How to hedge after a general surge?
How to hedge against the skyrocketing price of pie, skyrocketing Sol, and skyrocketing copycats and memes?
If one thing is not done well, it will kill both longs and shorts. Isn’t it a chicken-and-egg situation?
Here I share a little trick of my own.
Look at the weekly line, if it breaks through the Bollinger Band, you can go long. If it falls below the middle track, you can go short.
When choosing a currency pair, you must match the strength with the weakness.
For example, it is safer to go long Ethereum and short avax.
However, if you are long Ethereum and short OP, it is more dangerous.
What's more, if you are long Ethereum and short Sol, you are courting death.
To judge the strength, look at the weekly line. Look at the hourly line for short-term trends.
The above all refer to hedging positions on a one-to-one basis. If it's an imbalanced hedge, it doesn't matter. It depends on how you calculate your hedging model.
P&L neutral, Delta neutral, dilution neutral, various neutral strategies are available for you to choose from.