hedging in trading

[bingbingbo]

how can i hedge my trade ? Lets say i opened the future long trade at $200 solana. and my tp is $204 and sl is $198. Now if the price goes up then there is no issue. But if the price moves toward sl then how can i hedge my position to not end up in loss. Instead of loss i want to be in a breakeven position position. The issue is if i opened the hedge short position at $200 if the price moves up to $202 so i have to end the trade there cause in long trade. i was taking a 2:1 risk reward . I.e if Tp hit i earn $20 and if sl hit i lose $10. So if the hedge short position moves to $202 i was $10 loss short position so i have to close it. but my future trade still open. the issue is if price moves back from $202 to $198 i will lose the long position as well. So i lose in long as well as short both.

I heard about dynamic hedging but did not find any specific way to do it. can someone explain me how can i hedge it?

[JeffBrad12]

as far as I know you hedge your trade when you know the market gonna turn the opposite but you're already deep in the mud e.g already invested big size and you don't feel like realizing your floating loss.
it's honestly pretty difficult to pull off and require good technical analysis, so if somehow price broken support and you think it will go even deeper then you need to open short position, if you're not so sure about the current market sentiment and what direction it's gonna take, you essentially just trying to speculate and double your risk for no reason.

even shorting also require proper SL as well, otherwise your trade wouldn't give you profit.

[tvplus006]

I use hedging only if I need to buy any altcoin for stacking and in order to protect myself from the loss that may result from a decrease in its price, I open a short for the amount that I placed in the staking.

[BitMaxz]

Never tried this hedging strategy before. It seems that the dynamic hedging you talking about is that if your prediction is against your prediction, you need to have a short position below the support area near your long position so that you lock in your profit or loss.
I don't know why you are going to do that, but it seems for me it is risky if you don't know what you are doing. If you don't close your long position, you are wasting the opportunity to make profit on the short position, but if you close it and the price keeps declining, then you are making profit in the short position with the trailing stop strategy.

To me, it would be better to use SL and keep it as is. If it hits your SL, it's fine. You can go reverse the position from long to short if there's a high frequency in price drop.
I also saw some guides; they also use hedging. If you do not want to close your long position in the long run and you see some patterns or indications that the price will fall, you will immediately set a short position with your TP under or near your long position and take profit after that. If your short position hits and the price bounces without breaking the support area where your long position is located, you will only profit again if the long position hits your TP.

It looks like a complicated strategy; in this case you need to monitor and watch your position, and it is risky to perform. Why not do the trailing stop strategy instead?
That is what I am doing while the price rises if the price falls suddenly, it will stop while I have already made a profit.