I would like to get a good discussion on a variety of ways to hedge your bet. I personally do not hedge my positions but I believe this is a critical element of trading that should not be overlooked. Well, at least you'll want to keep it on the back burner. So far, I know there's a couple ways to hedge effectively: Options Pair trade: ES/YM or ES/SPY Any other possibilities? Also I would like to know other intricacies involved in hedging, such as what is the optimal ratio one should hedge in relation to the underlying.