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There is a small nation in Africa I believe it is whose King changed this measuring stick of success from GNP to GNH: Gross National Happiness.’
Hi Doug,
An interesting discussion, although maybe slightly off topic :) The small nation is actually Bhutan in Asia. Here's one of several articles from "The Economist" about it: The pursuit of happiness
Cheers,
Jim
this is interesting too : http://www.nytimes.com/2004/07/11/weekinreview/11dash.html
If I could mention a powerful factor that has influence over markets, but without specific direction, that's sex .
That's why traders come into existing... quick money, quick sex. And all the trading world moves around it. It has a very simple mechanism of propagation.
Some obscure director in a futures brokerage wants more power and wealth. He discovers that people are attracted to trading. Discovers that there is not too much regulation for fx. Comes with this idea, to give fx trading to poor people, by allowing them small margin requirements. They take the other side of the trades and while rookies come in and lose their cash either blowing up accounts with big leverage or with "tight stops, 1 pip from the market", their brokerage gets a bunch of profits. So our director is promoted ... new cars, new yachts, new women.... Then, several other directors from other brokerages say "hey, look what these guys did. Let's do the same"... And in a few years, you get a whole retail fx market out of nowhere... But there is not too much incoming, traders want more and more trading capacities, they rebel against NFA regulations and move their money out of country...
Another obscure director from JPM wants the same thing. He heard about the guys in fx, but they don't offer fx... While reading several boring articles, he finds something interesting. An asian guy that says that every debt is easy to price. With a magic formula made a long time ago. It was there all the time, but nobody really cared about the gaussian copula. So our guy calls in some brand new quants to make a model based on the asian's ideas. So the CDO model is forged. It doesn't matter there isn't enough data to backcheck it. But the newly market they create starts to work. And they sell this to a lot of people. Soon, insurers want to get their hands on the model. And they pay big BUCK$... Soon the banking guys are asking for the model. Why not giving credit to anyone? It's not our bank, it's not our money. Screw the credit quality. We have a model now. So credit expands and expands... Our director gets the cars, the yachts and the women... The directors of the customers (the ones from insurance and banking) developing the market are pretty happy themselves. The insurance guys are buying every risk from 10 losers, that have to all pay the insurance for the same risk! Banking guys are happy too. Bank roe increasing due to better asset returns. So they all get their cars, yachts and women. Then something interesting happens. People start paying less and less for their credits. They weren't trustworthy... Problems are arising everywhere: banks are in a worse and worse shape, and the CDO values are skyrocketing, because the 10 losers per risk were right! But there is noone to sell the risk now to, because we were the ultimate risk buyers on the list! Banks are falling down, insurers are falling down, markets are falling down, and now the hedge fund quants that sold the risks are getting the cars, the yachts and the women... Of course, none of the directors lost anything except the job, for some unlucky ones. It doesn't matter they all triggered a new big depression, they all got their cars, yachts and women...
this is interesting too : http://www.nytimes.com/2004/07/11/weekinreview/11dash.html
If I could mention a powerful factor that has influence over markets, but without specific direction, that's sex .
That's why traders come into existing... quick money, quick sex. And all the trading world moves around it. It has a very simple mechanism of propagation.
This thread is much more happiness inducing than MetaTrader 5!
Here's a brief extract from what Napoleon Hill had to say on the topic of sex and money:
Sex desire is the most powerful of human desires. When driven by this desire, men develop keenness of imagination, courage, willpower, persistence, and creative ability unknown to them at other times. So strong and impelling is the desire for sexual contact that men freely run the risk of life and reputation to indulge it. When harnessed, and redirected along other lines, this motivating force maintains all of its attributes of keenness of imagination, courage, etc., which may be used as powerful creative forces in literature, art, or in any other profession or calling, including, of course, the accumulation of riches.
Jim
Hi Doug,
An interesting discussion, although maybe slightly off topic :) The small nation is actually Bhutan in Asia. Here's one of several articles from "The Economist" about it: The pursuit of happiness
Cheers,
Jim
Hi Jim,
Yep it most definitely is off the specific topic of this forum though (some of it) relates to it in that it is also about Economics which has a significant reciprocal relationship to the ForEx.
Thanks for the specific info on Buhtan being the country that started using the GNH as the measure of the well being of there country. I believe they started this in the early 1980s. When I was entering that info in, I knew that it was very unlikley that this sort of thing wouldn't (couldn't) take place in Africa with all of the strife and conflict there in this time period.
.
I have so much 'What, Why and How' in my memory banks that I don't have much 'Who, Where or When' (< 8)
My memory banks are definately overdue for a significant upgrade that would (hopefully) make a very significant difference! LoL I wonder if like computers that it is hard to get more 'Bang for your Buck' than by adding more RAM would be applicable for our 'neural networks' as well?
Re: ‘Sex desire is the most powerful of human desires.. . .’
Yep, strange as it may seem when I was much younger and in my sexual prime years when I was REALLY sick I would also get really horny!
With the inclusion of women in some of the formal national military and them going into combat, there have been a number of instances of solders ‘making out and going at it’ in the worst of battles! There have likely been countless such homosexual encounters as well over the many thousands of years that we have been killing each other over our differences. This is likely a factor in the number of rapes that occur in combat zones and battles as well.
