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Prop Firm Hedge — Complete Installation Guide
A detailed, step-by-step guide for setting up the Hedge Master and Hedge Live EAs after purchasing them from MQL5.
Table of Contents
- How the System Works
- Requirements
- Download Your EAs from MQL5
- Install Hedge Master on Your Challenge Account
- Configure Hedge Master Settings
- Install Hedge Live on Your Live Account
- Configure Hedge Live Settings
- Verify the Connection
- Understanding the Dashboards
- How Much Balance Do I Need on My Live Account?
- Running the System — Personal Computer vs. VPS
- Troubleshooting
How the System Works
The Prop Firm Hedge system uses two EAs working together:
- Hedge Master runs on your prop firm challenge account. It trades using built-in strategies to generate activity on the challenge.
- Hedge Live runs on your personal live broker account. It automatically mirrors every Master trade in the opposite direction with a calculated lot size.
Why opposite? Because it creates a hedge:
- If the challenge fails (hits max drawdown) → Your live account profits by at least the challenge fee, recovering your cost.
- If the challenge passes → You get a funded account worth far more than the small hedge loss on your live account.
Both EAs communicate through signal files stored in a shared folder on the same computer. This means both MT5 terminals must run on the same machine (your PC or a VPS).
Requirements
Before you begin, make sure you have:
- Two MT5 terminals installed — You need two separate MT5 installations, or one MT5 with the ability to switch accounts (though running two simultaneously is easier).
- A prop firm challenge account — Any prop firm that uses MT5. Log in credentials from your prop firm.
- A personal live broker account — A real-money account with any MT5 broker. This is where the hedge trades happen. Must have sufficient balance (see Live Account Balance section below).
- Both EAs purchased on MQL5 — Hedge Master and Hedge Live, activated under your MQL5 account.
- A Windows PC or VPS — Both terminals need to run at the same time, ideally 24/5 (during market hours).
Download Your EAs from MQL5
After purchasing both EAs from the MQL5 Market:
- Open MT5
- Go to Tools → Options → Community tab
- Log in with your MQL5 account (the one you used to purchase)
- Go to Navigator panel (Ctrl+N if not visible)
- Expand Expert Advisors → Market
- Your purchased EAs will appear here. Right-click → Install if needed
Do this on both MT5 terminals — the challenge one and the live one. MQL5 allows activation on multiple terminals under the same account.
Install Hedge Master
Hedge Master goes on your prop firm challenge account.
- Open the MT5 terminal that is logged into your challenge account
- Open any chart — the symbol doesn't matter much, but a major pair like EURUSD on H1 is a good default. The EA auto-detects the chart symbol.
- In the Navigator panel, find Prop Firm Hedge Master under Expert Advisors
- Drag and drop the EA onto the chart
- A settings dialog will appear — see the next section for configuration
- After configuring, click OK
- Enable AutoTrading — Click the AutoTrading button in the toolbar. It should turn green. If it's red, the EA cannot trade.
You should see the Hedge Master dashboard appear on your chart, confirming the EA is active.
Configure Hedge Master
When the settings dialog opens, you'll see several input groups. Here's what each one means and how to set it:
Strategy Layers
| Setting | Default | Explanation |
|---|---|---|
| Layer A (Entry) | A-Random | The entry trigger strategy. "Random" means the EA randomly picks one from 10 strategies each time. This creates varied, natural-looking trade patterns. |
| Layer B (Structure) | B-Random | The market structure filter. Same idea — randomized for variety. |
| Layer C (Confirmation) | C-Random | The pattern confirmation layer. Again, randomized. |
Recommendation: Leave all three on Random. This gives you 1,000 possible strategy combinations, making your trading pattern unique and undetectable. Only change these if you want to lock a specific strategy.
Risk Management
| Setting | Default | What to enter |
|---|---|---|
| Risk Per Trade ($) | $150 | The dollar amount risked per trade. For a $10K challenge with 5% Daily DD ($500), keep this modest. $200–$350 is typical. |
| Stop Loss (pips) | 20 | Distance of the stop loss in pips. 15–30 is normal for forex. |
| Risk:Reward Ratio | Random | The R:R for each trade. Random picks between 1:2 and 1:5 each trade. |
Recommendation: Start with the defaults. The EA calculates lot sizes automatically based on your risk amount and stop loss.
