I constantly hedge in markets that are highly correlated when they get out of line ( not just FX ) if you know what you are doing you can do fine with this approach ... but you also have to know when to "fold em" too
eh, i would have to agree with mav on that one. I dont buy this whole "grid trading" approach and honestly cant see how so many people over there can follow it like its the gospel. No offense to the believers. If something works for some i guess they use it until it doesnt. Earlier in the thread someone said this position made sense because it was like a straddle. It is nothing like a straddle. A straddle's risk/profit is bounded/unbounded whether you have one side or both sides open. Short stock/long stock is precisely like short put/long put far from a straddle. No sense whatsoever unless you feel like donating money to your brokerage and the MMs.
NO! Grid trading does not exist and I will not sleep or rest till this fact is proven!!!!! LOL. Seriously man, this thread is getting out of control. I originally thought this thread was a joke hence my reservations about jumping in here. But now that I see that a few of you really believe this exist, it's killing me. Can someone please explain to me why anyone would pay a vig to enter a flat position? Just explain this one concept to me so I can go to sleep and rest soundly. Pretty please? This is like arguing as to whether the earth is flat or not.
Mav, talk about being dense. Opening opposite directions at once. Look at it this way... TWICE the advantages... TWICE the opportunies... TWICE the control... TWICE the strategies... TWICE the profits... shall I go on? Think it over. Sweet dreams... DD
Are you f*cking serious? Dude, you have no position!!!!!! You are flat the currency. Then once it makes a move you are only then initiating your first position, being either long or short. You cannot be both long and short at the same time without having gamma! My god, are you people scientologists or something? You have zero control in this position. All you are doing is paying twice the vig to have no position. This is not the same thing as being long a straddle. OMG, I'm saving this thread for the highlight reels. This is truly amazing.
let the market decide the direction....not the trader hoping! Line up the trades and the TP's on each side and put it on automatic..and sing the Beverly Hillbillies Jingle... the longer your in...the wider the boundries...now mav..your a pro options trader...you surely you get this! ArchAngel