Hedging a losing strategy

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  • 01/27/2020 at 1:37 PM #118032 quote
    Slowlyslowly
    Participant
    Average

    Hi

     

    If c1 then
buy 1 per point at market
endif

set stop pLoss 20
set target pProfit 10

     

    Question : how do I then enter the reverse trade as a sell , when current position is in a loss of-10 set with the same Ploss 20 and Pprofit 10 At this new sell entry point  but with an increase sell of 3 per point  so hedging in one code ?

     

    help appreciated.

    01/27/2020 at 7:22 PM #118077 quote
    Vonasi
    Moderator
    Master

    Slowlyslowly – please always use the ‘Insert PRT Code’ button when posting code. I have tidied up your post. 🙂

    It is not possible to hedge in a strategy as it is not possible to have both a long and a short position open at the same time. You would have to split the strategy into two strategies but it is likely that they would get out of sync so it is not really a working solution.

    01/31/2020 at 10:18 AM #118332 quote
    deletedaccount100622
    Participant
    New

    Hi @Slowyslowy

    I tried this in the past but you effectively lock in a loss and cost yourself on the spread, I also found that if the pricing action is choppy that you can keep on losing money on the hedge and reentering the hedge and just losing money over and over

    This isn’t to say that it can’t work but you do this through a portfolio with a mix of timeframes and mean reverting and trend systems, it is not uncommon for my screen to have positions hedging each other out but this will happen with say a 4 hour system being long with the trend and then a 5 minute system selling short term price action. So the long term position pulls back a little but the short term position makes profit effectively acting as a hedge. When the short term move is over I still have the trend following long

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Hedging a losing strategy


ProOrder: Automated Strategies & Backtesting

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Slowlyslowly @slowlyslowly Participant
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This topic contains 2 replies,
has 3 voices, and was last updated by deletedaccount100622
6 years ago.

Topic Details
Forum: ProOrder: Automated Strategies & Backtesting
Language: English
Started: 01/27/2020
Status: Active
Attachments: No files
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