When I a trade I know roughly that I have a 70% strike rate as an example. So including the variables I know roughly the way my wins and loses are going to flow if I hedge my position.ajdal wrote:How?... it has been pointed out numerous times on other threads that the market is reasonably/very efficient... so how does redistributing the return so the rate varies lead to the potential for trading disaster and be almost anti-trading?
If you dont hedge your position you are now dealing with another set of variables in which is what the strike rate of the selection wining is.
My purpose of trading is to turn over as much as possible. The more you put through the more you make if you are profitable. where as with not hedging your strike rate will decrease. So infact although the occasianal stop at a win seems good your actually selling yourself from not taking action on opportunitys from stopping early. Imo the added variables of not hedging allows for not maximise profits and pushing on losses.
I think to be systematic is they key to profiting. Hedging then not hedging its almost random.
if you can do it day in day out then if you have an edge long term you will have a profit but speaking from a trading perspective most traders who are successfull make a payday everyweek. Whereas the variables of not hedging is gambling.
you can profit from gambling but it so much harder and i believe it can lead to disaters as if your not systematic with your strategy how can you be systematic with your money or risk management? When your not maximising your long term gains.
A big win from not hedging is infact stopping you using your strategy on more opportunitys and the variables can lead to different emotions
