Spot Forex Spread/Hedge

Quote from scalpmaster:

This thread is even more interesting than the one I started on
long eur/usd SPOT FX and short eur/use currency futures for the
40+ pips spread :p :p :D
More...

Glad you are enjoying it mate :) ... knowledge is power and wisdom is the essence of our being :)

I love discussing things with all of you even if it is purely for intelecual means.

However, come Asian open, I'm out to make some real $$$$ :)
 
Quote from ParisJOM:

Whats next ? are we going to start a thread that is trying to prove that 1+1=2 ??
More...

Ideally, on the winning side (long or short),

I prefer the Martingale Model: 1+2+4+...contracts
locking in profits at each level and doubling if it breaks through that same level (Level based on daily/weekly pivots divide by 2 i.e s1/2,s1,(s1+s2)/2, s2,...similarly for resistance

On the losing side(short or long),

just 1+1+1+...at s1,s2,s3,... or r1,r2,r3,...

at the end of the day/week, I want the net to be positive i.e a
profit

Anyone here into Averaging Optimization & Martingale/Kelley Variation Models applied to the same currency pair but with Diff Accts?

which must be adaptive (optimization varies from time/position size to time/position size)

:p :D
 
"martingale" is a dangerous word in finance. "increasing risk" however is what my soil is made of ... but thats aan etirely different story that has nothing to do with this thread :)

I'll probaly be a bit busy this week, but if somebody is willing to start a thread entitled "the merrits of increasingrisk after a loss", I'll be sure to contribute my 2 cents in due time.

Happy Sunday all and all the best for the comming week
 
Quote from ParisJOM:

"martingale" is a dangerous word in finance. "increasing risk" however is what my soil is made of ... but thats aan etirely different story that has nothing to do with this thread :)

I'll probaly be a bit busy this week, but if somebody is willing to start a thread entitled "the merrits of increasingrisk after a loss", I'll be sure to contribute my 2 cents in due time.

Happy Sunday all and all the best for the comming week
More...

Merci, JOM, you too my good man (or woman, sorry, I am not sure what "JOM" means, forgive me).
 
Quote from SLW:

This has been a quite interesting post on the notion of hedging a spot FX position.

My question is, "Why would one want to hedge in the first place?"

Rhetorical question? Not really. Hedging is insurance. As a spot FX "SPECULATOR", one wants exposure to capture potential profits. The only reason to hedge is to protect against potential losses. If one seeks to lessen their losses, take a much smaller position. If one seeks to not lose, don't play :) . Now, if you're a CFO trying to minimize the risk of currency fluctuations in foreign operations, hedging makes perfect sense.

Perhaps what some people are seeking by holding different pairs is customizable exposure through the various correlations. My suggestion would be to find a broker that allows for a flexible lot size; this way you're not paying multiple spreads to hold multiple pairs that only offset each other. To my knowledge, Oanda and GFT both provide this, GFT with their Base10 trading. Am I suggesting to not hold multiple pairs, nope. The other evening I was long EUR/USD when a story came across the wire that N. Korea may have tested the bomb; jumped right in and shorted the Yen.

Why, to INCREASE exposure.

Happy Trading.
More...

Hedging FX for commercial transactions is an etirely different realm from that of the speculator aiming for profits on market movements.

... Hedging for commercial purposes merrits a thread of its own, but I am nor competent nor interested in developping much in that regard.
 
Quote from traderjb:

Merci, JOM, you too my good man (or woman, sorry, I am not sure what "JOM" means, forgive me).
More...

You can call me "man" ... 100% dick & balls from what I can see downstairs :)
 
Quote from SLW:

...

Why, to INCREASE exposure.

....
More...

Let me give you some food for thought for a NEW THREAD.

One of the principles on which my system is founded upon is that "gains must be not only larger than preceeding accumulated losses, but must also be accumulated at a faster rate than preceeding losses"

... some food for thought for a new thread :)
 
Quote from ParisJOM:

"martingale" is a dangerous word in finance. "increasing risk" however is what my soil is made of ... but thats aan etirely different story that has nothing to do with this thread :)

I'll probaly be a bit busy this week, but if somebody is willing to start a thread entitled "the merrits of increasingrisk after a loss", I'll be sure to contribute my 2 cents in due time.

Happy Sunday all and all the best for the comming week
More...

Agreed,this is an extremely risky method ...

Looking at ways to reduce exposure gradually...

winning side:

Cycle of 1+2+4 -> take profits at 3 levels (half of s1,s1+s2...)
revert back to 1+2+4 after 3 levels if trend continues

If trend reverse and this becomes a losing side, just do the
1+1+1 as usual but at calculated distance that equates the numberof contracts of the original losing side(which may become the winning side)
 
You must log in or register to reply here.
Back
Top