Quote from: aphelio_wane on July 20, 2025, 10:50:20 PM

Why not just use options? That's what most people use to hedge futures and that's what matches your description. No need to reinvent the wheel.

Yeah, I get that I could sell my futures and instead buy an in-the-money call option with a strike at my current stop-loss level. But those calls usually have huge spreads and very low volume. So I’d either have to accept a terrible price or wait forever for someone to fill my order.

Instead, I chose to stick with the futures position and buy an out-of-the-money put. The spread there is much tighter.
But as I explained above, that approach has its own downside. A "no-touch" bet could eliminate that issue.