Judging from the market conditions in the past few days, there must be many brothers who have encountered the situation of entering the market blindly and opening short positions, but they were trapped at the wrong entry point, and they encountered a small cycle data turn, watching the floating loss figures continue to grow, and their mentality is inevitably a little crazy. In this case, I usually choose to open a long order for hedging.

[Why choose to open a short long order for hedging? There are two reasons]

First: If the trend reversal is confirmed, this long order can reduce the loss caused by the short order stop loss;

Second: If the trend has not been confirmed to reverse, this long order can pocket some additional profits;

[When opening a short-term long order for hedging, how to choose the target? How to control the position? 】

First: tend to choose strong market makers' coins, which can follow the market's rise in time when the market rebounds, and quickly rise, so as to better achieve the purpose of hedging;

Second: The short-term long hedging position is smaller than your short position (for example, 1/2), so you can accept the loss of this position even if the market changes suddenly;

Remember the core idea: the primary goal of hedging is to reduce risk, not to maximize profits.

【Short-term hedging review】

Just reading the above content is rather abstract and boring. Next, I will use a short-term long hedging order recently operated by a group member as an example to review how I operated it. Background: The group members all held multiple short orders, but there was a relatively obvious rebound in the early morning, and I thought it was necessary to open a hedging order.

[September 4/1:25 am] Clear signal to open a hedge order:

“The position of hedging one more aave position is much smaller than the short position~”

There are lines in the signal: market price 122.38 entry; first stop profit 128; second stop profit 132.38

[September 4th/1:42 am] At the same time, how to deal with the open short orders after the market rebounds:

“If you think the position is not enough, add btc eth sol and add short.

Btc584 592

Eth2470-2490, 2510

Near Sol 134

However, if there is an opportunity for unilateral market movement, do not reduce your position if you have an empty position to avoid being short.

[September 4th/1:58 am] Timely supplement, the premise for opening a short long order:

"Forgot to add, it is not recommended to participate in short and long positions if there is no empty order."

[September 4th/4:59 am] The hedging order has reached the take-profit point, reminding group members to operate: "It's time to walk, it's time to cut back"

Let me interject here again, why not open a hedge if you don’t have a short order, and why not exit the market or reduce your position in a timely manner?

As mentioned above, the core of short-term hedging is to reduce risks and minimize losses, not for profit, and does not mean a trend reversal.

Finally, how is the performance of this short-term long hedge? Let's post a K-line. Is it a big positive line that accurately hits the first profit stop point? But at the same time, it did not reach the second profit stop point. Based on the data, I judged that it would not continue to rise and promptly reminded to exit or reduce the position. Then the price immediately turned downward and followed the market into a new period of decline - so it once again confirmed what I said above, short-term long is only to reduce risks, and never pattern.