Simple Guide: How to Use HedgeHog
Investing is about maintaining balance — not constant adjustment.
Step 1: Maintain Your Target Allocation
If your plan is:
50% Core Investments 10% Hedge A 10% Hedge B 10% Hedge C 10% Hedge D 10% Hedge E
When reinvesting:
Add to each position in those same proportions.
Do not rebalance the entire portfolio every month.
Just maintain balance as new capital is added.
This reduces unnecessary trading and keeps the structure intact.
Step 2: Rebalance Once Per Year
The system uses a simple annual rebalance rule.
If the market finishes the year higher:
Wait until January. Then rebalance the full portfolio.
If the market finishes the year lower:
Rebalance in December.
Why?
It is more tax efficient. It keeps the hedges protecting It maintains discipline without constant trading.
One structured rebalance per year keeps risk aligned while remaining more tax-aware than monthly adjustments.
(Note: Tax impact depends on your account type.)
Timing the market is not how professionals succeed — They follow rules .
Step 3: Understand the Purpose of Each Hedge
Each hedge exists for a different type of market stress.
No two crashes are the same.
Some hedges respond to:
Slow recessions Volatility spikes Inflation shocks Prolonged bear markets
You do not need to predict which event will happen.
You simply maintain the structure.
(Click below for a quick video on how each hedge works)
Important Principles
Do not turn hedges on and off. Do not chase performance. Do not panic rebalance. Do not remove protection during stress.
The system is designed to reduce emotional decisions.
Your job is consistency.
The Goal
This is not about maximizing returns in every bull market.
It is about:
Staying invested Reducing extreme drawdowns Compounding steadily over time
Discipline beats reaction.