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woops, i'm wrong. The s-L branch is negative on the way back up. I need to think more about this.

Actually, the hedge does provide a mathematically superior maximum profit! Here's why. Whether hedging or not the same result is achieve with two entries and two exits. The difference however is that with the hedge, one branch has ZERO risk. Again, I am working with the assumption that...

Yes, it forces me through a process of analysis. I may conclude at some point in the future that those who ridicule may actually be right, but .... Define some hedged entry E:[l,s]. E is constantly moving such that l-s = 0. The ideal setup is where E is moving between some channel with an...

... and the "coin flip" idea is interesting. I wonder greatly if the "coin flip" together with good money management is profitable.

Of course. I am not denying this. Even with the hedge, you are still having to make a decision that involves reading the market. Ok, so your stop was hit. Was your trade bad, or did you set your stop incorrectly? I think there is a real benefit to being able to sit there for a little...

Your decision process is exactly what it would be anyhow. Do you want to reenter the trade? The only difference is that you have bought yourself some time to think. As a result your loss is no greater than the original stop and can be significantly less. It also smoothes out the sharp...

Exactly. People, of course it is net zero! That is the whole point! For example; With a net zero you lock your losses on your stop without exiting the trade. TIME! Time to rethink your decision without realizing your loss or worsening your loss. Nobody, not a single one of you...

I also want to explore the value of multiple pairs where you match a branch of one pair against the branch of another pair.

What appears to have potential is when what ever you are trading is moving with in a fairly tight channel. Basically, you can enter the hedged positions at any price, and simply wait for this channel. Exit one leg, wait for the other to become profitable, exit that leg. Actually, the other...

How come I can't click on page 5 without seeing a picture of a naked girl. Last poster, what the heck did you do?

If I am understanding this strategy correctly, one could take several very large positions, with even a small percentage of them profitable, the others could be cancelled with only the fees charged and net zero on capital loss/gain. The result would be a nice profit with minimal risk...

Ok, so my stop on the USDollar just got hit at 10,013. I am now simultaneously long and short. I had an orginal target price set at 9420, with an average short price of 9990. So, short at 9990, long at 10,000. For now, I have locked in a maximum loss of 23 pips + fee. Panic around the...

I would need a different broker. Any net 0 position, small or large, creates a fee. Since the roll cost on a long is greater than roll rebate on a short, there is an immediate net negative equal to spread + roll cost - roll benefit. The roll only applies if held overnight. In other words...

My available margin is my broker's stop. A hedge frees margin. A short + a long = 0 margin usage. So, the margin is freed to place another trade while I wait for the hedged position to go in my favour. I don't quite understand why large volume should be the determining factor when hedging...

I also like it because it gives full contol over entries and exits. It greatly reduces the chances of being a victim and gives you full control over when you exit a trade, whether losing or profitable. It gives you a chance to wait a little longer without taking even greater losses.

That's what I am dealing with. You take the profit on one leg, and IN THEORY wait for the other leg to either become profitable, or become a smaller loss. It makes your stop variable, LESS THEN OR equal to STOP + FEES. Ideally, if you're patient, exit correctly, both legs can become...

Forgive me for being pigheaded, but ... In Time Frame A, total price change is A2-A1. In Time Frame B, a smaller subset of A, the path one follows to traverse A1 to A2, is a longer path. The net position is NOT the sum of the two positions. Your adding apples and oranges.

Why? In Time Frame X, usdollar trends up. In Time Frame Y usdollar trends down. Why can't you be simultaneously long in Time Frame X, and Short in Time Frame Y? Using this idea you can use a hedge instead of a stop. By the way, I agree with you if you are restricting yourself to one...

Ok, that is definately a way to decide when to enter a trade. Now, you've gone long at 1200. It jumps to 1210, slides back to 1190 and hits your stop. Do you exit at 1190 and take your loss, or perhaps keep your long, and go short at 1190? At this point, you have locked in your 10pip loss +...

I'm not expecting anything. What I want is time to differentiate between noise and trend change. Using a hedge you can sit and watch for a while with a price no bigger than your original "stop" + fees. In the meantime, your margin has been freed to place another trade (With FXCM if you are...