Y'all are making this too complicated. Just buy low, sell high. It really is that simple.
If price is HIGH (you are feeling "OMG I just made SO MUCH money on bitcoinz!") it might be time to sell. If price is low (hopefully you are thinking "Wow, those idiots just lost tons of money, and I didn't, because I sold high) then buy.
Also, litecoin may not be great for hedging, but it's great for making money. Oh yeah, and in some respects, consider it a hedge - a hedge against, for instance, the disastrous ruin that a coin taint system would bring upon bitcoin for a short time after being implemented. Even the threat of BTC becoming unusable, crashing, and people moving to alt-coins hopefully deters a lot of the socialist weenies like Peter Vessenes who are thinking of implementing such a program. The fact that alt-coins are ready, up and running, on exchanges, and have value, shows socialist weenies that if they try to sabotage bitcoin, there are a dozen other coins that are more than willing to step up and absorb some of the value, and provide much of the "money laundering" functionality that they are so scared of. In the same way that shutting down one bitcoin-qt node won't shut down the whole network or shutting down Piratebay won't kill torrents, or jailing the top dogs in a cartel every couple years won't "win the war on drugs," shutting down BTC won't shut down cryptocurrencies - will just make a huge, painful dent but dents can be hammered out in due time. If LTC and altcoin-haters had their way and no altcoins existed, it might be a different story.
If BTC forks and there is a 20% drop, well, there may only be a 5% drop in LTC. I'm not comparing to Fiat - obviously fiat would drop 0%. But there's a reason most of us aren't 100% in fiat.
, especially the 'foul bachelor frog' types. 
