Hedging your trade when you are in profit can actually destroy your overall portfolio faster than simply taking profit.
Most traders try to protect upside by shorting against their own bags, only to get chopped up paying double fees and bleeding funding on both sides.
I see a lot of people over-hedging every minor pullback instead of managing actual downside risk. Right now, I am only running a hedge on roughly half of my continuation long on $BTC, leaving my core spot bag completely untouched. My lower entries on $ETH and other majors sit comfortably 20% below current price action, which leaves plenty of breathing room.
If the macro floor is already established, hedging deep, well-positioned entries just caps your upside while adding unnecessary liquidation risk on the short leg. Partial hedges work well for managing short-term volatility on fresh leverage, but treating every dip like a full trend reversal is how accounts get drained.
How do you usually manage risk on continuation plays when the market gets choppy?
#RiskManagement #CryptoTrading #Bitcoin
Most traders try to protect upside by shorting against their own bags, only to get chopped up paying double fees and bleeding funding on both sides.
I see a lot of people over-hedging every minor pullback instead of managing actual downside risk. Right now, I am only running a hedge on roughly half of my continuation long on $BTC, leaving my core spot bag completely untouched. My lower entries on $ETH and other majors sit comfortably 20% below current price action, which leaves plenty of breathing room.
If the macro floor is already established, hedging deep, well-positioned entries just caps your upside while adding unnecessary liquidation risk on the short leg. Partial hedges work well for managing short-term volatility on fresh leverage, but treating every dip like a full trend reversal is how accounts get drained.
How do you usually manage risk on continuation plays when the market gets choppy?
#RiskManagement #CryptoTrading #Bitcoin
