Like many other people, I think global markets will tank this year.
I was thinking about opening two equal, opposite, large (for me) positions. One shorting DAX and one going long EU50. I suppose if you have a broker who allows direct hedging you could just do it with one index.
Then I would would do nothing for months. Maybe even all year.
Then, when I think the market is forming a bottom, and the rest of the world thinks so too, I will start looking for really prime RR setups. When I think I have a good one, I'll take off my short hedge and let the long one head back up.
I wouldn't just do an outright short with that sized position because my account couldn't handle volatility/draw down with that sized position. But it buys me 6-12 months of learning to become a better trader, practice trade set ups, etc., so that when I think it's time to close the short, I have a better chance of success.
Worst case scenario, I try 5-6 times to close it and fail each time, and lose 1/2 my account. Or market never tanks and I have paid the spread on two large positions for nothing.
I was thinking about opening two equal, opposite, large (for me) positions. One shorting DAX and one going long EU50. I suppose if you have a broker who allows direct hedging you could just do it with one index.
Then I would would do nothing for months. Maybe even all year.
Then, when I think the market is forming a bottom, and the rest of the world thinks so too, I will start looking for really prime RR setups. When I think I have a good one, I'll take off my short hedge and let the long one head back up.
I wouldn't just do an outright short with that sized position because my account couldn't handle volatility/draw down with that sized position. But it buys me 6-12 months of learning to become a better trader, practice trade set ups, etc., so that when I think it's time to close the short, I have a better chance of success.
Worst case scenario, I try 5-6 times to close it and fail each time, and lose 1/2 my account. Or market never tanks and I have paid the spread on two large positions for nothing.