Its trying really hard to go lower. I may have to be patient on this one.
Oh Man, I'm Flat
- Thread starter oldtime
- Start date
Its trying really hard to go lower. I may have to be patient on this one.
This aint dropping 600 pips, and if it does I'll add another $1000 and another mini lot long.
How about you? Are you just going to hedge your way out of a losing position? That seems to be your trick. You just keep adding on other pairs until one positive outweighs all the negative.
By then I'll be wealthy man. Perhaps I'll throw a few bucks your way so you can go short again.
that's the trick kid, takes a lot to not let your largest loser also be your largest position, and it can happen before you know it, it's all position size and not running out of money
beats the hell out of guessing
sometimes one positive outweighs all the negatives
sometimes many positives outweigh the one big negative
90% is money management
10% is reading the market
hard to make money no matter how good you manage if you keep guessing wrong
but if you manage money ok, you can survive many bad guesses
Its no real trick, Oldtime. There is no real difference between holding multiple positions simultaneously and many positions seperately. The final statistics are the same.
The one real benefit I see is that you can take a larger position in each trade since, in theory, the hedging trade will counter the others' losses. However, like any other hedge, if you're fully loaded, unloading can be a real mess.
This is a disadvantage of my system, actually, I was forced out of the USDCAD trade so I could take the EURUSD trade. Up 13 pips on the USDCAD, but its not ideal, I must admit.
EDIT: Out of the EURUSD at 3107. I'll take the little positive scalp. I think that's headed down again and I will jump in again near 3096.
it's all money, you can't sell JPY without buying something else
that's why I say this wouldn't work in other markets than forex, unless you could properly correlate
sometimes you see it in corn and wheat, because at times they become interchangable
and yes, if you get fully loaded, unloading is a horrible mess
the final statistics don't tell the whole story if you track each individual pair, I'm probably a net loser in every single pair, I know I am in GBP
for more info check out game theory, where two losing strategies played at the same time can produce a winning result (for a time.)
It isn't two losing strategies; its the two less ideal positions. I am familiar with this - the Nash Equilibrium.
Its a simple summation. If you're net negative in every pair, you're net nagative overall. You can add up all the trades in one pair, take the weighted averages, and view this as one trade with an average open, average close and average weight.