chat gpt? is that how you got this summary? i didn't know it was capable of devouring videos and producing transcripts but i guess maybe it is! if it wasn't chat gpt then you did a pretty good job.
Last edited:
What do you guys think about Nick Shawn and his little hedging strategy.
- Thread starter rbigsby
- Start date
chat gpt? is that how you got this summary? i didn't know it was capable of devouring videos and producing transcripts but i guess maybe it is! if it wasn't chat gpt then you did a pretty good job.
I just stumbled upon him the other day. I've seen alot of different traders youtube channels and they don't usually tell you all their secrets right there in the youtube videos but Nick Shawn himself said there's nothing in his paid course any different or extra than what he provides for free in his youtube videos. maybe you don't believe that but he seems pretty no nonsense and straightforward. I'm just skeptical that his strategy is truly non-discretionary to the extent that it could be coded into a mechanical trading system (forex robot). As I said, I think if you were to try and code it into a robot, it would blow up the account sooner or later. End of story. But somehow he has made it work for himself unless you think he's a liar...
he has a video just for you then:
i know this and he admits it too. that's why he trades at unregulated brokers. because he has to. that's not really an attractive thing to have to do - send your money to someone you don't even trust.
he does use stop losses sometimes, from what i saw. and his strategy might have changed somewhat over the years. i would have to do more research (watching more videos!).
i think there's some phony BS people out there on YT selling their wares but then I know there's some people with integrity doing the same thing. so you can't lump them all into one basket. but i wouldn't think you would do that...
This hedge guy should give a single mathematic reason for FX hedging... It has zero advantages.
Not technical, not quantitative, not even the margin improves as it will consider the floating negative pnl.
Maybe a little psychological help, as one freezes the loss instead of taking it, but still have to recover the loss by guessing the direction. Exactly the same as closing the trade (stop or sell to close), and recovering the loss with another new trade.
I decided to waste some time and hear the video. 5-10% BUST rate??? LOL... Ok... now I get the gambling level here.
I guess the reason why bucket shops offer the opportunity to hedge fx, it's because a trader often pays to hold... swaps, overnight fees or whatever.
In their book, it's exactly like if the trader closed the trade. Think about it.. +1-1=0 Whatever mt4 says on the open trades screen, it's flat, minus losses and costs for the broker.
So our YouTube friend.... is talking about deep fried air. Then the bust rate lol who the hell has a bust rate? 1k accounts?
Lambo!
You could do hedging at U.S. brokers before Dodd-Frank and its FIFO nonsense (one of many things wrong with that bill). There are reasons you may want to. For example, you trade multiple strategies and one is long EURUSD while another shorts EURUSD based on different rules.
That said, he does use foreign brokers that are more risky since he hedges. He says he's been doing this since 2016 and he's never lost any more or accounts.
I'm just not sure about the strategy . There's a subjective part where he looks for S/R, but it's not really that important since he's okay with being right 50% of the time. But I don't know how much he loses in a runaway move with little to no retracements...or a market that doesn't cooperate with his S/R and stop loss levels. He never gives a ruleset for exactly when to hedge or exit trades going badly wrong.
Yeah, I'm more interested in the strategy itself than trying to figure out if someone is a scammer. If they overdo Lambos, stacks of cash, pretty girls, etc. that's a red flag. But this guy doesn't seem to do that in most videos. He has a bit of hype here and there, but you pretty much have to if you want to compete and attract views.
There are people who watch a thousand trading related contents
There are people who practice a thousand trading related drills
Choose your camp
Hedging has its pros and cons depending on what you're trying to achieve.
It's not an holy grail and it isn't the solution to every problem.
Sometime it's best to hedge. Sometimes it's not.
Hedging is a risk management technique,
It doesn't produce any edge in itself.
CHANGE MY MIND
There are people who practice a thousand trading related drills
Choose your camp
Hedging has its pros and cons depending on what you're trying to achieve.
It's not an holy grail and it isn't the solution to every problem.
Sometime it's best to hedge. Sometimes it's not.
Hedging is a risk management technique,
It doesn't produce any edge in itself.
CHANGE MY MIND
Last edited:
How is hedging in the sense of buy/sell the same exact market a "risk management technique"?
What are the pros of this?
Did you use a YouTube summary app?...if so, which one.