In all Ive seen "hedging" is for people who cant take a loser. or those who liked paying the spread so much the first time, they thought they would have another go at it.
It's also unlikely he would have closed on the spike. I rest my case here. Your logic is flawed, and you don't even want to see why.
lol, ummm I'm not the one who's hedging or grid trading, that was the OP Why is it unlikely that he would have taken profit on a profitable trade The bottom line is he made money by being long and short, you can't argue with that fact, and as making money is the objective of the exercise I would say the strategy in this instance was a success!
He was NET NEUTRAL for god's shake!!!! It doesn't matter if the market spikes up or down if you are net neutral! Maybe he got short, if he had the nerve, on the spike up. NO ADVANTAGE, get your act straight.
Huh No, I'm cabletrader, the clue is where it says 'cabletrader' on my posts I know, confusing isn't it.....
He was indeed net neutral by being long and short but his positioning allowed him to take advantage of an unexpected spike up and he made money on it. The market then reversed and he made money on his short as well. It's not a case of 'maybe he got short' he was short, he was originally long and short, you said it yourself he was net neutral! Both the long and short positions made money, that was the advantage! Sheeeesh, it's really not rocket science
Ah I get it, you're unable to sustain a sensible conversation about the subject so now you're going to play the troll. Ok, but isn't it time you were off to school, the short bus will be there soon I expect. yawwwwwwn.....