Anyone scalping the FTSE Futures??

I too would like to understand the logic behind the hedge discussion. I understand CVs logic that you can hedge via another index as this can be weighed differently based on which index is the leader or laggard. I also understand the logic of a portfolio hedge using a put or a short future contract to limit downside damage if WCS happens. But to simply be short and long 1 unit of the same instrument I don't get. If you trade the same instrument long and short simultaneously but are weighted disproportionately you are once again net long or short (depending on the weighting), so if that's the case why not reduce size and be on that side of the market? Hope I'm making sense lol?
 
wallstreetwarrior87 said:
I too would like to understand the logic behind the hedge discussion. I understand CVs logic that you can hedge via another index as this can be weighed differently based on which index is the leader or laggard. I also understand the logic of a portfolio hedge using a put or a short future contract to limit downside damage if WCS happens. But to simply be short and long 1 unit of the same instrument I don't get. If you trade the same instrument long and short simultaneously but are weighted disproportionately you are once again net long or short (depending on the weighting), so if that's the case why not reduce size and be on that side of the market? Hope I'm making sense lol?
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Not just me scratching my head then, I feel better now!
 
My thinking (dangerous 😉) is that the powers that be will hold it in this zone, so that the retail traders whom use market hours only charts will not have seen the gap down and drive this morning. Meaning they will assume that we have held the Friday high drive and will want to trade a continuation of that. That's the plan at least 😁
Basically having an open gap too deep will freak out those who use market hours only charts, which is not great if the pros want to bring in more longs to sell in to.
 
wallstreetwarrior87 said:
My thinking (dangerous 😉) is that the powers that be will hold it in this zone, so that the retail traders whom use market hours only charts will not have seen the gap down and drive this morning. Meaning they will assume that we have held the Friday high drive and will want to trade a continuation of that. That's the plan at least 😁
Basically having an open gap too deep will freak out those who use market hours only charts, which is not great if the pros want to bring in more longs to sell in to.
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Sounds as cunning as a Fox Who's Just Been Appointed Professor of Cunning at Oxford University.
 
wallstreetwarrior87 said:
I too would like to understand the logic behind the hedge discussion. I understand CVs logic that you can hedge via another index as this can be weighed differently based on which index is the leader or laggard.
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Actually from the link CV put out with ETX it seems you hedge in the same instrument - how it actually works I’m not sure but if it is the same instrument I can only assume you at some stage close out the position that’s out of the money and let the winner run, close that out when it runs out of steam and then possibly reverse. You’ll have margin and spread cost to factor in.
 
blue worked a treat
Screenshot_24.png
 
barjon said:
I’ve been mostly short Nasdaq this week and I had Nasdaq and Dow charts open side by side. Maybe it was a mind thing because of the positions I was holding ( and because I was mostly scared stiff), but it seemed to me that Nasdaq kept looking keen to bounce only to be dragged back south by Dow’s lead boots. I was stopped out on the stronger bounces but, otherwise, I was more often than not encouraged to hold on at other times by seeing continued weakness in Dow when Nasdaq started looking “bouncy” to my eye - although I was scared out a few times.

In the main, though, Nasdaq didn’t actually trade stronger than Dow in percentage terms overall except temporarily when it looked as though it was keen to bounce a bit. This changed Friday, however, when Nasdaq did trade stronger than Dow and finished marginally in the green while Dow lost another 357 points (1.39%).

So, if upward recovery is going to be the order of the day then I reckon we might get more bang for our buck with Nasdaq longs.
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Nasdq strength vs Dow continues. At midday nas was down about 0.6% whereas Dow was down 2.7%.
 
postman said:
No one EVER lost money holding the dow, the charts will show you that.
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Well, I partly agree as you can loose if you buy too early and blow the account, trading is as much about capital preservation as it is about making profits. The DOW will eventually always make new highs (a 100 year of history tells you that), the "brave" part is... are you sufficiently funded to go in too soon? If you are, then start buying now, buy one contract every 1% drop and hold.. you will catch the bottom and make a fortune on the recovery, in fact, every 500pts down scale-up the buy and make a double fortune. However, I made the call of -17% and sticking to that, if you buy now you'll need to stand a possible further 5% fall (1,300pts), if your a/c can carry that I would recommend to do it, I've been buying since Fri but this AM I increased funding by $100k to be able to hold all the buys.

On the subject of hedging, I got a hedge that kicks-in at DOW 24,200, the hedge covers all longs entered so far, if things got crazy, the hedge will keep my account neutral from 24,200 onwards, even to the Dec18 low and beyond, in the meantime I'll keep buying
 
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medallion way said:
Well, I partly agree.. the DOW will eventually always make new highs (a 100 year of history tells you that), the "brave" part is... ... I've been buying since Fri but this AM I increased funding by $100k to be able to hold all the buys.
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Couldn't you just 100% hedge that?
 
postman said:
Couldn't you just 100% hedge that?
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the best hedge is when you hedge rather than STOP so one needs to allow a certain loss before entering the hedge a capital buffer is necessary. In essence, as long as the movement is within expectation, capital is used, the hedge is entered when movement exceeds expectations.
 
ok nice, took a nice number of points on those longs but might have closed too early. Looking now to see where the pull back might allow another entry
 
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