Disliked
nice try, but your just doing the same as buying EUR/CHF. It is not a hedge. It works as long as the Swissy devaluates against the EUR.
Proof:
Buy 1 EUR/CHF: Long EUR 100K Short CHF165.620
CHF 165.620 equals USD 34.980 plus CHF 122.750 in the moment of trade. Why? USD 34.980 was at the given price (1.2275 USD/CHF) in the moment of trade representing CHF 42.870. These CHF 42.870 - oh wonder - added to CHF 122.750 sum up to CHF 165.620.
Regards
t.Ignored
You are right, but you are fighting a losing battle trying to convince these people of that.
It can't be done
There is another thread going about this same "magical" hedge. They've even got an EA...LOL