Thanks for the response. You make a good point. There is a chance to mess up, but there is also a chance to profit.
I'm long and short the same market the same time because different strategies may be doing opposite things. Sometimes it makes the most sense from a risk perspective, to simply exit the market. Other times, it makes the most sense from a risk perspective, to add off-setting contracts.
From an emotional / psychological standpoint the latter (adding off-setting contracts) appeals to me more because there is added opportunity from this method. Using off-setting contracts can also reduce the profit sucking effect of whipsaws. But, as you mention, there are also more chances of messing up.
It seems there are other benefits to using off-setting contracts?
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For newer traders out there, all the comments in bold above are incorrect. There is no risk or profit improvement to being long and short at the same time. There is no benefit to such a technique, except for ease in bookkeeping.
If anyone thinks there is monetary benefit to doing this in futures or forex, I invite you to provide an example with commissions, slippage and any interest rollover costs added in. I guarantee I can duplicate your simultaneous buy/sell, and save you money doing so.
If you have any questions please send me a Private Message or use the futures.io "Ask Me Anything" thread
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@Big Mike: Why do you allow this thread, and threads like it, to perpetuate? It's a source of embarrassment to the forum, and serves no purpose other than to stand testament to dunning and krueger's thesis.
Last edited by tigertrader; January 10th, 2014 at 04:12 PM.
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Honestly I agree with you, and am going to just close the thread at this point and ask everyone that is considering to do this to reconsider it. If you wan't to make a donation to your broker just buy them a nice gift instead.
Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.
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