I apoligize if I was not clear. At every potential reversal level, for example at B, you cash in the position in profit (from A)and you open 2 new positions buy and sell. When you come to C, one of the open positions from B (buy or sell) will be in profit. You close that in profit and open a new pair(buy&sell) at C.
But the other open position will be at a loss. You're boxed. Opening another new boxed position does nothing. Maybe I'm missing something in your description, but do know this, there are no fail-safe tricks trading stocks. Zero. But try it. Paper trade a stock in this thread and we''ll see if it works. Use one of the fang stocks, they have enough movement from day to day. And g/l, at least you're trying.
There is no magical, undiscovered, fixed formula for market riches. Believe me, it would have been discovered already and exploited very secretly. All you have is understanding and timing. And many...many, many, people fail terribly here. But convince themselves they are special, and talented and genius and different from the rest of the zombie, sheep, herd out there trying to extract money from the market.
If there is anyone truely want to understand and try the modified grid hedging, I will be glad to explain the details. I have been using this for 18 months. We can exchange ideas to improve the system.
You do not need 2 accounts to be long-short at the same time. That is a quite naive view. It can, and should, be emulated by software. One possible advantage of that is as follows. Assume ideally you have 2 different strategies both with similar performances. Imagine that the maximum exposure of the first strategy is 2X contracts. If instead of playing strategy 1 with a max of 2X contracts, you play instead independently with both strategies, each with a max of X contracts, your average exposure will be lower. This is due to the fact that the max exposure of the 2 strategies (max X contracts each) is at any time always less or equal to the exposure of a single strategy (max 2X contracts), because, at certain times, they will (partially) offset each other, but still, the overall PnL result is the algebraical sum of the 2 strategies (the 2 "layers", as I call them). For the final results (PnL), it does not matter at all if they are on the same account or on two different accounts. It does matter for margins. So, if the approach is used, better on a unique account (unless there are different reasons for physical separation).
Isn't going both long and short like a synthetic stock (at least in options)? I do that sometimes if I'm pretty certain on direction (buy a call and sell a put or vice versa). It's much cheaper than buying or shorting the stock. I didn't watch the video, so I may be missing something.
Very late to the party, but this "technique" is exactly what I do. With a bit more of bells and whistles, obviously. For USA markets where your accounts will be offset on the same symbol, you can use highly correlated symbols that will behave like a single one, for example forex futures pairs tied to the dollar. There's always a way to bypass the rule.