Title speaks for itself. This post contains some quotes from the other thread i found interesting.
Q1) What is their trading costs?
My guess is that they are operating in an enviroment with spreads similar to ones provided by good ECN broker, but with the difference that they don't have to pay extra commission.
Q2) Why is that?
next quote sums it up very well.
Q3) But aren't there any large speculators who are likethis: lets trade only eur/usd; usd/jpy; eur/jpy and follow our system? How are they called?
Q4) Do banks also hire traders and if so then why.... or they also "hedging the crap of anything and everything"?
Q1) What is their trading costs?
My guess is that they are operating in an enviroment with spreads similar to ones provided by good ECN broker, but with the difference that they don't have to pay extra commission.
DislikedBut in general, Hedge funds do not speculate in currencies
much.
If they do forex, is very little of their working capital.. or they use currencies only to hedge some of the other instrument they trade.Ignored
DislikedHedge Funds have traders like we are .
I guess each individual trader has their own opinion as we do.
Most, use naked charts.Ignored
DislikedI know a guy at a mid sized hedge fund. They use technical analysis for entry, have people continually monitoring all fed announcements and meetings, and have fundamental analysts. The fundamental analysts and fed analysis is used for decision making. Technical analysis is used for positioning.
However... They are a bunch of idiots when it comes to trading... They barely outperform the S&P.Ignored
DislikedTo answer your question, it depends on the hedge funds.
I've been working in one of them. Some guys were trading using EW analysis, while other were trend traders without any specific indicators.
You can find different kind of HF traders, from technical to fundamentals.
You will find chartists trading with EW, MACD, Ichimoku, or quants trading with algos, or fundie traders using macro news to take mid-long term positions.
The only purpose is to make money...isn't it, so who cares about "indies or not"Ignored
DislikedHedge funds, are called like that because is a "Fund" (a lot capital put togeheter) and "hedge" because they hedge the crap of anything and everything..Ignored
Q4) Do banks also hire traders and if so then why.... or they also "hedging the crap of anything and everything"?