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Drawdown: What's your max threshold of pain?
- Thread starter a529612
- Start date
That's all well and good, and delightfully vague. However, we're still waiting for an actual example. You know, one with numbers? I'm not suggesting it can't be done. I would just like to see an example of it where the cost-benefit is demonstrated over a simple exit and re-entry approach. Try to keep your exasperation and righteous indignation to a minimum. You forfeited those when you insulted me for asking an honest question. And if you think it is beneath you to deign a response to my question, after you insulted me, then I can only surmise that you are all talk and no trousers. I'm OK with that, too.Quote from Algorithm:
If you can't manage risk you will never survive. Trading is only the exectuion of a plan.
I mean is it only me? Doesn't anyone see that the OP really has no plan to take into account today's action. Is the ability to trade more important than having a plan?
Live to fight another day and if you don't realize when you are about to be killed or are dying, well then the market will end it for you.
Quote from menthol:
The only reason to hedge as oppose to exiting your position is you have a position too large for the market to absorb quickly.
So either Algorithm is trading $100 million plus or he doesn't know what he's talking about. Algorithm trading? Yeah you have a clue...
So all these that are exiting the market today were hedged? Their positions certainly seem to be moving the markets.
Sounds to me that you haven't a clue as to what hedging even is.
Quote from Algorithm:
So all these that are exiting the market today were hedged? Their positions certainly seem to be moving the markets.
Sounds to me that you haven't a clue as to what hedging even is.
Today is just a mega stop loss triggered by carry traders borrowed against Yen. They can either exit their positions or they can sell index futures to hedge. Either way it brings down the market. Who says "hedging" by selling the index won't move market?
Just shut up Algorithm, you don't know what you're doing. Or maybe you don't trade, you just type on ET... then obviously you don't know what you're talking about
Thank you for your response. I have heard and read about this as well and I suppose it is so. Of course, I am nowhere near the size that may require such form of hedging, nor do I expect to ever be in that position. I am a very small potato in the scheme of things, as I suspect that most of us are here. That is why I found it fascinating that Algorithm would respond with a suggestion to "just hedge" in this thread in relation to risk control for us ETers. Fascinating. Further, the absence of a concrete example only adds to the mystique.Quote from menthol:
The only reason to hedge as oppose to exiting your position is that your positions are too large for the market to absorb quickly, or you have a basket of stocks too expensive to unwind one by one so you might as well just sell the index.
So either Algorithm is trading $100 million plus with a few hundred positions or he doesn't know what he's talking about. Algorithm trading? Yeah you have a clue...
Quote from Thunderdog:
Thank you for your response. I have heard and read about this as well and I suppose it is so. Of course, I am nowhere near the size that may require such form of hedging, nor do I expect to ever be in that position. I am a very small potato in the scheme of things, as I suspect that most of us are here. That is why I found it fascinating that Algorithm would respond with a suggestion to "just hedge" in this thread in relation to risk control for us ETers. Fascinating. Further, the absence of a concrete example only adds to the mystique.
So do you like conversations with yourself as well?
So when's your appointment with Dateline?
I do not now have, nor have I ever had, an alias at ET. I have no need for it, and I already spend too much time here anyway. If you think I am lying, then contact Baron and ask him investigate. If my claim that I have never had another alias on ET is incorrect, then I hereby grant you the right to have me banned for now and forever. Baron, please take note.
Meanwhile, your insults have not yet diverted us from the absence of a concrete example, complete with numbers, of a hedge in which you have engaged, showing why it should be favored over a simple exit and re-entry. I direct you, once again, to the all talk and no trousers reference made earlier.
Meanwhile, your insults have not yet diverted us from the absence of a concrete example, complete with numbers, of a hedge in which you have engaged, showing why it should be favored over a simple exit and re-entry. I direct you, once again, to the all talk and no trousers reference made earlier.