Trading both ways

Idea is to put a set of extra rules for some simple long-term systemto enhance it in a way it will produce less or smaller losses. The key is that we look for a main direction on daily chart and enter as per system rules. However we are also looking on a smaller time frame, like 4h or 1h (for main direction on daily) using similar rule set for a temporary reversal of the main trend and enter on a lower time frame in an opposite direction to main time frame, with the same position size, effectively hedging against moves against main direction. Once trade is hedged, the stop loss on a main longer time-frame trade is removed. We keep both position until there is a sign of lower time frame reversal in a direction of main trend. We close a secondary position in a profit or in a small loss, and continue with a main position. Also we re-set a stop loss using current higher high or lower low. If by this time we can see that original entry is no longer valid, we close out both trades and look for a trade from scratch.

The idea is to prevent use from being whipsawed from the good trade, or to prevent from taking full loss during the reversal of trend. The main application I would see for trades that are already in profit and experiencing a temporary pull back, so we can avoid being stopped out at BE or small profit or protect ourself from early profit taking.