You get stopped one way, you think it goes the other way, you trail your stop a little to let your position ride, oups it was a whipsaw, you get stopped both way, you're fucked up, you lose money plus pay 2 times the spread. Happens all the time. Oh, may be i just have to put wider stop! Than your positions run for all week without being closed, and in the long run you get fucked both ways anyway. You need to catch a trend at least 2 times bigger than your stop size. No matter what time frame you look at, trends are not the norm. You use too much capital and get half the expected ruturn you would normaly have. Risk is not lower, and anyway lower risk would mean lower profits. The only way to survive through wipsaws is to keep your position open and hope that the trend will resume on your good side.
I couldn't say about the currencies but that strategy used to be the favorite among the hedgefund managers for tax purposes. But then IRS wised up and changed the rules
You do not need two accounts to be short and long at the same time, here you can do it on one account : http://fxsol.com/getting_started/open_an_account.asp I do it sometimes .
Another reason for me for two accounts is to keep my brokers/firms from deciphering my strategies. Hedging is of primary importance, but the other reason(s) are often overlooked imo. nitro
It says nowhere in there that you can go long and both at the same time with the account at the same time. You just gave a link to open an account. Why would you lie to people? what do you get out of lying? You can't go long and short both with the same account and same trade. They don't allow it. I hope nobody opens an account at that place above because you will be wasting your time. You can't go long and short at the same time with the same account on the same trade. It is agaisnt the rules. You have to open up another account with another broker.
Sure you can (do just that at FXSol). I'm guessing, you might've missed the part where jerry11901 says, "I do it sometimes." http://www.fxsol.com/trading_platform/gts_key_features.asp#hedging