Great point, BillyBob the piker guy!! If doing overnights with spreads, I would not be able to sleep without having the risk spread out as wafer thin as possible whilst somehow simultaneously avoiding the exorbitant haircut on the crazy capital required to finance these great quantities of pairs. Yeah, and if you are actively trading it intraday, at least some sort of grey-box spreadsheet will keep you from going blind, psycho or both (actually, maybe blind and crazy is better than still being able to see so that you are only tormented by what you hear or smell and not what you see?) Anyway, seems a valid hedge fund strategy to me.
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Never add to a losing position?
- Thread starter Free Thinker
- Start date
Great point, BillyBob the piker guy!! If doing overnights with spreads, I would not be able to sleep without having the risk spread out as wafer thin as possible whilst somehow simultaneously avoiding the exorbitant haircut on the crazy capital required to finance these great quantities of pairs. Yeah, and if you are actively trading it intraday, at least some sort of grey-box spreadsheet will keep you from going blind, psycho or both (actually, maybe blind and crazy is better than still being able to see so that you are only tormented by what you hear or smell and not what you see?) Anyway, seems a valid hedge fund strategy to me.
Quote from ammo:
an example of selling and adding more shorts higher, you sell the bottom of an area because many times the sellers will come in and it wont go higher,if you didnt sell, u got none, if that doesnt happen, you add higher, under a determined resistance area, if it holds and turns ,you wait for your target and close, the numbrs on right side of chart sh b 06 07,not 36 37...in this exmpl, you sell 02,03..if it goes higher u add up to 06 .08...if it stalls here u r short around 05 and your target is 95-89,at the bottom u start taking off at 95 ,it may not make it it 89, and u end up paying 97,98,so on both ends, you avg in, avg out, doesnt mattter if u add to loser or winner, at least adding to loser ,u are in the trade and didnt miss the move
Ammo,
Thank you for taking the time to post an explanation of your strategy.
Without sounding confrontational why were the majority of your public trades (ES Journal Activity) on the short side ?
Would not it be wiser to do the above with the help of the predominant trend ?
Cheers.
I have a friend who used to be the FX head at one of the biggest European hedge funds.
His boss was very bullish on financials throughout 2008 and kept buying and adding to his longs.
In fall 2008, the financial collapse forced him to cover his positions.
All is left of that hedge fund today is the HF Manager and 2 rookie traders who execute orders for him.
His boss was very bullish on financials throughout 2008 and kept buying and adding to his longs.
In fall 2008, the financial collapse forced him to cover his positions.
All is left of that hedge fund today is the HF Manager and 2 rookie traders who execute orders for him.
no heat , fseit posted the reasson perfectly,an overnite position in this market is not likely to blow up to the upside but the chance of dropping 30 or more overnite is profitable if u are short,very costly if your long,the cost of an overnite short opening against u 8 points isnt great but its manageable
Quote from thisisnotsurfer:
Totally wrong, fear mongering.
Discipline and position sizing is the key. Averaging in works, if you do it correctly. Reason being, no one can time 100% and the market is an undulating system.
by the way, stops hurt performance too. Bet that freaks you out!
TINS
+1
Think in ranges!
Regards
Johno