While I don’t personally think this is a good trading strategy, there is nothing mathematically impossible about the trade sequence from a margin-use perspective.
Remember that C2 always checks that trades are allowed given the C2 Model Account size.
Thus, a strategy developer is generally prevented* from trading at larger quantities in his C2 Model Account than a real-life account could trade (assuming the real-life account has the same cash value as the C2 Model Account.)
For this reason, when setting up AutoTrading, you will want to choose a “Scaling %” which reflects how much smaller your broker account is than the C2 Model Account.
Also, you should set a Maximum Unit Size to insure that positions are not ever entered that are larger than you can handle.
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Footnote
- Why do I say “generally prevented” and not “utterly, absolutely, and entirely prevented”? - for a few reasons.
First:
- Because it is possible for a strategy to open a position in the Model Account which ultimately results in a C2 margin call, but that C2 margin call might not be processed immediately at C2, whereas it might be processed immediately in a real-life broker account.
Also:
- it is possible that a large and sudden “intraday drawdown” on an already-open position might occur, which in real-life would trigger an immediate margin call, but which is not “caught” immediately (or ever) in C2’s margin call simulations.
