Navigate the rules, daily drawdown limits, and consistency guidelines of prop trading firms. Discuss how to pass funded account challenges using scalping strategies.
"Hedging" can mean three different things in prop rules, and they are treated differently:
Hedging in the same account: holding a long and a short on the same symbol. Often allowed on MT5 hedging accounts, banned on netting ones, and some firms prohibit it outright.
Hedging across your own accounts at one firm: almost always banned, because it guarantees one account passes.
Hedging across firms: also banned and detected through trade data sharing or payout reviews.
Related: correlated positions (long EURUSD and short USDCHF at the same time) are normally fine, but some firms look at it if the size is large.
If you use same-account hedges as part of a trade-management technique, it is worth confirming in writing that it is allowed on your specific account type.
Does your firm allow same-account hedging, and do you find any real use for it?
Same account hedging only stays on my card after I have written confirmation for the exact account type I run. Netting versus hedging mode changes the answer at some firms, and a verbal chat reply has bitten me once already.
My real use case is a partial lock while I trail the original stop, not a second ticket meant to cancel risk forever. I scale the hedge to the part I want protected, then flatten the hedge once the stop sits where I can live with it.
Cross account hedging at one firm I treat as always out. I do not need a clever reason; the detection risk is not worth a phase that looked clean on paper.
Correlated pairs stay separate in my notes. Long EURUSD and short USDCHF can still look like a synthetic hedge if the sizes match, so I cap combined exposure even when the rules stay quiet.
The written confirmation is the filter before I use the technique at all. Which account type are you on, hedging or netting, and did support answer in writing?
