Sunday, December 6, 2020

A Hidden Danger of Hedging - Exit





OK, my Stop was hit 19:20 ET at 1.21275 and now I'm out of both sides of this trade and this self-imposed purgatory.

This strategy saved me 1.2132 (18:00 ET open) - 1.21275 (Exit from Trailing Stop) = 4.5 * $12.50/pt * 2 contracts = $112.50 as compared with exiting both sides at the open. Was hoping it would be a lot more.

This expensive lesson cost me $2470, if you net out all the 26 related gains and losses during the trade. 

I consulted author, speaker, trading legend, and all around nice guy Larry Pesavento about my experience here. His advise was "Never hedge a losing position". Amen brother!

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