This strategy is long term. The two lots are used in order to maximize profits; since, more than one currency pairs may display the required characteristics for a potential trade. You may notice that there are not many trades and the holding period for a trade could be days even weeks. But most of all its profitable and I have been privately testing this strategy rigorously for 5 months (starting in February, 2010). In addition, please note that the max concurrent lots are 2 and sometimes the second lot is used to reinforce the first.
See signal Example
Lot1: open 2nd/June Buy signal (Eur/USD) open @ 1.2267 - Limit (1.2370) - Stop (1.1967)
Lets say by the 4th of June the (Eur/USD) was trading @ 1.2180
then based on my parameters I still believe that trade 1 is still good so to capitalize on this I would open a second trade.
Lot2: open 4th/June Buy Signal (Eur/USD) open @ 1.2180 - Limit (1.2370) - Stop (1.1880)