Like every other living organism, that ‘Survival of the species’ is one of the most primal and powerful instincts that is programmed into us at the deepest and most basic levels.
.
Geez, how the heck are we going to get all of these sorts of things ‘programmed into’ MQL5? LoL Now THAT will be a test of it! (< 8) I'm the newbie here, you folks are the experienced experts. Thankfully that will leave it to you folks and I won't have to try to do it!
I think for most traders that use this buy sell same thing hedging approach, use it in two manners:
a. it's psychological, they tend to take signals of lower quality, that may be good or not. When signal is of very good quality, they unhedge, closing the bad trades and unleash the power of the good ones. Doing so, they overcome previous locked losses and make profits. But if this signal is bad, the high leverage accumulated will be just a poison pill.
b. as a grid trading roadmap, either for approaching trending markets or ranging markets. Trades are opened mechanically, at a certain step or event.
For other types of hedging:
a. hedging correlated stuff: fx pairs, stock indexes, stocks, oil - statistical arbitrage ; trades are pretty uncontrollable
b. hedging fx with cross rates fx - triangular arbitrage ; aims small profits all the time, but almost impossible to take because of latency; and even if done, is endangered by slippage
c. hedging fx with futures - fx/futures arbitrage ; aims profits all time, when basis diverges too much from normal; thumbs up, this is a good one
d. hedging other products with other versions of their own - example s&p with mini s&p ; intermarket arbitrage ; aims profits all the time, but huge costs due to commissions; easier to do than triangular, but dangerous on latency issues;
e. all the plethora of option strategies.
Most of these things require MT5's event processing in order to have a chance in being well done.
Actually there are other implementations of hedging in an EA and MT5 is not the ideal platform.
Some Multipersonality EA's that i use run independent strategies where a hedge is coincidental rather than intentional.
The EA functions as two different traders on the same symbol and as a result by chance sometimes have opposing trades. Each EA is given its own share of the equity to work with and is
responsible for its own profit and loss. It can be compared to two human traders with similiar strategies but not identical and where both of them will make a profit.
It does not matter that at times they have conflicting ideas as to which side to be on because they both have profitable strategies, therefore one does not tell the other"Your side must be closed for i
have the better position" There is know way to know in advance which one has the better position at that time, so they both take their chances.
????
I am not the one that made the broad based remark "It's time to wake up! Who taught you people that hedging means to buy and sell the same thing?" I am one of the people that it was directed at.
But I did take that aspect of it in. Do you use hedging (regularly)? if so, what is your trading practice with them (‘Practicing’ the ForEx is something I most definitely should be doing more of as opposed to just pouring my (currently very scarce) money into other people’s pockets!) What sorts of results do you get with hedging?
???? I did not direct it at you LOL! I trade FOREX as a primary source of income and my EA designs do not always have opposing sides. Hedging is not primary but a consequence of
carefully worked out dual personalities contained and executed within the same EA or (currently) separate EA's on different accounts(because of regulations).
I get *very* good results but again not because of hedging but because of dual personalites.
The Economist wrote:
Some Multipersonality EA's that i use run independent strategies where a hedge is coincidental rather than intentional.
The EA functions as two different traders on the same symbol and as a result by chance sometimes have opposing trades. Each EA is given its own share of the equity to work with and is responsible for its own profit and loss. It can be compared to two human traders with similar strategies but not identical and where both of them will make a profit.
It does not matter that at times they have conflicting ideas as to which side to be on because they both have profitable strategies, therefore one does not tell the other "Your side must be closed for I have the better position" There is no way to know in advance which one has the better position at that time, so they both take their chances.
25, x2, x3 wrote >>
???? I did not direct it at you LOL! I trade FOREX as a primary source of income and my EA designs do not always have opposing sides. Hedging is not primary but a consequence of carefully worked out dual personalities contained and executed within the same EA or (currently) separate EA's on different accounts(because of regulations).
I get *very* good results but again not because of hedging but because of dual personalities.
DougRH4x replies:
As I said previously, the only party that consistently wins on hedging with opposite positions of the same currency pair is the ‘house’ on the spread.
Interesting strategies you guys, I NEED to (as opposed to ‘want to’) get on top of this stuff fast and start making significant revenue from it very quickly.
Do any of you know how I can calculate the absolute angle of the actual line in ‘Line charts’ in both real time: every tick; as well as for earlier times and ranges (independent of the scaling of the charts and the aspect ratio of the monitor) as opposed to CandleSticks or Bar charts? As it is part of the essential basic date that we get from the broker, I wonder if there is a specific variable for this streaming to us? Which of course would make it a whole lot easier to utilize it the first method mentioned above.
Keep on keeping on.
I'm wondering what you experienced and successful ForEx traders think of this approach?
See attached document: 4-Hour_Stochastic_Oscillatior.pdf
Do any of you know how I can calculate the absolute angle of the actual line in ‘Line charts’ in both real time: every tick; as well as for earlier times and ranges (independent of the scaling of the charts and the aspect ratio of the monitor) as opposed to CandleSticks or Bar charts? As it is part of the essential basic date that we get from the broker, I wonder if there is a specific variable for this streaming to us? Which of course would make it a whole lot easier to utilize it the first method mentioned above.
You want to measure the rate of change of price, but not with respect to time. Your X axis is ticks? Have I got that straight?
Jim