yes, it's legal, it's just a long straddle, but why do you need two accounts? You can't just use stops? Buy stop above, sell stop below, one side gets filled and the other side goes unfilled. because until your broker closes you out you aint going anywhere. Why not just stay flat until one side achieves escape velocity?
Is this trading strategy illegal or against some brokers policy?
- Thread starter tysonmoch123
- Start date
Thanks for your reply,
When the market opens it will automatically slip and close one of the buy or sell positions, if it opens neutral or under the 0.25 then i will close them myself which will lead to a loss of the spread but some days the market will open on like 0.50 percent loss or gain which then is a profit of 0.25- the spread.
It just a straddle with high leverage so you need little movement to be profitable. I have done it a few time e.g. weekend election or EU meeting. Difficulty is often that the high leverage instruments stop trading a few minutes before the market so normal small volatility can take you out before the big gap either way comes along.
So if the broker has a counterparty hedging it still wouldnt be agaist their policy is that correct?
Not very clear, for you to come out a winner, one account must bust. You then need everytime a new broker to place another trade ?
Or does the broker allow your balance to turn negative, cancel it, than allow you to trade the same way with new funds you wire in, which sounds odd.
And if you don't cash out your profits every week, what happens if the losing position is with the broker where the gains have accumulated ? Your 15k profit can evaporate upon market opening.
t
That is correct the broker does allow my account to go negative and then it cancels and negative balance, i have got 4 of my brothers to open an account and everytime i have won i have not used that account, in theory i have 3 accounts with a balance of 30k in total, and i have 5 accounts in total.
That is correct the broker does allow my account to go negative and then it cancels and negative balance, i have got 4 of my brothers to open an account and everytime i have won i have not used that account, in theory i have 3 accounts with a balance of 30k in total, and i have 5 accounts in total.
It's impressive how no body can understand the use of Negative account protection as a kind of Guaranteed SL.
Yes you can do it, even at 400:1 and all in, ah suppose you run the account danger close to the margin level, but still say you have $2000 in it, it's going to take a hell of a move to burn through $2000 and get to any profit.
So 98% of the weekends you'll be +$1000 on 1 account, -$1000 on the other, balance account over the week, repeat.
When you do get some profit is move bigger than 2K then it likely won't be that much, depending on the move, then you'll have to open a new account somewhere else, there not going to let you get away with it more than twice for sure.
So unless you've got a Million to make it worth while first strike then I wouldn't bother
sorry!!
Yes you can do it, even at 400:1 and all in, ah suppose you run the account danger close to the margin level, but still say you have $2000 in it, it's going to take a hell of a move to burn through $2000 and get to any profit.
So 98% of the weekends you'll be +$1000 on 1 account, -$1000 on the other, balance account over the week, repeat.
When you do get some profit is move bigger than 2K then it likely won't be that much, depending on the move, then you'll have to open a new account somewhere else, there not going to let you get away with it more than twice for sure.
So unless you've got a Million to make it worth while first strike then I wouldn't bother
sorry!!t
hanks for your post, my strategy is simple, i have 5 accounts i would put an exact amount on 2 accounts and start open buy and sell position at the same time just before the market closes and upon opening one closes automatically if the market goes down or up by 0.25% snd i close the one with profit manually, the account that goes bust automatically goes back to Zero as the broker policy is that you cannot lose more the. your account balance which means no negative balance, i then cashout my profit and use another account and repeat, the accounts with profits dont trade again untill i have completed my cashout.It's impressive how no body can understand the use of Negative account protection as a kind of Guaranteed SL.
Yes you can do it, even at 400:1 and all in, ah suppose you run the account danger close to the margin level, but still say you have $2000 in it, it's going to take a hell of a move to burn through $2000 and get to any profit.
So 98% of the weekends you'll be +$1000 on 1 account, -$1000 on the other, balance account over the week, repeat.
When you do get some profit is move bigger than 2K then it likely won't be that much, depending on the move, then you'll have to open a new account somewhere else, there not going to let you get away with it more than twice for sure.
So unless you've got a Million to make it worth while first strike then I wouldn't bother