what's the cons of this strategy?

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Well you open two positions at the same time and price. So you close the loss/negative one as soon as you realized the trend.

I can only think of swap if it took too long to find the trend.

 
pavelion: Well you open two positions at the same time and price. So you close the loss/negative one as soon as you realized the trend. I can only think of swap if it took too long to find the trend.

That is called "nedging" or hedging on the same symbol. That is a total waste of money and you pay twice the fees (spread, commission, etc.).

Having two positions open in the opposite direction is equivalent to cancelling each other out, and you can see that clearly on a "netting" account instead of a "hedging" account.

The correct way, is to simply wait for your confirmation of the trend and only then open the position.

Learn the maths ...


 
Fernando Carreiro #: That is called "nedging" or hedging on the same symbol.

Since 2009, hedging is not permitted for US traders.
          NFA Enforces FIFO Rule, Bans Forex Hedging in US Forex Accounts - Trading Heroes (2016)
          FAQ: FIFO in the Forex Market - BabyPips.com (2011)

"Hedging" in Forex trading -Why do it? - Trading Systems - MQL5 programming forum (2017)

 
because of spread and slippage, you'll be paying a price on both trades so it's not very rewarding if you're placing the positions with uncertainty in the first place. A better approach is to place a buy stop and sell stop, and delete the pending order which doesn't activate (or let it expire)
 
This is profitable only during high impact news, where volatility is suddenly very high, making sure the profit is higher than the loss of the opposite trade. Otherwise it is not worth it.
 
Frederic Metraux #:
This is profitable only during high impact news, where volatility is suddenly very high, making sure the profit is higher than the loss of the opposite trade. Otherwise it is not worth it.

my experiment was to build an EA which corners the market with the sell and buy above and below (stop orders). It is profitable if the broker allows hedging. Straight away any system is unprofitable if it isn't refined. It gets scientific with the distance of the order placement to the BID/ASK, then the expiry time, and how the orders should update, when the orders should update etc.

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