
To trade with this strategy, first, you need to set up your account. To do this, go to the "Futures" section, then to settings, and change the position mode from "One-way mode" to "Hedge mode." After that, make sure that all checkboxes in the "Order Confirmation" section are enabled, and never disable them when closing or opening positions if prompted not to show the order confirmation again.
So, the basic data that needs to be entered into the calculator:
- In the "Initial balance" field, enter the balance transferred to futures for hedging.
- Always update the balance of your wallet in the "Balance" field.
To start trading, you need to open positions for both sides, long and short. Trading is conducted in the cross-20x margin mode. Choose two coins, and the one with a larger market capitalization will become the hedging object for the short. In other words, open positions so that the quantity of shorts is greater than the quantity of longs. For coins with smaller capitalization, hedge long, meaning open long more.
Now the question arises: in what volume should the positions be opened? To do this, consider the “margin ratio” percentage and start with opening the side that will have more quantity (for example, short). Open positions with a volume of no more than 0.25 percent of the “margin ratio”. Then open the opposite side with 10 percent less than the initial side.
Until the corridor is formed, do not enter position data into the calculator. The corridor here represents the difference between long and short entry prices. The corridor should be created after approximately two percent of market or 40 percent of positional shifts. In other words, when long and short are open, and the entry price for both positions is almost the same, wait until one of the positions reaches approximately +40 percent on the PnL (Roi, %) scale.
After that, close the positive side, take the accumulated balance, and open positions again with the same volume. Update the overall balance, then enter position data: "long entry price," "short entry price," "long size," "short size," and "Coin Quantity."
After updating, it is necessary to balance our position.
To do this, enter the market price in the "Mark Price" scale, if it is within the corridor, or the price of the side that exited the corridor. For example, if we took the balance from the long side and the price is near the new long entry price, enter the “Long Entry Price”. If you missed it and the price returned to the corridor, enter the market price.Pay attention to the columns ‘Opening Long In Corridor (Averaging)’, ‘Opening Short In Corridor (Averaging)’, ‘Close Long In Corridor’, and ‘Close Short In Corridor’. These columns will show you which action to take by understanding the values they contain. The question is how to determine which action to choose. For that, focus on the coefficients under each value. If the coefficient is less than 1, the order is not profitable. If both coefficients are greater than 1, choose the one with the higher value. If both are greater than 1 and equal, execute the close order.
4.1 **Attention!!!**
If the "Accumulated balance for position" scale shows a negative number, do not make closing deals (limit and market orders) in the corridor, еven if the coefficient exceeds one. This rarely happens and is more often a mistake of an inexperienced trader who incorrectly adjusts the balance during burning (point 6), losing it instead of accumulating it.
After balancing, it is necessary to place limit orders in the corridor. To do this, keep at least two percent interval until the next deal and determine the trading level. When it is clear at what price you will place a limit order, enter this price in the "Market Price" scale and place a limit order. If the corridor is large and includes several trading levels, you can copy the position that will be after this limit order and set the price of the next trading level, and then place another limit order. The data for the new order can be copied from the "Position after closing" (PAC) or "Position after opening( averaging)" (PAO) scales. PAC shows what will happen to your position if you set a limit order to close and it is executed. PAA shows what will happen to your position if you set a limit order to average and it is executed.
If your limit order was executed, and the market price moved further by more than two percent or returned back by more than two percent from the executed limit order price, follow these steps:
Enter the current market price.
Use a market order to balance positions based on the current market price.
Set new limit orders, keeping a minimum 2% distance from the current market price.
This step will help you adapt to market changes and maintain a balanced portfolio of positions.
Burn" type deals should be carried out when the price exits the corridor. To do this, enter the mark price into the "Market Price" scale and review the "Burn" and "Quantity to open after burn" scales. Close the amount shown on the "Burn" scale from the negative position side. Close the positive side completely and open the quantity shown in the "Quantity after burn" scale.
7.1 **Accumulated balance for position**
These are the main functions to apply in this strategy. There is a lot of information in the calculator that can affect trading speed. After several burns, you will notice that your wallet balance is increasing. However, your net profit is the margin balance, i.e., what remains after closing all positions ( not taking into account closing fees). The calculator's principle is to first accumulate a balance, which can be seen in the "Accumulated balance" scale, and then turn it into net profit. In the "Accumulated balance for position" scale, we see how much balance is accumulated for each position to turn it into profit, and the "Close long/short coefficient in corridor" calculates the more profitable trading in relation to the accumulated balance.
7.2 **PAAB (Price according to accumulated balance)**
Here it is shown how much you can pay for each coin from the accumulated balance. If you will pay in the negative, the coefficient will show a number less than one.
