Anyone have two accounts and do regular hedging?

[riskarb]

For those of you trading with Oanda -- check out their forums re: box options. Made the mistake of depositing LLC funds this week.

It was phenomenal offering while it lasted... immediate touch exotics and deferred, atm inverted bets on 16 major/minor pairs. There was nothing like it available on interbank; let alone the ability to trade minute-durations.

They're neutered their markets by implementing null vol on no touch -- infinite vol on touch. It's akin to placing an rfq on an IBM 100 call and the DPM coming back with, "uhhh, we're a little short-handed right now... how does a nickel bid at one thousand sound?"

 

[OddTrader]

"Going Against The USD"
http://www.elitetrader.com/vb/showthread.php?s=&postid=1136280#post1136280

Quote from OddTrader:

My guess is this (mean reversion type?) method has been discussed in details here:

"Anyone have two accounts and do regular hedging?"
http://www.elitetrader.com/vb/showthread.php?s=&threadid=48312

imo, I would think probably the variant in this thread, particularly when incorporating very good money management skills, could be potentially a profitable method better than the previous ones in the old thread.

Am I wrong by this guess/ thought?

An extremely technical, serious and high quality Chit Chat thread?

 

[OddTrader]

Quote from OddTrader:

An extremely technical, serious and high quality Chit Chat thread?

Moving and placing a thread like this one to CC reflects the high standard of trading knowledge and human courage.

 

[vital-statistix]

Quote from Maverick74:

Are you f*cking serious? Dude, you have no position!!!!!!

You are flat the currency. Then once it makes a move you are only then initiating your first position, being either long or short. You cannot be both long and short at the same time without having gamma! My god, are you people scientologists or something?

You have zero control in this position. All you are doing is paying twice the vig to have no position. This is not the same thing as being long a straddle. OMG, I'm saving this thread for the highlight reels. This is truly amazing.

OMFG, just stumbled on this thread. Cannot believe the stupidity and warped reasoning. And what is even more amazing is how long it has been going on.

Mav74, this thread really proves what Einstein is reputed to have said when he was asked if the universe is finite or infinite:

"Well, I do not know if the universe is finite or infinite. Both scenario's are impossible to envisage. But I do know that human stupidity is infinite and is never ceases to amaze me"

Unbelievable, these people should not be allowed to handle money, they should be locked up with such fucked up reasoning!

vital statistics

 

[riskarb]

Quote from Maverick74:

Are you f*cking serious? Dude, you have no position!!!!!!

You are flat the currency. Then once it makes a move you are only then initiating your first position, being either long or short. You cannot be both long and short at the same time without having gamma! My god, are you people scientologists or something?

You have zero control in this position. All you are doing is paying twice the vig to have no position. This is not the same thing as being long a straddle. OMG, I'm saving this thread for the highlight reels. This is truly amazing.

It's analogous to a dependent, double touch barrier. Long/short in two distinct accounts with vol-based targets and no stop loss. The assumption being that both targets have a reasonable probability of being hit.

The probability of hitting both dependent synthetic barriers is < the edge loss inherent in the doubled-vig. The expectancy is negative, obviously, but < 2*vig.