newbie question - Sliding Hedge

[Bernard Sia]

Hi,

Does anybody know of an online resource that explains when to use, how to use and how a sliding hedge affects the basket? I tried googling, but there is nothing out there on the specifics of working hedges for forex.

Something on the subject of Martingale Grid for dummies will be perfect. Many thanks.

Cheers Bernard Sia

[Rick Drake]

A sliding hedge is a term I coined. The function is to simply "slide" the origin of the basket around, allowing you to effectively move the basket. So what happens is the basket get's hedged... then as the price moves, the profit or loss of the hedge is used to calculate a new break even point. Margrid's documentation explains this.

https://docs.google.com/file/d/0Bz3O5oSUj98oMExKV0VmS3FUekk/edit?usp=sharing

- Rick

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[lufigofx]

Hi Rick

Could you please put an example with numbers for better understanding

Thanks

Regards

Terça-feira, 13 de Agosto de 2013 17:43:03 UTC+1, Rick Drake escreveu:

A sliding hedge is a term I coined. The function is to simply "slide" the origin of the basket around, allowing you to effectively move the basket. So what happens is the basket get's hedged... then as the price moves, the profit or loss of the hedge is used to calculate a new break even point. Margrid's documentation explains this.

https://docs.google.com/file/d/0Bz3O5oSUj98oMExKV0VmS3FUekk/edit?usp=sharing

- Rick

On Tue, Aug 13, 2013 at 8:07 AM, Bernard Sia <sia.b...@gmail.com> wrote:

Hi,

Does anybody know of an online resource that explains when to use, how to use and how a sliding hedge affects the basket? I tried googling, but there is nothing out there on the specifics of working hedges for forex.

Something on the subject of Martingale Grid for dummies will be perfect. Many thanks.

Cheers Bernard Sia

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To unsubscribe from this group and stop receiving emails from it, send an email to margrids-battle-chest+unsub...@googlegroups.com.

[Rick Drake]

Sure. If the break even point for a buy basket is, say, 1.0000 and you fully hedge with a short sliding hedge and the price moves down by 20 pips and then the hedge closes for a profit... the new break even point for the basket will be 0.9980. That will cause the targets for the basket to move down by 20 pips as well.

- Rick

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