obviously, everything feeds the machine- our goal is make sure we feed it as little as possible----proper hedging aligned with position sizing simply decreases the costs--this is why all the forex dealers push stops heavily as they actually increase losses over the long run--- these devious folks also push TA for the same reasons-- their wins are your losses--- very naive not to understand market 101.
Okay, but you still haven't generally defined the nature of your hedging. And how does "proper" hedging decrease overall costs (of transactions and bad calls) better than "proper" stop placement?
one cannot use the same (say, $1.00) stop for each trade but each trade can have it's own stop based on the price and volatility currently happening. i agree, a fixed stop regardless of anything else is dumb.
Except when I do it. Check out the Bitcoin thread, the complete fulfillment of my prediction 6 weeks ago even surprised me. And that was completely TA based, it was a typical blow-off pattern, (exponential upcurve followed by an immediate meltdown) Some patterns are forever... http://www.investopedia.com/terms/b/blowofftop.asp#axzz25oHYw2Lb
--------------------------------------------------------------------------------- Ok yes. (If) surf have put stop loss for his short JCP (when he place his short bet), than he will have more profit on his long bet of the competitor hedge (If that is his strategy hedge). Surf is saying (position size). So I guess if he lose all his money on the JCP short, he really do not care because he only make the small bet of money in compared to % of all his trading money. I am guessing. I really do not understand the game like you do. I like to read and watch!
maybe this time will be different? or maybe not. not a good start, that's for sure. but it's still early.