Stoic’s hedge stands for the percentage of one’s portfolio that will be kept in USDT (TetherUS) as a hedge for possible huge market fluctuations. Every Stoic customer can select a suitable hedging strategy for "Long Only" + "Meta Long Only" strategies and change it up to 5 times per month.
NB: Since there are a limited number of hedge change slides per month, please use them wisely!
Besides it, the Stoic app offers its users a dynamic hedge. This is a tool for those users who don’t want to be in the loop in regards to the current market conditions.
The behavior of any hedge applied may vary for different portfolio balances. For instance, smaller portfolios have some limitations applied from the exchange side in terms of the minimum order size. It means Stoic may not execute some trades, as all of the user’s funds are already kept in either altcoins positions or in the hedge (USDT).
NB: As there are only about 60 coins listed on Binance US, the actual hedge is often greater than the value set by a user.
We do not recommend setting a high hedge for smaller portfolios. For more information regarding hedging for portfolios that are close to the minimum mark of $1000, kindly refer to the following article.
The normal behavior of a dynamic hedge on smaller balances might also behave differently. As it is set to 30% currently, it means Stoic won’t be able to proceed with trading according to its strategy with such a small balance.
In case a user has put a 0% hedge, but still not 100% of the user's portfolio balance is traded, this is most likely the above-described case with a small balance.
A dynamic hedge does not imply that it will change immediately based on current market conditions. The dynamic hedge is determined algorithmically at different intervals.
Please note that if you change your current hedge, it will take some time in order for it to be deployed and updated. This term is 48 hours: firstly, a new hedge set by you needs to be applied within a 24-hour period. After that, you can expect that by the end of the next trading session it will be traded.
If you are pretty sure that’s not the case and this is not related to your portfolio size, kindly contact our 24/7 Customer Service by pressing the Profile button and selecting the Chat with us option after:
