Strategies
Hedging is about reducing risk, not eliminating it. At Hedgeyour.fun, you can choose from several hedging strategies depending on your goals, market experience, and risk tolerance.
1. Basic Hedge (5–10%)
This is the default strategy we recommend for all users.
You hedge 5–10% of your main position’s value in a prediction market that represents the opposite scenario. It’s ideal for reducing the emotional impact of volatility while keeping most of your capital in your main asset.
Example: You hold $1,000 of SOL → You hedge $50–$100 by betting on “SOL to fall below $150.” If SOL drops, your hedge helps recover the loss. If it rises, you only lose a small bet but gain on your holdings.
2. Balanced Hedge (20–30%)
For users who expect high volatility or want more protection, this strategy increases hedge size to around 20–30% of your main position. It’s useful before events like:
Major economic reports (CPI, FOMC, etc.)
Project updates or token unlocks
Global or political events affecting markets
Example: You hold $2,000 in ETH → Hedge $400–$600 on “ETH price below $2,500 after CPI report.”
3. Event-Based Hedge
This strategy focuses on real-world events that may indirectly affect your income, assets, or life.
Example:
You’re a gig worker — hedge against a weak earnings report for Uber or Lyft.
You live in New York — hedge on weather-related or city-specific event markets.
You’re a freelancer — hedge against a “Tech layoffs increase” market.
These are not speculative bets — they are protective offsets against real-world uncertainty.
4. Emotional Hedge (“Happiness Hedge”)
Designed for people who want to stay balanced even when outcomes are emotional — such as sports fans or political followers.
Example: You love Real Madrid — you bet against them winning. If they lose, your hedge pays. If they win, you’re happy anyway.
This strategy transforms prediction markets into a psychological hedge for emotions and bias.
5. Diversified Hedge (Multi-Market Strategy)
The Hedge Agent can propose three parallel markets for better coverage. You can hedge across multiple correlated events — for example:
Bitcoin price drop
Stock market sentiment index
Regulatory event outcome
This multi-layer approach provides broader protection across assets and event types.
6. Dynamic Hedge (Adaptive Strategy)
Coming soon — our AI-based Hedge Agent 2.0 will automatically adjust hedge ratios based on:
Your historical outcomes
Market volatility
Asset correlations
Behavior patterns
It will recommend when to scale up or reduce your hedge for optimal balance between protection and profitability.
⚙️ Pro Tip
Start small. A consistent 5–10% hedge on major holdings already protects against 80% of common emotional and financial risks.
The goal isn’t to win every bet — it’s to stay stable no matter what happens.
Last updated