Hedging Question

Beginner Questions
43

I opened this topic on 27.1.2017, today is 14.4.2017 and I am still in same active positions as I used to be at the end of January. GBPJPY is the worst one, by far the worst. My entry was Long (uptrend) on 29th January at price 144.621 for position size 0.20. Current LOSS at the time of typing this message of said active position is:

[B]-1292 EUR[/B]

All other positions currently in loss too. There are two I would like to emphasize:

EURUSD: been in Short (downtrend) position since 3.1.2017 and entered on price 1.03823

AUDCHF: been in Short (downtrend) position since 10.1.2017 and entered on price 0.74419

There are other active positions but those 3 are most severe - from negative aspect of course.

I have around 300 EUR left until account explosion (current loss reaches available balance).

Basically tried everything to solve this. Also tried to call exchange market so they could move the current market price of my requested trading symbol for at least few seconds on wanted (instructed by me) price so I could close position but so far this wasnā€™t done. I will be keep calling. I know noone on the world might be able to move the current market price but in order to remain trading and since I have no other money left (i deposited on trading account all savings I had), I will need a wonder to happen for me. I am in situation where for me should NOT count the rules and requirements they must be followed for 99.999% of other worldwide traders.

Does anyone have any contacts to hackers group who could attack the servers and change the position type (from short to long and vice versa) for me? I wonā€™t be able to keep the balance and close positions anyhow else so I have to go above and beyond the boundaries of trading world.

44

Do u have the platform screen shot?

45

I want to see what kind of candle u using, what overlay n indecator u using.

46

Total u have hv many positions open?

47

Alanlim3,

This is one of the posts where you have to appreciate the humor and read in between the lines :wink:

48

Oh goshā€¦ Which line? Please adviseā€¦ Haha

49

I believe this to be correct :wink:

50

Alanlim3, It was a long time ago since I was adding entering the positions so as far as I remember I used:

resistance (if entering long) or support (if entering short) line pierced/breakout
+
one more candle (at least H4) in wanted direction
+
closing above upper trendline connecting upper shadows (if entering long) or closing below lower trendline connecting lower shadows (if entering short) and make sure for at least few minutes that next candle is going in wanted direction
+
bollinger bands rules

In total i have 8 positions opened.

51

Hahaha ok understand already

52

Wowā€¦ I feel that too much position openā€¦ For mi I wonā€™t able to focus if too much position open. My max is 2 position maybe Iā€™m Scalping canā€™t open too much positions. U can use your balance 300 euro to cover back but hv to be real slow. Use Scalping way.
Example : if u hv a position open at long and which is in losing trade eurusd, losing of 50pips. Use bb as a resistance n Sar. I hv post a few photo on how to detact reverse u can take a look for references. It better to see the photo so can understand more. But I will tell u how to deal with it. Wait for the short candle to pass bb n Sar dot is side by side. Remember the candle must pass the Sar last dot n pass bb. This way it more confirm will pull back or reversed. Depend on how many unit u place. Example u place 100 unit for micro accounts. U use 100 unit to tackle back. Or 50unit also can. Place your trade on the short candle immediately after it pass the bb. When price pull back n u wining of maybe 2 to 3 pips close the 50 u place and plus 10 unit out of 100 unit which is loss. Slowly recover back the unit. Hope u understand what Iā€™m trying to say.

53

The other way is double up your unit when it start to reverse u place 100unit on your losing trade u needs to place 200 or 300 unit on the new trade. Cos if u in losing of 50pips n u place double the pips will reduce to about 25pips lost. Than wait for the 25pips to become 0 or even some wining of maybe few pips close all 200unit together.

54

It be dangerous but if u hv confident it will pull back or reversed. It gd to use. This also use when u really hv no choice than use this option. Last resortā€¦ Oh ah and also when u use this method best is use when the market r open n fantimemta news is on. Cos the tread is strange to pull or reversed. That us what I use when sometime I hv losing tread. Will post some of my photo here tonight to let u hv a better reference. If u hv screen shoot to show it much easier to discuss how to tracker.

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IMG_20170415_094023.jpg394Ɨ700 34.9 KB

This is what I do. Thus photo was yesterday when USA news release. It pass Sar but not yet pass bb so wait for 2nd candle. When it pass I short it the brown line was my entry. Hope u understand what Iā€™m trying to say.

