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Silver I What Not To Do

 
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barney

Silver I What Not To Do

I was setting up my hedge for the 25-5-24 requirement. I bought 5 on the G/U and then I sold 5. The only problem was I used E/U for the hedge. I had to close the 5 sell and start over. Later in the day I realized that if I closed the hedge it would count for another requirement. I closed everything and setup the hedge again with G/U. I did the same thing and used E/U for the hedge. I closed the E/U side and reset the hedge with G/U. I finally got everything set up and left it alone.The market did not move enough in 24 hours for me to take profit. It was a doji day. I was able to close it out about 27 hours after I opened it. The next day was the NFP and I did not want it open for that.

Lesson learned:

1 On the Alveo platform you must have the chart active when you place an order or else the instrument will default to E/U.
I would place the first 5 orders and then scroll through the orders to check them. I did not click on the chart or change the instrument in the order ticket because
I am used to MT4 and Ninja Trader.

2 I took 15 loosing trades on E/U because I was in a big hurry. This will change the win:loss ratio. I still do not know for sure where the other 5 came from.

3 If you are going to do a hedge like this be sure and set it up on Monday or Tuesday. You need to remember that on this hedge that the market can stay in a range of
50 pips or less (25 up and 25 down from the price that the trade was entered ) and never hit the 25 pip profit or it could have gone outside the range but closed
within the range at the 24 hour time ( doji ).

Fri, 02/05/2016 - 12:15pm
 
Nehemiah

Welcome hive!

 
drchcoles

Hi Barney. I appreciate your strategizing. Tend to do a lot of that myself. In the long run, can't say it has work real well for me. I've found identifying direction with potential for a good move (200+ pips) works best for me. Getting direction right covers a multitude of sins. Right direction plus good potential means significant wins. Good luck.

 
dorothy3046

I forgot to tell you, I am a SILVER 1 Level, I will except any comments.

 
Forexfool

Hi Dorothy, I read your bio earlier. We have similar goals. I am also in Silver I. But have progressed a little more than half way in just two days. The rest will take a little longer. My advice is to concentrate on the 25-5-24 and the rest will fall into place.

I am totally confused by what barney says and will stay focused on what works for me.

Good luck on Silver I. I am on your team.
Linda

 
nothnbutnet

I found that if have good solid trades and plan on being in the trades for a day or two the 25-5-24 will happen. Just follow your trade plan for placing longer term trades. Good luck and enjoy trading. Let us know how it worked out.

 
Stuart1984

I started Silver 1 on 28 Jan.

I trade the h4 charts at SD levels and hope to complete all the requirements by close of play tomorrow. I need one more day of profit in a row (hopefully tomorrow) to complete the stage. I have managed the requirements by taking genuine trades rather than an approach to guarantee success such as hedging trades so that one side will definitely be a winner. The only exception was the 3-3-3 trades which I had to employ a slightly different breakout strategy to complete.

The purpose of beeline is to master your craft, not to think up ways to beat the tasks that will not turn a profit for you in real life.

I guess we will all have a different viewpoint but that's just the way I see it.

Best of luck to everyone in their journeys

Stuart

 
FriendlyBee3333

Hi barney thank you very much for the helpful post. Im not even in bronze. To you or anyone else, what is the 25-5-24 requirement?

 
MarketTango

Stuart, I agree completely with you. I have been trying to finish up the 25-5-24 then the 5 profitable days in a row. I am guilty of working the angles to complete the hive. When I do that, I no longer trade my plan. I also believe it distorts your statistics. These can be manipulate in other ways also, though. I find the statistics to be very helpful when they can actually report on results as I actually trade.

One of the weakness is that if you place five trades at once, it's just 5 x one trade or five pieces of trade and if you use the hedge it doubles to 10 pieces of the trades. So where you should have results for 1 trade you now have results for 10 trades. Your statistics now are miss informing you.

I feel the same when I want to place a trade say for one lot. then take profit at ten and 20 pips. That should be one trade with a net profit. However, for now I must place two trades to start and close one at 10 pips.

I thought Dodd-Frank made hedging with the same currency not permissible here in the states. I have other platforms and if you try and hedge it will just act as if you closing the position.

~e

 
Stuart1984

FellowFriendly

25-5-24 means you need to get 5 trades with 25 or more pips profit that are open for at last 24hours

Edward

Keep at it, you will be a better trader for sticking to your system.

Yes hedging is not allowed with most US brokers, fortunately I am based in the UK so it does not affect me. My post above was also not against hedging as a trading tool merely against using it carte blanche to beat the hive.

Hedging has its place if you know what you are doing, if you don't it can get you in deep doo doo

Stuart

 
FriendlyBee3333

Thank you for explaining, barney and Stuart1984, best wishes to everyone in all of their trades!!!

 
FriendlyBee3333

Thank you for explaining, barney and Stuart1984, best wishes to everyone in all of their trades!!!

 
wdennisb1

My two cents on hedging. Use this technique to pass the beeline then forget about it. What I went long and short on the Euro during the Sydney session at the same time. The Euro is pretty quiet during this time. The next day the currency will have moved up or down at least 25 pips.

Now the problem is what to with the lots that are in the negative. You have 2 options:
1. Take the loss, hopefully for less than the profit you made.
2. Exit the negative lots once they are at break even.

 
Sokha

@Stuart1984--

"The purpose of beeline is to master your craft, not to think up ways to beat the tasks that will not turn a profit for you in real life."

I totally agree with you, Stuart1984, and that's how I did in Gold accounts. It has helped me master my short-term swing trade and brought me to the next level with confidence. Now, all I have to do just repeat that process over and over.

Thanks for bringing it up!

 
bdwight1

In defense of barney, hedging is a valid technique and, in fact, is the basis of a rather large financial industry known as the hedge fund business. Of course, hedge funds are not using zero-sum techniques such as simultaneously buying and selling the same asset but instead are trying to exploit the relative outperformance of one asset against another. To give a real-life example, a couple nights ago I was stopped out of a short GBP/JPY trade just before the pair plunged more than 100 pips. Had I used a pair trade (in other words, a hedge) instead of a stop loss I probably could have made a 20 or 30 pip gain instead of a 10 pip loss.