#hedgingstrategy

Nifty and Banknifty Option Buying Hedging Strategy

The bitRage Profit Maker Hedging Strategy

Hedging is a risk management strategy employed to offset losses in investments, but with our bitRage Profit Maker Hedging Strategy we can trade BTC vs USDT using arbitrage but profiting when BTC pumps and accumulating when BTC dump, here's how bitRage will be searching for arbitrage opportunities between BTC-ETH and USDT-ETH but by doing that if the price of ETH drops even though we profited from the triple trade we may find ourselves with a portfolio losing estimated total value against USDT, the opposite will be true if the ETH value goes up. Please keep in mind this is just an example to keep it simple, in reality, we are looking for opportunities whit at least top volume coins on the exchange, sometimes even "All Pairs"

The bitRage Profit Maker Hedging Strategy

So what can be done to solve this problem? Enter The Gunbot, one more time with the ability to use built-in trading indicators and give us the advantage of using a well-known trend following signal, in this case, we use Parabolic SAR (PSAR). The parabolic stop-and-reverse indicator which will tell us whether the current price trend is likely to continue or to reverse. You can check this technical indicator basically on every exchange trading chart or in Trading View, usually as a dotted line below or above the price depending on the trend, when switch it indicates that a potential change in price direction is underway.