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 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 Binance 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 52 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. 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:
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. At the time of mid-May, this value is 50%.
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. The light circle on the slider will show the maximum hedging that will be properly executed for your portfolio.
Any questions regarding Stoic let us know by contacting our Support Team. We are available for you 24/7!