riskarb, two questions are of real interest to me: 1. with respect to your current spx trade, for example - whether you had a strong hedge or...
sounds good, i love your explanations, they're way better than learning from a textbook :) best of luck with your trades!
hi riskarb - it's great to see examples of how you hedge these... - is your hedging discretionary or what is your general methodology (if you...
you are considering only one type of probability, the probability of getting filled on a scale-in piece; i am also considering the probability of...
as i mentioned above, i am looking at a different form of scaling-in, entering against the current price movement. however, this second mention...
i made an omission in my opening post - there is counter-trend scaling-in vs. in-trend scaling-in (i believe also referred to as pyramiding into a...
here's how i look at the expected risk for each successive scale-in piece, it is equal to: (i) probability of reaching a scale-in level...
i think we differ on at least one important issue - it seems you are assuming that since it's gone lower, the chances of a bounce are higher... -...
thanks a lot, i remember backgammon from my childhood :) i guess, as applied to trading, you are referring to some sort of a martingale angle...
thanks for the input, i have gone through similar iterations - let me show how i think about this (still very much work in progress) i am...
sorry, what's doubling cube? thanks.
agreed, i am looking to take a more specific, analytical probability-based approach to optimize the solution to the dilemma you are referring to....
i think i used to side with a similar view... however, i think the right answers may be strategy-dependent: let's take the Dollar Index as an...
hey IV_Trader - if you are looking globally, i tend to think that emerging markets is where the weakness/fear gets most pronounced, it's where...
good opinion on scaling-in, as for scaling-out, i strongly disagree -however, i won't go into a discussion of scaling-out here, it would need a...
you are failing to make an important distinction - to clarify, fyi here's a link that talks about "Averaging In, Not Averaging Down"...
if you are assuming a totally static strategy, then the longer you go (the more observations you have), the more/farther outliers you will have...
while your point appears arithmetically logical, the reason for scaling-in is that you don't know exactly what behavior the price will exhibit...
i don't quite understand - how can i get a more favorable price once it has reversed? - the point of scaling-in is to buy as the price is coming...
i have taken a look at the site - we have a German bank; its London branch acts as offering the product; UK FSA regulation; and the main contact...
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