Index Hedge Trading

How do you know when a trend has started? Ended? This forum is for discussions about trend indicators and signals.
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tradinggeek

Index Hedge Trading

Post by tradinggeek » Sat Aug 27, 2011 10:56 am

  • Edited by Moderator - Since this is "tradinggeek"s first post, and since it smells like advertizing, product names have been removed. However if anyone is dying to know exactly which product, try this: copy some of the text of this post into a search engine's query box, I suggest "protectiveness for traders was paramount". It will quickly find many dozens of duplicates of this post, on several other trading forums, with the website and product name intact.
I’ve been trading in the index market for almost 10 years and I have considered myself as a highly experienced guru. However, even a highly disciplined trader cannot systematically or consistently make winnings, so I’ve actually tried many types of software to help my trading strategies (which should not really be a surprise to anyone anyways).

I’ve been through so many different software where they all make boasting claims about their success, but nothing has been as good as they claim… One common problem they all have is that they are all somehow too simple in judging the market. They’re hardly sophisticated. Either they use a simple statistical standard deviation or some other simple moving average parameters. Sometimes when you get lucky they’ll get it right, but most of the time they are crappy and useless… I’ve almost lost my faith on these trading software after so many failures, but I kept looking… to my surprise, the search proved worthy.

The other day, I stumbled upon this website { deleted by Moderator } and found they use a hedging technique which is a bit hard to grasp in the beginning, but! When I followed their trading strategy, I discovered its awesomeness. Although this trading tactic did not guarantee an all-time winning rate, (which is completely understandable,) it did bring profit overall after balancing the loss and profits. It runs on a statistic concept that admits it does have a 40% loss rate, however the 60% of the winning rate still makes quite a handsome profit. This software is called NAME, but bear with me, it does have shortcomings.

The shortcomings of this software; (1) it was kind of too conservative. They took too much of a prudent strategy, which made the trading much less frequent than most of the other software. There was a lot of waiting, which was inevitably boring… (2) the hedging strategy was complex. Each trade had to be accompanied by a hedging trade - so you essentially make two trades in one go, every time.

With these things aside, I was rewarded with lovely profits. The so-called NAME is a multi cross hedging trading system. A very prudent strategy which makes the game boring, but the protectiveness for traders was paramount. In terms of effectiveness or profitability, the speed of making money seems slow but steady. But the complexity of the hedging scheme would probably scare off the newbies. Actually, the whole software should be renamed as ‘trading signaller’, as it cuts away the market charts and endless news, giving us only the instructive trading signal telling us clearly what to buy and what to sell. I guess traders at any level can carry out their trades in the Simon Says kind of way - monkey see monkey do. In other words, understanding the strategy concept is pretty hard, but the execution of trades following their signal is as straightforward as ever.

The cherry on top for this software is that there’s a 15-day free trial, which would give you enough time to familiarise yourself with the whole strategy and trading concept. On top of that, it provides a really fair and reasonable partnership plan, which almost guarantees that we don’t have to pay them at all unless we make money. It’s a reasonable and fair deal if you ask me.

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