DislikedHello Ill,
First of all, the idea that hedging is prohibited in the U.S. to save us all from ourselves is naive, to say the least. If they wanted to save us from losing money they could limit spreads, allow straddles around news without context issues, etc...
Second, I do not believe anyone here needs a grade school lesson. Mathematically, you are correct. There is no difference between locking and unlocking as there would be between being stopped out of a trade and re-entering at a later time. However, psychology is a huge factor when trading....Ignored
I also just wanted to make people aware and state the disadvantages using this technique of hedging, i does not help at all. We are into this jungle called forex for the MONEY, other ways I will find others things to do in my free time.
Everybody knows if you have an edge in forex and win more than 50% - 52% you can use regular stop loss R/R1/1 and you can make millions. The only problems is - Do you have an edge? Do you know/do/know something that other people don't?
By using recovery money management or "adding to a losing trade" you have to use very small lots as you already pointed out, and some people are successful - like nanningbob but it is also widely used when you don't have/not sure to have any edge.
By the way in some of your previous posts you said something about an Ea that helps you scale in when you place an order. I would be also interested in checking it out.
with respect, Julian.