Hey, Maybe if I paid ET to not ban me...I could tell you what I really think about most of the posters here in ET... Now excuse me..I must go look at myself in the mirror b4 taking Wifey to Starbucks in the WoodGrain...
This methodology is an end result of those who desperately want to continue trading while giving up any attempts at trying to time the markets they trade. Sorry boys, but trading = making timely decisions. There's no way around it, no short cuts. Just don't give up.
But if I were to trade correlation imbalance without caring about direction, which is completely different than what this thread is talkin about, but what you are implying as to being a derogeratory practice...would I be desperate? And... If I had one other system again, that has nothing to do with this thread and was very valid for the long term...WITHOUT PICKING A DIRECTION, would I be double desperate? It is very hard to argue, when you do not even know what I am trading. And I am not willing to talk about it either. But your generalisations are climbing on something deeper as to a mentality or a personality... keep an open mind.... simply put, directional trading requires stops or hedges... Michael B.
As far as "Timely Decisions...When I am cornering a trade with the various weights and scales within the hedge....There is plenty of time for the market to tell me what direction it wants to go...or what direction I decide for my trade to go... total control The Archangel... ES
For every ebb and flow there is a sweet spot...for every cylical wave there is an entry or exit... You guys really do not have a clue do you? Get the time you need to make your trade work...Hedge and wait..I do not care if it is within the same instrument at the same times or at different times or with different instruments..Give up some yield for that unbelievably low drawdown. Find your combo...trade it...you can even use different markets... I have accidentally found some stuff...that would surprise you... good hunting...and yes, never give up. Michael B. P.S. I have never made so much yield in my life for so little drawdown.
You keep referring to 'other things' besides what I am talking about when I say 'desperate', so you know I'm not referring to you directly. I think you've taken what I've said too broadly and personally. The root of the 'hedging' concept which the originator of this thread questions comes directly from unscrupulous brokers who try to pander to naive/losing traders that are frustrated in their attempts to time their entries and exits. "Why bother picking directions and/or taking losses, when you can just continually average your losers in microscopic lots until you finally, finally come out positive?" Because that is basically all the idea boils down to. Sure, it's easy to start out winning, perhaps for even long stretches at a time. But it just takes one move that never comes back to take you out of the game -- the drawdown, as you put it mildly, is "too much". Timing has nothing to do with caring which direction things will go -- "caring", and all the problems associated with it, is exactly where ideas like this one germinate from, like maggots from rotten fruit.
I can pick any two or more pair (but I get to choose) at any time and turn a profit.... But I will not demonstrate it, as it would reveal what I am doing. send me your PIPS...Keep your love to yourself Arch ES
Interesting thread, atleast i learned what grid trading is LOL As someone previously said, the only benefit to this is perhaps the emotional aspect, but if thats how you control emotions in your trading then perhaps it isnt suitable for you. Sorry. Now i am only looking from an options guy perspective but i cannot make sense of trading like this. I can understand you may not be clear about market direction and want to put both sides on and then profit off of volatility but the moment you close the first side your risk goes from the b/a spread you lost when you opened the 2 sides to being unbounded. Hoping the market will swing back to profit on the other side is just that, hope. Unless you plan on putting another flat positon at the second point? LOL Wait, perhaps the second entry is now "higher probability"? Well, if you are so good at catching reversals then just trade the reversal why the initial flat position? You own your brokerage stock? Just my 2 cents.
rm, Your almost there, but if you set a TP at say every 10 PIPS in both directions and turn into a trade replacer by re-entering after each fill with 10 more pips... Then there is the question of the danglers...read the Forums there are several ways of widening or narrowing the deck of the swimming pool of trades your are stuck in, while removing the flow of the chop... Michael B.
oh gawd..I do not want to talk about his... Can we just talk about what a great trader I am? Excuse me while I go puke ET green... Michael B.