Hedging is a risk management strategy used by futures traders to mitigate market risks. It involves taking an offsetting position in the futures market that is opposite to the trader’s primary position. By establishing a hedge, traders can profit from favorable market movements while limiting potential losses if the market moves against their original position.

In 2024, work is underway to develop a beta coefficient for Litecoin (LTC) in relation to Bitcoin (BTC). The goal is to create a stable LTC-pegged stablecoin by leveraging Litecoin’s unique characteristics while minimizing price fluctuations. This approach aims to provide a more balanced and resilient crypto portfolio by harnessing the stability of a stablecoin and the benefits of Litecoin.

The Guardian Strategy is an Ai-driven trading approach that allocates capital from one-sided trades to a hedging position to prevent losses. By forming a hedge, the need for stop-loss orders is eliminated, as the Guardian Price serves as a silent stop-loss, preventing the Ai from reaching a stop-loss scenario. This strategy allows the Ai to continue trading while mitigating downside risk, ensuring limited losses and protected capital in adverse market conditions.