Trading Settings
| Setting | Default | What to enter |
|---|---|---|
| Max Lot Size | 10.0 | Safety cap. The EA won't open lots larger than this. |
| Min Lot Size | 0.01 | Minimum lot size. Usually 0.01. |
| Magic Number | 999888 | Unique identifier for the EA's trades. Leave default unless running multiple EAs. |
| Trade Comment | (blank) | Optional comment attached to each trade. Leave blank if your prop firm flags comments. |
| Master ID | 1 | Important if running multiple challenges. Each Master EA needs a unique ID (1–9). If you're running one challenge, leave it at 1. |
Profit Target
| Setting | Default | What to enter |
|---|---|---|
| Target Equity ($) | $11,000 | When your account equity reaches this number, the EA closes all trades and stops. Set this to your challenge's profit target. For a $10,000 account with 10% target, set $11,000. Set to 0 to disable. |
Drawdown Protection
| Setting | Default | What to enter |
|---|---|---|
| Daily Max Loss ($) | $450 | The EA stops trading for the day if daily losses reach this amount. Set this just below your challenge's daily loss limit. |
| Max DD Equity Limit ($) | $9,100 | The absolute equity floor. If equity drops to this, the EA closes everything and stops permanently. Set this just above your challenge's max DD violation level to protect you. |
Example for a $10,000 challenge (5% daily / 10% max DD):
- Daily Max Loss: $450 (stays under the $500 daily limit)
- Max DD Equity Limit: $9,100 (stays above the $9,000 violation level)
News Filter
| Setting | Default | What to enter |
|---|---|---|
| Enable News Filter | Yes | Avoids trading around major economic events. Strongly recommended. |
| Avoid High Impact | Yes | Skip trading around high-impact news (NFP, CPI, FOMC, etc.) |
| Avoid Medium Impact | Yes | Skip medium-impact news |
| Minutes Before News | 30 | No new trades X minutes before a news event |
| Minutes After News | 30 | No new trades X minutes after a news event |
| Close Before High Impact | Yes | Closes open positions before high-impact news to avoid spikes |
Recommendation: Leave the news filter ON with defaults. This protects your challenge from volatile news moves.
Install Hedge Live
Hedge Live goes on your personal live broker account.
- Open the MT5 terminal logged into your live broker account
- Open any chart — the symbol on the chart doesn't matter. The EA automatically trades whatever symbol the Master trades.
- In the Navigator panel, find Prop Firm Hedge Live under Expert Advisors
- Drag and drop it onto the chart
- Configure the settings (next section)
- Click OK
- Enable AutoTrading — Make sure the AutoTrading button is green
Configure Hedge Live
Challenge Details
| Setting | Default | What to enter |
|---|---|---|
| Challenge Account Size ($) | $10,000 | The size of the challenge account the Master EA is running on. |
| Max Drawdown (%) | 6.0 | The maximum drawdown percentage of your challenge. Check your prop firm's rules (common values: 6%, 8%, 10%). |
| Challenge Fee ($) | $100 | What you paid for the challenge. This is the amount the hedge needs to recover if you fail. |
These three values determine the hedge multiplier. The EA calculates how much to trade on your live account so that if the challenge fails, your live profits cover the fee.
Recovery Settings
| Setting | Default | What to enter |
|---|---|---|
| Recovery Mode | Break Even | How much you want to recover if the challenge fails. |
| Commission Per Lot ($) | $7.0 | Your live broker's commission per standard lot (round trip). Check your broker. |
| Estimated Trades | 15 | Rough estimate of how many trades the Master will take during the challenge. Used to factor in commission costs. |
| Custom Multiplier | 0.20 | Only used if Recovery Mode is set to "Custom". |
Recovery Mode options:
- Break Even — Recovers exactly the challenge fee. Lowest risk, smallest lot sizes.
- Recoup + 25% Profit — Recovers fee plus 25% extra.
- Recoup + 50% Profit — Recovers fee plus 50% extra.
- Recoup + 100% Profit — Recovers double the fee. Higher lot sizes needed.
- Custom Multiplier — You set the exact lot multiplier manually.
Recommendation: Start with Break Even for your first challenge. You can increase the recovery mode once you're comfortable with the system.
Lot Size Limits
| Setting | Default | What to enter |
|---|---|---|
| Max Lot Size | 100.0 | Safety cap for the hedge lot size. |
| Min Lot Size | 0.01 | Minimum lot. Usually 0.01. |
Execution Settings
| Setting | Default | What to enter |
|---|---|---|
| Max Retries | 3 | How many times the EA retries if an order fails. Leave default. |
| Retry Delay (ms) | 100 | Delay between retries. Leave default. |
General Settings
| Setting | Default | What to enter |
|---|---|---|
| Magic Number | 123456 | Unique identifier for hedge trades. Leave default unless you have other EAs on this account. |
| Trade Comment | (blank) | Optional trade comment. Can leave blank. |
Verify the Connection
Once both EAs are running:
- Check Hedge Master's dashboard — It should show "ACTIVE" status and display your challenge settings.
- Check Hedge Live's dashboard — It should detect the Master EA. Look for "MASTER ACTIVE" or similar status.
- Wait for a trade — When Hedge Master opens a trade on the challenge account (e.g. BUY EURUSD 0.15), Hedge Live should automatically open the opposite trade on your live account (e.g. SELL EURUSD at the calculated hedge lot size).
