New NFA Rules and what they mean to you

flashrob

Recruit
Messages
5
how to BEAT the NEW HEDGE RULE...in the same account...

two things guys: try this, AND SPREAD IT ALL OVER THE PLACE...

how to BEAT THE NEW HEDGE RULE!!!

now, I like being a spoiler, especially when it comes to the BIG GUYS implementing stuff to put the squeeze on the little guy, namely me, so I'm gonna try and THROW A WRENCH IN THEIR PLANS!!!

(I was just about to start trading in forex, when I FOUND I COULD NO LONGER HEDGE...really cramped my style...wondered why...found out about the NFA rule change, and decided I'd have a real problem, if I couldn't do an "end-run" around this stupid rule...so, I put it to my intuition, and this is what came back....)

Ok, now I know you can open two accounts, but margin loss on the opposite position WILL STILL likely WIPE YOU OUT in one account...so I'm gonna show you HOW TO BEAT THE NEW RULE with JUST A SLIGHT MODIFICATION...IN THE SAME ACCOUNT...then will see if the SMARTIES at the top can NULLIFY THIS.

Now, I'm somewhat of an "intuitive" I was NOT that great in math, but great in "instant intuitive solutions to problems." The reason I'm telling you this is: I didn't do the math...just intuited the answer to BEATING THE NEW HEDGE RULE...SO HERE GOES:

1. an exact example...I tried it...it seems to work...some math wiz can back up the logic...etc.

the solution to HEDGE in the SAME ACCOUNT...despite the NEW HEDGE RULE:

now you can use ANY THREE CURRENCIES...(you used to be able to use just two before they started monkeying with the rules...)

an example: by live positions you must:

BUY the YEN and SHORT the DOLLAR,
BUY the DOLLAR and SHORT the EURO,
BUY the EURO and SHORT the YEN.

now notice what's different:

there are now THREE CURRENCIES involved instead of TWO.
there are now THREE POSITIONS OPEN instead of TWO.
THIS IS A LOOP...so you have an effective hedge IN THE SAME ACCOUNT...I tried this for an hour in my practice account, and except for the initial pip spread give to the broker, it MAINTAINED AN EFFECTIVE HEDGE (should as long as you keep the three positions open...used to be TWO OFF-SETTING).

essentially you are using a mathematical loop with THREE POSITIONS (3 currencies) in a loop, whereas before you could just do TWO OPPOSITE POSITIONS.

try it out, and let me know if you run into any problems...IF IT'S GOOD TO GO...

SPREAD THE IDEA ALL OVER THE PLACE... AND WE'LL PUT THE SCREWS TO the NFA AND FRIENDS!!!

again, YOU ONLY USE THREE CURRENCIES and YOU GO: long/short...long/short...long/short forming a loop as in the example above.

YOU CAN DO THIS WITH ANY COMBINATION OF THREE CURRENCIES...

EFFECTIVELY CIRCUMVENTING THE "new hedge" rule...IN THE SAME ACCOUNT!

flashrob

Ps. for example after the three trades are running for a while...when one is winning big, and depending on the "short-time chart pattern" ...I might sell the winner and wait for the
cyclical back move on what then becomes an UNHEDGED POSITION!

tell me what you think???
 

flashrob

Recruit
Messages
5
how to BEAT the NEW HEDGE RULE...in the same account...

...thanks...glad to see that someone else had previously figured out the end-run around the new hedge rule...yeah, he got it...but one of the reasons I posted and still would have even if I saw his take...was "clarity!"

My example is "fairly clear" and almost anyone should be able to see how to use it...

...his explanation was considerably "obscure" and required some thinking, and most people would probably have a problem understanding it, the way it was presented, or missed it's significance entirely...

I still notice many following posts, on many sites, still lamenting this rule change, which is easy enough to defeat, as illustrated in my example.

a "good idea" has to be communicated "effectively" ...as many good ideas have fallen "by the wayside!"

example: ever read a Microsoft Explanation of "one of their software processes!"

Microsoft is great in "developing complex software" ...but they ENTIRELY MISS THE BOAT IN BEING ABLE TO EXPLAIN THEIR SOFTWARE OPERATIONS (in most cases)...whereas, some "good communicator" writes a "windows for dummies book" that
explains what Microsoft NEVER SEEMS TO HAVE BEEN ABLE TO "COMMUNICATE EFFECTIVELY" for the "average Joe!"

...so, like I said, I didn't read all the posts in detail...but my "intuition" gave me an immediate work around. The idea is "not necessarily being first with an idea" ...but getting is OUT THERE and getting LOTS OF PEOPLE TO USE IT...to defeat the "manipulators at the top!"

Tesla came up with AC electrical generation...BUT EDISON SOLD IT....

anyway, not criticizing, just making the point of how, when, and why I post!

regards,

flashrob
 

flashrob

Recruit
Messages
5
how to BEAT the NEW HEDGE RULE...in the same account...

correction to my last post:

Edison didn't sell it...WESTINGHOUSE did, ala "power generation at Niagara Falls..."

Edison was following the "loser DC current scheme!"

regards,

flashrob
 

flashrob

Recruit
Messages
5
how to BEAT the NEW HEDGE RULE...in the same account...

...one other point which I don't think he made in post #16...

in the three currency pairs, as illustrated in my example...ALL THREE OF THE CURRENCY PAIRS ARE "HEDGED!"

so, if you like a particular currency pair long or short...just start with that FIRST...

for example YEN long DOLLAR short...(but should work with ANY THREE currencies you use....)

long Yen
short Dollar
long Dollar
short Euro
long Euro
short Yen

start with any currency or direction, AND JUST DO A LOOP!

