What Is Hedging?
Hedging refers to the use of multiple accounts to open opposing positions on the same or correlated instruments, with the intent of reducing or eliminating trading risk.
Rather than demonstrating trading skill, this approach attempts to exploit the system structure by ensuring that one account profits regardless of market direction.
Important: Hedging is considered system manipulation and is not permitted on EdgeProp.
Example
Long NQ in one account
Short NQ in another account
In this scenario, one account will profit regardless of market movement, effectively bypassing the intended risk framework.
Prohibited Hedging Activities
Hedging across multiple accounts owned by the same user
Hedging between accounts belonging to different users
Hedging across different prop firms or platforms
Using correlated instruments across separate accounts to offset risk
Any strategy designed to bypass risk management rules
Correlated Assets Rule
Hedging is not limited to identical instruments. Trading opposing positions across correlated markets in separate accounts is also prohibited.
Example:
Long ES in one account
Short NQ in another account
Allowed Trading Behavior
Trading different instruments within the same account
Using micros and minis within the same account
Maintaining genuine directional exposure and risk
What Happens If Hedging Is Detected?
Accounts may be reset to a prior balance
You will receive a warning notification
Repeated violations may result in account termination and permanent restriction
Why Is Hedging Prohibited?
EdgeProp is designed to identify and fund traders who demonstrate consistency, discipline, and real market understanding.
Removes genuine risk exposure
Distorts performance metrics
Undermines the evaluation process
Frequently Asked Questions
Can I go long and short the same contract?
No. This is strictly prohibited across one or multiple accounts.
Can I trade micros and minis?
Yes, but only within the same account. Using separate accounts is not allowed.
Can I trade different instruments in opposite directions?
Yes, within the same account. Across multiple accounts with correlated assets is prohibited.
Final Note:
All trading activity must reflect genuine market participation. Any attempt to manipulate the system will be treated as a violation of EdgeProp’s rules.