Kosta Ouzas walks through hedge mode, a way to protect a long position from liquidation. Enter a short position equal to your long volume, set a stop loss above your take-profit level, and you stay delta-neutral so price swings won't liquidate you. You either take profit or hit the stop loss.
If we come back to the algorithm and let's just pretend that this is the last order and the power support there, and say your liquidation level is here and the price is here, and you're fearing that this is going to happen. With a hedge mode, what we can do is we can enter a short position, let's say here, that's the size of this volume, right? And then what we do with the short is we place a stop loss above the take profit level, right? Basically what happens now is we're delta neutral. That means that the price can splash down here, play around all the way down there. Nothing's going to happen. You're completely delta neutral. What eventually will happen is we'll take profit, bang. And then stop loss, bang.
