million dollar question (this is it!)

[everyonerich]

The question is not well posed though everyonerich. I suppose if I did hate to take a loss that much, that I couldn't accept an already realised loss was true, I would probably do a lot of analysis and try to think where the market was going. If i believed it was going up, then I'd exit the short, leave the long on, and hope my analysis was correct. Is this a real position that you're in everyonerich?

nope, im doing fine with trades now.

 

[everyonerich]

5. You sell 1 lot at 1.3000
6. Assuming you're using a regular broker, that sell does not open a second position. It closes your existing position.
7. You have taken a loss of 0.1000 on your account and you have no open positions.

Still OK?

Not ok, if youre talking about regular broker, some have option you can choose not to merge your position. and im using MT4, so no merging position. No loss is taken until you closed the trade with loss.

 

[foredog]

i highlight your text in red color. Not ok, if youre talking about regular broker, some have option you can choose not to merge your position. and im using MT4, so no merging position. No loss is taken until you closed the trade with loss.

Do you not agree though that either way you have still effectively closed that position out becasue you now have a neutral position (neither long nor short) but have locked in that profit/loss (until if you have two trades you closed one of them).

 

[Mr. Charts]

"No loss is taken until you closed the trade with loss."

Speechless !
I can't help thinking that the folk who have given of their time so generously to help everyonebroke are either being taken for a ride or are just banging their heads against a brick wall.
Hopeless !

 

[Joey25]

Everyonerich,

If the broker lets you run 2 positions simultaneously, then they are having a laugh at your expense - you're paying the spread twice.

 

[Crap Buddist]

When your short hits bottom sub 1.30 drop the short leg, with option to then open a second long for next up cycle in that zone, to trade the anticipated up cycle between 130-160 zone then drop you longs into that.

You'll need to be able to gauge market direction still to take advantage of the cycles. Using the "Spanish Hedge" does not excuse one from sloppy trading. You still have to be able to trade out of it. Which will require the trader to utilise/know accurate market assessment at some point.

 

[everyonerich]

Hi all, Im very sorry if this thread fed u up or you all starts yelling for whatever reason. now back to the questions.

Please allow others to answer the questions. i'll give anyone a million dollars if you are able to give proper answers at post no.18

 

[foredog]

You have lots of answers to post 18. you cannot make profit from those two trades.

BUT

if you were to go long if the market went above 1.4000 with a large enough position that when you exit then this and the profit from the other long at 1.4000 would be sufficient to cover the loss on the short at 1.3000 and show an overall profit on this sequence of trades but not on all indivdual trades.

eg

short 1 lot ($10) 1.3000 close at 1.4500 - $1500

Long 1 lot 1.4000 close at 1.4500 + $500

so at the moment we have a net loss of $1000 so if we were to go long at 1.4050 we would need to need to buy (1001/450 = 2.25) 2.25 or more lots to then exit the trade for an overall profit of

2.25*450 = 1012.5
+ 500 = 1512.15
- 1500= 12.15 profit.

 

[foredog]

Now please stop this nonsense over "hedging" before someone new to trading thinks this is actually a real workable method of trading and blows some of their money following this deluded idea you have.

All you are doing is making lots of pointless trades paying the spread over and over to have 2 neutral position running.

As i have said over and over

enter trade

goes right take profit

goes wrong close trade wait for another setup.

which is what you are effectively doing by having these "hedge trades"

 

[foredog]

and this time i really do think you owe me a $1m

 

[everyonerich]

You have lots of answers to post 18. you cannot make profit from those two trades.

BUT

if you were to go long if the market went above 1.4000 with a large enough position that when you exit then this and the profit from the other long at 1.4000 would be sufficient to cover the loss on the short at 1.3000 and show an overall profit on this sequence of trades but not on all indivdual trades.

eg

short 1 lot ($10) 1.3000 close at 1.4500 - $1500

Long 1 lot 1.4000 close at 1.4500 + $500

so at the moment we have a net loss of $1000 so if we were to go long at 1.4050 we would need to need to buy (1001/450 = 2.25) 2.25 or more lots to then exit the trade for an overall profit of

2.25*450 = 1012.5
+ 500 = 1512.15
- 1500= 12.15 profit.

