Hedging exposed

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bredin
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Postby bredin » Sat Apr 03, 2010 1:58 am

nice work, newschool!

Im usually asleep for the major news :)

G.
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newschool
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Postby newschool » Wed Apr 07, 2010 4:32 pm

4:30am // GBP // Services PMI

Image

I thought I was all set. But then they made a b/o so...

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I had to follow, so I sold again !

You can see the small b/o took 35 minutes to build up. And then in a matter of 5 seconds, literally, they completly canceled it. I circled the candle. It was fun to see.

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The news came out, I closed my Buy. And because I was already positive with my Sell thanks to my wide hedge, I was able to withstand the pullback, for the 130 pips candy 8)

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Postby newschool » Fri Apr 09, 2010 1:41 pm

bredin wrote:nice work, newschool!
Im usually asleep for the major news :)

G.

Dedication means I wake up in the middle of the night...

---

Here's my take on the CAD's employment news (that went 85 pips in half an hour)

We see the same thing happening as on GU post above, a b/o that should not be taken seriously at all, plus a quick retrace candle. Perfect to have a nice little hedge to be conformtable on the release.

Again thats the trick, you cannot have a good SL when the news come out because of lack of liquidity, but when you have an hedge you don't care because price can go anywhere until you close one side.

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newschool
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Postby newschool » Wed Apr 14, 2010 11:38 pm

USD Unemployment Claims tomorrow morning.

Any suggestions on wich pair to hedge the news?

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Postby Patch » Thu Apr 15, 2010 12:56 am

newschool

EURUSD

Which is the weakest house of cards?

Wrong.

Israel.

Patch
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Postby newschool » Thu Apr 15, 2010 1:27 am

Of course E/U is our first thought, but I asked the question because I think there a little more to it.
For example G/U moves quicker (bigger pips) and U/CHF or U/J can be safer pairs to trade the USD correlation (depending on the opent markets).

EDIT: The unemployment stat is weekly not monthly, so I don't think I will trade it.

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Postby newschool » Fri Apr 16, 2010 12:26 pm

Currently in a hedge on EU for the Building Permits... hope its gonna be a big news...

EDIT: Closed my Buy position, currently +20 selling it... I just realized that I am also... closing the gap ! ahahah

Well the news wasn't big at all, but at least it went to close the gap (50 pips).
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Hedging, non-news related

Postby TygerKrane » Sat Apr 17, 2010 1:16 pm

Bredin just recently put up a good post about hedging; not for dealing with economic reports, but still a good hedging example.

Aliassmith Psychology 101 and other stuff

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newschool
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Postby newschool » Mon Apr 19, 2010 11:36 pm

OK what are the most important stats ?

- (Un)employment
- CPI
- PPI

Thats it?

PS: I ask because I didn't take seriously today's NZD stat... and it had a big effect !
Last edited by newschool on Tue Apr 20, 2010 1:40 am, edited 1 time in total.

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Postby TygerKrane » Tue Apr 20, 2010 1:12 am

Not a stat, but when bank chairmen are speaking...
Also, interest rate announcements.

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