2% per day!

[TradStSOX]

Exactly, that is what my plan is about too. Since I am not compounding and neither abusing leverage, even if originally stay well below objective curve, it will eventually finish on target and hence no need to gamble.

Quote from moondog:

yea its possible just take it slow

 

[CFerret]

TradSTOX:

I don't quite get the hedging concept related to outright trading.

If you 100% hedge your losing position at some loss level, then it's exactly the same as simply exiting using a stop, but paying double spreads and commissions. Shortly - no single reason to do so.

From the other side if you hedge not 100% then it's simply like reducing your position size and paying the same double comm.

Or maybe I got it wrong and you play some arb/pair trading and not just outright directional trades?

 

[TradStSOX]

The latter part of your post best explains the situation but on your other comments, think of it this way for simplicity:
1- We can never time the market accurately, right?
2- You have a short signal issued and follow it. At the same time the market issues a continuation to the up side because some bots sent a big order which caused a short term up signal.
3- What do you do?
a. Exit your short, when your original short indicator and target remains in tact?
b. Let your short position stay and add a short term long position to readjust your timing?

In short, Trade entry/exit should be signal based and NOT Gain/Loss based.

HTH

Quote from CFerret:

TradSTOX:

I don't quite get the hedging concept related to outright trading.

If you 100% hedge your losing position at some loss level, then it's exactly the same as simply exiting using a stop, but paying double spreads and commissions. Shortly - no single reason to do so.

From the other side if you hedge not 100% then it's simply like reducing your position size and paying the same double comm.

Or maybe I got it wrong and you play some arb/pair trading and not just outright directional trades?

 

[TradStSOX]

Here's a perfect example:
6:30 AM ET. The low has been ES 1309.50 which needs to be revisited and I have a signal saying that 1335 must also be revisited, preferrably same today?

The need to have a short term short and a longer term long!

p.s.
I won't touch it yet, since some pairing must be worked into the complex equation that before hours lack of liquidity does not allow it but the same type of examples happen during the day.

 

[CFerret]

Quote from TradStSOX:

The latter part of your post best explains the situation but on your other comments, think of it this way for simplicity:
1- We can never time the market accurately, right?
2- You have a short signal issued and follow it. At the same time the market issues a continuation to the up side because some bots sent a big order which caused a short term up signal.
3- What do you do?
a. Exit your short, when your original short indicator and target remains in tact?
b. Let your short position stay and add a short term long position to readjust your timing?

In short, Trade entry/exit should be signal based and NOT Gain/Loss based.

HTH

So you 100% hedge your trades in the same market if your outright trade goes "wrong", right?

If this is true, at what moment do you close your hedge then?

 

[CFerret]

Quote from TradStSOX:

Here's a perfect example:
6:30 AM ET. The low has been ES 1309.50 which needs to be revisited and I have a signal saying that 1335 must also be revisited, preferrably same today?

The need to have a short term short and a longer term long!

I absolutely understand the need in a short term short and a long term long, but as separate position, with it's own risk management EACH.

And having a long and a short at the same time in ONE market = having no position at all, thats my point.

 

[TradStSOX]

not only a long and a short in the same instrument doesn't make sense, it is also illegal.

How do you play roulette? Just place your money on a single number, or hedge the number you like by placing chips all around it or the opposite color etc....?

 

[CFerret]

Quote from TradStSOX:

not only a long and a short in the same instrument doesn't make sense, it is also illegal.

How do you play roulette? Just place your money on a single number, or hedge the number you like by placing chips all around it or the opposite color etc....?

I prefer poker, because not a sucker to play a game with negative expectancy.

But if speak of trading, any hedging is still like reducing the size or having no position at all and has no speculative reason, unless it's an arb play of course.

 

[TradStSOX]

Not a true statement! Again as in the case of the Roulette, you hedge to reduce your risk exposure and it could reduce your gains but depending on the outcome it COULD also add to your gains substantially too...
If you chose 29 and covered the corners and 29 it was, then all your bets turn into winners. Same goes with trading, if done correctly, the same possibilities should exist ...

Quote from CFerret:



But if speak of trading, any hedging is still like reducing the size or having no position at all and has no speculative reason .

 

[CFerret]

Quote from TradStSOX:

Not a true statement! Again as in the case of the Roulette, you hedge to reduce your risk exposure and it could reduce your gains but depending on the outcome it COULD also add to your gains substantially too...
If you chose 29 and covered the corners and 29 it was, then all your bets turn into winners. Same goes with trading, if done correctly, the same possibilities should exist ...

Please give an example of how hedging instead of a stop-loss can provide any additional speculative advantage...