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Hedge basket or Off setting?
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Author:  danjuma [ Sat Dec 16, 2017 2:25 pm ]
Post subject:  Hedge basket or Off setting?

From what I have gathered, most of Steve's EAs options of dealing with DD or trading without stop loss come down broadly to two concepts - hedging as a basket and closing the basket at BE or small profit, or using any of the various forms of off-setting. Just wondering about peoples' experience and which do you believe is more effective? Thanks
Author:  Wavegarrick [ Sat Dec 16, 2017 6:20 pm ]
Post subject:  Hedge basket or Off setting?

Hi Danjuma,

From my personal experience this year. Stops are bound to be taken out. It is frustrating seeing stops taken out only to come back in the direction of the signal.

So do I lean towards Off setting? Well I must tell you that offsetting has helped me out on more than one occassion. Off setting should be seen as a tool to get you out of trouble. Here is the bonus, you even have the opportunity to bank a few pips profit getting out of trouble.
Complex single sided off setting offsets losers against winners and keeps drawdown in check. These are absolute must haves in my opinion.

Hedging is not something I like, but yes offsetting does come in handy here. For me hedging prolongs the pain of losses.

My small take,

Cheers
Leon
Author:  danjuma [ Sat Dec 16, 2017 9:32 pm ]
Post subject:  Hedge basket or Off setting?

Wavegarrick ยป Sat Dec 16, 2017 6:20 pm wrote:Hi Danjuma,

From my personal experience this year. Stops are bound to be taken out. It is frustrating seeing stops taken out only to come back in the direction of the signal.

So do I lean towards Off setting? Well I must tell you that offsetting has helped me out on more than one occassion. Off setting should be seen as a tool to get you out of trouble. Here is the bonus, you even have the opportunity to bank a few pips profit getting out of trouble.
Complex single sided off setting offsets losers against winners and keeps drawdown in check. These are absolute must haves in my opinion.

Hedging is not something I like, but yes offsetting does come in handy here. For me hedging prolongs the pain of losses.

My small take,

Cheers
Leon
Thanks for sharing your experience Leon!
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