Thinking Stuff's ATM

Automated Trading Machine (ATM) makes it simple to remove fear and greed from your trading. Automated trading is no longer just for the rich or nerdy. Our revolutionary software runs on your computer, using your trading rules, but none of your emotions. There's just one requirement - you know how to use a mouse.  Learn more...

Thinking Stuff's ATE

Automated Trading Execution (ATE) is where we run your trading systems for you on our servers. Your system can be exported from ATM, or written in plain English and we'll make it for you. We'll even backtest and suggest improvements if you want us to. This service essentially automates your automated trading.  Learn more...

Thinking Stuff's Groups

Join a group of like-minded individuals, and help each other to trading success. Once you join a group, you will have access to that group's trading systems, ideas, and feedback. And please contribute your own knowledge as much as possible. Or contact us to start your own group.  Learn more...

How To Hedge

Most brokers do not allow hedging. For example, first open a long trade of 100,000 units, and then open a short trade of 70,000 units. With hedging not allowed you get this result:

  • Long - 30,000 units
  • Short - no open trade

Opening a short trade of 70,000 units in this case has the same effect of selling off 70,000 of our long units. However with hedging you get this result:

  • Long - 100,000 units
  • Short - 70,000 units

Hedging keeps long and short trades separate, which is how ATM likes it. If ATM opens a trade of 100,000 units, it expects to close a trade of 100,000 units. In the first example ATM would think it has 2 trades open - 1 long one for 100,000 units, and 1 short one for 70,000 units. But at the broker the reality is that there is just 1 long trade of 30,000 units.

So, how to hedge with a broker that doesn't allow hedging? Open two accounts. In account #1 you do all your long trades, and in account #2 you do all your short trades.
 

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