i have a question .. which is more a leverage/margin protection thing ..
i have a small strategy build where i managed to generate about 300% in about 16 days or so.
it simply aims to partly close the opening Gap on market opening
my strategy works as follows ... my TP is about 50%-150% of the gap (depends on past activity mainly)
however, this usually happens in a VERY short time and before it happens the price moves against the gap
my strategy is to take the whole way down until my TP for the most gain.
i usually have a 1M chart open .. mark the important price levels needed to do this ... and next to it a 10 Tick Chart with Heikenashi overlay to see when things to actually happen.
this worked pretty well so far.
the problem is the equidity/margin ..
lets just assume we have a 50pip GAP UP .. immideatly the price continues to raise another 100pip
since this all does happen in about 10-100 secounds ... there is not much room for analytics ..
so what i do is simply SELL on every indication of a reversal .. as a "save reversal signal" would cost me all of the pips to gain ..
so willingly i selling into a raising price (i know i'm crazy) ..
anyway .. sooner or later the price does turn arround .. so the last time i sell into the reversal will be immideatly in profit, but the other ones (some times this happens 3 or 4 times) are in HUGE Loss ..
i dont worry much about that since they all going to head to the Gap just as the first one.
the "problem" however is the margin/equidity ..
so i had the sort of idea to open sell and buy trades at the same time there the BUY trade just used to keep the equidity in level as they will make short term profits.
however not exiting the trades ... just wait until the price falls back and cancel the on break even or at "some" loss ..
i did test this today .. was able to sell 35 Contract on DAX (GER30) at a very reasonable margin ..
however i could not close the positions fast enough so i had about 100USD loss on the reversing hedge positions ... and ended up with almost double the earning in the end as i could sell alot more contracs.
guess this needs some sort of training![](https://resources.faireconomy.media/images/emojis/64/1f609.png?v=15.1)
usually i not have any loosing positions doing this strategy .. so this may not looks so good on the portfolio ...
i can however with this buy a lot larger positions with out risking a margin call.
my question is now. is there a flaw ? i not thinking of all aspects ?
i attached a picture of todays action .. where i start "to hedge" above the blue line ...
guess the picture is quite clear about what i try to accomplish ..
as you can see . .some of the trades went 300 pips in loss before turning profitable ..
i have a small strategy build where i managed to generate about 300% in about 16 days or so.
it simply aims to partly close the opening Gap on market opening
my strategy works as follows ... my TP is about 50%-150% of the gap (depends on past activity mainly)
however, this usually happens in a VERY short time and before it happens the price moves against the gap
my strategy is to take the whole way down until my TP for the most gain.
i usually have a 1M chart open .. mark the important price levels needed to do this ... and next to it a 10 Tick Chart with Heikenashi overlay to see when things to actually happen.
this worked pretty well so far.
the problem is the equidity/margin ..
lets just assume we have a 50pip GAP UP .. immideatly the price continues to raise another 100pip
since this all does happen in about 10-100 secounds ... there is not much room for analytics ..
so what i do is simply SELL on every indication of a reversal .. as a "save reversal signal" would cost me all of the pips to gain ..
so willingly i selling into a raising price (i know i'm crazy) ..
anyway .. sooner or later the price does turn arround .. so the last time i sell into the reversal will be immideatly in profit, but the other ones (some times this happens 3 or 4 times) are in HUGE Loss ..
i dont worry much about that since they all going to head to the Gap just as the first one.
the "problem" however is the margin/equidity ..
so i had the sort of idea to open sell and buy trades at the same time there the BUY trade just used to keep the equidity in level as they will make short term profits.
however not exiting the trades ... just wait until the price falls back and cancel the on break even or at "some" loss ..
i did test this today .. was able to sell 35 Contract on DAX (GER30) at a very reasonable margin ..
however i could not close the positions fast enough so i had about 100USD loss on the reversing hedge positions ... and ended up with almost double the earning in the end as i could sell alot more contracs.
guess this needs some sort of training
![](https://resources.faireconomy.media/images/emojis/64/1f609.png?v=15.1)
usually i not have any loosing positions doing this strategy .. so this may not looks so good on the portfolio ...
i can however with this buy a lot larger positions with out risking a margin call.
my question is now. is there a flaw ? i not thinking of all aspects ?
i attached a picture of todays action .. where i start "to hedge" above the blue line ...
guess the picture is quite clear about what i try to accomplish ..
as you can see . .some of the trades went 300 pips in loss before turning profitable ..