I have a question about turning losing tradings into breakeven trades
...Lets say I want to go long and instead of using a stop loss I use a hedge position (in this case a short position). If price hits my hedge position then my negative PNL would be the size between the long and short position.
Would not be possible with Just another long and short position (DCA) to achieve that long and short position have the same entry price? so the negative PNL would be O?
I’m not sure if this will work since crypto market is too volatile. Also I never experienced to open both long and short positions at same time since the moment your short order was initiated your long position will be gone or converted to short position too.
I’m imagining you want to open both long and short at the same time since you will not use any stop loss. Also, you should consider the fees involved on your trades especially the funding fees since you will have both positions which means you will pay for it mandatory.