Topic: Hedging Strategy ?
Is it possible to use hedging for a no loss strategy.
1. Open both buy and sell positions (same amount) at the same time in a trending pair.
2. Then wait until the pair has moved (in whichever direction) until its reached its resistance/support and starts to retrace.
3. Then take profit on the position that the market moved in favour with.
4. Then wait until the pair has reached the end of its retracement and close the losing trade.
Would't this method work, as the profit you took with the profitable trade be greater than the loss of the losing trade because of the retracement ?