Auto-Hedging Configuration Guide

This guide covers all configuration parameters for the auto-hedge feature, including recommended values for different trading styles and risk profiles.

📋 Configuration Parameters

Core Settings

Parameter	Type	Default	Description
`vortex_autohedge_enabled`	boolean	`false`	Enable auto-hedge feature (replaces liquidation safeguard)
`vortex_autohedge_ratio`	float	`0.5`	Percentage of position to hedge (0.5 = 50%)
`vortex_autohedge_on_drawdown_pct`	float	`0.04`	Trigger hedge when position loses this % (0.04 = 4%)
`vortex_autohedge_on_liquidation_distance_pct`	float	`0.10`	Trigger hedge when liquidation is within this % (0.10 = 10%)
`vortex_autohedge_tp_target`	float	`0.002`	Take profit target for hedge orders (0.002 = 0.2%)

Trailing Stop Settings

Parameter	Type	Default	Description
`vortex_autohedge_trailing_stop_enabled`	boolean	`true`	Enable trailing stop for hedge positions
`vortex_autohedge_trailing_distance_pct`	float	`0.002`	Trailing stop distance (0.002 = 0.2% retrace)

🎯 Parameter Deep-Dive

1. Enable Auto-Hedge

{
  "vortex_autohedge_enabled": true
}

Effect:

Replaces liquidation safeguard with auto-hedging
Enables continuous monitoring of position drawdown
Allows hedge order placement

When to Enable:

✅ Aggressive HFT grids with high wallet exposure
✅ Volatile markets where liquidation risk is higher
✅ When you want maximum grid uptime
❌ Conservative low-leverage trading
❌ Spot trading (no short positions available)

When enabled, the traditional liquidation safeguard is automatically disabled!

2. Hedge Ratio

{
  "vortex_autohedge_ratio": 0.5
}

What It Does: Controls what percentage of your NET position gets hedged when triggered. Examples:

Ratio	NET Position	Hedge Size	Result
0.3	10,000 LONG	3,000 SHORT	7,000 NET LONG
0.5	10,000 LONG	5,000 SHORT	5,000 NET LONG
0.7	10,000 LONG	7,000 SHORT	3,000 NET LONG
1.0	10,000 LONG	10,000 SHORT	0 NET (fully hedged)

Recommendations: Conservative (0.7-1.0):

{
  "vortex_autohedge_ratio": 0.7
}

Higher hedge ratio = more protection
Suitable for low-risk tolerance
Better for smaller accounts

Balanced (0.5-0.6):

{
  "vortex_autohedge_ratio": 0.5
}

Standard 50% hedge
Good balance of protection and exposure
Recommended for most users

Aggressive (0.3-0.4):

{
  "vortex_autohedge_ratio": 0.3
}

Lower hedge ratio = more exposure remains
For experienced traders
Maximizes profit potential but higher risk

3. Drawdown Trigger

{
  "vortex_autohedge_on_drawdown_pct": 0.04
}

What It Does: Triggers hedge when your position loses this percentage from entry price. Calculation:

LONG Position:
Drawdown = (Entry Price - Current Price) / Entry Price

SHORT Position:
Drawdown = (Current Price - Entry Price) / Entry Price

Example:

Entry: $0.17000 (LONG)
Current: $0.16320
Drawdown: (0.17000 - 0.16320) / 0.17000 = 4.0% ← TRIGGER!

Recommendations:

Risk Profile	Drawdown %	When to Use
Very Conservative	2-3%	Low volatility assets, small accounts
Conservative	3-4%	Default recommendation
Balanced	4-5%	Moderate volatility, medium accounts
Aggressive	5-8%	High volatility, experienced traders
Ultra Aggressive	8-10%	Maximum grid operation, experts only

Configuration Examples: Conservative:

{
  "vortex_autohedge_on_drawdown_pct": 0.03
}

Triggers hedge earlier, provides more protection. Aggressive:

{
  "vortex_autohedge_on_drawdown_pct": 0.08
}

Allows deeper drawdowns before hedging, maximizes grid fills.

For volatile assets like DOGE or meme coins, use 4-5%. For stable assets like BTC, use 3-4%.

4. Liquidation Distance Trigger

{
  "vortex_autohedge_on_liquidation_distance_pct": 0.10
}

What It Does: Triggers hedge when liquidation price is within this percentage of current price. Calculation:

LONG Position:
Liq Distance = (Current Price - Liquidation Price) / Current Price

SHORT Position:
Liq Distance = (Liquidation Price - Current Price) / Current Price

Example:

Current Price: $0.17200
Liquidation Price: $0.15500
Liq Distance: (0.17200 - 0.15500) / 0.17200 = 9.9% ← TRIGGER!

