Guys, this has been discussed ad nauseam on this forum. This so called "grid trading" is only proof there is are no signs of intelligent life in the retail FX community. It's absolutely ludicrous that anyone with an IQ over 45 would think that offsetting pairs is a hedge or a "bi-directional" position. Threads like this only confirm my original theory that there are no profitable (or intelligent) FX traders on ET.
Hedging, what it means?
- Thread starter waelmg
- Start date
Quote from acronym:
True, but options traders do it all the time
No, for the 100th time, it's not the same thing. Option traders hedge curvature. You can't hedge a linear position.
I somewhat disagree with that statement...As a former trading on a corporate FX hedging desk (Dell computer)I can tell you ,we would hedge our exposures with different currencies. For instance, if we sold computers in Poland and were waiting for our Warsaw subsidiary to repatriate the Zlotys back to Austin, we would place a hedge in a correlated currency. At that time, there was no liquid forward/futures market for the Zloty so a D-mark hedge was placed. If a correlation analysis showed that there was an 80% Zloty/Dmark correlation we were then partially hedged against a zloty/USD move but still, in fact, hedged
Although I am a new member of this forum, I am very experienced and I consider myself a very profitable trader using a form of "hedging".
I buy two, three or four negatively corelated pairs and hold them until they reach my profit target. I ignore drawdowns because the hedging looks after that.
While holding, I buy a few more of the pairs that have fallen and sell a few of those that have risen. Meanwhile, I collect interest every day.
Works for me! My account has doubled in a few months.
I buy two, three or four negatively corelated pairs and hold them until they reach my profit target. I ignore drawdowns because the hedging looks after that.
While holding, I buy a few more of the pairs that have fallen and sell a few of those that have risen. Meanwhile, I collect interest every day.
Works for me! My account has doubled in a few months.
Quote from risky:
Although I am a new member of this forum, I am very experienced and I consider myself a very profitable trader using a form of "hedging".
I buy two, three or four negatively corelated pairs and hold them until they reach my profit target. I ignore drawdowns because the hedging looks after that.
While holding, I buy a few more of the pairs that have fallen and sell a few of those that have risen. Meanwhile, I collect interest every day.
Works for me! My account has doubled in a few months.
COINZY IS BACK IN DA HAYOUSE!!!
Why do you think there are no profitable FX traders, as opposed to other futures traders? Do you think that the currency market is that much more difficult than say the bond or sif market? Just curious.
I definitely agree that the FX forum seems to have more than its fair share of silly ideas, with no thanks to retail office managers trolling about.
Quote from risky:
Although I am a new member of this forum, I am very experienced and I consider myself a very profitable trader using a form of "hedging".
I buy two, three or four negatively corelated pairs and hold them until they reach my profit target. I ignore drawdowns because the hedging looks after that.
While holding, I buy a few more of the pairs that have fallen and sell a few of those that have risen. Meanwhile, I collect interest every day.
Works for me! My account has doubled in a few months.
Definitely a very "special" post. I think I'll print it and keep in in a drawer for when I need a laugh.
Remarks:
1) very humble.
2) "I ignore drawdowns because the hedging looks after that" ?? ... if the positions are hedged, then where is the big drawdown ?
3) Another mathamaticaly challenged individual that thinks being long and short the same pair is of some benefit ?
4) "I buy a few more of the pairs that have fallen and sell a few of those that have risen" Does this mean "buy low sell high" ? Hmm, remarkable ground-breaking new idea ! I am certain this part has enlightened many.
5) "My account has doubled in a few months" ... great, but what does the Sharpe ratio look like ?
I realy should have ignored this one, but I just couldn't resist.