DAX30 
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- #1,382
- Jan 22, 2016 4:52am Jan 22, 2016 4:52am
- Joined Feb 2015 | Status: Who Dares Wins | 1,710 Posts
DAX30
"What would you attempt to do, if you knew your success was a certainty?"
- #1,384
- Edited 6:07am Jan 22, 2016 5:32am | Edited 6:07am
- Joined Feb 2015 | Status: Who Dares Wins | 1,710 Posts
{quote} Hi Fxentropy, I also hedge my positions, but not all the time it depends on whether there is hysteria in the markets like it is with oil and China now days or I'm building/have long-term positions and I dont want them to get ruined by some speaker talking down the currency of that country, news, anything basically. Do you hedge progressively, like one hedge for each open position waiting at different levels based on your risk tolerance or one big hedge equivalent to all open positions waiting beyond your 'line in sand' level?
Hedging is one of the most powerfull weapons on trading if used with logic and before hand planned strategy, but also can ruin your trading as well as your thoughts about trading if used irresponsabilly. Hence i advice anyone to NOT use the hedge option.
I will answer to your question, with a image.
I would say tho that i like to hedge all positions (shorts) with one equal position (long) at some moment, and then i will re-adjust my shorts to bring my average price higher as much as possible, above the level of my hedge buy position. Then one of two things will happen: when price will go down to my BUY level i will close all positions - short and long, or i will close my long and let run my short if i feel that my pair i trade have enough steroids to give me profit.
Ofcourse, this can happen too: Price continue to go higher without retracing to my average level, and if so, i would do the same thing again, as in 'stage 1' - i will hedge all and then will readjust my short average level with other shorts ....basically rinse and repeat. But that will lead you into a deep DD, and its not the topic nor the strategy we use in this thread
Like i said in beginning , this need to be planned from before, select the entries with care in High timeframe, and be prepared to face this type of trading with proper money management.
I would even say that this could be used only in emergency case, not as a principal method of trading.... to save a 'mistake' in trading..
*
If you compare the 2 styles (hedge-ing and Sniper model of TRD) you will see that TRD win the contest by far.
At each and every one to judge for himself.
Peace
"What would you attempt to do, if you knew your success was a certainty?"
- #1,385
- Jan 22, 2016 6:11am Jan 22, 2016 6:11am
DAX30
Please forgive me if my assumption is wrong.
I dont know if averaging down is how you intend to trade or its the result of having bad entries as a result of being impatient if its the later, dont worry I was guilty of it for a very long time.
You can minimize the need of averaging down by simply waiting for price to change direction even on 1M chart! Please see the example:
toppo
- #1,387
- Jan 22, 2016 7:08am Jan 22, 2016 7:08am
{quote} Hi toppo qqq, Please forgive me if my assumption is wrong. I dont know if averaging down is how you intend to trade or its the result of having bad entries as a result of being impatient if its the later, dont worry I was guilty of it for a very long time. You can minimize the need of averaging down by simply waiting for price to change direction even on 1M chart! Please see the example: {image}
toppo
- #1,388
- Jan 22, 2016 7:48am Jan 22, 2016 7:48am
{quote} Thanks iThinker. It's the result of the bad first entry due to impatience. Your detailed comments are very helpful. Great weekend!
PS I appreciate your honesty.
- #1,389
- Jan 22, 2016 8:31am Jan 22, 2016 8:31am
- Joined Feb 2015 | Status: Who Dares Wins | 1,710 Posts
{quote} This is a logical Market Flow illustration that will definitely help. {image} PS I appreciate your honesty.
"What would you attempt to do, if you knew your success was a certainty?"
- #1,391
- Edited 10:56am Jan 22, 2016 10:33am | Edited 10:56am
- Joined Feb 2015 | Status: Who Dares Wins | 1,710 Posts
{quote} Thanks! Thats a very nice 'Get Out of Debt' hedging strategy when things 'go wrong', and the beauty of this is that you are not taken by surprise if you pre-planned that scenario beforehand. I agree, hedging very dangerous if not used properly and since its not the topic of this thread, I will not bring it up again. Though I will encourage people to look into it and keep an open mind and think outside the box - it's not like being flat, unless you have only one buy and only one sell active in the market at all times!
I would not do that. Simply because require a lot of focus and discipline and a good plan....and i saw very good traders taking huge losses when they lost control. And its easy to lose control of it, when you have hundred of trades being involved. My2cents!
Sniper is the way, especially if you live in US or, if you plan to trade with 500 lots per trade. Right TRD?
HAVE A GOOD WEEKEND GUYS!
"What would you attempt to do, if you knew your success was a certainty?"
- #1,393
- Jan 22, 2016 12:06pm Jan 22, 2016 12:06pm
- Joined Oct 2014 | Status: lonely | 2,261 Posts
First thank you for your contribution, FxEntropy. What he shares is extremely dangerous for 98% of the traders here. Because of two reasons: less than 5 years experience trading decent life account and lack of hedging mindset (not only experience but also the balls to stay in constant DD).
This kind of trading requires the you to stay calm all the time, while you are in red. And that is almost all the time with the anticipation of market turn, which will eventually happen. If you are not precise enough, you could blow your account much faster than with any other method.
So best advice from me, if you don't have years of experience in market and hedging strategies, don't jump the gun. The only thing which stops traders tare become successful, is that their account cannot last long enough to see success. Imo in order to trade like this you need to have at least 80-90% win rate on 1:1 setups.
This kind of trading requires the you to stay calm all the time, while you are in red. And that is almost all the time with the anticipation of market turn, which will eventually happen. If you are not precise enough, you could blow your account much faster than with any other method.
So best advice from me, if you don't have years of experience in market and hedging strategies, don't jump the gun. The only thing which stops traders tare become successful, is that their account cannot last long enough to see success. Imo in order to trade like this you need to have at least 80-90% win rate on 1:1 setups.
{quote} I would not do that. Simply because require a lot of focus and discipline and a good plan....and i saw very good traders taking huge losses when they lost control. And its easy to lose control of it, when you have hundred of trades being involved. My2cents! Sniper is the way, especially if you live in US or, if you plan to trade with 500 lots per trade. Right TRD?
- #1,394
- Jan 22, 2016 12:09pm Jan 22, 2016 12:09pm
- Joined Oct 2014 | Status: lonely | 2,261 Posts
To
Thats so cool man! Love it!
{quote} Absolutely, no doubt about that! 50Lot Cal
- #1,397
- Jan 22, 2016 2:01pm Jan 22, 2016 2:01pm
- Joined Feb 2015 | Status: Who Dares Wins | 1,710 Posts
{quote} Absolutely, no doubt about that! 50Lot Cal
......but...i take cover! can you see me now?!
"What would you attempt to do, if you knew your success was a certainty?"
- #1,398
- Jan 22, 2016 2:05pm Jan 22, 2016 2:05pm
- Joined Feb 2015 | Status: Who Dares Wins | 1,710 Posts
This video is dedicated to all you sniper traders out there!https://www.youtube.com/watch?v=Q4mmlZFH6Rg
That's for you mate!
"What would you attempt to do, if you knew your success was a certainty?"
- #1,399
- Jan 22, 2016 3:47pm Jan 22, 2016 3:47pm
- Joined Oct 2014 | Status: lonely | 2,261 Posts
{quote} Lets get TRD horny a bit
- #1,400
- Jan 25, 2016 6:27am Jan 25, 2016 6:27am
- Joined Feb 2015 | Status: Who Dares Wins | 1,710 Posts
I wish you all guys a good trading week 
My first trade is EG
My first trade is EG
"What would you attempt to do, if you knew your success was a certainty?"