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Re: gb55 post# 16401

Monday, 12/08/2008 11:02:08 PM

Monday, December 08, 2008 11:02:08 PM

Post# of 140146
Gb, I like your quasi-hedge style. Only problem for me is that I don't think I can have conflicting orders, i.e. longs and shorts, on the same pair open at the same time.

Another possible hedging strategy is to use the correlation table I posted and open a long/short on your favorite pair and open an opposite trade, at a smaller lot size, on a negatively correlated pair. This hedges your larger lot sized trade with a smaller lot in case the trade goes bad. Basically increases the chance that you average out a winning trade.

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