MyFunded Futures prohibits hedging of any kind.
MyFunded Futures prohibits hedging of any kind. Hedging is defined as a trader entering both short and sell positions on the same underlying asset, at the same time.
For example:
E-Mini and Micro NQ have the same underlying asset which is NQ (Nasdaq).
Note:
All traders must abide by the CME guidelines on hedging.
https://www.cmegroup.com/rulebook/files/cme-group-Rule-534.pdf
Why's Hedging Not Allowed?
Allowing hedging undermines the integrity of consistent trading and account evaluation. When traders hedge, they can offset losses in one position with gains in another, masking their true risk management and trading skills. This practice can lead to an artificial account stability, making it difficult to assess a trader's actual performance and discipline. Our goal is to evaluate traders based on their ability to manage risk, make informed decisions and maintain profitability without relying on offsetting positions.
It is important to note that hedging through different unrelated assets is permitted. However, when traders rely solely on hedging strategies - even across different assets - it becomes challenging to accurately evaluate their trading abilities. Heavy dependence on hedging can obscure a trader's true strategy, making it difficult to determine when they are ready to take on the next step.