Futures Hedge Trading

Please share your views on the below of Futures Strategy.

Buy Future of trending stock in one account
Sell Future of same stock in other account.

Looking at the trend, cut your loosing trade and continue your winning trade till 0.5 to 1% return.

Why don’t you paper trade both positions and then actually trade only the one which is in profit on your paper. :grimacing::grimacing::grimacing::grimacing:

1 Like

There is no difference between this strategy and simply buying or selling the stock or future at the point that you have decided to cut your loosing trade.

Actually, in your strategy, you are paying double the fees instead of just doing a simple buy or sell, plus the drop in future price over spot due to time.

strategy is good. If there is 10% move, then exit your profit leg. But the problem is that now there will be naked position and if underlying moves against your trade, then there will be losses and on top of that there are brokerage charges

I think what matters most is, have you back tested this strategy? If not, I suggest you should because the only person who knows best is you. Good luck.