Recommendations:

Leverage	Liq Distance %	Explanation
5x	15-20%	More buffer before liquidation
10x	12-15%	Moderate buffer
20x	10-12%	Standard for high leverage
50x	5-8%	Very tight buffer, aggressive

Configuration Examples: Low Leverage (5x-10x):

{
  "vortex_autohedge_on_liquidation_distance_pct": 0.15
}

Medium Leverage (10x-20x):

{
  "vortex_autohedge_on_liquidation_distance_pct": 0.10
}

High Leverage (20x-50x):

{
  "vortex_autohedge_on_liquidation_distance_pct": 0.08
}

Critical override: If liquidation distance drops below 3%, hedge triggers immediately regardless of anti-cascade logic!

5. Hedge Take Profit Target

{
  "vortex_autohedge_tp_target": 0.002
}

What It Does: Sets the profit target for closing hedge positions. How It Works:

Hedge placed at $0.16800
TP target: 0.2%
TP price: $0.16800 * (1 - 0.002) =$ 0.16764 (for short hedge)
When price recovers to $0.16764, hedge closes with profit

Recommendations:

Target %	Use Case
0.1% (0.001)	Tight profit taking, high frequency
0.2% (0.002)	Default, balanced approach
0.3% (0.003)	Allow more room for recovery
0.5% (0.005)	Wider targets, trending markets

Configuration Examples: Tight (High Frequency):

{
  "vortex_autohedge_tp_target": 0.001
}

Closes hedges quickly
More frequent hedge cycles
Good for choppy markets

Wide (Trending Markets):

{
  "vortex_autohedge_tp_target": 0.005
}

Allows larger profits from trends
Fewer hedge cycles
Better for directional moves

6. Trailing Stop (Advanced)

{
  "vortex_autohedge_trailing_stop_enabled": true,
  "vortex_autohedge_trailing_distance_pct": 0.002
}

What It Does: Once hedge reaches profit target, activates trailing stop to lock in profits. How It Works:

Hedge placed: SELL 5,000 @ $0.16800
Initial TP: $0.16764 (0.2% profit)
Price drops to $0.16500 → Profit: 1.8%
Trailing activates, tracks best price
Price retraces to $0.16534 → Retrace: 0.2% ← CLOSE!
Hedge closes @ $0.16534 → Profit: 1.6%

Without Trailing:

Hedge closes at $0.16764 → Profit: 0.2%
Missed extra 1.4% profit!

Recommendations: Enable Trailing:

✅ Trending markets
✅ High volatility
✅ Want to maximize hedge profits

Disable Trailing:

❌ Choppy/ranging markets
❌ Want quick hedge exits
❌ Prefer simple TP management

Configuration:

{
  "vortex_autohedge_trailing_stop_enabled": true,
  "vortex_autohedge_trailing_distance_pct": 0.002
}

Trailing stop distance should typically match your TP target (both 0.2% is standard).

🎨 Complete Configuration Templates

Template 1: Conservative (Low Risk)

Best For: Beginners, small accounts, low leverage (5x-10x)

{
  "vortex_dca": {
    "vortex_autohedge_enabled": true,
    "vortex_autohedge_ratio": 0.7,
    "vortex_autohedge_on_drawdown_pct": 0.03,
    "vortex_autohedge_on_liquidation_distance_pct": 0.15,
    "vortex_autohedge_tp_target": 0.002,
    "vortex_autohedge_trailing_stop_enabled": true,
    "vortex_autohedge_trailing_distance_pct": 0.002
  },
  "wallet_exposure": 0.2,
  "leverage": 10
}

Characteristics:

70% hedge ratio (strong protection)
Triggers early (3% drawdown)
Wide liquidation buffer (15%)
Lower wallet exposure (20%)

Template 2: Balanced (Medium Risk)

Best For: Intermediate traders, medium accounts, medium leverage (10x-20x)

{
  "vortex_dca": {
    "vortex_autohedge_enabled": true,
    "vortex_autohedge_ratio": 0.5,
    "vortex_autohedge_on_drawdown_pct": 0.04,
    "vortex_autohedge_on_liquidation_distance_pct": 0.10,
    "vortex_autohedge_tp_target": 0.002,
    "vortex_autohedge_trailing_stop_enabled": true,
    "vortex_autohedge_trailing_distance_pct": 0.002
  },
  "wallet_exposure": 0.5,
  "leverage": 20
}

