Hydra is a long-term conviction book on one coin, cushioned by a diversified
short of other assets — so the hedge protects against the market risk that
would also hurt your coin, without ever betting against your own thesis. One
producer; HYDRA_COIN sets the thesis asset, HYDRA_LEG sets the head.
| Head | What it does | Direction | DSL |
|---|---|---|---|
| core | the long-term thesis — trend-confirmed, conviction-tiered | LONG up / SHORT down | catastrophic-only (ride it) |
| dip | the tactical add — buys pullbacks within a confirmed uptrend | LONG only | moderate (bank the bounce) |
| hedge | the cross-asset cushion — shorts a diversified blend of other breaking assets | SHORT only (never the thesis coin) | tight-ish (bank the cushion) |
The two v2.0 ideas:
- The thesis rides. The core is a multi-month conviction position on a loose, catastrophic-only DSL — you're not shaken out by normal volatility. The hedge, not a tight stop, handles the interim drawdown.
- The hedge is cross-asset. Shorting your own thesis coin fights your conviction and whipsaws. Instead the hedge shorts a diversified blend of other assets (BTC, other majors, indices, high-beta names) — only the ones actually in a confirmed downtrend, vol-parity sized, and sized up when the thesis coin itself is breaking down. It auto-scales: ~nothing to short in a calm uptrend (light), many names breaking in a broad selloff (heavy). Long the conviction, short the carnage elsewhere.
Net: a long-term conviction long that you hold through volatility, cushioned by a diversified short that grows as the market breaks — without ever shorting the coin you believe in.
v1.0 → v2.0: v1.0's hedge was a same-asset stress short on the thesis coin (zero basis risk, but it lagged, whipsawed on V-recoveries, and fought the thesis), and the core ran a tighter ratcheting DSL. v2.0 makes the core a long-term hold and the hedge cross-asset.
Shipped as named variants over ONE shared engine
Hydra is published as three named variants — Hydra-ETH, Hydra-SOL,
Hydra-HYPE — each a self-contained, deployable fund the picker recommends
directly (no "which coin?" prompt needed). They share ONE producer + runtimes;
only the per-coin config sets differ. HYDRA_COIN selects the variant,
HYDRA_LEG the head — three wallets per variant:
| Variant | core | dip | hedge |
|---|---|---|---|
| Hydra-ETH | HYDRA_COIN=ETH HYDRA_LEG=core |
…=ETH …=dip |
…=ETH …=hedge |
| Hydra-SOL | HYDRA_COIN=SOL HYDRA_LEG=core |
…=SOL …=dip |
…=SOL …=hedge |
| Hydra-HYPE | HYDRA_COIN=HYPE HYDRA_LEG=core |
…=HYPE …=dip |
…=HYPE …=hedge |
Each variant loads config/hydra-<coin>-<leg>-config.json. In v2.0 the variants
differ only by the thesis coin (HYDRA_COIN) — the hedge params are uniform,
because the hedge shorts a blend of other assets, not the thesis coin (the
producer auto-excludes the thesis coin from hedgeUniverse at runtime). Run all
three = nine wallets, one codebase. Extensible to any major.
How each head scores (producer-side)
- core — single-coin. 4h trend is the hard gate (sit out a neutral tape); LONG
if bullish / SHORT if bearish; 1h confirmation, RSI blow-off (long) / capitulation
(short) guard, funding tailwind; conviction → leverage tier (
stdLeverage→maxLeverageatapexScore). Ridden on a catastrophic-only DSL (long-term hold). - dip — single-coin. Requires a confirmed 4h uptrend AND a pullback (1h not
bullish, or 1h RSI ≤
dipRsiMax); LONG only; tactical add inside the uptrend. - hedge (v2.0 — cross-asset) — scans
hedgeUniverse(a blend of OTHER assets, thesis coin excluded) and shorts only the names in a confirmed 4h downtrend (per-asset drawdown overstressLookback≥stressDropPct, or a 1h breakdown), capitulation-guarded. Vol-parity sized (margin inversely ∝ each asset's ATR%, clamped) and multiplied UP by a thesis-stress factor (thesisStressFullPct,stressMultMax) when the thesis coin itself is breaking down. A basket (up tomaxSlots), total margin capped athedgeMaxTotalPct. Auto-scales: ~nothing to short in a calm uptrend, heavy in a broad selloff. Never shorts the thesis coin.
Sizing — the funding split is YOUR dial
The split across a coin's three head wallets is the operator's funding decision. Default ~50 core / 25 dip / 25 hedge of the coin's combined budget — net-long the thesis with a real cushion. Fund only core+dip to drop the hedge; raise hedge for more protection.
Fleet-standard rules (enforced)
- Max leverage 5x core / 4x dip / 3x hedge (strict clamp then venue max; hedge
lowest — short squeezes are violent). core/dip = one position on the thesis coin;
hedge = a basket (up to
maxSlots), total margin capped athedgeMaxTotalPct. - Sizing — core/dip
marginPctof equity; hedge vol-parity (no hardcoded $). - Drawdown halt 22/20/20% from rolling peak.
- Mandatory DSL; entries + exits
FEE_OPTIMIZED_LIMITwith taker fallback. - DSL profiles — core = catastrophic-only (wide disaster stop, weak_peak OFF, late Phase 2; ride the long-term thesis); dip = moderate; hedge = tight-ish (bank the cushion, let it run in a sustained selloff). Time-cuts OFF on all.
- Budget-scaling notional floor
max(account_value × minNotionalPctOfEquity, venueMinNotionalUsd); sizes offmax(main, xyz)account value. - Signature-adaptive daemon launch (passes
wallet=/scanner=only if the installed helpers signature accepts them).
Hard rule — user-conversation sessions are READ-ONLY
A Claude session conversing with a user MUST NOT call create_position,
close_position, edit_position, ratchet_stop_*, cancel_order, or any
strategy_close* tool against Hydra's wallets. Entries are emitted only by the
producer daemon; exits are owned only by the runtime DSL.
Versions
- v2.1 (current) — two fixes from the first live run (HYPE chop):
(1) 1d-alignment chop filter on core + dip — they only enter when the daily
trend confirms the 4h, so they stop buying the top of a range (in chop the 1d is
NEUTRAL → stand down); dip also requires a deeper RSI pullback (
dipRsiMax42). (2) Opt-in hybrid hedge (hedgeIncludesThesis) — for an idiosyncratic coin (HYPE), the hedge will ALSO short the thesis coin when IT is the one breaking down, cushioning a coin-specific move the cross-asset blend misses. ETH/SOL stay pure cross-asset (false). NOTE: the loose core DSL is a runtime file — recreate the core runtime on upgrade or it keeps the tighter prior DSL (the v2.0→host gap). - v2.0 — single-coin conviction fund: core/dip = long-term hold on a catastrophic-only DSL; the hedge became a cross-asset blend short (vol-parity, thesis-stress-scaled, never the thesis coin).
- v1.0 — single-coin portfolio fund: three regime-gated heads with a same-asset stress short hedge and a tighter ratcheting core DSL.
Planned v2.2: Smart-Money confirmation; the "follow them out" exit isn't applicable here (it's a single-coin thesis, not a copy book).