In retail EA marketing, hedging means opening a position opposite to a losing one rather than closing it, so that the loss stops growing while the trader waits to unwind both sides at a profit. Some EAs describe this as "no stop loss needed".
The claim is that a hedged position cannot lose, and that skilful unwinding turns the pair into a profit.
We did not test hedging in this sense because it is not a strategy that can win or lose; it is a way of deferring a loss. A long and a short of equal size in the same instrument is a flat position that pays two spreads and two swaps. The original loss is unchanged, it is now locked, and the only way to convert the pair into a profit is to close one side and be right about direction from there, which is a new trade with a worse starting point.
The reason hedging appears in EAs is the same reason grid and martingale do: it keeps the balance curve smooth by never realising the loss.
If you see it in an EA, look at the equity curve rather than the balance, and see the page on grid and martingale.