...and "all three currency pairs are effectively HEDGED!" (not just one pair...just start with your "preferential pair and stance to make sure that it is included and hedged.)

regards,

flashrob
 

ernest8fingers

Master Sergeant
Messages
489
I am moving

I am moving all my money out of Forex and into AMMO! The day may come(soon) when all your Forex profits will be nothing more than expensive toilet paper. And I dont need any more of that. What I do need is to live in a country that actually likes their people and wants to have their citizens prosper-that aint the USA anymore! This NFA ruling on Hedging doesnt mean anything because the NFA doesnt do anything. I get their action emails weekly and its always some dirtbag Florida based criminal enterprise they are "closing down". The NFA actions NEVER seem to lead to prosecution. Having a Forex account with a USA based broker means NOTHING! And if a USA broker follows the NFA ruling about Hedging, just means more business USA will lose.(we are soooo good at that). I think our country is still suffering thru the catastrophic "Bush" Era. That MORON has erased 100 years of American prosperity and world standing in 8 short years. The proof will be in the "bread line" we will all be standing in soon. Can u say "third world Democracy?"
 

rpaco

Sergeant
Messages
184
I am moving all my money out of Forex and into AMMO! The day may come(soon) when all your Forex profits will be nothing more than expensive toilet paper. And I dont need any more of that. What I do need is to live in a country that actually likes their people and wants to have their citizens prosper-that aint the USA anymore! This NFA ruling on Hedging doesnt mean anything because the NFA doesnt do anything. I get their action emails weekly and its always some dirtbag Florida based criminal enterprise they are "closing down". The NFA actions NEVER seem to lead to prosecution. Having a Forex account with a USA based broker means NOTHING! And if a USA broker follows the NFA ruling about Hedging, just means more business USA will lose.(we are soooo good at that). I think our country is still suffering thru the catastrophic "Bush" Era. That MORON has erased 100 years of American prosperity and world standing in 8 short years. The proof will be in the "bread line" we will all be standing in soon. Can u say "third world Democracy?"

Ah! you need to come to the UK where we have more cct surveillance than anywhere in the world, our ex chancellor sold us down the river and we are suffering the results of the Blair reign, the abolishing of common sense and replacement by 3500 new laws. The empowerment of all local councils to prosecute you for major offences like putting the wrong rubbish in your re-cycling bin or putting the bin out on the wrong day. We have the anti terrorism act here which allows detention without trial. You have no right to silence in the UK, blair removed that too. Only after he left office did he publicly convert to Catholicism and admit that part of his reason for the Iran war was his religious beliefs. Now for some reason lost on us you pay him hundreds of thousands of dollars to lecturenyou in the USA. A lot of us are thinking of emigrating to the USA, where at least your police do arrest muggers and burglars, here they hardly bother, since they are let off by the courts anyway, the jails are all full, with early release for 30% simply to create more space. If you are attacked in the street here you will likely be arrested to make up the police arrest quota. (They wont even chase the attacker.) This is difficult to fill since most of their time is spent on paperwork, target monitoring and compliance checks.
Meanwhile the banks that went bust that we now own have started giving out huge bonuses again, yeah come here it's great!
 

ernest8fingers

Master Sergeant
Messages
489
Maybe not the UK then

Ah! you need to come to the UK where we have more cct surveillance than anywhere in the world, our ex chancellor sold us down the river and we are suffering the results of the Blair reign, the abolishing of common sense and replacement by 3500 new laws. The empowerment of all local councils to prosecute you for major offences like putting the wrong rubbish in your re-cycling bin or putting the bin out on the wrong day. We have the anti terrorism act here which allows detention without trial. You have no right to silence in the UK, blair removed that too. Only after he left office did he publicly convert to Catholicism and admit that part of his reason for the Iran war was his religious beliefs. Now for some reason lost on us you pay him hundreds of thousands of dollars to lecturenyou in the USA. A lot of us are thinking of emigrating to the USA, where at least your police do arrest muggers and burglars, here they hardly bother, since they are let off by the courts anyway, the jails are all full, with early release for 30% simply to create more space. If you are attacked in the street here you will likely be arrested to make up the police arrest quota. (They wont even chase the attacker.) This is difficult to fill since most of their time is spent on paperwork, target monitoring and compliance checks.
Meanwhile the banks that went bust that we now own have started giving out huge bonuses again, yeah come here it's great!

Your argument is very convincing.I would still visit though,as UK is one of the greatest(I think) countries on Earth(her people i mean). Plus I want my family to sleep in a castle. It happens,mate,that we live in a worse time than our fathers. Things will worsen in future for the Forex peeps. U can bet soon UK is gonna have some form of these Regs(like banning all US clients for "tax" reasons). I guess I will need to move(and trade) from some obscure Island nation(Australia/New Zealand?) maybe. Hell of a move though. Maybe those Sharia Trading Laws arn'e so bad? Moving to Iran to trade? Unbelievable !.:p
 

qtmspin

Recruit
Messages
2
Fill way outside market

If I had a buy stop position on with a NFA regulated US broker and their price feed dropped 3000 pips and I was filled at a ridiculously good price and the price feed reverted back in the first 5 minutes leaving me with a 3000 pip gain on the position would the new NFA rules apply if the broker didn't notify me about a price change? Or are there limits to the rules. And if this did happen what would you do next? Sue the company, file a complaint with the NFA, hire a lawyer?
 

Pharaoh

Colonel
Messages
20,143
If I'm reading the rules correctly, any price "adjustment" that has a negative effect on a customer has to be done within 15 minutes.

If you had a price adjustment against you that took the broker over 15 minutes to implement, you might want to have a chat with the NFA.
 
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