EOM
hedging
Started by
traderx
, Oct 18 2013 08:31 AM
4 replies to this topic
#2
diogenes227
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Posted 18 October 2013 - 10:08 AM
Never hedge. Not in my time frame. I'm either in on a signal or out on a signal.
"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).
“I've learned in options trading simple is best and the obvious is often the most elusive to recognize.”
"The god of trading rewards persistence, experience and discipline, and absolutely nothing else."
#3
Zim
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Posted 18 October 2013 - 10:14 AM
Like Diogenes I rarely hedge.
However, you might check with Arb
as I think he always hedges.
Best
Bill
#4
Gary Smith
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Posted 18 October 2013 - 10:29 AM
EOM
I have never understood the concept of hedging for the small time home based trader (accounts under 2 or 3 million dollars) It just adds another layer to the decision making process. I have never hedged in my life.
#5
arbman
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Posted 18 October 2013 - 02:12 PM
I hedge 100% of the time with options for any trade lasting longer than a day, it is the policy.
Hedging allows me to sit tight and wait until the trends develop and I don't use stops. However, once you have your main position, your hedging position, now you have to offset the time cost of the hedging options usually. So, hedging comes with not one, but two layers of complexity in my trading, I also have to manage the roll overs, rolling up and down etc...
There is no other way to manage risk in an leveraged institutional account, there are layers of people checking the risk.
(AUM ~$15M, leverage up to 4x)
I do long/short in my equity trading account with no or very little leverage, but the correlations do not always work as good in hedging...
