Comments on: Short and sharp http://www.forexspirit.com/2006/10/22/short-and-sharp/ Colin McGinley's journey of forex trading by a thousand cuts Tue, 24 Jan 2012 06:42:32 +0000 hourly 1 http://wordpress.org/?v= By: Colin McGinley http://www.forexspirit.com/2006/10/22/short-and-sharp/comment-page-1/#comment-6 Colin McGinley Thu, 26 Oct 2006 02:32:54 +0000 http://www.forexspirit.com/?p=71#comment-6 In my trading plan I detail the limited amount of hedging and opposite-of-my-one-direction trading that I will allow myself to do. I only allow hedging on my one currency pair (EUR/USD) and only look for these opportunities currently when price is in Q3 or Q4 and I'm trying to catch retracements towards the median line. In essence it is very limited, as hedging seems to cloud my judgement and make things murkier rather than clearer. EUR/USD and USD/CHF are normally highly correlated and so going long on both of these pairs is pretty much the same thing as going long and short on just one of them. The correlation factor obviously changes over time. What sort of profit targets are you going for when you do this? If your profit targets are small are you exploiting the difference in randomness between the two pairs? If you're able to fit hedging into your trading plan and make it work for you, then there's nothing wrong in continuing to use it. In my trading plan I detail the limited amount of hedging and opposite-of-my-one-direction trading that I will allow myself to do. I only allow hedging on my one currency pair (EUR/USD) and only look for these opportunities currently when price is in Q3 or Q4 and I’m trying to catch retracements towards the median line.

In essence it is very limited, as hedging seems to cloud my judgement and make things murkier rather than clearer.

EUR/USD and USD/CHF are normally highly correlated and so going long on both of these pairs is pretty much the same thing as going long and short on just one of them. The correlation factor obviously changes over time.

What sort of profit targets are you going for when you do this?

If your profit targets are small are you exploiting the difference in randomness between the two pairs?

If you’re able to fit hedging into your trading plan and make it work for you, then there’s nothing wrong in continuing to use it.

]]> By: zuni http://www.forexspirit.com/2006/10/22/short-and-sharp/comment-page-1/#comment-5 zuni Wed, 25 Oct 2006 20:45:05 +0000 http://www.forexspirit.com/?p=71#comment-5 Hi Colin, we already had a brief email conversation some weeks ago. It was about Dirk's mentorship. You have posted your experience with Dirk as a mentor in Moneytec. And I have been reading your trading diary on your site here regularly since. Have you ever thought about of hedging this one currency (EURUSD)? The best results I have listed with the Swissy. The best timing will be in the area of the median within my grid. Imagine you go long a position with the Euro the same time you go long with the USDCHF. Whenever I notice to close a winning trade in one of the currencies I do so and before I enter a trade again I will first of all study the new situation. May be you have an idea about this kind of strategy or can say something about it, too. I remember slightly Dirk mentioned something about it in his BWILC, but I am not sure. Torsten Hi Colin,
we already had a brief email conversation some weeks ago. It was about Dirk’s mentorship. You have posted your experience with Dirk as a mentor in Moneytec. And I have been reading your trading diary on your site here regularly since.
Have you ever thought about of hedging this one currency (EURUSD)? The best results I have listed with the Swissy. The best timing will be in the area of the median within my grid. Imagine you go long a position with the Euro the same time you go long with the USDCHF. Whenever I notice to close a winning trade in one of the currencies I do so and before I enter a trade again I will first of all study the new situation.
May be you have an idea about this kind of strategy or can say something about it, too. I remember slightly Dirk mentioned something about it in his BWILC, but I am not sure.

Torsten

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