What Happened to IBFX Hedging?

Not a hedge. You've taken a .5 position and chosen a direction, long or short.

For some reason this hedging concept throws everyone for a loop. Let's talk about being long & short in the same pair, for the same amount, at the same time. Different pairs at the same time are actually closer to real hedging (converting the possibility of a large gain to the probability of a smaller gain, in exchange for eliminating the possibility of a loss), but not the subject.

One reason traders hedge is they believe they can save a "losing" position. Another reason is to protect a "winning" position by trading a short interval vs a long interval, e.g., I've got a 300 point profit on H4 and the market turns. If I hedge, so the theory goes, I can now make profit in the opposite direction on H1, while holding my position on H4.

In the first case, let's say I take a long position with an entry stop of 30 points. The market goes against me and my entry stop is hit. I am now long and short with a 30 point deficit and will wait to see what the market does. He continues to move against my original position for another 100 points. I am now 100 points up on the hedge position and 130 down on the original position; still 30 points net loss. Instead, perhaps, he reversed again in the direction of my original position and gained 100 points. I am now 70 points up on my original position and 100 down on the hedge, still 30 points net loss.
You can never retrieve those 30 points. They are lost as soon as the hedge/entry stop kicks in. What the hedge has done for you is to take you out of the market and created an "opportunity cost" of 70 points, that you could have made if you had just closed it out and traded.
The only ways to save a losing position are to let it ride and wait for a reversal in you favor, or to "add" to the position so a reversal begins to pay off more quickly.

Same situation in long vs short interval. For every point you're making on the short interval, you're losing on the long interval. Net gain = zero; zero-sum game. The opportunity to make additional profit was lost because of the hedge.

Final point: If held long-term, forex hedging will eventually reduce your equity to zero (0). You will lose equity each and every day at the roll-over

The fact that you are placing a trade in the opposite direction of the current trade (or, one or more trades), it's called a hedge. Or, this is what my broker (IBFX) calls it, and they won't allow me to do it. Plain and simple.

Never mind. He'll never get that hedging can be used strategically to limit drawdown and enhance profit. Proper hedges are a tool just like any indicator. Every MT4 has indi's but few know how to use them to make money. Hedges/Indicators are like magic. "Its easy when you know how" and a befuddling mystery when you don't. From Eventtrading description of hedging its clear that he doesnt know how to use them to make money. I wont go into a detailed description of what I've been able to understand about the strategy I'm using (I signed up after watching him earn 77% in 4 months in an account) since theirs no need to further the argument. I'll just say that in my case its NOT 1-1=0 but since I'm making money reliably every month these must be MAGIC HEDGES.

No doubt.

Aja, no need for a detailed description. A brief one will suffice. Is it a state secret? I'm just trying to get by like everyone else. If I'm totally off-base, I sure would like to correct my approach. Any advice from any or all hedgers would be greatly appreciated. TY

event u write as though the market is in one direction, like a car moving up all the way and then down all the way.

the market moves in waves, hedging allows you to capture those mini waves while you ride the waves

Its calling timing, u close them at the right time. it does not matter whether your LONG is -5 or short is +5.. u close the short. and wait for the long to go up.

your theory is bloody flawed. this is not some paper exam or math exam.

how about taking factors like TIMING, Floating Positions and UNCERTAINTY in your theory..

do not call hedging garbage when you dont know how to use it. arrogant much.

Edgar, you are perfectly correct in saying the market moves in waves. Yes,
I realize everyday that it moves up and down, many times against our trades. You are not correct in saying that hedging allows you to capture these (mini) moves. That is exactly the point. Hedging "prevents" you from capturing these moves. It is not possible to gain if you are simultaneously long and short. When you are hedged, you are "out of the market." Please,
think it through. There is a reason hedging was eliminated in the US. You may want to read what those reasons are.

To all hedging advocates on these boards. I am not your enemy. Just trying to set the record straight. I welcome any information, advice, or instruction as to why I am wrong and how I too can benefit.

If you are 100% certain price will continue in it's direction then Even is right, but if certainty is below 100% then you're right and 'hedging' becomes somewhat of a pointless exercise.

The only time you should actually be long or short the same instrument at the same time is if you're engaged in arbitrage.