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hedge forex positions with no loss
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togr

Biedrs kopš Feb 22, 2011  3470 ieraksti vontogr (togr) Sep 27 2016 at 07:35
Keep your insults for yourself.

The triangle I did describe is working, not in theory but in real.

Even you could be able to understand it.

As

you buy/sell the same amount of EUR
you buy/sell the same amount of USD
you buy/sell the same amount of JPY.

Even it is beyond your forex knowledge it is working :)

I like what I trade, I trade what I like
togr

Biedrs kopš Feb 22, 2011  3470 ieraksti vontogr (togr) Sep 27 2016 at 07:37
compuforexpamm posted:
CrazyTrader.....IMHO vontogr is correct. As long as you do the correct lot sizing, you can hedge using the method he mentioned.

I used an ea that used to trade EURGBP synthetically using EURUSD & EURGBP because the spreads would be lower using the more liquid currencies. The lot sizing is key.....the EURJPY lot needs to be slightly bigger since you get more yen for a EUR than for a USD.

@ilqarsadiqov200, I also believe that there is no point in hedging. You can make opposite trades as much as you like but you will end up with the same constant loss. As a matter of interest, any hedge position can be broken down into a single position, without the consequent build up in negative swaps and commission costs(brokers love hedge traders for a reason........)


Exactly trade size is the key.
You cannot simply open 1 lot of each pair.
BTW crazytraders advises is not worth it as he doesn't posses single profitable account
Pielikumi:

I like what I trade, I trade what I like
togr

Biedrs kopš Feb 22, 2011  3470 ieraksti vontogr (togr) Sep 27 2016 at 07:37
compuforexpamm posted:
CrazyTrader.....IMHO vontogr is correct. As long as you do the correct lot sizing, you can hedge using the method he mentioned.

I used an ea that used to trade EURGBP synthetically using EURUSD & GBPUSD because the spreads would be lower using the more liquid currencies. The lot sizing is key.....the EURJPY lot needs to be slightly bigger since you get more yen for a EUR than for a USD.

@ilqarsadiqov200, I also believe that there is no point in hedging. You can make opposite trades as much as you like but you will end up with the same constant loss. As a matter of interest, any hedge position can be broken down into a single position, without the consequent build up in negative swaps and commission costs(brokers love hedge traders for a reason........)


Thanks,

the only point could be to hedge your open loosing positions before main event like NFP and close both sides when they become profitable, there could be risk though at the moment you close one side.

I like what I trade, I trade what I like
CrazyTrader

Biedrs kopš Nov 21, 2011  1696 ieraksti CrazyTrader (CrazyTrader) Sep 27 2016 at 07:37
It works for EurGbp

Another good example would be to trade AudNzd while hedging with AudUsd and NzdUsd

These 2 are correlated triangles.


Unfortunately trading EurUsd while hedging UsdJpy and EurJpy doesn't work.

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5astelija

Biedrs kopš Oct 15, 2014  42 ieraksti 5astelija Sep 27 2016 at 07:44
yup, its not just a 'theory', its pure mathematics.
EUR/USD x USD/JPY x JPY/EUR => EUR/EUR x USD/USD x JPY/JPY = 1.
key principle of forex pairing, it would be useless without.

never ring the bell
Elena_Chopin

Biedrs kopš May 28, 2016  211 ieraksti Elena (Elena_Chopin) Sep 27 2016 at 07:52
Or you open an islamic account and a normal account.
You open a position with positive swap with normal account and you hedge this position on your islamic account.

You will earn swap interest each day without take any risk !

Elena Chopin

wortrader

Biedrs kopš Dec 10, 2015  21 ieraksti wortrader Sep 27 2016 at 14:08
yes average trader 50 cent per day :)

i am user in bestforexrebates dot com
SaltyWaters

Biedrs kopš Mar 22, 2010  228 ieraksti SaltyWaters Sep 28 2016 at 04:39
Hedging works very well and you don't have to go against other financial instruments. Pick a pair, any pair (except pairs that don't move much) go in regardless of the market's direction find a mathematical formula that works for you and apply it (lot size). Just go with the flow. Of course this is not for the faint at heart, because you cannot use stop loss with this strategy. Synchronize timing and lot size to exit. You are going for the gold and want to come out with it. Fear and you will lose. You can be very successful if you find the right equation. It's in the numbers you choose.

Success is the Best Revenge
togr

Biedrs kopš Feb 22, 2011  3470 ieraksti vontogr (togr) Sep 28 2016 at 09:51
5astelija posted:
yup, its not just a 'theory', its pure mathematics.
EUR/USD x USD/JPY x JPY/EUR => EUR/EUR x USD/USD x JPY/JPY = 1.
key principle of forex pairing, it would be useless without.


@5astelija

Yeah thats the principle.
I am afraid @CrazyTrader is still not able to understand ;)

I like what I trade, I trade what I like
5astelija

Biedrs kopš Oct 15, 2014  42 ieraksti 5astelija Sep 29 2016 at 06:39
SaltyWaters posted:
Hedging works very well and you don't have to go against other financial instruments. Pick a pair, any pair (except pairs that don't move much) go in regardless of the market's direction find a mathematical formula that works for you and apply it (lot size). Just go with the flow. Of course this is not for the faint at heart, because you cannot use stop loss with this strategy. Synchronize timing and lot size to exit. You are going for the gold and want to come out with it. Fear and you will lose. You can be very successful if you find the right equation. It's in the numbers you choose.


That's quite profitable method, I have made many eas like this.
Thing is, it is not 'hedgind' as the word means protecting for potential losses - it more like betting 'I bet another 0.5 lots the trend will not go further' and so on.. You will get nice steady profits, until one day you bet wrong too many times. Like a fancy martingale.

never ring the bell
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