has anyone tried using hedge trades as a tool to lock losses

[squalodon]

Have been trying to think of ways to minimize or manage losses during choppy markets.. and i think this is very promising.. but harder to manage..

do you guys have any thoughts?

 

[robert]

Re: has anyone tried using hedge trades as a tool to lock lo

squalodon,
Well, here are my thoughts...
When I enter a pulback in a trend, my stop is fairly close, so if I'm stopped out, no big deal. if I try to reenter that pair again (and maybe again) and get stopped out, then I figure the trend has stalled or is over and I avoid it.
Having said that, if I trade something that is choppy looking, but with identifiable support and resistance (maybe like the GBPNZD sometimes,) then I just trade smaller and if need be, use a wider stop. But hedging? Sounds ok, just kinda seems like too much to deal with (and are there 2 spreads?)

All the best to ya

 

[squalodon]

Re: has anyone tried using hedge trades as a tool to lock lo

yeah thanks for the input..

i discovered that although i could save myself from losses.. the stress was really not worth it.

better to just wait out a confirmed signal for a new trend to occur.

 

[gauri]

Hello, The technique of covering risks connected with changes in markets behaviour. The difference between hedging and locking is the following: hedging is used with different trading tools.
Thank you

 

[gauri]

Hello, An investment and trading strategy that seeks to limit losses or lock in profits by using two off-setting positions.
Thank you