Should you not use hedging by employing two opposing positions (long and short) at the same time?

Personally, I think using hedging is very useful

However, if you use hedging with the assumption of “going back”

the losses will expand, like the expansion of stored losses

That’s because you double down under the pretext of going back

which leads to the conclusion that losses will expand

In order for hedged averaging down to be an effective trading method

you need to have market sense

Market sense equals Dow Theory

because it directly connects to past markets

To win

you must, without fail, base your trades on past market patterns

By aligning with market patterns, both gains and losses can be produced

With hedged averaging down, you must identify the highs and lows of the market

And you must consider whether the trend will continue or reverse

However, if you are going to use hedged averaging down

in a strong trend, it is also effective to average down when the trend doubles the lot size

If you are using hedged averaging down

you must create a trading logic for hedged averaging down that is based on market patterns

If you can create that

then hedged averaging down can be effectively utilized