Some days you are lucky, some days you are not. Check no mistakes made, and distributions within historical bounds. FX hedging to future spending may have no implicit edge, but by definition it has value.
Some days, everything goes against your position, and maybe even BA trades don’t get closed.
- As long as security selection, sizing and execution is correct, then there is no mistake.
- As long as moves are within historical distributions (incl medium term av correlations) then there is no problem.
- A portion of the FX position may relate to targeting future spending and have no implicit edge. That is still good as it keeps assets in same ratio as future spending (eg shorting AUD to counteract CBA position).
Some days everything will go in my positions’ favor.