mathmatically speaking, closing your long and opening it again lower (placing the stop at the same place, even though it looks larger) is the same thing.
G.
ProchargedMopar's Trading Trilogy
Moderator: moderators
- bredin
- rank: 1000+ posts
- Posts: 1033
- Joined: Mon Feb 16, 2009 10:41 pm
- Reputation: 7
- Gender:
- Contact:
Welcome to the era of "Guns and Maskies" Trading!
The previous message contains discretion. Viewer nudity is advised.
Insanity Industries Indicators Here
Insanity Industries on YouTube!
The previous message contains discretion. Viewer nudity is advised.
Insanity Industries Indicators Here
Insanity Industries on YouTube!
Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.
Thank you for your support.
- Jalarupa
- rank: 1000+ posts
- Posts: 1300
- Joined: Tue Feb 23, 2010 5:50 pm
- Reputation: 324
- Location: South Africa
- Gender:
bredin wrote:mathmatically speaking, closing your long and opening it again lower (placing the stop at the same place, even though it looks larger) is the same thing.
G.
Okay, but if I had to do this... in order to get the same result in monetary terms I would have to increase my position size when I bought back..?
- bredin
- rank: 1000+ posts
- Posts: 1033
- Joined: Mon Feb 16, 2009 10:41 pm
- Reputation: 7
- Gender:
- Contact:
No, heres some math:
Long +100 pips, then
Short (hedge) +50 pips (long now worth +50), close (+50)
closed (realized) profit at this point +50
long goes another 70 pips, and close (+120)
closed (realized) profit at this point +170 pips
--------------------
Long +100 pips, close
closed (realized) profit at this point +100
WAIT 50 pips retrace, then
Long entered and goes 70 pips
closed (realized) profit at this point +170
---------------
at the end its the same thing. all that changes is exactly even each part of the realization happens.
G.
Long +100 pips, then
Short (hedge) +50 pips (long now worth +50), close (+50)
closed (realized) profit at this point +50
long goes another 70 pips, and close (+120)
closed (realized) profit at this point +170 pips
--------------------
Long +100 pips, close
closed (realized) profit at this point +100
WAIT 50 pips retrace, then
Long entered and goes 70 pips
closed (realized) profit at this point +170
---------------
at the end its the same thing. all that changes is exactly even each part of the realization happens.
G.
Welcome to the era of "Guns and Maskies" Trading!
The previous message contains discretion. Viewer nudity is advised.
Insanity Industries Indicators Here
Insanity Industries on YouTube!
The previous message contains discretion. Viewer nudity is advised.
Insanity Industries Indicators Here
Insanity Industries on YouTube!
- Jalarupa
- rank: 1000+ posts
- Posts: 1300
- Joined: Tue Feb 23, 2010 5:50 pm
- Reputation: 324
- Location: South Africa
- Gender:
Hmmm... I see... Makes perfect sense... My only gripe would be, what if I were in a long position that I wouldn't want to give up...? But Yeah I totally see where you coming from and I guess I would be more suited to trading in one direction only and just closing out my less extreme positions and then buying back, which makes complete sense.
Thx bredin
Thx bredin
- bredin
- rank: 1000+ posts
- Posts: 1033
- Joined: Mon Feb 16, 2009 10:41 pm
- Reputation: 7
- Gender:
- Contact:
The difference is psychological, one method is more fluid and ephemeral, the other is more methodical and obvious.
I guess that some people will find each method easier or harder to deal with and as such a no-hedging rule just disadvantages one type of thinker more. I really cant think of the example as one continuous trade: open, close, wait, open, close. I have to see it as open-hedge-close-close...
G.
I guess that some people will find each method easier or harder to deal with and as such a no-hedging rule just disadvantages one type of thinker more. I really cant think of the example as one continuous trade: open, close, wait, open, close. I have to see it as open-hedge-close-close...
G.
Welcome to the era of "Guns and Maskies" Trading!
The previous message contains discretion. Viewer nudity is advised.
Insanity Industries Indicators Here
Insanity Industries on YouTube!
The previous message contains discretion. Viewer nudity is advised.
