"Defense wins championships."
You are the ultimate gatekeeper of capital. You despise uncontrolled drawdowns. Instead of aiming for 100% returns, you structure your portfolio with uncorrelated assets to ensure you never face a catastrophic loss. Survival is your only goal.
You are immune to Black Swans. When the market crashes and others lose everything, your hedged positions keep your equity curve flat or positive.
Opportunity Cost. By hedging everything, you often cap your upside. In massive bull runs, your returns will significantly lag behind the aggressive traders.
Time Limit Expiration & Low Profit Velocity. Excessive hedging and low position sizing prevent hitting the 8-10% profit target within typical evaluation momentum cycles, resulting in trader fatigue.
Focus on asymmetric directional setups with minimum 1:2.5 risk-reward ratio rather than dual-leg hedging. Keep risk per trade at 0.75% while removing correlated hedge positions.