So, I am asking you again then. You want to randomly switch brokers between your entries and exists? Because that is what you gotta do unless you do not care that a simple pattern can be established even by a third grader which in turn would negate your whole idea. And I ask you also this again: What do you have to fear from a regulated broker to whom you submit exchange traded orders? Makes zero, absolutely zero sense to freak over this, certainly not warrant switching back and forth brokers. OP clearly gives away the impression he is a retail type of guy. Your idea would require intelligent money management, the observance of margin levels and account balances because you are essentially 100% directionally exposed in both accounts. Also, let me ask you: What do you do if you went long with broker A in account A and now want to exit the position? You need to short (not sell) your position in account B. I think it is clearly you who did not think of many issues that your idea entails, issues that lead to much more complexity than you ever thought of. Good luck with your idea...
Can your broker follow you if you get good results?
- Thread starter anders888
- Start date
If it's a Forex broker, they are usually on the other side of your trade and they make enough money doing this against enough traders that they will not follow your trades.
Now let's talk hedging in Forex. You can for example go long EUR/USD while at the same time shorting GBP/USD. This is not a perfect hedge but it does protect against strong directional movement. I will not explain how to make money using this strategy at this time. If you have enough money you can trade currency futures instead of Forex or any type of futures.
In stocks, I would suggest the follow protections. You could trade with a Prop firm, this will allow you to use a more professional system and give you more leverage. You could work for an HFT trading firm as a math Quant and make money developing for their systems. You could start your own fund and use dark pools.
Now let's talk hedging in Forex. You can for example go long EUR/USD while at the same time shorting GBP/USD. This is not a perfect hedge but it does protect against strong directional movement. I will not explain how to make money using this strategy at this time. If you have enough money you can trade currency futures instead of Forex or any type of futures.
In stocks, I would suggest the follow protections. You could trade with a Prop firm, this will allow you to use a more professional system and give you more leverage. You could work for an HFT trading firm as a math Quant and make money developing for their systems. You could start your own fund and use dark pools.
nice display of the average intellect of this site's crowd. How did you become moderator again? This thread has nothing to do with forex: failed! This thread has nothing to do with hedging: failed! This thread has nothing to do with getting more leverage! This thread has nothing to do with how to make more money as quant: failed!
Can I recommend something for you: How about just staying out of a discussion if you really have NOTHING WHATSOEVER to add of value? Is not such bad idea is it?
Can I recommend something for you: How about just staying out of a discussion if you really have NOTHING WHATSOEVER to add of value? Is not such bad idea is it?
"I do, and it works on backtesting. and for the first two weeks of real trading, then last week, its performance diminished by 50%. I think if I change to another broker, the performance might return because my old broker can't follow my trades anymore."
LOL.... you backtested a software and now you are wondering that it doesn't work well in live trading. And of course it's IB's fault because they are front running you
my goodness!
don't trust backtests. Reality is different. Do a forward test on a demo account instead.
and if you still believe in IB front-running, check the M1 candles for the exact time you enter a trade and see if there are spikes.
LOL.... you backtested a software and now you are wondering that it doesn't work well in live trading. And of course it's IB's fault because they are front running you
my goodness!don't trust backtests. Reality is different. Do a forward test on a demo account instead.
and if you still believe in IB front-running, check the M1 candles for the exact time you enter a trade and see if there are spikes.
nobody is interested in following a client's trade.
I have a really innovative idea. If you don't get good results, does that mean you can follow your broker ?
@MarkBrown
How goes this in reality for daytraders? You have always open positions with each broker end of the day? That's impossible I think. Or can you match them later? And what about your margins?
MTrader: see give up / take up clearing arrangements. Also transfer of positions between FCMs is possible.
Lets say you have two accounts which can comfortably margin 500 minis. Take all your buys in one and all your sells in the other until your position approaches +500 / -500. Then take your next sell in the net long account, and your next buy in the net short account. This adds some obfuscation as each firm is only seeing half your order flow. You could do this with 3,4 or more firms. Just code up something simple to keep track of your positions across all firms and your margin requirements. Depending on how often you trade in a day, the individual accounts could be pretty close to flat by the close.
You will need to shuffle some cash between accounts fairly regularly of course.
The risk seems to be keeping more funds on deposit than you would normally need to support intraday positions.
And the possibility that large overnight moves cause one of your accounts to be liquidated by your clearing firm leaving you with a net exposure. In practice this would be fairly rare event. You could even code something to close out the positions in your profitable account if the loss account is being force liquidated by e.g. an out of hours 5% move.
Lets say you have two accounts which can comfortably margin 500 minis. Take all your buys in one and all your sells in the other until your position approaches +500 / -500. Then take your next sell in the net long account, and your next buy in the net short account. This adds some obfuscation as each firm is only seeing half your order flow. You could do this with 3,4 or more firms. Just code up something simple to keep track of your positions across all firms and your margin requirements. Depending on how often you trade in a day, the individual accounts could be pretty close to flat by the close.
You will need to shuffle some cash between accounts fairly regularly of course.
The risk seems to be keeping more funds on deposit than you would normally need to support intraday positions.
And the possibility that large overnight moves cause one of your accounts to be liquidated by your clearing firm leaving you with a net exposure. In practice this would be fairly rare event. You could even code something to close out the positions in your profitable account if the loss account is being force liquidated by e.g. an out of hours 5% move.
This all makes only sense if you have some significant losses (as already stated in the text).
If there are significant losses you could also stay with one broker.
If you have predominantly significant winners in both accounts it does not help at all.