Lets say your both long and short in the eur/usd. You really do not care which way it goes... ok.... now you put a 10 pip target (or more, based on time and expected volatility) on each trade and go to sleep.... when you wake up you have 10 pips (or 0 or 20 and meaning your still flat) and the resulting directional trade. So you automated your system and you did not care about the direction. Now there are some interesting techniques with grid type set ups using incrementally spaced entries and exits on each side, simply replacing the limit orders at their respective levels as each take profit is realized (anothr thought is pivot point increments or s/r levels) I find hedging a way to automate....(I am not a programmer) Michael B. P.S. Volatilty grabbing has changed the way I trade retail spot forex (remember unrealized P/L, is simply unrealized)
i think basically hedging works in one situation when the market retraces. if it keeps loosing then your bound to lose more on one of the trades.
ahh. thanks michael, your a big help around here. like i said, i may need to adjust my mentality...being a stock day trader is way different than forex. the problem is that i keep doing well scalping/day trading...it's hard to want to stop.
Your doing fine. What works for you is most important. There are many skilled traders that could probably prove that Hedging is stupid. I just find that it is comforting to be able to trade without choosing a direction. Perhaps, it is a wasteful way to trade... Michael B.
hey jerry, just curious, doesnt it bug the hell out of you that you cant save your layout on FXsol??!!! it takes me a couple of minutes to set up the charts they way i want and then when i log off and come back, i have to do the same all over again. geeeez how hard could it be fxsol to be able to save layout especially if its software downloaded on your hard drive!!!!
hey jerry, just curious, doesnt it bug the hell out of you that you cant save your layout on FXsol??!!! it takes me a couple of minutes to set up the charts they way i want and then when i log off and come back, i have to do the same all over again. geeeez how hard could it be fxsol to be able to save layout especially if its software downloaded on your hard drive!!!! janko â they had much bigger problem. There was the candle deformity .For example candle that was 10 pips tall, after it closed, got deformed and looked even 50 pips tall. It was nightmare to my T.A. But it is fixed now â¦