Feedback on logic to handle a hedge?

 

Image an scenario where a 1 lot long position is -$100 in profit, and it is hedged with 1 lot short position, locking the profit at -$100.

Say the price moves even lower, and I want to reduce the lost to -$50 while keeping the positions balanced. How can that be done?

I thought one should do a partial close of the losing long position (0.5 lot), and trim the short also 0.5 lots...This reduces volume by half but the amount lost is still kept at -$100.

Is there a way to reduce the amount of money lost, in two opposite positions while keeping them balanced?
 
Camilo Mora:

Image an scenario where a 1 lot long position is -$100 in profit, and it is hedged with 1 lot short position, locking the profit at -$100.

Say the price moves even lower, and I want to reduce the lost to -$50 while keeping the positions balanced. How can that be done?

I thought one should do a partial close of the losing long position (0.5 lot), and trim the short also 0.5 lots...This reduces volume by half but the amount lost is still kept at -$100.

Is there a way to reduce the amount of money lost, in two opposite positions while keeping them balanced?

Step 1: Close 0.5 lots of the losing long position.
Step 2: Close 0.5 lots of the gaining short position

Repeat if necessary to reduce exposure.

NOTE: there is no good way to exit negative lock, so try to avoid.

 
Oleksandr Medviediev #:

Step 1: Close 0.5 lots of the losing long position.
Step 2: Close 0.5 lots of the gaining short position

Repeat if necessary to reduce exposure.

NOTE: there is no good way to exit negative lock, so try to avoid.

This is why I did originally, but this approach reduces the volume in half, and keep the full amount of money lost. My intrigue is if there is a way to reduce the amount of money lost by half, while keeping the volume balanced...probably not, but worth asking.

 
Camilo Mora:

Image an scenario where a 1 lot long position is -$100 in profit, and it is hedged with 1 lot short position, locking the profit at -$100.

Say the price moves even lower, and I want to reduce the lost to -$50 while keeping the positions balanced. How can that be done?

I thought one should do a partial close of the losing long position (0.5 lot), and trim the short also 0.5 lots...This reduces volume by half but the amount lost is still kept at -$100.

Is there a way to reduce the amount of money lost, in two opposite positions while keeping them balanced?

There is no way to reduce the monetary loss without realizing some part of the loss unless the market moves in your favor.

 
Camilo Mora:

Image an scenario where a 1 lot long position is -$100 in profit, and it is hedged with 1 lot short position, locking the profit at -$100.

Say the price moves even lower, and I want to reduce the lost to -$50 while keeping the positions balanced. How can that be done?

I thought one should do a partial close of the losing long position (0.5 lot), and trim the short also 0.5 lots...This reduces volume by half but the amount lost is still kept at -$100.

Is there a way to reduce the amount of money lost, in two opposite positions while keeping them balanced?
The whole concept is flawed. Firstly you have not hedged you have taken an opposite trade to be flat. You paid spread to do that why?  Just close the original trade when criteria are met and make a new trade when entry criteria are met. This way you are in control of your trades rather than having two trades with no chance of a further gain flapping around as the price moves