7.3 **Rational trading margin**
From the perspective of classical trading, it is important not to allow expenses for any item to grow without bringing sufficient benefit.”Rational trading margin” is the amount of margin occupied in this position. The calculator calculates all burns, not allowing the margin to grow as expenses for this product (coin). It is calculated from the sum of the trading margins of two positions and the total minus PnL of the two positions. It should be applied with an “Averaged rational trading margin”.
At more experienced levels of this trading, when you understand how the calculator works with positive coefficients, you will decide for yourself whether to place limit orders to open or close. One of the main factors is the ratio of the “average rational trading margin” to “the rational trading margin”. If the “rational trading margin” is higher than “average rational trading margin”, it is preferable to close limits.
7.4 **Margin Difference**
Each coin has two positions Long and Short, you can trade using the difference between them. For example, if you have a long with a margin of 4 USDT and a short with a margin of 3 USDT, then you trade with a margin of 1 USDT. In the calculator, there is a "Margin Difference" scale that shows this difference. In the "Margin equity" scale, you will see the total figure of all positions. It is used to add margin to positions or to open a new coin. If the "Margin eqiuty" is negative, add margin to those positions where the larger side is long, and open a new coin on the same principle and if “ Margin equity" is positive add margin to those positions where the larger side is short, and open a new coin on the same principle.
7.5 **Number of Longs and Number of Shorts**
The "Number of longs" scale shows how many coins you have with the larger side as long. The "Number of shorts" scale shows how many coins you have with the larger side as short. This data is used to open a new coin in order to balance the number of coins with the larger side as long and those with the larger side as short.
8.1 **First, open positions for four coins**
Open 4 coins , with two of them holding a long in larger quantities, and two holding a short. How much to open and when to open, see section 3.1. For risk-free trading, a balance of 200 USDT is enough. After opening corridors, enter position data and start balancing them (section 4).
If you already have large corridors and successful trades (with a coefficient greater than one) made over significant intervals (more than ten percent) during trading, you can open a new coin. To do this, follow sections 7.4 and 7.5. As for the quantity, refer to section 3.1. And if your account already accumulated more than 20 percent of the total balance shown in the "Accumulated balance" scale, then a new position can be opened, not exceeding the value shown in the "Accumulated balance for position" scale and If the margin ratio is greater than it needs to be, for example, if you have 8 coins and you’re supposed to use 0.5% for both sides, but now it is greater than 4%.
8.2 **Margin Ratio control**
If you start trading with this strategy, adding new coins, keep the margin ratio no more than 5% at more experienced levels, no more than 8%. Do not keep too many coins in the portfolio than you can ideally control. If you feel that you have too many coins in your portfolio, wait until the situation stabilizes by nullifying the coins.
8.3 **Nullification or closing
Sometimes the market price exits the corridor from the larger side, and the total PnL becomes positive. If you have many coins in your portfolio and trading becomes difficult, you can close this coin completely instead of burning it. However, be careful not to create a imbalance in the number of hedging longs and shorts (section 7.5) and in the margin difference (section 7.4).
9. ** Ending **
This is the basic usage of the calculator. You can simply open many positions and trade, but if you have a strategy, instead of using a stop-loss, you can open the opposite side of hedging (the smaller side) for about 60 percent of the volume of the hedged side. For example, if you have a short position of 100 units and you already understand that the trade is risky, open a long position for 60 units, enter the data into the calculator, balance the positions, and then trade to avoid losses. Over time, you will be able to trade profitably.
In this course, you will learn how to properly use our hedge trading calculator and understand the logic behind every calculation it provides. The calculator is designed to help you manage hedge positions more effectively, reduce emotional trading decisions, and minimize unnecessary losses caused by incorrect position sizing or poor risk control.
During the course, we will guide you step by step through all the calculator functions. You will learn how to enter data correctly, how to calculate hedge ratios, how to adjust positions based on market movement, and how to close trades in a controlled and structured way. The course is suitable both for beginners and for traders who already have experience but want a more systematic and disciplined approach.
After purchasing the course, you will receive one full month of calculator usage completely free. This allows you to practice everything you learn in real market conditions without any additional cost. After the free month, continued access to the calculator will cost $10 per month. This price includes ongoing usage of the tool and future updates.
Once you purchase the course, we will send you access to the calculator directly. No funds need to be transferred to our platform — the calculator is simply a tool that helps you manage trades on your own exchange account. Our goal is to give you knowledge, structure, and a practical tool that you can use consistently and safely in your trading journey.