Regarding hedged trading, I've recently received many questions, so I summarized my thoughts. Especially about the strategy known as the "Hedging 65 Method," which has been a topic of discussion.

The core of this strategy is holding both buy and sell positions on the same asset simultaneously. Theoretically, regardless of how the price moves, one side profits while the other incurs a loss, allowing you to survive without setting stop-losses. When the market rises, the long position profits; when it falls, the short position profits. It sounds attractive at first glance, but in reality, it's not that simple.

The key concept of the Hedging 65 Method is the "Lock Position." Essentially, it involves temporarily freezing profits and losses while waiting for market adjustments. Instead of setting stop-losses, it endures short-term fluctuations through diversified positions and dynamic adjustments. Theoretically, this approach can avoid frequent stop-loss executions.

However, in practice, there are many challenges. First, capital efficiency is poor. Hedging requires double the margin, so with the same amount of capital, you can hold only half the positions. Additionally, holding positions overnight incurs significant interest and fees. These costs inevitably eat into profits.

The most dangerous scenario is during sharp market movements in one direction. In cases of black swan events or sudden price swings, both hedged positions can suffer losses simultaneously. If the account margin becomes insufficient at that point, forced liquidation may occur. So, the Hedging 65 Method does not eliminate risk entirely.

Therefore, I personally believe this strategy is suitable for experienced traders with ample funds. It is not recommended for general investors.

If you want to try hedging, some precautions are necessary. First, instead of completely avoiding stop-losses, implement dynamic stop-losses to prevent extreme losses. Next, diversify your capital across multiple assets and markets to reduce risk from a single strategy. During trending markets, it can also be effective to close opposing positions first and let the profitable ones run.

Managing leverage is also crucial. Avoid excessive leverage and maintain sufficient margin in your account. Even when using the Hedging 65 Method, ensure that total positions do not exceed 10% of your account and monitor market movements in real-time.

In conclusion, hedged trading is a high-risk, high-cost strategy. Combining stop-loss mechanisms with trend-following tends to be more balanced for most investors. Considering the risk-reward balance, sticking to fundamental, disciplined trading is ultimately more effective in the long run.