Which trading strategy would you prefer?

Discussion in 'Trading' started by helpme_please, Jun 7, 2019.

  1. yes i know most successful traders do hedge their positions. i for one am into scalping so my trades are very short lived 6- 10 minutes on an average, if i was swinging or even holding intra day for longer duration, i would definitely hedge my risk.
     
    #21     Jun 21, 2019
  2. I would go with one that is more consistent and in this case Strategy 1 seems to be the one.
     
    #22     Jun 21, 2019
  3. They

    They

    "To me, if something needs to be hedged, you shouldn't have a position in it."
    Stanley Drukenmiller
     
    #23     Jun 21, 2019
    p0box4 and d08 like this.
  4. qlai

    qlai

    Interesting ... is that from a particular book?
     
    #24     Jun 21, 2019
  5. They

    They

    Interview
     
    #25     Jun 21, 2019
  6. Handle123

    Handle123

    After I got my long term down well, got very bored, so horribly went into scalping and years of learning how to scalp, took 7 years just to turn profits and another 10 years to refine the art. I grade my exits to A-B-C-D-F, never gotten it above a "B", but most trades out under 2 minutes on 80%, added runners 2 years ago for the other 20%. The percentages alter on slope angles of price, steeper slopes runner percentage increase and weaker slopes do less runner percentages. The greatest risk is when I am scalping, too expensive to be doing tight hedges.
     
    #26     Jun 21, 2019
    10_bagger likes this.
  7. qlai

    qlai

    Is this for automated exits? How does that compare with manual exits?
     
    #27     Jun 21, 2019
  8. d08

    d08

    You're completely wrong and giving bad advice. To illustrate, I've lost money on a 90% strategy and made most with something that has a win rate below 60%. I'll leave you to figure out the math.
     
    #28     Jun 21, 2019
    qlai likes this.
  9. ironchef

    ironchef

    Insufficient information to choose, it all depends on expectancy. For example a 30% win rate with R:R of 2:1 is preferred to a 51% win rate with R:R of 1:1.

    My win rate is quite a bit below 50. :D
     
    #29     Jun 21, 2019
  10. i am pretty sure that your strategy with less than 60% has a risk to rewards ratio larger than 1:2
     
    #30     Jun 25, 2019