Simultaneous Long & Short Hedge runs two independent bots on one trading pair: one opens Long positions and the other opens Short positions. In a range, one side may close profitable trades while the other manages its own open position. The bots do not cancel each other’s risk; each has its own orders, capital use, fees and exit rules.
Hedge mode is not a guaranteed way to profit from volatility. A strong one-direction trend can create an extended drawdown on one side, funding and trading fees apply, and futures add liquidation risk. Confirm that the exchange and account mode support separate Long and Short positions.
How to configure the hedge
- Create distinct Long and Short bots for the same liquid pair.
- Set independent entry logic, grid range, Take Profit, Stop Loss and allocation.
- Calculate combined capital and margin if both sides are open.
- Monitor each bot separately; pause or adjust one side only by a prewritten rule.
Risk controls
A neutral-looking pair of bots can still have uneven exposure: different grids, leverage and filled orders change the net result. Reserve margin for the simultaneous worst planned state, include fees and funding, and set a maximum loss for each bot and for the account. Avoid assuming that a gain on one side automatically offsets a loss on the other.
When the approach may fit
- A liquid market is ranging and both directions have independently tested rules.
- The platform offers a genuine Hedge mode, not netting of opposite positions.
- You can monitor total margin and understand the effect of leverage on both bots.
FAQ
Does Long & Short Hedge remove directional risk?
No. It distributes exposure across two independently managed positions. Fees, funding, different fill paths and a trend can still create loss.
Should both bots have identical settings?
Not necessarily. Long and Short behavior may differ, but every difference should be intentional and tested.
Bottom line: Hedge is a portfolio configuration, not a shortcut. Treat the two bots and their combined margin as one risk system.