I usually run a minimum of 2 and a maximum of 5 positions at a time. They tend to stay open for anywhere from a day to a week on average—always US stocks, and always bullish so far, risking 1% of the account on each SL.
But the market has been very choppy lately, and I've been thinking I'd rather be more proactive with my hedging, so here is what I've come up with by incorporating options:
Every time you go long on a US stock, you buy a put option whose premium is 33.33% of your stop loss (SL).
Example: you have a $100,000 account, and you risk 1% on every SL per trade
You open a position risking $1000 on the SL.
You buy an SPX put with a premium of roughly $330
If the index goes up and you hit 2R, you make $2000.
If the premium expires OTM, you only lose $330
If it goes down and you hit your SL, there's a pretty good chance the put will generate a profit and absorb part of that loss.
The issue: The width of each SL. I think this would work better for swing positions that allow for a wider SL, which in turn gives the put option room to breathe and move.
Anyway, just a thought—let me know how you see it!