Allow hedge even if free margin is too small

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HeppiBull
  • updated
  • Planned

I really like the hedge features, but there is one point which should be improved.

Currently, when free margin is less than needed to open new position, even opening autoHedge positions or new opposite main position is not possible. But this should be no problem, since hedge position would increase the free margin after opening and not decrease further.

CP throws an alert like "not enough money to open xx lots..."

But in MT5 it is possible to open this new hedge position manually, hence why not by EA?

On drawdown, when free margin comes close to 0 or even negative, hedging would help to prevent the account from blowing up, at least to keep it further alive.

This suggested option should apply for all auto-hedge orders but also for hedge orders of opposite main series. Especially, new opposite main series position should always be opened with configured open lot size and not reduced to "possible" lot size of free margin.

I would appreciate this option very much, what do you think?

Thanks.

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Alexander Medvedyev

In case there is not enough margin to open "xx lot" - "xx lot" would NOT open neither manual nor EA. It might open much smaller "possible" lot, but what's the sense in case we have ALREADY hedge series?  

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HeppiBull
Quote from Alexander Medvedyev

In case there is not enough margin to open "xx lot" - "xx lot" would NOT open neither manual nor EA. It might open much smaller "possible" lot, but what's the sense in case we have ALREADY hedge series?  

I can open xx lot manually in this case, since hedge increases the margin if the new position is in opposite direction.
example: you have account with 1:50 leverage. you need 20,00 margin to open 0.01 lot. you have in sum 2.5 lots buy positions open by martingale set and equity is around 5000 as well as margin, which leads to free margin around zero.

For sure you cannot open any further buy positions, but opening sell position as hedge would increase the margin accordingly. At least this works with ICMarkets, not sure if there are any restrictions by other brokers.

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Andrey Khatimlianskyi
  • Under review

Hi!

EA should take into account hedged margin.

What broker do you trade with?

Give me please account credentials (with investor password) and set-file you use, I'll check margin calculation.

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HeppiBull
Quote from Andrey Khatimlianskyi

Hi!

EA should take into account hedged margin.

What broker do you trade with?

Give me please account credentials (with investor password) and set-file you use, I'll check margin calculation.

Hi Andrey,

thank you for reviewing my topic.

I am trading with ICmarkets and here is my set file:

live cp + cci - v2.38 - x4.0_2022-01-17_hed....set

The EURUSD spec of ICmarkets shows that no hedged margin is required. And the margin for buy and sell is equal. Imho, if the free margin due to many buy positions is 0 or negative,  it is possible to open hedge (sell) positions.

I got the confirmation already by opening hedge positions manually in such situation.

But the CP does not :-(

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Andrey Khatimlianskyi
Quote from HeppiBull

Hi Andrey,

thank you for reviewing my topic.

I am trading with ICmarkets and here is my set file:

live cp + cci - v2.38 - x4.0_2022-01-17_hed....set

The EURUSD spec of ICmarkets shows that no hedged margin is required. And the margin for buy and sell is equal. Imho, if the free margin due to many buy positions is 0 or negative,  it is possible to open hedge (sell) positions.

I got the confirmation already by opening hedge positions manually in such situation.

But the CP does not :-(

Give me please account credentials (with investor password), I'll check.

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1
Andrey Khatimlianskyi
  • Planned

Thanks for the details!

I've checked margin calculation on your account. You was right, it doesn't take into account open trades.

Must be fixed.

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HeppiBull

Thanks Andrey for your support and planned fix of the issue.

This will improve hedging-sets very much.

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HeppiBull

Hey Andrej,

what is the status about implementing this bug-fix?

Additionally, I observed now something new but similar:

When using option "min margin level % (Martin trade)" this disables not only opening Martin trades of the main series, which causes low margin level, but also hedge series.

Opening Martin trade of the hedge series would improve the margin level. Hence, this cannot be the intention of this option to disable Martin of hedge series. Could you consider to fix this as well?

BR HeppiBull