Hedging question

With all the turmoil I have hedged a few trades. By this I mean that for every short I have created and equal sized long and vice versa.

Now I would assume that my drawdown remains stable, because when a pair moves the short and long orders should cancel each other out. However, to my surprise, my total amount of drawdown is still moving, even though I have hedged all my trades. What am I missing?

It could be any or all of the following:

1. I guess you already realize this, but you're paying spread on both trades in the pair. (That's one good reason why it's better to be out of the market, than hedged.) Then the spread is fluctuating: i.e. the P/L on one trade in the pair is being calculated (if you were to exit now) at the ask price, and the other at the bid price, and the difference between the two prices is constantly changing.

2. Swap: if you leave the trades open after 1700 hrs (New York time), one trade in the pair will be charged swap, and you'll receive swap on the other. Br0kers normally charge more than they pay, for obvious reasons.

3. If your account is denominated in (for example) USD, then only xxxUSD pairs will move at $10 per pip (per full lot traded). With other pairs, the $value per pip is constantly changing (albeit negligibly, over short moves), commensurate with the relevant exchange rate.

Thanks!