you mention 200%).

When I get within 5 trades of my comfort level, I cut my trade size in half, so I do not have to stop trading so abruptly.

This works well if your equity is increasing. if it decreases, it will squeeze margin % and you may have to take measures.

With proper measure, I usually find my position frees up tremendously and I start making money again.

I see you have taken proper measures, and are experiencing the same liberty.
  • #28
  • Jun 9, 2014 9:02am Jun 9, 2014 9:02am
Quoting Rap Skallion
{quote} I figure margin in terms of trades: if you trade the same size, and set yourself a discomfort zone to stay away from (you do this), then you know how many new trades you can put on. At a leverage of 50:1 , a margin of .02 ( mini lots) takes up ca $4.00 on margin. Multiply accordingly to get the lot size you wish to trade. Suitable math can reduce this to how many trades do you have before hitting the uncomfortable margin level ( you mention 200%). When I get within 5 trades of my comfort level, I cut my trade size in half, so I do not have...
Margin level = Equity / Used Margin *100

Margin requirement/position = Lot (Unit ) /Leverage (* or / exchange rate if pair base currency differs from account currency)

At this moment each position takes about 10% margin level for me as i have 1:100 leverage.

This is all you need to know basically.
"There's a sucker born every minute" - P.T. Barnum
  • #29
  • Jun 9, 2014 9:03am Jun 9, 2014 9:03am
I see nothing wrong with , when a trade is in profit , going the close window and watching the pips go in your favor, When they come back enough to signify dying impetus, I close the trade.
Then I go right back in the entry window: two scenarios
1. after sashaying down a bit, the trade finds it impetus again and I get back in: I have pocketed some money and have room obviously to do so.
2. If price keeps going down, down , down, I set a pending buy stop entry (just in case) and move on.

As far as margin is concerned, any money coming in from anywhere hedges the money going out...

the" traditional" same pair hedge works because a buy going into loss is a pretty good signal that the sell is going into profit...


I always like a good signal...

That and keeping a good sensible margin % are the two major keys.
  • #30
  • Jun 9, 2014 9:05am Jun 9, 2014 9:05am
Quick update in the meantime, just hit a few more stoplosses, but now only the winners are in play.I moved the winners SL to breakeven +2-3 pips, let them roll out, if they move too far i will trail them.

Currently we are at 4.5% which is nice.
"There's a sucker born every minute" - P.T. Barnum
  • #31
  • Jun 9, 2014 11:21am Jun 9, 2014 11:21am
Trailed a few SL, but i`m worryed about the AUD/USD because it doesnt want to go in any direction.
"There's a sucker born every minute" - P.T. Barnum
  • #32
  • Jun 9, 2014 5:12pm Jun 9, 2014 5:12pm
Quoting Proximus
{quote} Margin level = Equity / Used Margin *100 Margin requirement/position = Lot (Unit ) /Leverage (* or / exchange rate if pair base currency differs from account currency) At this moment each position takes about 10% margin level for me as i have 1:100 leverage. This is all you need to know basically.
agreed
  • #33
  • Jun 9, 2014 10:25pm Jun 9, 2014 10:25pm
Good morning fellow traders, i`ve checked the trades and i`m a little bit disapointed, i expected more.We made 2%, and another 3% in pending.

So i closed all winners which left and opened new positions at new spots. Still waiting for that AUD/USD long, and the EUR/GBP to hit my TP.

All SL are now better than BE, in the worst case scenario we will still make profit, the trail stop is very nice to use in combination with hedging.
"There's a sucker born every minute" - P.T. Barnum
  • #34
  • Jun 10, 2014 5:16am Jun 10, 2014 5:16am
Today's % locked in, now put a few trades on for tomorrow.

So far it made 4% in a day, lets see how it will progress.
"There's a sucker born every minute" - P.T. Barnum
  • #35
  • Jun 10, 2014 6:50am Jun 10, 2014 6:50am
GBP USD trade got stopped out, now only the good order is on, time to lock in the profit.
"There's a sucker born every minute" - P.T. Barnum
  • #36
  • Jun 10, 2014 8:11am Jun 10, 2014 8:11am
short mas crossed the long ma about the time you announced the close of usd gbp. I put a buy stop above the cross, just in case.
( the gbp is soo volatile!) if it doesn't shoot back, no biggie: meanwhile made money on the gbpjpy going down as well ( cross currency hedge)
  • #37
  • Jun 10, 2014 9:14am Jun 10, 2014 9:14am
Quoting Rap Skallion
short mas crossed the long ma about the time you announced the close of usd gbp. I put a buy stop above the cross, just in case. ( the gbp is soo volatile!) if it doesn't shoot back, no biggie: meanwhile made money on the gbpjpy going down as well ( cross currency hedge)
I would not put a naked trade on, with my hedging method i only put pair trades.You can see that my winrate is 50%, and it probably always will be, but the winner trades recover all losses and make profit.

I think only hedged trades are safe, because the market is too unpredictable.

If i were you i would hedge that GBP /USD like i did.

Inserted Video
"There's a sucker born every minute" - P.T. Barnum
  • #38
  • Jun 10, 2014 9:44am Jun 10, 2014 9:44am
Quoting Proximus
{quote} I would not put a naked trade on, with my hedging method i only put pair trades.You can see that my winrate is 50%, and it probably always will be, but the winner trades recover all losses and make profit. I think only hedged trades are safe, because the market is too unpredictable. If i were you i would hedge that GBP /USD like i did. http://www.youtube.com/watch?v=suVXe87BZhE
That guy is talking about a long/short equity strategy. This has nothing to do to being long and short GBP/USD at the same time.

http://en.wikipedia.org/wiki/Long/short_equity

In other videos he laughs at retail trading platforms, and says that a trading platform has to have only 3 things: a buy button, a sell button, and a display of the current position (total net position, not individual trades).
  • #39
  • Jun 10, 2014 9:47am Jun 10, 2014 9:47am
Quoting Proximus
{quote} I would not put a naked trade on, with my hedging method i only put pair trades.You can see that my winrate is 50%, and it probably always will be, but the winner trades recover all losses and make profit. I think only hedged trades are safe, because the market is too unpredictable. If i were you i would hedge that GBP /USD like i did. http://www.youtube.com/watch?v=suVXe87BZhE

Oh yes, I hedged it ( it would take too long to list all the trades). I only put a naked trade on when I am there there, in the close window, watching to take it off if it stops going into profit. This is usually when I find I have closed a trade too soon, and it takes off on me in the direction I wanted. Once I close it. or decide to leave the screen, I "put some clothing on it". (not my usual way of trading).

I am following your thread with great interest.

you have been a great help in doing this:
  • #40
  • Jun 10, 2014 10:36am Jun 10, 2014 10:36am
Prox, are you going one long one short in the same pair, or are you trading negatively correlated pairs?
If you are good at something, never do it for free--Joker
0 traders viewing now