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I opened yesterday two more positions so now i have 10. Actually I should had opened only 1 but i had to open secondary one because i didnā€™t invest enough into it. The reason for opening this is to, hopefully, protect myself from account explosion (current loss reaches balance on account, obviously in opposite -/+) so now I am doing tripple hedging on GBPJPY. It was going dangerously Down but should had gone Up because I am in Long position (primary one). I wish I had opened like a month ago Short position instead of just yesterday. I had to because every minute there was a bigger loss so now if it goes further Down (UNwanted direction), I have at least something (two said positions opened yesterday) making me profit while UNwanted direction resumes (if it does). Although i repeat that this should had been done like a month ago because the distance between both entry points (actually all three since yesterday were opened 2 just because i didnā€™t make enough big investment on one) is by far far far too big.

Alanlim3 thank you for your effort and time to write this for me but I am not sure what did you mean with:

ā€œUse bb as a resistance n Sarā€

Upper Bollinger Band (bb) can also be defined as resistance but what would Parabolic SAR have to do with this? I am looking at your screenshot including 4 indicators:

Bollinger Band
Ichimoku (Ichimoku Cloud, Ichimoku Kinko Hyo)
Parabolic SAR
Awesome Oscillator

You said:

ā€œWait for the short candleā€

Did you mean RED candle?

Also:

ā€œsar dot is side by sideā€

what is side by side? Did you mean horizontal? Did you mean vertical (probably not)?

Passing which Bollinger Band, upper or lower: probably upper since it seems like you are showing the downtrend? But if high impact news are there breakout of upper Bollinger Band means trend continuation.

Also:

ā€œpass bbā€

what did you mean by ā€˜ā€˜passā€™ā€™? That it just go away from it?

On the screenshot you provided I donā€™t see any reaching/touching or even breaking the Parabolic SAR dot, regardless of quantity of dots.

Anyway, to simplify the post, I will describe exactly how I understand your screenshot (four indicators used). My understanding is the following:

Conditions (all must be met):

  1. Upper shadow of current green candle or body of current green candle must reach upper Bollinger Band but must NOT breakout (pierce) it. The size of this current green candle and the size of previous candle are irrelevant. Also the size of both candlesā€™ shadows (upper and lower) are irrelevant. Means previous candle could also be indecision candle.

  2. The body (must be body and not shadow!) of both green candles from first condition must upward breakout the RED Ichimoku Cloud. Just like in first condition, also here, what is happening with Parabolic SAR is irrelevant.

  3. Red candle must occur. Size of the body and size of upper/lower shadows are irrelevant.

  4. Either red candleā€™s lower shadow or its body must fall into the area of RED Ichimoku Cloud.

  5. When 4th condition is met, the Parabolic SAR dots must go upward and the [B]top (the highest)[/B] dot must be BELOW [B]BOTH[/B]: below the red candle (including lower shadow) and below ENTIRE (here is the key point in confirming if my understanding is correct: is the word ā€˜ā€˜entireā€™ā€™ really correct one?) area of RED Ichikomu Cloud.

  6. Awesome Oscillator must be above 0.

  7. Awesome Oscillator must turn from green to red and the red bar must be lower than green bar.

So this is my understanding of your screenshot but obviously one most important info is missing in both my and (i think so) your post(s) too: What are those conditions for? If all 7 are met, what should happen? The most obvious answer I can think of is: Conditions must be all met in order to open Short (downtrend) position.

I believe there are several mistakes in my understanding (7 conditions) but the appropriate way to learn what you are saying is how I understand and then you could tell me where I am correct and where not - what is correct instead.

However honestly, I still donā€™t see how could I protect myself from account explosion in this way. I have nowhere else to earn money from because I deposited on trading account everything I have. Currently 82% of my balance is in loss on opened positions (all 10 in loss) and it would be disaster if it goes for further around 300 EUR.

57

Ok donā€™t have to be so complicatedā€¦i want to say another thing is, my candles are heiken candle not orginal Japanese candleā€¦ The reading is very much easier to read than Japanese candle. Maybe my photo is too small n complicatedā€¦ Many trader if see my chart they will think it long position., meaning buy positions but it opposite. Look at sar.

See the No1 photo. If Sar is far away from price. It will b continuous going up if it bullish. N keep going down if bearish.
See the no 2 u see the Sar is side by side? N the price pass over it?

IMG-20170415-WA0001_1.jpg394Ɨ700 31.9 KB

Screenshot_20170414-225539_2.jpg438Ɨ700 38.1 KB

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IMG-20170415-WA0002_1.jpg394Ɨ700 33.7 KB

When u see the tail of the candle pass the boillonger. Short it

59

Yes I see you are speaking pretty much about basics of Parabolic SAR and Bollinger Bands. But for BB there is no guarantee on trend reversal when price touches upper (in your case) or lower band. Particularly if large news are going on, the trend will continue in the same direction. It is better to trade upon trend REVERSAL theory (BB) when there are no news and of course upcoming candle should be checked too. Also larger time frame charts too to make sure on all checked charts the trend is going into wanted direction. Another important condition is that as far as I know to trade according to reversal then the bands (upper and lower) must NOT diverge. Neither continue to diverge nor resume to diverge because this is showing that trend direction will continue.

