Thank you for sharing your view and offsets are nothing to be afraid of! 😄They can be stopped, started and used in combination with the preference that you’ve mentioned, partly or fully based on time, lot size, price levels etc. and your example can actually be incorporated into a number of hedging strategies or vice versa.
I invite all to visit the YouTube link, as the issue in the petition is to restore being able to freely decide how to close each and any open order of the same currency pair in any combination or sequence the trader chooses, as well as freedom to use a versatile resource like 'hedging' when appropriate. These can provide clients with many benefits for strategy testing, grid and other trading methods, risk management, recovery from bad trades, and protecting margin, any of which can help clients to manage their accounts more successfully.
The freedom to use hedging does not at all mean to never close bad trades! It simply means opening equal or unequal long and short orders of the same currency pair during the same time in one account, and positions can be partly or fully offset for whatever period of time is needed. It actually is a tool that can help manage risk and closing bad trades can be done in a controlled manner at more appropriate times as part of one or even overlaid strategies of which there are many variations....
The advantage of these capabilities being contained in one account, with readily available statistics for account management, is something that I view would benefit the trader. I've read from those who do not use these methods that the broker is somehow benefiting during the time orders may be open in opposite directions, the trade though would have cost the same in spread to open whether kept open or closed, It wouldn't bother me even if it was a little more to pay swap for the privilege as it is a useful tool.
For example you’ve mentioned taking a loss and being concerned about what to do with positions that go against you- all pairs have a 'personality' and I can simply wait for retracement, reversal, scale in and out or can lock down positions until a decisive breakout happens, exit lossy positions when ready and let the market go where it wants to. Success at hedging or offsetting like anything else comes with using the tools properly, and these tools have allowed me to enjoy success in a number of ways where I have failed without them.
FIFO rules prohibit offsets, but also prohibit more than one open order even in one direction of the same currency pair from being closed unless the first (oldest) order is closed first, then the next can be closed and so on in sequence....unless you are willing to accept them all to be forced closed at the same value and time by entering either a value for stop loss, take profit or trailing stop... Trading platforms without these restrictions programmed into them will be disabled, and so many useful strategies whether offset or one direction only will no longer work.
The rest of the world have no restrictions of this kind on their residents, and are not campaigning to have them taken away. It seems unfair that I would have to uproot and move outside the US to be able to trade without these again- as a US resident I simply wish these freedoms to be restored😄