Reliable Platform to Hedge for a Daytrader

[minoo 11]

Does anyone know of a good platform to use for Day Hedging the eminis.

Example: Say I am swing short the S&P and the eminis are coming to an minor support area, where I expect an bounce. I would like to establish scalp long on ER2 or NQ.

The features I would like in the platform:

-Tick-Align multiple doms and be able to see the net position.

-A single button / click to go flat on all multi dom positions

-A single click to reverse the Hedge (after the retracement or pullback positions which were short becomes long and positions which were long becomes short)

-If possible pre-set Hedge Entry and execute it with an single click

-Could individually maintain establish Hedge Instruments (ie once the position is profitably establish in an direction to target could remove / nullify the insurance / hedge)

 

Many Thanks

Minoo

[fifty2aces 10]

What do you mean by hedge? Are you wanting to use index options to limit exposure on your futures positions?

[minoo 11]

To keep things simple I hedge using ES, ER2 or NQ Eminis only.

Following on from the above example:

Established Swing Short ES (ie minute charts Stops are wide)

ES is approaching an minor Support or Resistance where I can tolerate 24% Fib retracement) before my swing target

Here I would like to Hedge my ES Swing Short position by taking ER2 or NQ Scalp-Longs (ie Tick chart, stops are just below the support area low or pivot low) for the retracement / pullback

In this manner I can use ER2 or NQ spiky nature safely too at near target areas (but thats another topic)

 

I may hedge my full $ position or half my position depending on the TRIN component conformance to the downside or upside & Fib level where the retracement started from before my anticipated target (previous measured alternate, symmetry)

[Guest forsearch]

To keep things simple I hedge using ES, ER2 or NQ Eminis only.

Following on from the above example:

Established Swing Short ES (ie minute charts Stops are wide)

ES is approaching an minor Support or Resistance where I can tolerate 24% Fib retracement) before my swing target

Here I would like to Hedge my ES Swing Short position by taking ER2 or NQ Scalp-Longs (ie Tick chart, stops are just below the support area low or pivot low) for the retracement / pullback

In this manner I can use ER2 or NQ spiky nature safely too at near target areas (but thats another topic)

 

I may hedge my full $ position or half my position depending on the TRIN component conformance to the downside or upside & Fib level where the retracement started from before my anticipated target (previous measured alternate, symmetry)

 

Sure, it's a simple as taking a opposing position in a different but otherwise correlated instrument.

 

Most platforms should allow you to view the real-time P&L of your positions and your account if you wish.

 

One button flatten of all DOMs in the same account should be available in the Infinity / Transact AT platform.

[BlowFish 10]

Any 'proper' futures broker will offer 1 (or maybe more) platforms from a fairly small list most (if not all) will offer what you require.

 

Just out of interest what size ES ER2 & NQ make up one equivalent 'unit'? Are you saying that ER2 & NQ tend to give up more on pull backs? Seems to me that's not always the case. I guess this is kind of like a pairs trade really? You are betting on the NQ ER2 out performing the ES in the short term?

[minoo 11]

Hi Guys

 

Thanks for your replies

AT platform doesnot become active when the focus of the cursor is on the particular dom window (you have to click to make it active) During volatility there is obvious delay in making other DOM active and executing

It doesnot execute orders at the down-stroke of the mouse click

My understanding with the AT OCO (ie profit target and Stop Loss) functionality is the orders rests on the PC until the price is hit.

AT does Not flatten multi-dom positions at a single click

 

Blowfish to capitalize you need to be over the 'equivalent unit' I try to hedge if there is noticeable pre-activity in a given instrument, (by this time I would have establish which one is either leading or laggard in a given direction)

Expanding on from the above example

Say my first target area is nearing on the ES short established earlier

From previous action I would have establish by now which of the NQ or ER2 are leading in the Up direction (Say for example sake, its ER2)

To let work my swing short (ES) in direction of trend & give it more room at the approaching first target (maintaining wide stops, above previous area crossed)

I would closely monitor action of ER2 as ES approaches target area, if ER2 shows the leading up tendency here than I will aggresively try to establish scalp long (stops are just below pivot low)

If NQ quickly follows it will confirm a Spiky pullback & OBV-Hook, Here I may quickly scale into more on ER2 (ie off setting the equivalent unit to the upside)

Position are managed to areas with Market Internals (Tape Tick & Premium) (Please refer to thread in Market X-Ray forum)

If premium kicks in to the upside & $tick confirms than I will flaten my ES position

If it kicks to the downside as anticipated than obvious of two actions either reverse or flatten my ER2 Scalp Long (There are two main parameters to consider here first self-indicator, than risk) even though I would be reversing into the trend I would have now doubled my risk as both instruments would be in uni direction (going short) quickly Scaling out here or trailing stop is I am striving to better.

 

If you purely want to Hedge than best is to use the same Instrument

If the leaders in opposite direction are either of ER2 or NQ than you observe their move and take bargain entry with laggard ES (It depends on your pre-plan or preparation)

 

One needs fast reliable platform preferably on an dedicated machine

 

Replied to this thread while watching the Olympics with kids

[diablo272 10]

I realize this is an old thread, but I think Ninja Trader would suit most of your needs.

[MidKnight 12]

Button trader will do this too. In fact, you can even do it on the same instrument with button trader. Depending on your size relative to the initial trade it will take care of the new physical position.

 

i.e.

Initial position is short 3 units and you want to hedge this short by going long 2 units for a scalp. The logical position shows up as 2 trades that can each be managed independently. It will show up as your initial short 3 units and the hedge of being long 2 units. The physical position though is of course, short 1 unit. The nice thing about how button trader shows this to you as the trader as you can treat each trade totally independent and have faith that button trader will manage your true, physical position for you.

 

All my best,

MK

[Jene 10]

Forex hedging protects your foreign currency assets and liabilities from adverse moves in foreign currency rates.

 

The hedging practices are under examination as currency volatility threatens profitability. However, those that were bullish on the currency's prospects and locked in hedges at higher rates are now struggling. I think people that did 100 percent hedge have to look deeply at their strategy.

 

Not many brokers allow hedging as most brokers don't like investors who hedge.

[minoo 11]

Hi Jene

 

For Forex hedging related rules, etc refer to the below informative Blog,

 

Forex Law Blog - Forex Lawyer, Forex Registration, Forex Hedge Fund Formation, Forex Compliance

 

When it comes down to Hedging facilities, Forex platform are much better equipped & the brokers are relatively better versed too. Since ... . I have significantly simplify my futures indices trading when it comes down to hedging swing positions.

 

-Ta Minoo

[Jene 10]

Hedge funds are also taking a longer time to fill. Hedge fund assets may fall an additional $250 billion, or 21 percent, this year. By seeing this type of statement, don’t you think traders would avoid hedging as much as they can?