> ## Documentation Index
> Fetch the complete documentation index at: https://docs.quantumvoid.org/llms.txt
> Use this file to discover all available pages before exploring further.

# Auto-Hedging Configuration

> Complete reference for all auto-hedge parameters and settings

# 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

```json theme={null}
{
  "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)

<Warning>When enabled, the traditional liquidation safeguard is automatically disabled!</Warning>

***

### 2. Hedge Ratio

```json theme={null}
{
  "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):**

```json theme={null}
{
  "vortex_autohedge_ratio": 0.7
}
```

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

**Balanced (0.5-0.6):**

```json theme={null}
{
  "vortex_autohedge_ratio": 0.5
}
```

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

**Aggressive (0.3-0.4):**

```json theme={null}
{
  "vortex_autohedge_ratio": 0.3
}
```

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

***

### 3. Drawdown Trigger

```json theme={null}
{
  "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:**

```json theme={null}
{
  "vortex_autohedge_on_drawdown_pct": 0.03
}
```

Triggers hedge earlier, provides more protection.

**Aggressive:**

```json theme={null}
{
  "vortex_autohedge_on_drawdown_pct": 0.08
}
```

Allows deeper drawdowns before hedging, maximizes grid fills.

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

***

### 4. Liquidation Distance Trigger

```json theme={null}
{
  "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):**

```json theme={null}
{
  "vortex_autohedge_on_liquidation_distance_pct": 0.15
}
```

**Medium Leverage (10x-20x):**

```json theme={null}
{
  "vortex_autohedge_on_liquidation_distance_pct": 0.10
}
```

**High Leverage (20x-50x):**

```json theme={null}
{
  "vortex_autohedge_on_liquidation_distance_pct": 0.08
}
```

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

***

### 5. Hedge Take Profit Target

```json theme={null}
{
  "vortex_autohedge_tp_target": 0.002
}
```

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

**How It Works:**

1. Hedge placed at \$0.16800
2. TP target: 0.2%
3. TP price: $0.16800 * (1 - 0.002) = $0.16764 (for short hedge)
4. 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):**

```json theme={null}
{
  "vortex_autohedge_tp_target": 0.001
}
```

* Closes hedges quickly
* More frequent hedge cycles
* Good for choppy markets

**Wide (Trending Markets):**

```json theme={null}
{
  "vortex_autohedge_tp_target": 0.005
}
```

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

***

### 6. Trailing Stop (Advanced)

```json theme={null}
{
  "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:**

```
1. Hedge placed: SELL 5,000 @ $0.16800
2. Initial TP: $0.16764 (0.2% profit)
3. Price drops to $0.16500 -> Profit: 1.8%
4. Trailing activates, tracks best price
5. Price retraces to $0.16534 -> Retrace: 0.2% <- CLOSE!
6. 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:**

```json theme={null}
{
  "vortex_autohedge_trailing_stop_enabled": true,
  "vortex_autohedge_trailing_distance_pct": 0.002
}
```

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

***

## 🎨 Complete Configuration Templates

### Template 1: Conservative (Low Risk)

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

```json theme={null}
{
  "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)

```json theme={null}
{
  "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)

```json theme={null}
{
  "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

```json theme={null}
{
  "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!**

<Warning>Godmode configuration requires constant monitoring and significant trading experience. Start with conservative settings!</Warning>

***

## 🔧 Fine-Tuning Tips

### Adjusting for Volatility

**High Volatility Assets (DOGE, Meme Coins):**

```json theme={null}
{
  "vortex_autohedge_on_drawdown_pct": 0.05,
  "vortex_autohedge_tp_target": 0.003
}
```

**Low Volatility Assets (BTC, ETH):**

```json theme={null}
{
  "vortex_autohedge_on_drawdown_pct": 0.03,
  "vortex_autohedge_tp_target": 0.002
}
```

### Adjusting for Account Size

**Small Account (less than \$1,000):**

```json theme={null}
{
  "vortex_autohedge_ratio": 0.7,
  "wallet_exposure": 0.15
}
```

**Large Account (greater than \$10,000):**

```json theme={null}
{
  "vortex_autohedge_ratio": 0.5,
  "wallet_exposure": 0.6
}
```

### Adjusting for Market Conditions

**Trending Market:**

```json theme={null}
{
  "vortex_autohedge_on_drawdown_pct": 0.05,
  "vortex_autohedge_trailing_stop_enabled": true
}
```

**Choppy/Ranging Market:**

```json theme={null}
{
  "vortex_autohedge_on_drawdown_pct": 0.03,
  "vortex_autohedge_trailing_stop_enabled": false
}
```

***

## 📊 Testing Your Configuration

### 1. Start Small

```json theme={null}
{
  "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

### ❌ Disabling trailing stop in trending markets

**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

***

## 🔗 Related Documentation

* **[Auto-Hedging Overview](/risk-management/auto-hedging-overview)** - Feature introduction
* **[How It Works](/risk-management/auto-hedging-how-it-works)** - Technical deep-dive
* **[Risk Management Best Practices](/risk-management/risk-management-best-practices)** - Safety guidelines
* **[Bot Configuration Guide](/bot-configuration)** - Full bot setup

***

## 📞 Need Help?

If you're unsure about your configuration:

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

**Happy auto-hedging! 🛡️**