Dislikedyezbick,
On another thread you mentioned starting at +50/-50. You could do that but you would not have any protection against whipsaws/ranging market. What you could do is start at those levels and then continue with the above system, saving some pips from the spread. It's not a bad idea at all.
RegardsIgnored
Example of straddle vs hedge.
Buy and sell 1 lot at 235.00, SL of 50. Price moves to 235.50. Your sell order is stopped out with a 50 loss, and your buy is in profit by 50-spread(10 for example) at this instant you are down 10 pips. you need 235.70 to break even on the sell trade AND the buy. 10 spread for both orders. You can look at this any way you want as far as your actual SL. It would really be a 40 SL+ spread from entry, but regardless, you have to make up 10 pips somewhere on each trade.
A straddle with a buy order at 235.50 is hit. You now only have to have a move in one direction for 10 pips to BE vs 20. Even with the hedge it is easily a double loss as your SL from the sell is hit, a reversal of trend occurs and your SL for the buy is hit.
The range protection in the straddle is the straddle itsself, a window for price to move until a trend developes. The reason your hedge tests work is you are infact protecting from the range, however your protection is costing you 10 pips.
just trying to explain it the way I see it and not discourage your out of the box thinking.