Work Around Hedging in FX

Is it possible that I can get a discount for posting my trading strategy on C2? Because of the non-hedging rule, I will need to post two strategies on C2. One strategy will have all the buy trades and another strategy will have all the sell trades. All of my trades have different fixed stop losses and take profits; hence, it is not really flat.

It would be useless to subscribers because brokers, and I know for sure in case of IB, will not allow it, even if you trade it in two different IB accounts and who wants to go through the trouble to set up another account with another broker just for that purpose.

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As KarlA says, the request is not really sensible, on two levels:

  1. You can’t get around exchange “hedging” rules by trading in two separate accounts. Your subscribers certainly won’t be able to do that at their brokers, so it’s pointless to try to do it on the C2 Model Account level.

  2. The project is silly at its core. It sounds like your desire is to go long and short the same instrument at the same time. But that’s called “being flat.” Why not just trade accordingly? E.G. If you want to be long 3 of something, and short 2 of something, that’s effectively being long 1. Mathematically your results are exactly the same, no matter how you mentally picture your trade. The only benefit you might possibly have in doing what you request is the ability to “hide” open position losses from other people. But even that is not possible at C2, since, at C2, we mark-to-market your entire account: both open and closed positions are summed up to determine your total C2 account value. So you can’t keep your losing positions open (and hidden), hoping they eventually turn into profits. They’ll be counted as losses in your Model Account results anyway, whether they are open positions or closed positions.

So you might as well keep things simple, and just try to follow the rules as they are designed to be followed. When you want to go short the same time you are long, just recognize that means you want to close some of your long position.


I agree with you that the math is called flat in stock trading, but you are not taking account the stop loss and take profit. In forex, let’s say that the market is calm at the present, I have a buy with a stop loss of 50 pips and a take profit of 100 pips. I also have a sell trade with a stop loss of 50 pips and a take profit of 100 pips. Now the market moves because of some breaking events. Let’s say down by 150 pips, my buy trade will get stop out at 50pips, and my sell trade will take profit at 100 pips. I just netted 50 pips for being “flat.” You can argue that one may try to get into the trade during the downward market; however, during volatile market I may not be able to execute my sell trade in time to take advantage of the down market. There are slippage, widening of spread, and etc. during market volatility.

yes one thing is that many traders have Sub accounts which are very easy to open with your broker. You can be long in one sub account and short in another. This doesn’t mean you are hedging

A simple example from my perspective

I might be running a trade from a daily/weekly chart this is long say the eur/usd

Intraday a trade may appear that also meets my methods criteria to go short the eur/usd. Do to the rules I go to a subaccount to execute this trade so it has no effect on my long trade.

Now again I agree a true hedge is just being flat no matter how you cut it. But ones method might dicate differently as above. I’ve chosen to just exclude those trades on my accounts but these things do cut into my ROI on C2. But i’d rather be able to access a few pairs still not available on C2 more than that :smile:

Thanks for all the hard work put into this site

This is a legitamate trading strategy and not some mathematical error or attempt at “hiding losses” all deference to our esteemed founder.

This is one of the reasons for subaccounts in order to deploy such a strategy in juisdictions requiring FIFO rules.

This is typically not something done in stock or futures accounts but bracket stop orders are more commonly seen when one is agnostic about market direction.

As to the request for a discount…good luck with that:)