Hedging against a day trading position??? How about using stop loss when one is wrong or market goes against his trade?
20% per month trading half of the time with a 75% winrate and under 1% drawdown
- Thread starter ElectricSavant
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Hedging against a day trading position??? How about using stop loss when one is wrong or market goes against his trade?
You can buy a put option far out and run your strategy under it.
Major gap downs happen instantly in markets and at any time.
I guess you're talking about holding overnight or days but not with day trading positions. Or else it would be too complicated as well as distracting for day traders.
It’s preventing something more severe than this from wiping him out mid-day.
https://en.m.wikipedia.org/wiki/2010_Flash_Crash
The guy is day trading e-micro with one lot or two. Who would hedge against holding such tiny positions in such a very short duration? I bet you won't find any one or two lots day traders willing to do so.
I'd understanding if you are trading e-mini with 50 or 100 lots and you need some insurance protection from such large bets.
Fer crying out loud. He is trading 1 micro lot!Yes. This is a way. You must hedge tail risk.
Market is like a classic bottle of ketchup.. you shake on your plate and shake and shake, either a little comes out, or a whole splotch. This is volatility.
I knowww, I guess what I am saying is that an ideal strategy isn’t going to just be 1 lot.
I have a daily loss limit of 7.5%
May I know how many trades you have done so far? What is you risk/reward ratio?
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