The Point Of No Return

The Point of No Return is when scammers start multiplying on YouTube by halving.

You are here for a lesson in hedging.

The Point of Known Return is at about 10 pips into the overbought / oversold end of a constant consolidation rage. This means that there are no larger and smaller consolidation zones (only partially explored ones).

Ingredients for 1 Hedge:

8 EMA (HL2) – from the 4H variety

RSI2 (HL2)

Choppiness (7,1,7)

+ my plots

if (High[i]>ponru[i] && Low[i]<ponru[i] && High[i+1]<ponru[i+1] && High[i+2]<ponru[i+2] && High[i+3]<ponru[i+3] && High[i+4]<ponru[i+4] && High[i+5]<ponru[i+5] && High[i+6]<ponru[i+6] && High[i+7]<ponru[i+7] && High[i+8]<ponru[i+8] && High[i+9]<ponru[i+9] && High[i+10]<ponru[i+10]){       ObjectCreate("EverEst"+DoubleToStr(i), OBJ_TEXT, 0, Time[i], High[i]+50*Point);        ObjectSetText("EverEst"+DoubleToStr(i), CharToStr(182), 22, "Wingdings", Magenta);     }   if (Low[i]<ponrd[i] && High[i]>ponrd[i] && Low[i+1]>ponrd[i+1] && Low[i+2]>ponrd[i+2] && Low[i+3]>ponrd[i+3] && Low[i+4]>ponrd[i+4] && Low[i+5]>ponrd[i+5] && Low[i+6]>ponrd[i+6] && Low[i+7]>ponrd[i+7] && Low[i+8]>ponrd[i+8] && Low[i+9]>ponrd[i+9] && Low[i+10]>ponrd[i+10]){       ObjectCreate("EverEst"+DoubleToStr(i), OBJ_TEXT, 0, Time[i], Low[i]+50*Point);        ObjectSetText("EverEst"+DoubleToStr(i), CharToStr(182), 22, "Wingdings", Magenta);     }

Examples on the Choppiness PORN PONR

1.

After hitting the star in the sky the suggested long / long hedge entry should had occurred upon touching the 8-EMA while the CI was displaying mucho fuerca. There was an additional move of 10 pips beyond the actual location of the PONR before turning back. The RSI2 low was at 34.02. Price had to come back up through the overbought level for a confirmation after touching the high charged wire.

The exit required a new consolidation consolidation range to be displayed, the RSI set a peal at 96.83 – the prior tick was 96.77 despite of looking flat and all of this took place in the new overbought area.

There was no star in the second overbought field – see the code that is looking for a fresh penetration into the overbought field within the next 10 samples.

2.

Entry: star was touched. After a consolidation whip move that took price down by an additional 35 pips at the peak, energy got high, the 8 EMA was touched and price came back down through the trigger oversold level.

The entry was valid, but there was a back test move 55 pips lower that could had been utilized for an exit, but a deeper, more decisive penetration occurred later on. The RSI2 was showing a reversal divergence on that low.

The second star in the same direction should had been ignored.

3.

This one was a difficult one. Price kept on going for 80 more pips after seeing the star. For participation to the upside you would have had to go long say 12 pips above the high of the penetrating 4H print, and exit on a 99+ RSI2 print or in excess of the sound barrier represented by the water sign on the left. What you learnt with this example is that your size would have to be such that you do not get a margin call for your holdings even 90 pips into the current overbought range.

4.

We seem to have an example for everything here.

By printing the star, the direction was chosen. There was an additional 32 pips beyond the PONR Star. The three ingredients, a) high charge, b) EMA c) crossing back below the oversold level were the entry requirements.

The first RSI2 reversal divergence was broken if you ditched your position on it, you would have to go in again upon breaking it – twice in fact and the party wasn’t over until scratching the Sound Barrier for an exit. This exit was a very good counter entry as well.

What this move taught you is that a hedge has a roll-out function.

5.

Stary sky on the way up. 24 pips extra continuous motion before the 3 ingredients coinciding for an upside entry.

There was 90 pips to be had, after ignoring the second star, the second push into the new overbought came with a lovely RSI2 reversal divergence for an exit.

After this there were some maximum range moves without hitting the stars: just into the oversold prompted the TGT print in green – which was meant to say TGT1, for TGT2 would be the middle of the consolidation range as in LemonChiffon color Boulder Dash diamonds, and TGT3 anything beyond the high tide waves of the sound barrier. Of course, these moves do have the potential to turn into something more.

6.

This was the trickiest Star Sky yet, for it came with a Hutch. 28 extra pips first. Arguably there was a valid short entry with the 3 ingredients coming together although the charge was on the week side by being below 53.

A protective exit stop loss does make sense just beyond the entry upon seeing 3 closes below the oversold level.

7.

The run-up on the same image was the runaway kind. Your 12-pip-out beyond the printed high would had meant a pending entry placed somewehere between 1.1799 and 1.1804.

The run-up ended in an exit RSI2 divergence that was not broken if you put the continuation 12-pips out and your broker was not the hairy-hearted one.

8.

The Star level was pressured by 14 pips on the move down. The entry was the confluence of the 3 ingredients.

The exit was the RSI2 divergence.

Notice the spike low later dipping into the previous water mark.

9.

The first run-up entry had a 70 pips pain to the upside. This was not an easy play for if you put a 12-pips out entry above the high, the remaining meat on the bone would had come to 15-40 pips. Not terrific & major heat up and down.

The second entry was coming back through the overbought level and since the energy was in a recovery move, there was no high reading for the 3rd ingredient. Nevertheless, the prior water level would had worked exquisitely, all the way to the next water dip exit on the other side.

10.

The water dip to water dip theme kept on giving, and even the Star pull back – 3 ingredients came together in an unusual sequence for an entry. There was 20-pips of potential pain beyond the PONR Star if you waited for the energy to get high enough.

Exit – plain and simple water mark RSI2 divergence.

11.

This bring us to where we are now. The star entry wasn’t a terrific one on the left the TGT prompt took the price back to the previous Boulder Dash mine of TGT2 before resuming to break 2 more times above the overbought level resulting in an RSI2 divergence exit with 30 or so pips or a 40-pip draw down on your hedge trade before a water line exit of 40 pips in gains.

12.

The last water mark dip originated star add-on entry on the second overbought 3-ingredient entry also was dragged down 34 pips before making 40+ into the high water level.


In conclusion, Hedging is just as good of a pseudo science as any. Yet, you have to try your best. & so the Choppiness PONR periscope was born today for future stargazing.

Here, at the Institute of Hedging, we charge you 60k for a course, take you to the Bahamas and make you engage in extreme sports i.e. making you hanging upside down from a flying hydroplane to make you feel absolutely certain that you can hedge. If things don’t work out – oh well – at least you had an expensive holiday that at least we could enjoy (Oh yes, we live).