Characteristics:

50% hedge ratio (balanced)
Standard triggers (4% drawdown, 10% liq distance)
Moderate wallet exposure (50%)
Recommended starting point for most users

Template 3: Aggressive (High Risk)

Best For: Experienced traders, larger accounts, high leverage (20x-50x)

{
  "vortex_dca": {
    "vortex_autohedge_enabled": true,
    "vortex_autohedge_ratio": 0.5,
    "vortex_autohedge_on_drawdown_pct": 0.06,
    "vortex_autohedge_on_liquidation_distance_pct": 0.08,
    "vortex_autohedge_tp_target": 0.003,
    "vortex_autohedge_trailing_stop_enabled": true,
    "vortex_autohedge_trailing_distance_pct": 0.003
  },
  "wallet_exposure": 0.8,
  "leverage": 30
}

Characteristics:

Allows deeper drawdowns (6%)
Tighter liquidation trigger (8%)
Higher wallet exposure (80%)
Wider TP targets (0.3%)

Template 4: Godmode (Maximum Grid Uptime)

Best For: Expert traders, high-frequency grids, ultra-aggressive

{
  "vortex_dca": {
    "vortex_autohedge_enabled": true,
    "vortex_autohedge_ratio": 0.3,
    "vortex_autohedge_on_drawdown_pct": 0.08,
    "vortex_autohedge_on_liquidation_distance_pct": 0.05,
    "vortex_autohedge_tp_target": 0.002,
    "vortex_autohedge_trailing_stop_enabled": true,
    "vortex_autohedge_trailing_distance_pct": 0.002
  },
  "wallet_exposure": 1.0,
  "leverage": 50
}

Characteristics:

Low hedge ratio (30% - maintains exposure)
Very deep drawdown tolerance (8%)
Tight liquidation trigger (5%)
Maximum wallet exposure (100%)
⚠️ Experts only!

Godmode configuration requires constant monitoring and significant trading experience. Start with conservative settings!

🔧 Fine-Tuning Tips

Adjusting for Volatility

High Volatility Assets (DOGE, Meme Coins):

{
  "vortex_autohedge_on_drawdown_pct": 0.05,
  "vortex_autohedge_tp_target": 0.003
}

Low Volatility Assets (BTC, ETH):

{
  "vortex_autohedge_on_drawdown_pct": 0.03,
  "vortex_autohedge_tp_target": 0.002
}

Adjusting for Account Size

Small Account (less than $1,000):

{
  "vortex_autohedge_ratio": 0.7,
  "wallet_exposure": 0.15
}

Large Account (greater than $10,000):

{
  "vortex_autohedge_ratio": 0.5,
  "wallet_exposure": 0.6
}

Adjusting for Market Conditions

Trending Market:

{
  "vortex_autohedge_on_drawdown_pct": 0.05,
  "vortex_autohedge_trailing_stop_enabled": true
}

Choppy/Ranging Market:

{
  "vortex_autohedge_on_drawdown_pct": 0.03,
  "vortex_autohedge_trailing_stop_enabled": false
}

📊 Testing Your Configuration

1. Start Small

{
  "symbols": ["DOGEUSDT"],
  "wallet_exposure": 0.1
}

2. Monitor Logs

Watch for hedge trigger messages:

🛡️ AUTO-HEDGE TRIGGER: DRAWDOWN
🛡️ PLACING HEDGE: sell 5000.0000 @ $0.16118
✅ HEDGE PLACED: Order #1234567890

3. Evaluate Performance

After 24-48 hours:

Did hedges trigger appropriately?
Were there too many or too few hedges?
Did trailing stops work well?

4. Adjust Parameters

Based on results:

Too many hedges → Increase drawdown %
Too few hedges → Decrease drawdown %
Missed profits → Enable trailing stop
Early exits → Increase TP target

⚠️ Common Mistakes

❌ Setting hedge ratio too high (greater than 0.8)

Problem: Over-hedging reduces position exposure too much Solution: Use 0.5-0.7 for most cases

❌ Drawdown trigger too tight (less than 0.02)

Problem: Excessive hedge cycles, high trading fees Solution: Use 0.03-0.05 based on volatility

❌ Liquidation trigger too wide (greater than 0.20)

Problem: Hedge triggers too late, liquidation risk Solution: Use 0.08-0.15 based on leverage Problem: Misses extra profits from favorable moves Solution: Enable trailing for trending assets

❌ Using godmode settings without experience

Problem: Excessive risk, potential liquidation Solution: Start conservative, gradually increase aggression

Auto-Hedging Overview - Feature introduction
How It Works - Technical deep-dive
Risk Management Best Practices - Safety guidelines
Bot Configuration Guide - Full bot setup

📞 Need Help?

