You hold BTC and a few altcoins and do not want to sell, but the market is turning ugly. Portfolio Hedge waits for the moment: when the Fear and Greed index drops to 20, or Bitcoin falls 5% in about a day, it opens a 1x short on BTCUSDT worth half of your spot holdings, up to 1,000 USDT. If the slide goes on, the short gains while the holdings lose. Once the index is back at 45 and Bitcoin's day change is no longer negative, the short is bought back.
What it costs
This strategy is open on every plan. What it trades is fixed by its design, so every plan runs the same scope; Standard is free.
Recommended minimum vault: Elite · See all store pricing →
How it works
Every round the strategy reads the Fear and Greed index and Bitcoin's change over the last 25 hourly candles, about a day. When either reaches your trigger, it opens a 1x short on the USDT-margined perpetual you pick, worth your chosen share of what the spot account holds besides USDT, and never more than the largest hedge you allow. While the short is open it follows the value of your holdings, and resizes it when it drifts more than a tenth from its target. It buys the short back once the index has recovered to your level and Bitcoin's day change is no longer negative.
Key Features
Strategy profile
A snapshot of how this strategy behaves and who it suits, not a forecast of returns.
These are our assessments of strategy character, not user-specific performance figures.
A hedge costs money when it turns out not to be needed: if the market turns back up soon after the trigger, the short loses while your holdings gain, and you pay fees and funding in between. A short on one contract offsets that asset's moves; altcoins you hold may fall more or less than it, so the hedge is only as close as they follow it. Keep the recovery level well above the trigger, or the short may open and close again within days.
All figures on this page are simulated or historical backtest results, shown for information and education only. They are not real customer results, they do not include your specific fees and slippage, and past performance does not guarantee future returns. Your capital is at risk.
Frequently Asked Questions
Quick glossary
Definitions for the trading terms used on this page.
- Backtest
- A simulation of how a strategy would have performed on historical price data. Past results never guarantee future returns - markets change.
- Slippage
- The difference between the price you expect and the price you actually get when an order fills. Worse on illiquid pairs and during fast markets.
- Spread
- The gap between the best buy price (bid) and the best sell price (ask). Tight spreads = liquid market, wider spreads = more cost per round trip.
- Stop-loss
- An automatic exit order that closes a losing position when price hits a chosen threshold. Caps how much one bad trade can hurt you.
- Take-profit
- An automatic exit order that closes a winning position once price reaches a chosen target. Locks in gains without relying on you to watch the chart.
- Volatility
- How sharply price moves. High volatility = bigger swings in both directions, which means more opportunity but also more drawdown risk.
Want a safety net under your holdings?
Every new Futures Portfolio Hedge starts in paper trading: its orders are kept on paper and listed on the strategy page, and a paper run stops by itself after an hour.
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