https://zorro-trader.com/manual/en/trademode.htmPhantom trades are used for equity curve trading, for Virtual Hedging, or for both.
And the online manual for "Hedge":
Hedge
Hedging behavior; determines how simultaneous long and short positions with the same asset are handled.
Range:
0 No hedging; automatically closes opposite positions with the same asset when a new position is opened (NFA compliant; default for NFA accounts).
1 Hedging across algos; automatically closes opposite positions with the same algo when a new position is opened (not NFA compliant in multi-algo systems; default for non-NFA accounts).
2 Full hedging; long and short positions even with the same algo can be open at the same time (not NFA compliant).
4 Virtual hedging without partial closing. Long and short positions can be open simultaneously, but only the net position is open in the broker account. Phantom trades immediately trigger the opening or closing of corresponding pool positions. NFA and FIFO compliant. Zorro S required.
5 Virtual hedging with partial closing and pooling. Phantom trades in the run function are collected and result in a single pool trade. Intrabar phantom trades trigger pool trades immediately. Open pool positions are partially closed to match the net amount. NFA and FIFO compliant. Zorro S required.