If you’re unsure about your configuration:

Start with the Balanced template (Template 2)
Test with small exposure (10-20% wallet)
Monitor for 24-48 hours
Adjust based on results
Join our Telegram for community support: t.me/pumpkinsui

Happy auto-hedging! 🛡️

Get Started

Features

Bot Configuration

Risk Management

Exchange Setup

Auto-Hedging Configuration

Auto-Hedging Configuration Guide

📋 Configuration Parameters

Core Settings

Trailing Stop Settings

🎯 Parameter Deep-Dive

1. Enable Auto-Hedge

2. Hedge Ratio

3. Drawdown Trigger

4. Liquidation Distance Trigger

5. Hedge Take Profit Target

6. Trailing Stop (Advanced)

🎨 Complete Configuration Templates

Template 1: Conservative (Low Risk)

Template 2: Balanced (Medium Risk)

Template 3: Aggressive (High Risk)

Template 4: Godmode (Maximum Grid Uptime)

🔧 Fine-Tuning Tips

Adjusting for Volatility

Adjusting for Account Size

Adjusting for Market Conditions

📊 Testing Your Configuration

1. Start Small

2. Monitor Logs

3. Evaluate Performance

4. Adjust Parameters

⚠️ Common Mistakes

❌ Setting hedge ratio too high (greater than 0.8)

❌ Drawdown trigger too tight (less than 0.02)

❌ Liquidation trigger too wide (greater than 0.20)

❌ Using godmode settings without experience

📞 Need Help?

Get Started

Features

Bot Configuration

Risk Management

Exchange Setup

​Auto-Hedging Configuration Guide

​📋 Configuration Parameters

​Core Settings

​Trailing Stop Settings

​🎯 Parameter Deep-Dive

​1. Enable Auto-Hedge

​2. Hedge Ratio

​3. Drawdown Trigger

​4. Liquidation Distance Trigger

​5. Hedge Take Profit Target

​6. Trailing Stop (Advanced)

​🎨 Complete Configuration Templates

​Template 1: Conservative (Low Risk)

​Template 2: Balanced (Medium Risk)

​Template 3: Aggressive (High Risk)

​Template 4: Godmode (Maximum Grid Uptime)

​🔧 Fine-Tuning Tips

​Adjusting for Volatility

​Adjusting for Account Size

​Adjusting for Market Conditions

​📊 Testing Your Configuration

​1. Start Small

​2. Monitor Logs

​3. Evaluate Performance

​4. Adjust Parameters

​⚠️ Common Mistakes

​❌ Setting hedge ratio too high (greater than 0.8)

​❌ Drawdown trigger too tight (less than 0.02)

​❌ Liquidation trigger too wide (greater than 0.20)

​❌ Disabling trailing stop in trending markets

​❌ Using godmode settings without experience

​🔗 Related Documentation

​📞 Need Help?

Auto-Hedging Configuration Guide

📋 Configuration Parameters

Core Settings

Trailing Stop Settings

🎯 Parameter Deep-Dive

1. Enable Auto-Hedge

2. Hedge Ratio

3. Drawdown Trigger

4. Liquidation Distance Trigger

5. Hedge Take Profit Target

6. Trailing Stop (Advanced)

🎨 Complete Configuration Templates

Template 1: Conservative (Low Risk)

Template 2: Balanced (Medium Risk)

Template 3: Aggressive (High Risk)

Template 4: Godmode (Maximum Grid Uptime)

🔧 Fine-Tuning Tips

Adjusting for Volatility

Adjusting for Account Size

Adjusting for Market Conditions

📊 Testing Your Configuration

1. Start Small

2. Monitor Logs

3. Evaluate Performance

4. Adjust Parameters

⚠️ Common Mistakes

❌ Setting hedge ratio too high (greater than 0.8)

❌ Drawdown trigger too tight (less than 0.02)

❌ Liquidation trigger too wide (greater than 0.20)

❌ Disabling trailing stop in trending markets

❌ Using godmode settings without experience

🔗 Related Documentation

📞 Need Help?