Do you have an "edge" in your trading?

[DionysusToast]

Yes it is. My mother-in-law suffers from it. It is debilitating and terrifying. I would not wish it on even those I despise.

You haven't got the hang of this interweb thing have you yet, HC ?

 

[Barramundi]

So how do you get an edge?

Never use a stop loss to confirm a losing trade .
Use a "hedge" instead , which is opening a position in the opposite direction where you would have a placed a stop .
This will buy you time to see what the market is doing and "time is money honey" .
Be prepared to hold your hedged losses for days , weeks or even months .

So if u stuck to a rule of 100 pips winners ,your hedged losses will need to be less than 100 pips for you to be a long-term winner .
Works for me .

Happy trading

This is the biggest load of crap I have ever read! If you are at your stop loss level of 100 pips, hedging further losses ain't gonna help you one iota at getting those original 100 pips back, now is it?

 

[Hotch]

Are you referring to volatiliti's post?

Indeed.

1-The 95% thing is BS, sure 95% of accounts might lose, but having an account is not the same as being a trader, it's like saying I've failed at being a professional sprinter because I ran to the shops once.

2-I am quite sure one cannot gain an edge simply by hedging your losses. I would love for someone to explain how it is better than simply closing your position.

 

[brettus]

This is the biggest load of crap I have ever read! If you are at your stop loss level of 100 pips, hedging further losses ain't gonna help you one iota at getting those original 100 pips back, now is it?

I've seen this alot. Long eurusd from 1.34, short eurusd from 1.25. Net account value about 500$, gradually the tomnext eats away at that 500$ until they get stopped out. Trader has become a very loose term.

 

[volatiliti]

I wait for the market to move a long way in one direction (usually about 400 pips)
before i sell the winner and wait for the loser to come back , which can take days.....weeks.....or even months .
I wait for the hedged loss to be less than 100 pips .

 

[meanreversion]

I've seen this alot. Long eurusd from 1.34, short eurusd from 1.25. Net account value about 500$, gradually the tomnext eats away at that 500$ until they get stopped out. Trader has become a very loose term.

Let's be honest, it's not really "tomnext" eating at the account is it? It's the SB's daily roll charge, a number pulled out of someone's bottom and completely unrelated to interest rate differentials.

 

[volatiliti]

I guess its called position trading .

 

[brettus]

Let's be honest, it's not really "tomnext" eating at the account is it? It's the SB's daily roll charge, a number pulled out of someone's bottom and completely unrelated to interest rate differentials.

Not SB, but FX on MT4, i think in this case it's somewhat related but i know what you mean.

 

[brettus]

I guess its called position trading .

It's called hilarious trading. When the market starts trending you lob out of the hedge that was stopping you doing your ******** and you start doing your ********.

 

[Hotch]

I wait for the market to move a long way in one direction (usually about 400 pips)
before i sell the winner and wait for the loser to come back , which can take days.....weeks.....or even months .
I wait for the hedged loss to be less than 100 pips .

How is this different from closing your original position at the point where you hedge, and then opening a new one at the point where you close your hedge.

 

[volatiliti]

This strategy allows the market to range in one direction without either winning or losing .

 

[brettus]

This strategy allows the market to range in one direction without either winning or losing .

Do it and lob out of the losing trade, you will do alot better.

 

[meanreversion]

The thread should be renamed : "Do you have a "hedge" in your trading"

Biggest load of codswallop I've heard in a while, btw.

 

[new_trader]

Indeed.

1-The 95% thing is BS, sure 95% of accounts might lose, but having an account is not the same as being a trader, it's like saying I've failed at being a professional sprinter because I ran to the shops once.

2-I am quite sure one cannot gain an edge simply by hedging your losses. I would love for someone to explain how it is better than simply closing your position.

Yes, it was the biggest load of nonsense I've ever read as well. NEWBIES BEWARE: It would only makes sense to trade without stops if you were betting 10p/point or some other equally insignificant amount and even then it is very bad practice.:!:

 

[brettus]

Yes, it was the biggest load of nonsense I've ever read as well. NEWBIES BEWARE: It would only makes sense to trade without stops if you were betting 10p/point or some other equally insignificant amount and even then it is very bad practice.:!:

Trader is a very loose term nowadays.

 

[JtheD]

 

[meanreversion]

Yes, it was the biggest load of nonsense I've ever read as well. NEWBIES BEWARE: It would only makes sense to trade without stops if you were betting 10p/point or some other equally insignificant amount and even then it is very bad practice.:!:

Back in the day when I was backtesting every strategy I could think of, I tried a few with no stops, e.g. go long GBP/USD if it breaks out, take profit after 10 pips but no stop, that kind of thing. If you ignore the fact that you might end up in a losing trade for a year (ho ho), these strategies didn't even tend to make money in the long run anyway.

 

[Hotch]

This strategy allows the market to range in one direction without either winning or losing .

 

[brettus]

I am constantly asked about my edge and found that I have trouble articulating it, if indeed I have one. I've perused many trading forums and mailing lists and find that there is, at best, a mushy definition of an edge.

Perhaps I can get a better handle on the concept if I had a concrete example. I'd appreciated it if some here can provide an example of a trading strategy that has an edge, describe that edge and how it's exploited.

Thanks in advance for your efforts to educate me.

Your edge is picking ranges and knowing when to cut a loser i reckon.

 

[volatiliti]

LOL !!!

I recently had a trade that went the wrong way .
My hedge was triggered ,I let it run for a few days ,took a 350 pip gain on the long position ,waited another day for a correction and ended up even on a losing trade .

As I said , it works for me .