High Leverage economic data volatility hedging/gambling idea

Hey Traders,

Let me throw a theory at ya.

Let's assume that we have 2 forex accounts with 500x leverage. We deposit 50 bucks to each.

What if right before important data comes like todays services data or tomorrow's NFP, we buy and sell GOLD at the same time with the two accounts? One account gets blown out and 50$ is lost (and negative balance protection saves you from more losses) and the second account is running with a 10-20$ gold spike which with the leverage makes about 4-500$ with 20 mini contracts

Wouldn't that be guaranteed profit everytime if you trigger buys and sells 30 seconds before the data is out?

In which cases could this strategy cause losses in both accounts?

All opinions and critiques welcome https://cdn-resources.faireconomy.me....png?v=1.0.0.1

Edit: I'm aware that in the US some brokers don't allow hedging, but my broker in Australia allows hedging so I guess this wouldn't work with US brokers unless you use two different ones

Anyone also know the legality of this perhaps?

good in theory, but a couple of possible problems

1. not all brokers will let you get away with a negative balance so your loss might not be limited to the $50 you deposited
2. most news events spike in both directions before settling down and you may find yourself with two loosing trades

cheers
Fred

you could end up losing more than your deposit if the news is really volatile. sometimes it can spike you out both ways buys and sells.

Yep, just what I was going to say!