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Hedging Restriction

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plas
32
plas  

Is there any way to use Strategy Tester in MQL5 for portfolio back test which is not possible with MQL4, but using hedging option?

I am talking only for back test not for real trading. Also maybe Metaquotes could make MQL5 possible for hedge in back test if use 2 accounts in testing- 1 for long orders and 1 for short one. 

Ernie Gunning
1147
Ernie Gunning  

I was just wondering on this topic just now. Why hedging is not allowed and we never got a decent answer to this. Is this because of some law??

Trinh Dat
37697
Trinh Dat  
I think it is possible.
Ernie Gunning
1147
Ernie Gunning  
tuoitrecuoi:
I think it is possible.

I'm sure it is possible working with diffrent accounts right? but my main question why did they remove this in MQL5, I dont know but mybe Rosh should answer this one? 

JDeel
238
JDeel  
NFA Bans Hedging in US Forex Accounts
  • www.tradingheroes.com
The National Futures Association has banned hedging in all forex accounts in the United States. The reason for the ban is unclear at this point. Hedging is when you are allowed to enter offsetting positions at the same time. In other words, you can be long 1 lot of GBPUSD and short 1 lot of GBPUSD without the second position closing out the...
q.import
206
q.import  
....
MathQuant
73
MathQuant  

Hedging enables traders to protect their capital in very volatile market conditions.  The corrupt law makers in the USA cannot allow that.  Rumor has it, they put pressure on MetaQuotes Software Corporation to remove the hedging feature from MetaTrader 5.

When you think about it, it is not the job of the software platform to restrict hedging.  It is up to the broker to decide whether or not to allow hedging.

MetaQuotes are acting against their own self interest in this case, as is evident in the reluctance among traders to upgrade to MT5, and the continued support for MT4 among brokers, which is expected to continue into the foreseeable future.

This situation does not make sense, unless there is truth to the aforementioned rumor.


Oluwadare Paul Oguntosin
633
Oluwadare Paul Oguntosin  
tuoitrecuoi:
I think it is possible.
I t is not possible in mt5 due to NFA and other government body regulations. Some says that mt5 is built to satisfy those regulations. BUt you can only use it in mt4.
Miguelito Yap
640
Miguelito Yap  

Hedging is false protection.  Look at the Signals here that employ hedging.  They are locked into positions that's difficult to get out of.  It's better to take the loss and keep trading for a chance to recover.  Those with hedge positions are just sitting there, swap is eating them up slowly until they cannot take it anynmore and lift the hedge with a substantial decrease in account balance.

Documentation on MQL5: Standard Constants, Enumerations and Structures / Environment State / Account Properties
  • www.mql5.com
Standard Constants, Enumerations and Structures / Environment State / Account Properties - Documentation on MQL5
Jinsong Zhang
15780
Jinsong Zhang  
ToolMaker:

I was just wondering on this topic just now. Why hedging is not allowed and we never got a decent answer to this. Is this because of some law??

The best way by brokers is offer symbols_xx (e.g. from EURUSD_01 to EURUSD_99) so you can buy EURUSD_01 and EURUSD_02 and sell EURUSD_03 and EURUSD_04.

 https://www.mql5.com/en/forum/8372/379561#comment_379561

What are the Advantages of mt5
  • www.mql5.com
What are some advantages mt5 platform have over mt4 trading platform?
Alexander Piechotta
6978
Alexander Piechotta  
A Virtual Order Manager to track orders within the position-centric MetaTrader 5 environment
  • 2010.05.13
  • Paul
  • www.mql5.com
This class library can be added to an MetaTrader 5 Expert Advisor to enable it to be written with an order-centric approach broadly similar to MetaTrader 4, in comparison to the position-based approach of MetaTrader 5. It does this by keeping track of virtual orders at the MetaTrader 5 client terminal, while maintaining a protective broker stop for each position for disaster protection.
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