Dont do that. i'll give anyone a million dollars if you are able to give proper answers at post no.18

 

[foredog]

Dont do that. i'll give anyone a million dollars if you are able to give proper answers at post no.18

?

That is a proper answer.

Print that out and ask a 5 year old and they'll get it.

Could anyone else verify that my answer is not complete nonsesnse?

I am not trying to spam your thread or wind you up i have given a genuine answer to your question.

Take a bit of paper and work it out for yourself if you don't believe me

 

[blackcab]

'Single positions' = trading one underlying with one account where a sell closes a long, i.e. normal trading. 'Multiple positions' = what you're doing.

The P&L is the same whichever way round you do the trades, but you get more unfavourable excursion with your method, i.e. bigger price swings - higher risk - bigger stops. And you need more margin to support the greater no. of contracts.

And it doesn't change the comparison of single vs multiple positions if the move in the middle from (2) to (3) is huge. With single positions you're out of the market and with multiple positions the profit from the long at (1) is nullified by the loss from the short at (2).

 

[everyonerich]

?

That is a proper answer.

Print that out and ask a 5 year old and they'll get it.

Could anyone else verify that my answer is not complete nonsesnse?

I am not trying to spam your thread or wind you up i have given a genuine answer to your question.

Take a bit of paper and work it out for yourself if you don't believe me

http://www.trade2win.com/boards/forex-strategies-systems/53124-different-channel-martingale.html

Please allow others to answer the questions. i'll give anyone a million dollars if you're able to give proper answers at post no.18

 

[foredog]

http://www.trade2win.com/boards/forex-strategies-systems/53124-different-channel-martingale.html

Please allow others to answer the questions. i'll give anyone a million dollars if you're able to give proper answers at post no.18

on that thread





Look up martingale and gamblers ruin in wikipedia.

Dont try this. You will eventually go bust big time.
__________________
Hoggums


acknowledged..
__________________
try making "a million dollars on a million trades, not a million dollars on one trade."

What's changed since then?

 

[Hoggums]

Guy's stop wasting your time. Everyonerich doesn't get it. He has a locked in loss and wants to know how to trade it out without realising that loss.

He doesn't understand that closing the trades and then taking new trades to make back the 1000 pips is no different.

He thinks there must be a way to get out of his predicament.

There is no method that will guarantee this without risking further losses. Unfortunately he doesn't have the brains to see this.

What he really needs to learn is not to trade without stops. Not to then panic when it goes 1000 pips negative and hedge the trade out only to find that hedge trade then goes into loss.

THE TRUE ANSWER TO YOUR QUESTION IS TO NEVER GET IN THIS SITUATION IN THE FIRST PLACE.

STOP ASKING STUPID QUESTIONS.

YOU'VE MADE A LOSS. ACCEPT IT.

 

[everyonerich]

on that thread





Look up martingale and gamblers ruin in wikipedia.

Dont try this. You will eventually go bust big time.
__________________
Hoggums


acknowledged..
__________________
try making "a million dollars on a million trades, not a million dollars on one trade."

What's changed since then?

nothing changed, please stay on this million dollars topic.

 

[foredog]

Do you not think that the reason no one has given you the answer you want is becasue there is no such answer.

Isn't it odd how many people have posted negatively towards your idea and very few in any way positively?

 

[everyonerich]

Do you not think that the reason no one has given you the answer you want is becasue there is no such answer.

Isn't it odd how many people have posted negatively towards your idea and very few in any way positively?

believe me.. market is not zero-sum game

 

[peto]

Everyonerich I too have no idea why I've wasted 10m of my life reading this utter nonsense. You are either a troll, or quite the most stupid person I have read on these forums. I hope you have no dependent family, and if you have that they pull the plug on your internet connection asap.

That you are in charge of a trading platform beggars belief.