I just realized that many people don't fully understand what hedge is and why this strategy is necessary. Actually, it's quite simple — basic hedge involves opening two opposite positions at the same time to minimize risk.



For example, when you see the price has risen a lot and want to short but aren't sure if the market will go down, you can open a short position first. But instead of just doing that, you open a smaller long position. This method gives you a "insurance" in case the price unexpectedly continues to rise.

If the price indeed goes up, your long position will offset some of the losses from the short position. If the price drops as you predicted, you close both positions, and the profit from the short will cover the loss from the long, so you still make a profit—even if smaller than if you had just shorted alone. Similarly, if you're bullish and want to go long but aren't completely confident, you do the opposite — open a main long position and a smaller short position for hedging.

The beauty of hedge is that you can still DCA normally into one of the two positions. And in rare lucky cases, both positions will profit simultaneously, giving you compound gains.

The implementation is very easy — just close all open positions, then go into settings and turn on the hedge mode. I see many traders overlook this strategy, but it’s really useful when you want to maintain a position while reducing worries about unwanted market fluctuations.
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