- Check the Experts tab — In both MT5 terminals, go to the Experts tab at the bottom. You'll see log messages from each EA confirming signals sent and received.
If Live doesn't detect Master within a few minutes, see the Troubleshooting section below.
Understanding the Dashboards
Hedge Master Dashboard
- Status: Shows if the EA is active and trading
- Strategy: Which strategy combination is active (e.g. A3-B7-C2)
- Trades today: Number of trades opened today
- P&L: Current profit/loss on open and closed trades
- DD Protection: Shows your daily loss and max DD limits, and how close you are
Hedge Live Dashboard
- Master Status: Shows how many Master EAs are connected
- Hedge Status: Confirms the Live EA is active
- Funds Needed: Estimated balance required for hedging
- Your Balance: Current live account balance (green = sufficient, orange = low)
- Recovery info: Shows what you recover if the challenge fails vs. cost if it passes
- Lot Multiplier: The calculated multiplier applied to each hedge trade
- Last Signal: The most recent signal received from Master
Live Account Balance
How much money do you need in your live broker account?
This depends on your challenge size, max DD percentage, and recovery mode. The Hedge Live dashboard shows a "Funds Needed" estimate, but here's a rough guide:
| Challenge Size | Max DD | Recovery Mode | Approx. Live Balance Needed |
|---|---|---|---|
| $10,000 | 6% | Break Even | $200–$400 |
| $10,000 | 10% | Break Even | $150–$300 |
| $25,000 | 6% | Break Even | $400–$700 |
| $50,000 | 8% | Break Even | $500–$1,000 |
| $100,000 | 10% | Break Even | $600–$1,200 |
These are estimates. The actual amount depends on your broker's leverage, the instruments traded, and the multiplier. Always have more than the minimum to handle margin fluctuations.
Tip: After installation, check the "Funds Needed" value on the Hedge Live dashboard. Make sure your live balance is at least that amount.
Running the System — Personal Computer vs. VPS
We recommend running both EAs on your personal computer, not a VPS.
Why personal computer is better:
- Some prop firms flag VPS usage. If your challenge account is running from a known data center IP, the prop firm may question it or flag your account for review. Running from a residential IP (your home internet) looks like a normal retail trader.
- You stay in control. You can see both MT5 terminals, monitor the dashboards, and intervene if needed.
- No extra cost. No monthly VPS fees.
Tips for running on your personal computer:
- Keep your computer on and connected to the internet during market hours (Sunday evening to Friday evening, your local time)
- Disable sleep/hibernate in your power settings so your PC doesn't shut down the terminals
- Use a stable internet connection — wired ethernet is better than Wi-Fi
- If you need to leave for a few hours, that's fine — the EAs will catch up when your PC is back online, though you may miss some trades during downtime
When a VPS makes sense:
If you can't keep your computer running during market hours (e.g. frequent travel, unreliable power/internet), a VPS is an option. But be aware:
- Use a residential VPS or proxy if possible to avoid data center IP flags
- Some prop firms explicitly allow VPS usage — check your firm's rules first
- Both MT5 terminals must be on the same VPS because they communicate through shared files on the local machine
Important: Both MT5 terminals must always run on the same computer (whether that's your PC or a VPS) — they communicate through shared files locally.
Troubleshooting
Hedge Live says "Master Not Detected"
- Make sure both MT5 terminals are on the same computer/VPS
- Check that Hedge Master is running (dashboard visible, AutoTrading green)
- Wait up to 30 seconds — the Live EA scans for signal files every 5 seconds
- Check the Experts tab for any error messages
Hedge Live doesn't open trades when Master does
- Confirm AutoTrading is ON (green) on the live terminal
- Check if your live account has enough free margin
- Check the Experts tab for "Insufficient margin" errors
- Make sure the symbol is available on your live broker (e.g. some brokers use "EURUSD.pro" instead of "EURUSD" — the EA handles this automatically, but exotic symbols might not map)
EA shows "INIT_FAILED"
- Your MQL5 license may not be activated. Go to Tools → Options → Community and verify you're logged in
- Make sure you purchased the EA and it's activated for this terminal
Trades are too small / too large
- Adjust the Recovery Mode on Hedge Live for larger/smaller hedge lots
- Check Max Lot Size and Min Lot Size settings on both EAs
- Review the Risk Per Trade setting on Hedge Master
Challenge hit max DD too quickly
- Reduce Risk Per Trade on the Master EA
- The hedge still protects you — check your live account, it should have profited
- For the next challenge, consider lowering risk or using a wider stop loss
Both accounts are losing
- This should not happen in normal conditions. If the challenge loses money, the live account should gain (and vice versa)
- Check that Hedge Live is opening trades in the opposite direction to the Master
- Verify the connection — if Live wasn't running when Master opened trades, the hedge wasn't active
Need help? Contact me at Telegram @RalphJordanEA
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