new idea trading

Not sure what purpose that would hold.... the point of a hedge is to keep your trade going. you go long on side a but the market trends down, so you enter short on side b, which generates profit. its a zero sum amt as you lose on side a, but profit on side b. if your live acct goes negative, the hedge on a demo isnt going to balance it to a zero loss... placing only the winning position in the live acct would entail knowing which position is going to be the winning one, and if you know that, theres no reason to hedge anything. Hedging is simply a way to keep a trade open and avoid drawdown.

Trev

totaltly agree with you! In fact I don't see the purpose of an hedge for retail trading because nothing prevent you of a reversal when you close the losing position. Hedging is usefull to cover some very big international business, my point here was just to avoid dubble spread to the first idea of this thread...

very close!

Okay, I'll bite, close to what?

Your close too, very close.

I have a better idea with two brokers trading eur/usd or any news 10sec before the news open long one acct and open short the other and then put 10pip stop on both and when it moves 30to40pips you have one one acct 10pip loss and on the other you have a 30to40pip gain.Tell me what you think.

plenty of this advice on this in the news forum......however, you will encounter issues with the 10 sec prior to release method.......between volatile market conditions that cause whipsaws and all the news trading complaints about the retail brokers..........all in the news forum.

I've tried hedging in demos in several ways........I agree, it's like paying twice in order to pick the right trade........you have to cut ties with one trade at some point!!

I would recommend toying with hedges as stop losses to "lock-in" max loss, but with the stubborn belief the market will come back to you........even then, you gotta take a risk and cut the one you used to buffer the loss to prove your original trade was right.......further, you may only break even before you give in (ie: when you are down 25 pips, entry order in the opposite direction kicks in to temper your loss while waiting for the market to come back.......it does, you drop the reverse position and do you dare ride it do more than make up your 25 you've already lost........better be a decent move finally!!....maybe the original trade was bad anyway and you should've taken your 25 loss and moved to the next trade???????)

HI HELMY AND ALL
ur idea is not a new one - i think u did not lay on ur bed from a long time - lol- any way it is a fantastic idea under grave rules of money mangment . now let me explain what i mean - and what i wl going 2 say is tested and guranteed in demo and in live .

RULES :
1- 2 MINI ACCOUNTS WZ 3000 $ EACH
2- LEVERAGE 100-1
3-CURRUNCY (USD/CHF AND EUR/USD )
4-ENTRY AND EXIT ON PARABOLIC SAR INDICATOR
5- TIME FRAME IS 1 HR

NOW : HOW DOES IT WORK!!!!????

1-when parabolic sar is placed on the candle of one hour
2- go and (let us say ) buy eur/usd in one account and sell eur /usd in
the other one .
3- DO NOT TOUCH THE TWO POSITIONS UNLESS PARABOLIC SAR DID NOT
CHANGE . THIS IS VERY IMPORTANT
4- NOW parabolic sar is giving the oppesite signal
5- u look at ur positions and u found that one is +50 pips and the other
one is -56
6- u should close the winning one wz profit 50 $
7- notice that u r risking 4% of ur equity
8 - now we have another account wz -56 pip loss wz a parabolic sar in its
direction (let us say the loosing one is the buy position )
9- go and buy 9 lots more !!!!! wow !!!!
10 - now ur in a buy position wz the parabolic sar in ur direction wz 10
small lots wz -6 pips only (wz 1200 $ from 3000 $ 40 % from ur
equity ) .
11- u can close that position (according 2 fibonatchi wz a profit of 3 pips
at least )
12- that means u got 30 $ +50 $ from the first trade = 80 $

SO WHERE IS THE PROBLEM , !!!! I WL TELL U
WOREST CASE SENARIO

1- WHEN U R EXCUTING THE SECOND PART OF THE GAME (buying 9 lots more )u should observe ur position if it goes against u another 20 pips
and parabolic sar changes go and sell 10 lots in the other account (it wl not go so far and if it wins close it wz parabolic sar eather and stay wz the loosing one 2 close it even wz loss 6 pip u wl be a winner at the end of the day

take care of :
1- if u miss only one step from the rules i mentioned above u wl loose !!!
2- if u use another money mangment , u wl loose
3- if u paniced , u wl loose

another note
1- u can use this method (not just wz parabolic sar ) but also wz any
trading system u r using the most important thing u must follow one
system or one rule or one indicator .

TRY IT ON DEMO FIRST B4 LIVE

HAVE A NICE TRADING !!!!

AHMED HOSNI

This technique can be only used on Trending markets and for long term periods . It can be maybe used on crosses as i tried demoing such a thing long time ago . But on majors it looks like hedging your funds as someone already said , as evey moment brings new information and new economic data affecting the market . And 40 pips of profit does not sound as a long term profit you are aiming as u see a median move of 100 pips per day for the cable . And it waves heavily during the day .So you can hit your SL point on both account before reaching any TP .

It a good thought but not for Forex speculators were every pip is valuable .. .