GBPUSD thoughts

[willoneau]

long GBP 2810.7
stopped 12.7 pips loss

 

[willoneau]

Entry short US500

 

[willoneau]

re enter GBP 2804.3
should have waited for false break , if it is that will see

 

[willoneau]

Andy after that perfect trade on US500 at open that wasn't i'm going to remove half my position at target.

 

[willoneau]

ok GBP breakout confirmed for me
target exit 2832

 

[willoneau]

close US500
4.8 pips loss

 

[Triple B]

this coulbe a good one will . just close your eyes for 10mins

 

[sasch]

Correct me if I'm wrong , hedging is the process of buying one (example) currency and selling another currency that moves in the opposite direction?

Using two correlated currencies is probably the most common way of hedging. However, I prefer direct hedging - using one currency, although many people seem to be against it, I find it quite intuitive and it suits my trading style.

I did try hedging GDB once all I did was lock in my loss
the straddle you talk about I do use sometimes but my interpretation is I place an entry order just outside the range on either side and take one off when the other is triggered.

You have to have a clear strategy going in, otherwise you can get tangled up in messy trades. That is why it is good to test it out on a demo or use micro/nano lots.

If you hedge 1:1, you will carry the loss all the way down one leg. However, if there is strong momentum you could partially close the losing side, and continue on full size with the winning position.

Or you could hold 1:1 all the way down/up until it hits an important level, combined with a price signal bar. Sell out the winning position, reduce the losing side by half (or leave the original order intact) and let it wind back. Placing a pending order/hedge further away if it continues to move down.

These are just some ideas. There are so many strategies that you can use.

I usually use a bot to open both trades simultaneously to minimise slippage.

The trades need to be on a time frame that overcomes the extra brokerage/commission costs. The profits tend to be a lot smaller than regular trading, as you are generally making profit on the net difference, rather than accelerating returns. However, the draw down tends to be a lot less as well, and leads to consistent returns.

The Straddle you are referring to is the one I meant. Sometimes, both sides can be taken out before there is time to remove one side manually. Although, you have just given me an idea. It should be easy to remove one pending order when the other is triggered using a bot.

 

[willoneau]

Long US500 2721.1
stopped 2718.5 2.6 pips loss

 

[willoneau]

Using two correlated currencies is probably the most common way of hedging. However, I prefer direct hedging - using one currency, although many people seem to be against it, I find it quite intuitive and it suits my trading style.



You have to have a clear strategy going in, otherwise you can get tangled up in messy trades. That is why it is good to test it out on a demo or use micro/nano lots.

If you hedge 1:1, you will carry the loss all the way down one leg. However, if there is strong momentum you could partially close the losing side, and continue on full size with the winning position.

Or you could hold 1:1 all the way down/up until it hits an important level, combined with a price signal bar. Sell out the winning position, reduce the losing side by half (or leave the original order intact) and let it wind back. Placing a pending order/hedge further away if it continues to move down.

These are just some ideas. There are so many strategies that you can use.

I usually use a bot to open both trades simultaneously to minimise slippage.

The trades need to be on a time frame that overcomes the extra brokerage/commission costs. The profits tend to be a lot smaller than regular trading, as you are generally making profit on the net difference, rather than accelerating returns. However, the draw down tends to be a lot less as well, and leads to consistent returns.

The Straddle you are referring to is the one I meant. Sometimes, both sides can be taken out before there is time to remove one side manually. Although, you have just given me an idea. It should be easy to remove one pending order when the other is triggered using a bot.

Will have to take a look when i can and see if i can get my head around it.
the consistant returns caught my eye.

 

[willoneau]

GBP looks at apex of squeeze at moment

 

[Triple B]

Bouncing along 5min 200 ma

 

[willoneau]

well i waited longer than 10 mins close GBP BE

 

[willoneau]

just one more minute

 

[Triple B]

lol im long now gbp

 

[willoneau]

Ok struggling to keep my eyes open , enough trading i'm out of here seeya triple , andy.

 

[Triple B]

Ok , just when the fun starts . good night Will

 

[Triple B]

Only 9pm over in Bunbury . Will must be knackered. I often have a little nap while trading! just need a better office chair . reclining one would be nice

 

[willoneau]

Yes I noticed I made a couple of errors with moving my stops too close , realizing I wasn't being patient because being up so early with work and becoming tired. I also jumped in twice too early because not patient.

 

[willoneau]

Knowing when not to trade is a strategy I'm working on too.