Can I Hedge (go Long and short)

[Jdax]

I have 2 accounts with my broker so I can go Long on one and Short on the other. I'd like to do the same with Forex Tester.

I've tried it by entering the Hedge trade as a Pending Order. When it's triggered it disappears fro Pending but isn't activated and doesn't appear in Account History.
I've also tried entering a Market Order to Hedge but it says 'insufficient funds'. This message isn't correct as it allows me to add the same Lots to my primary trade that I'm tryoing to Hedge with.

Help please ?.

JIm

[FT Support]

Hello Jim,

Forex Tester allows testing hedging strategies.
Please check your Margin settings. What values do you have in "lot size" and "margin" parameters of the currency pair settings?
also what lot size for the orders do you use? and what is your current Equity and Margin when you are placing the order?

[Jdax]

Hi – thanks for reaponding

I started collecting the data you asked for :-

Lot size 1000 Usd, Margin 20.0 (I wanted a ratio of 50:1)
Equity 2140.38, Margin 246.22

Then I wondered if Hedged margin, which was 200.0 could be the problem.

I changed it to 20.0 then got stuck for ages regenerating etc.

I’ve tried it again and it seems OK so far.

Could my Hedged Margin setting of 200 have been the problem ?.

Jim

[FT Support]

Hello Jim,

Yes, Hedged Margin can be the problem if it is too big. Hedged margin should be smaller than "Margin" and usually it is equal to a half of "Margin"

[brokeMike]

Good info!
Again this should be in the help file

I'm testing a margin of 600:1 which I put in as 166.67 Hedged margin as 83.34, pair GBPCHF (everything else default), redo the ticks and start with 2000 USD.
But on testing it with a 1 lot order, the terminal line says: 244.80, which is wrong, it should be 166 right?
79.13 gives me 116.23 margin
Thanks for your help, you provide great support for this great piece of software!