hedging in low volitility to exit in high volatility to reduce spread size


Hi. I am a new trader who discovered, to defeat a large spread in highly volatile times I can hedge trade same asset and time during low volatility, and then close the trades systematically during high volatility to artificially reduce spread size. in meta trader 5 I have clear proof it works, regardless of win possibility, because the exit position cannot be determined by the current spread size. This has nothing to do with your win rate or execution. loss or win it absolutely cheats variable spreads.

My. question is, if a international broker like hugos way notices you are doing this, would they close the account? and if you use two separate accounts in the US, would the winning account be terminated for insider trading if you happened to close multiple extreme wins in a row with no losses, due to that account incidentally being the winning hedge?

IN other words. you buy in one position and sell exactly same time during tight consolidation. perhaps with 1 or 2 decimal spread, then, you close the trades during high volatility when an entrance would have a spread of 8 or 9 decimals. say you trade a range during this time and you have a profitable win rate to your RR. you close profitable trade with 101 dollars and the unprofitable trade at 99 dollars, scalping 2 dollars and losing say 1 dollar to entrance spread. Or you even lose, meaning the profit position ends at 99, and the other ends at 10, but you do it all the time, would the international broker cancel your account?

say instead you do the same in two different accounts. each has 25000 to cover margins. 1 account happens to win consecutively. say account 1 is buy and #2 is sell hedge. say you close buy at 101 profit and sell at 99 loss, but because they are different (albeit vary similar brokers who have variable spreads that change at roughly the same time) brokers and don't know each other. say coincidentally the buy hedge #1 wins 5 times in a row, wouldn't this look like insider trading off of a bank firm you are communicating with? after all, winning %100 of the time, eve if it is balancing to close to zero for the actual total, looks impossible. Would they be able to tell what you are doing even if's going up and down?

My guess is, Doesn't matter. the spread only needs to protect the broker during volatile times so the transaction is stable, they don't increase the size to help traders lose money, it is simply the cost of the reaction, and since you would eventually have a loss streak, non one cares?

I've found an edge in scalping ranges. but the spread fees in volatile times make it close to break even. I have used demo in Meta Trader 4 and closed trades when the spread increases wildly during market closes and throughout the day. often I sill lose but my account has finally doubled and I am wondering if this is allowed.
It's important to be cautious with hedging strategies, especially if they exploit spread differentials. Brokers may view this as unethical trading behavior. Consider consulting with the broker directly or seeking professional advice to ensure compliance with trading regulations and to avoid any potential account closures or legal issues.
Also It's great to hear you've found a strategy that works for you in navigating the tricky waters of trading. However, it's important to remember that brokers have their own policies regarding trading practices. It might be worth reaching out to a guide for foreign exchange rates to get some insights tailored to your specific situation. Happy trading!