Maybe plant a tree for your genius (conman, fraudster, sociopath, pathological liar) mentor, with 3 fabricated Phds, a false Knighthood by Queen Elizabeth, etc. I truly can't believe you are still around!!! He even mentioned that his brother flew him out to India in 1969 to meet the Maharishi, and learn Transcendental Meditation. I have never encountered someone like Morge, and I probably never will. A MASTER CONMAN. https://www.ruffnerwakelin.com/obituaries/Timothy-A-Morge?obId=17989083
Except that there is no “intermarket spread” with legs residing in separate accounts. It’s all outright risk. Unless you’re managing OPM, or you’re backing another trader, or you want a dedicated account for ATS - this is a stupid idea which is exactly why he’s having difficulty with his broker.
Technically, that is not true. 2 accounts, each has 10K. If he longs ES in account #1 and shorts YM in account #2, he has an intermarket spread in theory. ES goes up 1K in value, YM goes down 1K in value. So account #1 is at 11K, account #2 is 9K. He is still net 20K total account value. We know he will not be getting the margin discount because they are in separate accounts. But hell, that is the way it is with any broker that does not apply margin offsets in the SAME account! My broker included! *shakes fist at them* What you could try to do bone, is get him on the path to true exchange-traded spreads, and get him off the dangerous individual legging wash-sale intra-instrument spread. He might be your next best customer!
Why can’t you open a new, separate account at a different FCM ? Convenience isn’t really a good answer.
We need multiple accounts as backups. Don't just depend on just one because there is no such thing as a 100% reliable trading platform. Also when the market is very hot, that lousy trading platform might freeze, or your order might take minutes/hours to be executed.
another reason to open multiple accounts is for housekeeping/tidiness reason. One account for say USD denomination. Other accounts for EUR JPY GBP SEK .... denominations
Just out of interest, if a trader has 2 accounts at 2 different brokers and wants to disguise his day trading so uses one account to get in, the other to get out, that wouldn't be wash trading? Assume he's done a trade, + 1 ES with ABC broker, and taken profits (or a loss) with XYZ broker, he now has 2 positions open (although flat). If his next trade was a long, he'd buy through XYZ so the XYZ account goes to flat, but he's long because his ABC account was already +1. Wash trading or not to the above?
the system is not in a position longer than 10 minutes and is more often than not either long or short. OCCASIONALLY, the buy order occurs a minute before the sell trade buys to cover. the additional account is there to separate the long and short trades. it also affords me the opportunity to take net long or net short exposure where i could be long 5 contracts the NQ and short 3 contracts the NQ + short 3 contracts CL. i simply want a long account and a short account. trades are settled within 10 minutes or less when each leg completes. i just dont need the trades bumping into each other and taking the system out of synch. especially where a buy signal [buys to cover] my existing short taking me flat and then the short exit signal takes me long again.
isnt a wash trade where i buy and sell something at the same time and exit each position at the same time resulting in NO progress? That seems circular and a waste of time. The net gains or losses from my strategy are real. The market exposure is real, as is the risk.