Hedging

Hedging is a risk management strategy that involves taking an offsetting position in a related asset to reduce the potential impact of adverse price movements on an existing position. For example, a trader holding a long position in Gold might short Oil futures as a partial hedge against broader commodity market moves. Hedging reduces both potential losses and potential gains — it is not designed to generate profit but to limit downside exposure. For systematic traders, the most reliable form of risk management is not hedging but defining risk upfront through a stop loss on every trade. At One-Signal, every signal includes a pre-defined stop loss level before the NYSE opens — ensuring that risk is contained systematically rather than managed reactively. This approach applies across Gold, Silver, Oil, Bitcoin and the S&P 500.

View our risk management approach: one-signal.com/performance. Not financial advice.

‍