turning losing tradings into breakeven trades

Oshosondy

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Quote from: tvplus006 on Today at 03:32:06 PM

You're wrong. By opening a long position and simultaneously hedging his position with the same volume, the trader will eventually make a profit if he closes both orders at the same time. And this profit will depend on the financing rate that is paid to the trader behind holding a position against the market. This is a fairly well-known way of making a profit, which is used not only by large capital. I use this method of making a profit with high-volatility altcoins that currently have a high funding rate.

I disagree with you. Let us talk about good coins like bitcoin with low funding rate like 0.01%. if you have $10000 to opens a short position at $100000 and the price increases to $105000. Losing $500 and you decided to hedge the position by opening a long position at $105000. That means as you are making profit so you will be having the same loss at the opposite positions. No loss no gain until you close one of the position.

If you are referring to funding rate as an example. If you trade an altcoins with high funding rate like -/+2%, as you will gain in one position, so will the loss on the second position.

tvplus006

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Quote from: Oshosondy on Today at 07:45:21 AM

You want a breakeven using the hedge mode? Like you want to trade and not have any profit. I think traders thinks of making profit and also think of ways to minimize losses. Traders do not think of using the hedge mode to open a position against your current position so not to have either profit or loss. I remember when I was a beginner, I think like that. But later you will realize that it is not making any sense than given the exchange more profit on trading fee. Best to close a position to avoid further losses.

You're wrong. By opening a long position and simultaneously hedging his position with the same volume, the trader will eventually make a profit if he closes both orders at the same time. And this profit will depend on the financing rate that is paid to the trader behind holding a position against the market. This is a fairly well-known way of making a profit, which is used not only by large capital. I use this method of making a profit with high-volatility altcoins that currently have a high funding rate.

Aanuoluwatofunmi

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If this had been made very possible as you ha e thought, then many traders would have also been making use of the same pattern in other to avoid losses on their trades, instead they had better break even than making losses, but things doesn't work out perfectly as we may assume when it comes to trading, some facts were best described with mouth than making practical of same, we can't just avoid making that loss ones the mistake comes and we may not even succeed to manage mitigate the effects except on rare cases.

justdimin

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Quote from: david678345 on Today at 07:34:38 AM

Would not be possible with Just another long and short position (DCA) to achieve that long and short position have the same entry price? so the negative PNL would be O?

Do you really think that this has not been tested or that the gap between those isn't big enough to make you lose money? I mean I have seen so many people who just want to use longs and shorts together to assume that they could make a break even at the worst case, when in reality if it was that simple to do it, then everyone would do it. Plus it also makes you never earn as well, not only you would lose, but you would never make a profit too.

In the end, do not try to find shortcuts or loopholes, just trade like everyone else and try to make sure that you are doing a good job at it. I get that it may not feel great for you, but the thing is that we are going to make a profit one way or another and won't have an issue.

Faisal2202

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Quote from: david678345 on Today at 07:34:38 AM

I have a question about turning losing tradings into breakeven trades

...Lets say I want to go long and instead of using a stop loss I use a hedge position (in this case a short position). If price hits my hedge position then my negative PNL would be the size between the long and short position.

Would not be possible with Just another long and short position (DCA) to achieve that long and short position have the same entry price? so the negative PNL would be O?

So you want to start two trades one goes up and one goes down, to maintain the loss well that's not something new but in this way if you wil be making a profit from one then you will make lose from another and the amazing thing is you can't open these two trades in Binance at least because I have seen if we will open the short position while the long position is already there, our trades will be closed. As first I was unaware and I mistakenly Closed the trade.

This can be done if we will have two different accounts of the same exchange on two different accounts Overall, the idea is great and if pulling it off is a risky but still it might worth it or might not.

Oshosondy

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Gamble responsibly

You want a breakeven using the hedge mode? Like you want to trade and not have any profit. I think traders thinks of making profit and also think of ways to minimize losses. Traders do not think of using the hedge mode to open a position against your current position so not to have either profit or loss. I remember when I was a beginner, I think like that. But later you will realize that it is not making any sense than given the exchange more profit on trading fee. Best to close a position to avoid further losses.

david678345

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I have a question about turning losing tradings into breakeven trades

...Lets say I want to go long and instead of using a stop loss I use a hedge position (in this case a short position). If price hits my hedge position then my negative PNL would be the size between the long and short position.

Would not be possible with Just another long and short position (DCA) to achieve that long and short position have the same entry price? so the negative PNL would be O?

Topic: turning losing tradings into breakeven trades (Read 44 times)