Hi Flash,
Potentially, it can be of benefit in a number of ways . . .
1. As I mentioned in my last post, it obviates the need for stops, which are the bane of most traders lives. (Please note: I'm saying this as an ordinary member -
not with my T2W hat on. I would not recommend this to newbies for whom stops are essential.)
2. Positions equally weighted on both long and short legs of the trade will protect you from any losses when no clear direction is indicated. As and when the market makes its move, you have the option to adjust your weighting on either side of the scales so to speak. You literally have double the number of options at your disposal, as you can add or reduce your position size on
both legs of the trade.
3. It enables you to average into a position without incurring additional risk. I'm loathed to recommend other sites (hope Steve isn't reading this thread or I'll be in trouble, lol) but there's a thread on ET that discusses this in some detail that's worth a gander IMO:
Averaging Down
As I say, I'm just experimenting with a demo account at the moment. So far, what I like most about is that it's a much more relaxed way to trade. How many times have we panicked and got out of a trade too soon, or hung on for even more profit and ended up giving profits back to the market? Opening an opposing position gives you time and breathing space without having to close out your main position.
Have a good weekend all.
Tim.