No need to flare up :eek: My stops will decide and close the losing position - I do not aim to predict when to exit one account and let the other one run. Any one know how I can backtest this kind of strategy?
What you describe is achieved simply by using a dual bracketed stop entry method, with 1/2 the commissions. For example, if S&P (no idea where Ibex35 is) is at 1380 and you're thinking of using 2 pt stops either direction, simply enter a simultaneous buy stop at 1382 and sell stop at 1378. Then when one is triggered to get you into the trade, the other entry order cancels. Once one side is triggered into a position, you have an automatic stop placed with the order (trail or fixed). This bracket order achieves exactly what you're looking for, but saves you half the commissions, and you don't have to have the complexity of using 2 separate accounts. Simple classic bracket entry strategy, which as someone else pointed out, is often used around news announcement events. I think that's what Original was trying to get across to you, but perhaps this is a more constructive explanation.
There are times trading one account relative to a second account is a valid strategy, tactic. Do not use it though as a classic rookie mistake to hedge a loser. In that case you are just afraid to take the loss and make a bad situation worse, before you only had 1 decision to make, now you have 2 and you doubled commissions. You can use this tactic for the same item with different time frames. Lets assume you have a swing trade on in the ES and have a 50 to 100 handle target in mind. Fine and dandy. Lets further assume you are in position to daytrade, GET THE PICTURE? Right, you open a 2nd account and daytrade against the position trade. This is a viable tactic because as a well heeled trader you know it is posible to trade different tactics in different mkts: EXAMPLE: keep the position alive when the intraday mkt is range bound, you can in another account range trade and pad the account. Talk to the broker and ask if you can have 2 seperate account numbers or setup a seperate account in wifes/husbands name etc. If you live in Chicago just go to the Tribune and check the obit for a name, in Chicago the dead never are really dead, they still vote, etc. :eek: Another reason why this tactic will work for you is because you will be more focused on the intraday mkt actions and find there are more than one way to skin a cat. Mkts have different personalities, so should you. bighog out...different computer.