"The only way to trade with Fibonaccis" journal

[1a2b3cppp]

Quote from Took2Summit:

I've been following your journal and your applaud your resilience and openness in your trades. I also believe the market is going to bounce back and am already allin as of yesterday counting on it doing just that.

The market will definitely bounce back. I don't know if I'd be "all in" yet, however.

 

[1a2b3cppp]

8/10

SPY: -$64,125
hedge: $7,070.16

Net for this trade:
-$57,054.84 (unrealized)
+$1,223.60 (realized)
+$2,931.69 (realized)
+$1,129.72 (dividend)
--------------------
-$51,769.83

Pretty much exactly where we were on 8/8.

 

[Took2Summit]

Question for you: Why hedge?

Just lower your position sizing? Unless this isn't a direct hedge?

 

[1a2b3cppp]

Quote from Took2Summit:

Question for you: Why hedge?

Just lower your position sizing? Unless this isn't a direct hedge?

It's not a direct hedge. I will occasionally cash part or all of it out or sometimes add to the position.

And since I can't predict direction I have no way of knowing where price is going to go, or for how long. The hedge is basically a "bonus," whether it's an extra $100 or $5,000. even if I get it wrong and never close out the hedge for a profit (because price is random), I'm still net profitable for the trade.

I get paid more SPY dividend this way, too, because I'm holding larger SPY positions.

 

[1a2b3cppp]

8/11:

SPY: -$35,397.00
hedge: $4,489.56

Net for this trade

-$30,907.44 (unrealized)
+$1,223.60 (realized)
+$2,931.69 (realized)
+$1,129.72 (dividend)
------------------------
-$25,622.43

 

[1a2b3cppp]

8/12:

SPY -$30,894.00
hedge $4,149.39

Net for this trade

-$26,744.61 (unrealized)
+$1,223.60 (realized)
+$2,931.69 (realized)
+$1,129.72 (dividend)
------------------------
-$21,459.60

 

[1a2b3cppp]

8/15:

SPY: -$16,644.00
hedge: $3,011.58

Net for this trade:
-$13,632.42 (unrealized)
+$1,223.60 (realized)
+$2,931.69 (realized)
+$1,129.72 (dividend)
------------------------
-$8,347.41

 

[1a2b3cppp]

8/16:

SPY: -$22,515.00
hedge $3,469.05

Net for this trade:

-$19,045.95 (unrealized)
$1,223.60 (realized)
$2,931.69 (realized)
$1,129.72 (dividend)
------------------------
-$13,760.94

 

[1a2b3cppp]

8/17:

SPY -$22,059.00
hedge $3,422.13

Net for this trade

-$18,636.87 (unrealized)
+$1,223.60 (realized)
+$2,931.69 (realized)
+$1,129.72 (dividend)
------------------------
-$13,351.86


Pretty much no change from yesterday.

 

[1a2b3cppp]

Oops, forgot to post an update yesterday:

8/18:

SPY -$51,471.00
hedge $5,615.64

Net for this trade

-$45,855.36 (unrealized)
+$1,223.60 (realized)
+$2,931.69 (realized)
+$1,129.72 (dividend)
------------------------
-$40,570.35