I know the basics of both indicators so it is understandable what you said but what I donā€™t understand is how could I protect myself as much as possible from account explosion? I need to do/reach some impossible magic here such as changing current market price based on phone call to the Exchange Market Institution. As weird as it sounds, I donā€™t think anything else would help me.

There are three symbols that are doing extreme worry, sleepless nights, anger and sadness for almost four months ( ! ). One of those three symbols is GBPJPY. Since I am in terrible loss on my short position I would need as bad as possible news for JPY because this would cause (at least i think so) so much needed uptrend. I noticed there is a high impact news on monday involving JPY where Mr. Kuroda (google about him if you donā€™t know the person) speaks. Perhaps if I try my best to get his phone number and ask him to speak as bad as possible about JPY, it might help and I am being very serious. But this is illusion because no person, being on so extreme job position, would talk bad about own national currency. I donā€™t know what else to do.

If I had any other source of income, I would try to deposit some more money on my trading account to protect myself against account explosion. But honestly, I am being extremely worried and also [B]deeply apologize[/B] to every single member of this forum for ā€˜ā€˜cryingā€™ā€™ here.

60

BB of course have to match with the Sar if not the tread will b keep going on. Mean no sigh of reverse. Maybe Iā€™m a scalper. Long time frame donā€™t work for mi. My max is 1h. Whenever price pass sar n bb there sure b pull back. That where I earn my pips on the pull back. Iā€™m telling u cos maybe u can use my way to slowly win your pips backā€¦ I understand what u saying n know u in very stress situationā€¦ As what u sayā€¦[B] (((I need to do/reach some impossible magic here such as changing current market price based on phone call to the Exchange Market Institution. As weird as it sounds, I donā€™t think anything else would help me.)))[/B] I can say it really impossibleā€¦I canā€™t help u with thatā€¦sorryā€¦ U know it weird yourself alsoā€¦ There another suggestion is. Heart pain close all the trade with losses. And start all over againā€¦ As long as there is forests donā€™t have to worry no woods to burnā€¦

May God be with us

61

I just got another idea what could be done, been figuring out a lot and it seems to be last solution I could think of to save my balance. It seems more dangerous than impossible but may also be impossible. The idea is pretty much basic: I would need few trading symbols, can even be one or two only, that would as close as possible to 100% guarantee very huge profit in extremely (e.g. max few trading hours) short time. This way I could increase the balance a bit and create as large as possible difference between current loss (positions currently being opened - all in loss) and balance on trading account, obviously in opposite +/-.

Now here are few facts I need to be aware of:

  1. I already have by far far far too many opened positions.
  2. Since I donā€™t have any saved physical cash, it is impossible to do any deposit so the only way to increase the balance quickly is to win some trades with a speed of light.
  3. Even if I had cash that I could us to deposit funds on trading account, the bank transfer takes in average between 48 and sometimes even 72 business hours. In that time god knows what will happen on my account.
  4. There is no such thing in trading world as ā€˜ā€˜100% guaranteed winā€™ā€™ or ā€˜ā€˜almost 100% guaranteed winā€™ā€™ or ā€˜ā€˜very large distances in wanted direction in very tiny timeā€™ā€™.
  5. I have been learning trading for a while so I am not complete beginner but in the situation I am currently in, I donā€™t trust myself ( ! ) to pick such trading symbol as needed. Also I donā€™t have anyone to suggest me anything regardless of financial instrument type (may not even be currency pair).
62

The most efficient way to avoid ā€œaccount explosionā€ is to limit the capital at risk if price should go from entry to stop-loss to a small percentage of the total account value - traders doing this often select either 1%, 2% or 5%, but the lower the better until you are consistently profitable.

Obviously, there is a need to take into account multiple positions in the same direction in highly correlated instruments, e.g. 10 long positions on one or more USD-based pairs. This is like having 1 position that is 10 times bigger than your % risk limit so avoid doing this.

A possible way to reduce the damage if an uptrend should reverse unexpectedly might be to place short-term sell orders against open long positions. These can even be above your long stop-loss price levels, as long as you take profits from the short-term shorts quickly after they trigger. Most price falls within an uptrend are pull-backs, not reversals, so you could gain some quick profits into your account by quick shorts on the pull-backs. This grows your account but also reduces the psychological pressure on the longs to perform.

And psychological pressure is I believe your biggest enemy. Nobody has ever put a gun to your head and made you open 10 trades.