I'm curious: will your broker allow you to trade with negative equity? If you follow this approach and do not have the trading skills of MZ, it is very likely that you are going to experience negative equity. Some brokers will force a margin call ...

Just learned about hedging, does anyone use it for scalping?

Please, don't think that I want you to stop what you are doing. But you just made my point for me. You make 2,000 pips because you know when to be net long or short, and when to turn on the "hedge" to be flat. You know when to be in and out of the ...

Just learned about hedging, does anyone use it for scalping?

Wait, "hedging" keeps a position open, but closing a trade is the same as "hedging", which by extension of your logic/statements, means that a closed trade is still an open position? Now that's funny. "Hedging" does keep a position open, but since ...

Just learned about hedging, does anyone use it for scalping?

I agree 100% with you. The point I have been making is, if you are bad at making buy or sell decisions (you suck at trading), you will be bad at making decisions to open a "hedged" position (you will still suck). If you make money "hedging", you are ...

Just learned about hedging, does anyone use it for scalping?

Again, let's be clear and honest here. If you have a profit or loss before you fully "hedge", you made your profit or loss due to the fact that the un-"hedged" portion of your trade was exposed to market forces. You are in profit or loss due to your ...

Just learned about hedging, does anyone use it for scalping?

Here's the point: your equity/equity curve increase only when you make a decision to be long/net long or short/net short. If you can't make those decisions correctly, you will lose money. "Hedging" does not matter. Only the decision to be exposed to ...

Just learned about hedging, does anyone use it for scalping?

I'm going to guess that the good people who run the Shinkansen Hayabusa train will object to comparing their train service to opening opposing trades in the same currency pair on the forex. Their trains run really fast, while the "hedged" position ...

Just learned about hedging, does anyone use it for scalping?

Yep, just what I said. Jeesh...

Just learned about hedging, does anyone use it for scalping?

You originally asked for an explanation for your equity curve. I did that. Now, you want an explanation for this. Here goes. You have a negative balance and a growing equity because your "hedges" have driven balance negative, but your equity is ...

Just learned about hedging, does anyone use it for scalping?

Yep you are correct. If you are in the US trying this bullshit with 2 accounts, you could suffer margin calls on both accounts in one day. And I saw your post to moodypot and I’m feeling a little left out.

Just learned about hedging, does anyone use it for scalping?

An equity curve, positive or negative, isn’t dependent on “hedging”, but is created by the results of your net positions. You may be using “hedging” In your trading, but the point that’s now been made serveral times is, the equity curve has nothing ...

Just learned about hedging, does anyone use it for scalping?

You are, of course, exactly correct. But apparently, according to one participant here whose initials are MZ, it is possible for a "hedged" trade to increase equity as long as it's not closed. I assume he's a witch or a wizard or something. But ...

Just learned about hedging, does anyone use it for scalping?

I've explained this...from the perspective of a US trader. You need two accounts to simultaneously hold a buy and a sell trade on the same currency. The cost to open and close the trade is double, and the margin required to do the trade is ...

Just learned about hedging, does anyone use it for scalping?

I refer to it as the big tease.

Just learned about hedging, does anyone use it for scalping?

brilliant observation...well stated.

Just learned about hedging, does anyone use it for scalping?

Once you've established this "hedge", think about the sheer power of placing entry orders 30 pips above and below the "hedge", thereby straddling the hedge. Think about how that could put some forward thrust to your account equity, Think about it...

Just learned about hedging, does anyone use it for scalping?

In addition to thinking about straddling and hedging, I've read about lunar phasing, too. We should push that into our discussion. Let's get out the Vaseline, crack a window, and push deep into these areas, metaphorically speaking.

Just learned about hedging, does anyone use it for scalping?

Grey areas indeed...

Just learned about hedging, does anyone use it for scalping?

We should all discuss both in greater detail...

Just learned about hedging, does anyone use it for scalping?

Of course "hedging" is stupid, but straddling? Straddling is the key to higher profits! And if you really are smart and sophisticated, learn to hedge a straddle...

Just learned about hedging, does anyone use it for scalping?