The ones where you are hedged correctly and simultaneously from the start in order to capture the spread differential - NOT the strategy where you have on a stinker and you belatedly hedge a loser because of an emotional fault that short circuits your ability to take a clean loss and move on.
Using hedge ratios and cross hedging with related instruments. VWAP and regression will detrend the spreads. Works well in rates and indexes.
If you can't take the heat, you're trading too big or are outright wrong. There's no strategy that makes money all the time (other than being in the Medallion fund). So what is the point of trying to hedge? When your hedges start losing, do you them attempt to hedge your hedges? If not, why bother with the first hedge? Where would it end?
Spread trading as a strategy is supremely viable. And again - if you are trading highly correlated instruments as part of a formal spread trading program in order to capture a spread differential it's a great idea. Big prop traders, small prop traders, smart independent traders, hedge funds, and bank desks do it all the time. Hedging for the sake of not realizing a loss is a stupid idea - it's better to take your loss cleanly and look for another opportunity. My point being - in my mind they're two separate topics.
Wow...are you trader? A trader that reacts like that to hedging is like a bsaketballer complaining the ball is to bouncy. Learn to trade. Learn to hedge, then come back to the big boy table