KB, never mind, I actually had edited my post and deleted the part directed at you after I had read the previous posts. I traded a similar system called Gap Trader last year, and one of the early strategies with a runaway price was to hedge. The problem with that was where to put on the hedge and where to take it off. I remember I stopped that kind of hedging after the price crossed up and down through my hedge level a couple times in one night, costing me over 10% of my account.
Peter |