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How does hedging affects scores?

Hi there
I am new to the Darwin concepts, and I am wondering if somebody is using hedging in their strategy…
I am curious about how that affects the scores, as a given trade may go deeper in the red while its hedging trade is well in profit thus having no real impact in the equity. But I suspect this something will not generate good statistics on the Darwin…
Any comments, experiences, suggestions on the subject are very welcome.

Thanks!
Omar.

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@bianka should look for a qualified answer.

I assume that attributes depending on trades like La are evaluated badly affecting D-Score besides the hedged positions in the same asset are netted and the same size is not traded on the investor accounts.

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Thanks for your reply!
I’ve been studying the La score after your response.

to be honest, I find that score somehow absurd.
Looks like it attempts to enforce the underlying strategy to cut the losses early, as if that was the only valid strategy to manage losing trades.

Was planning not to use hedges (that is valid resource I seldom use when trading) but I decided not to change anything attempting to fit scores better.
Time will tell :slightly_smiling_face:

Kind regards
Omar.

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You can „cheat“ if you close a trade and open immediately a replacing trade with same size and direction. You might lose or make a very few pips This way but you don’t hold losers too long.

Also the Ex attribute regards trade duration of the last 15 days and you get a much better value faster there this way. Your extreme exposure on losers will also be less.
Darwinex is satisfied as they take an additional commission. The strategy must be successful enough to live with this behavior.

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Hi @OmarB and welcome to the community!

MetaTrader assigns close prices to hedged trades in a somewhat confusing way - the close prices that appear are not the actual ones. This affects Cs and La scores.

The recommendation is the one you’ve come to by yourself - don’t change the strategy with the only aim to to fit scores.

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So you can actually bribe the Darwin engine by paying more commissions in exchange for better scores. LOL!!

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YES. And it can also backfire!

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