Opinion on Dollar index strategy

[spidertrader]

Hi Guys,
I need you opinions on something I;m thinking of trying out. So i'll get straight to the point;

i went long on the dollar index (Feb contract) last week, but i think i got into the trade late; cos the dollar index seems to be retracing and i'm loosing money at the moment.
However, my system hasn't given me a sell signal, and i want to be disciplined, not do anything, until i get the exit signal.

But i also thought that if i get an exit signal, then i'll loose money. So to cover for a little loss, i'm thinking of going short on the june contract.

Rationale: so if dollar gives a confirmed retracement, i can close out the feb contract and ride the june contract. And if otherwise, i can close out the june contract and remain in the feb contract trade.

Let me know what u think.
Thanks

 

[nazzdack]

"Legging in to a spread" to hedge a losing outright position tends to compound losses, not minimize them.

 

[SilverPony]

you may want to check the setting on your trading system. is it right for your trading account?

i hate taking lost too. but legging in to stop the lost? why don't you just cut the lost? oh, cuz that loosing trade will turn around. someday.

beside that, another idea is to execute option as a hedge against your future trade, at the same time. instead of using stops on future.

imo, the dollar index is choppy trading. stay clear.