You're right, but dont forget that the hedging is a stop loss "method". But it's better cause of the second chance. I think this is one of the ways, to make a big profit. You are absolutely right about decreasing But this is only seems like increasing, in the reality is not increasing. You aren't increasing the loser trades. (the loss is stoped). BTW the system is amazing, and respect for everyone, who developed the EA!
Develop the old ways! Backtest with 25% quality... JOKE!