DislikedStopping an unrealized loss from becoming a realized loss is not idiotic. 'Freezing' an equity drawdown until a murky situation clarifies itself (news release, election result) is not idiotic. Would I use hedging as a strategy by itself? Not in the 'forex' definition of having opposite trades on the same pair, but hedging risk in one trade by taking a smaller position in another instrument is not idiotic. If you do trade counter-trend (I'd need to know your trading horizon to really know what this means) then you have been taken by surprise by a...Ignored
However; you could argue; that if you are sure that taking a hedge position against that trend; is going to work; why not use that as a strategy on its own.
What happen if the hedge trade turned against you once you enter that trade? and especially if it went against you by a bunch of pips; will you exit the original CT trade (that is profitable by now); and leave the hedge in negative territory. how do you exit the hedge; what strategy do you use?