Thread: Hedging Because You Dont Want To Lose

Hey,

Hi hi. I am back. Complete reading up Anna Couling Volume Price Analysis. BIG BIG BIG eye opener. Of course with tick volume beats hands down. Anyway I watch a video by Joseph Nemeth. And on hedging to replace his concept stoploss.

I'd like to despise stoploss. Now, however, I have to use it in order to protect my capital or profits. Than I discover volume where is a means to ascertain the current move is engage rather than motion that is fake. Than this algoritum which totally interest me.

Ok enough of texting my question is does anyone here can tell me how can the formula works in hedging? I meant can it be engineered?

I show you some example from now exchange like 10/09/2014. GBPAUD. Mini lot.

Ok let's start. As the previous day to get this pair is up. So we should. And we do not follow our rule and buy @ value. We buy at the example shown below.

Https://fbcdn-sphotos-d-a.akamaihd.n...c095a5b8907f79

Our profit goal after deducting disperse is 1.76670. We are looking at 10 pips following spread of 3 to the GBPAUD.

Https://fbcdn-sphotos-h-a.akamaihd.n...a20bf822cba0e3

However, the market stops at 1.76660. 1 pip shy of hitting target level. And so we hope the market will pullback and undo. However, as revealed it didn't reverse.

Rather it breaks the dynamic support aka moving average so which triggers the selling Dollar.
Https://fbcdn-sphotos-f-a.akamaihd.n...e676579b0711cf

As such we are looking at a 10 pip profit after deducting disperse. So that the goal level must be 1.76220

https://scontent-b-kul.xx.fbcdn.net/...c3oe=5498B151

Luckily price did reach our goal level. So we are cushion. The outcome is profit on the sell. However, what about the buy that has been trigger. It was bad at 1.76540 - 1.76220 @ $32

Am I missing something here?
Https://fbcdn-sphotos-c-a.akamaihd.n...69b1554ffb3838

HE cite that the lot size here. 53.37


I really don't understand. Can anyone illue the formula he is currently talking about???

Thanks

In the event that you've got unlimited capital this formula works. I will clarify it in a way that is simpler - you open another order in the direction of the initial one, but with bigger lot-size. For instance, you buy 1 lot but things fail, then you sell (such as) 2 lots and expect that the sell order proceeds in profit, then after a certain distance, such as 10 pips, the sell order with two lots are going to have sufficient profit to cover the BUY (1lot) and also to give you some cash above the 0. The problem is that the price frequently gets 'stuck' in this so-called retrieval zone which makes the things worse - such as:

1. BUY 1 lot
2. Things go wrong so that you sell two lots
3. The price reverses, so now to cover the two lots of the sell order, you have to buy again - so making it 3 lots (or four, or something else, this is just an illuion)

and this goes over and over and over so 1 morning you may wake up using 50-100 floating lots without a margin to keep them open. Therefore, in the event that you've got like 100k you can successfully trade 0.01 lots. That makes this type of hedging bullsh*tleave it and proceed.

IF you are keen on losing money using this method - there's an expert advisor made exactly like described above - you can pick exactly how many times it multiplies the beginning lot and everything you can imagine - I have analyzed it, of course it fails at the long-term if you do not have infinite capital, but I tried to create the EA 'prevent' getting stuck into the restoration zone, again without any success. Sooner or later it fails if you really wish to use this EA, you should override it now and then, simply to accept the losses in case you do not want your account to be burnt to the ground.

Link to the EA: http://www.mql5.com/en/code/9485

Just another take on a Martingale system. Gt; it does not work, not matter how you cook it.
Why do you think this Joe Nemeth costs $ 3000 a pop ?
If it worked he would keep himself and create billions...

another peddler selling shovels into the gold diggers...

Why would anyone keep something? More moneyflow in the exact same direction means movement and whatever anyone tells about retail traders not making a difference do the math 1000 traders buying 1 lot means 100?000?000 that is a lot of money from only 1k traders. Imagine 10k or even 100

Originally Posted by ;

Why would anyone keep something to theirselves? More moneyflow in the same direction means bigger movement and whatever anyone tells about retail traders not making a big difference do the math 1000 traders buying 1 lot means 100?000?000 which is a lot of money from just 1k traders. Now envision 10k or perhaps 100

he's earning $ 3000.00 per customer - He is better off selling his system than investing in it.

I didn't state he is not - I was talking about the pros of sharing, no matter totally free, free or whatever. The main problem will be the robots with settings - due to the order flow, many of them are becoming 'hunted' by the brokers

Originally Posted by ;

I did not say he isn't - I was talking about the experts of sharing, irrespective of free, compensated or anything. The main problem are the robots with stoploss settings - because of the poisonous order flow, many are becoming 'hunted' by the brokers

you ought to use the order flow in your favor.

So there isn't any formula?

E.g
Like enter level aka buy 0.1
Exit level aka sell 0.3
Take profit at 20-30pips? Breakeven?

Originally Posted by ;

so manually there is not any formula? E.g Like enter amount aka buy 0.1 Exit level aka sell 0.3 Take profit at 20-30pips? Breakeven?

There can not be a formula which generates consistent profits.
The market was made to keep that from happening.

Originally Posted by ;

BIG BIG BIG eye opener.

Not this man again This egy has already been debunked, its nothing more than a modified martingale.

Sorry that I have to shut your big opened eyes, but that egy wont work and you'll likely lose your whole account with it, or slowly lose the equity.

I've been too much from the FX world to have been outfitted with an extremely sensitive BS sensor .