Insanity Industries Indicators Here
Insanity Industries on YouTube!
Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.
Thank you for your support.
- prochargedmopar
- rank: 10000+ posts
- Posts: 12045
- Joined: Sat Dec 20, 2008 6:07 am
- Reputation: 1790
- Location: Granbury, TX
- Gender:
- Contact:
We are gonna make this VERY simple:
See that dashed purple LINE??
I'm serious!
This is how I see supply/demand.......YOU may call it z-lines, momo,S&R, zeroed out, held profit, ect, ect. Maybe to you it's a fib level, Gann line, psychological level (probably closest to the truth) or Pivot. All the same.
What I'm seeing, The big money is seeing also or this would NOT be happening
Look at the horizontal lines. They are NOT random. We all know price will either bounce or break and that it bounces MOST of the time. They must pull out their BIG CANNON to get price through a historical level. If you only traded bounces, how many times would price NOT come back to your entry when you were wrong?
I only marked a few spots as examples.
Any currency, any time frame.
See that dashed purple LINE??
I'm serious!
This is how I see supply/demand.......YOU may call it z-lines, momo,S&R, zeroed out, held profit, ect, ect. Maybe to you it's a fib level, Gann line, psychological level (probably closest to the truth) or Pivot. All the same.
What I'm seeing, The big money is seeing also or this would NOT be happening
Look at the horizontal lines. They are NOT random. We all know price will either bounce or break and that it bounces MOST of the time. They must pull out their BIG CANNON to get price through a historical level. If you only traded bounces, how many times would price NOT come back to your entry when you were wrong?
I only marked a few spots as examples.
Any currency, any time frame.
#1BODY in direction of profit #2INCREASE lot size Obsessively
My Losses cause me Great Laughter!
Trading Bible here> therumpledone/the-ideas-that-i-trade-by-t3256/page1670
My Losses cause me Great Laughter!
Trading Bible here> therumpledone/the-ideas-that-i-trade-by-t3256/page1670
- prochargedmopar
- rank: 10000+ posts
- Posts: 12045
- Joined: Sat Dec 20, 2008 6:07 am
- Reputation: 1790
- Location: Granbury, TX
- Gender:
- Contact:
BTW, the "first" touch after a line has been CANNONIZED is always the sweetest!!
Big Stones Baby.....
Big Stones Baby.....
#1BODY in direction of profit #2INCREASE lot size Obsessively
My Losses cause me Great Laughter!
Trading Bible here> therumpledone/the-ideas-that-i-trade-by-t3256/page1670
My Losses cause me Great Laughter!
Trading Bible here> therumpledone/the-ideas-that-i-trade-by-t3256/page1670
- trueblueTEX
- rank: 500+ posts
- Posts: 532
- Joined: Mon Apr 12, 2010 4:38 pm
- Reputation: 2
- Gender:
- prochargedmopar
- rank: 10000+ posts
- Posts: 12045
- Joined: Sat Dec 20, 2008 6:07 am
- Reputation: 1790
- Location: Granbury, TX
- Gender:
- Contact:
Hey cousin, why not? does it really matter which indy you like as decoration. They ALL work!!!!
#1BODY in direction of profit #2INCREASE lot size Obsessively
My Losses cause me Great Laughter!
Trading Bible here> therumpledone/the-ideas-that-i-trade-by-t3256/page1670
My Losses cause me Great Laughter!
Trading Bible here> therumpledone/the-ideas-that-i-trade-by-t3256/page1670
- prochargedmopar
- rank: 10000+ posts
- Posts: 12045
- Joined: Sat Dec 20, 2008 6:07 am
- Reputation: 1790
- Location: Granbury, TX
- Gender:
- Contact:
H1
M5
M5
#1BODY in direction of profit #2INCREASE lot size Obsessively
My Losses cause me Great Laughter!
Trading Bible here> therumpledone/the-ideas-that-i-trade-by-t3256/page1670
My Losses cause me Great Laughter!
Trading Bible here> therumpledone/the-ideas-that-i-trade-by-t3256/page1670
Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.
Thank you for your support.