The question about Brett was meant to be funny. It looked like the thread was going to take a turn for the worse. Clearly, there must be reasons for hedging. I would imagine every situation is different. Is it good money management, or is it lack of confidence in the initial trade? At some point, one of the trades must be closed, which would eat profit from the opposite side. Am I oversimplifying? Everyone talks about it.
To make sure I understand what you are doing, I have this clarification question: do you move it to breakeven on the whole , or beakeven of the 2nd thought of as a separate trade?
PS1 if the hedge is uneven you have either locked in a gain or a loss (spread cost aside) Hedging with options is a genuine risk control measure. It allows you to stay in the position ( at least for the duration of expiry ) without the need for a stop - but at often very expensive cost of the premium. In short - much as everyone desperately tries to find one - there is no free lunch in trading. If you want to win you must be willing to lose.
Brett was just too easy a target and I was trying to be a gentleman. See my responses to hedging in other posts. I consider it a psychological crutch and nothing more but perhaps there is a trader out there who can describe a logical hedging technique that has merit. i am open to ideas.
Boris, Please put links to your services in PMs, or look to become a sponsor and post your links as you wish. I cannot allow you to post links for free (not my rules). To the rest, If you wish to question Boris and Kathy and their methods, feel free to do so. But keep it civil. They neither warrant nor deserve rude responses, and I will delete any such posting. They were very polite to me whenever I happened by the FXCM forums, and deserve the same. Thank you.
Ivan - of course. i only put them in there because there were requests in the thread. If anyone wants info please just google it. Also a lot of my trading ideas are available for free on youtube where we have our channel so feel free query me on any of those strategies, I'll be happy to answer any questions and critiques of which I am sure there will be many. Thanks for the kind words Ivan. B