Forex hedging journal

Quote from euclid:

That's not quite it. He has a big exposure to the Dollar. He is long EURUSD and short GBPUSD. Suppose the USD falls 0.5%. Then his GBPUSD position will rise about 100pips and be stopped out, while his EURUSD position will rise about 75pips reaching only his first profit target. It's worse if he's gone with equal lots of each because the GBPUSD position will be larger. This is much more risky than simply buying EURGBP.
More...

This is true but there's a reason they don't teach Advanced Calculus in 1st grade. You've gotta start somewhere :)
 
Wed Feb 27 -- 6:30am
GBP/USD = 1.9861 = neg 191
EUR/USD = 1.5037 = + 207

net = +16 pips

GBP/USD hit resistance at 2.000 -- should be moving down to hopefully pivot point of 1.9800.

EUR/USD at all time high -- but retracement occuring more slow.

Hedge still looks healthy, though yesterday it went for a scary ride...
 
Wed Feb 30 -9:20am

Gbp/Usd --sell at 1.9856 = neg 187
Eur/Usd --sell at 1.5055 = =225

net profit = 38 pips

violated my 50 pip target and settled for 38 pips -- fear took over after yesterday's somewhat scary ride -- though hedge looks still healthy... will see how it rides out and if 50 pip target is hit.
 
Quote from pbw:

Wed Feb 30 -9:20am

Gbp/Usd --sell at 1.9856 = neg 187
Eur/Usd --sell at 1.5055 = =225

net profit = 38 pips

violated my 50 pip target and settled for 38 pips -- fear took over after yesterday's somewhat scary ride -- though hedge looks still healthy... will see how it rides out and if 50 pip target is hit.
More...

Question - why bother? - for a lousy 38 pips? Seriously. Why not just trade and grab the 225 or 187 like everyone else - or should I say me. Fear? Comfort zone? It just makes no sense BC when the million stars line up and things work you get table scraps and when your "hedge" blows up bad things will happen to your account.
 
Any positive and constructive criticism is always appreciated.

I have a 100 pip stop loss -- why not go for the 187 pips or 225 pips is that it can just as eaily be a 187/225 loss.

Looking for next hedge -- one or two per week is usually enough. Will wait till next mon for next hedge or if good technical set up occurs.

Week 1 = 50 =38 = 88 pip profit.
 
Quote from pbw:

Any positive and constructive criticism is always appreciated.

I have a 100 pip stop loss -- why not go for the 187 pips or 225 pips is that it can just as eaily be a 187/225 loss.

>>It doesn't have to be. It could be a 38 pip loss or a 200 pip gain. Small losses and large gains is proper trading. Not saying 88 pips is not a good thing but that can be had in a day - every day. Since hedging can never eliminate losses I'm just curious what the allure of hedging is for you.

Looking for next hedge -- one or two per week is usually enough. Will wait till next mon for next hedge or if good technical set up occurs.

Week 1 = 50 =38 = 88 pip profit.
More...
 
You must log in or register to reply here.
Back
Top