In this article, I will show you one of the best Trading Strategy for Futures Traders.
Note that this strategy is A case study of building $10 margin into $1000+.
What is the Fixed Percentage Profit Compounding Strategy?
This strategy is a conservative trading strategy built on the mindset that profit no matter how small must be taken out of each single trade to be profitable...
It also guides against excess loss owing to the deception that the market always comes back upwards.
Take for example, a trader goes into a trade and is in huge profits, the challenge of when to take profit is real and only a person that isn't greedy will be satisfied with his current profits and close the trade or set risk mitigation preferences to cut losses and take gain off that trade.
Most times, we hear of traders who were in huge profits and left the trade to run, only to come back to huge losses sometimes, liquidations😟. How sad!
What went wrong in that trade?
There was no premeditated action, or at least greed didn't allow the trader to execute it to show gratitude to the market for the profit given.🤪
So the Fixed Profit Strategy is a risk management technique and a Greed Killer.
So to use this strategy, all traders must plan their setups and use leverages that allow their set SL to fall within less than or equal to the fixed profit/loss percentage.(in this case, SL ≤ -25%
As a case study, I will be sharing this guide with 25% as my preferred fixed percentage as experience shows great success with it. Feel free to use any percentage that works best for you.
Kindly Note that even if you take out 25% profit from a trade, you do not necessarily have to close the trade as you can let the trade keep running into profits while you move SL or set BE.
Whatever extra profit gathered from the trade can be set aside as Returns to offset losses as there will be days when you hit -25% instead of +25%🙄.
"Take Away"
So to reiterate, note that you can achieve more than 25% profit per trade, but must lock 25%.
Any extra profit can be used for trading fees and to cater for the bad trading days when you will have losses or you can cash out the extra and go touch grass with it or gift yourself as a trader who works hard to win a trade 💌
What leverage should I Use?
Personally I use low leverage from from 3 to 10x for pairs for altcoin pairs and 20x only for BTC and this ranges as I examine the market conditions and use Price actions as my guide to select a suitable leverage per trade.
It's gonna be a long ride, but am confident that we will make it.*WAGMI*
For all who are interested, kindly indicate your interest with emoji and follow me as I will be giving more details about how to create an excel template to help you check and track your profitability on a daily basis.
This strategy was tested by some traders who had a "project $10 - 1000+ with no pressure challenge"
Let me state too that
The 25% fixed profit strategy is pure mathematical and has nothing to do with Psychology.
I have mentioned it several times before that first - "Crypto is only for Intelligent people and if you are not ready to improve, you will always loose to the market"
You need to train your Psychology to understand that Trading Futures is high risks and you will always loose from time to time, be it your mistakes, the unsure market or even manipulation and if it affects your will to go on, then maybe trading isn't for you.
But if you train your Psychology to handle losses, U probably can pause and concentrate on getting your morale, '"crossing the t and dotting the I of each trade'"
An excel template which screenshots have been attached to this article show some very helpful tips and one of them is don't pressure yourself or think of it as a challenge you must win within a given time frame. You are your own challenge.
You can create an excel template programmed to help calculate automatedly and shows the expected margin per trade and your stop loss per trade in this strategy must be within and not beyond 25% in Loss, meaning your trade must hit SL at -25% no matter the set leverage used.(Discipline remember, so use a leverage that pushes your SL to -25% loss)
👉This strategy basically helps u limit your exposure to positions beyond 25% profit.
For instance, some of us here have been in trades of 100% or more and yet came out with less than 10% profit waiting for 500%.🙆♀️
👉This strategy guides against that.
👉It teaches you how to steal ur 25% PNL and go away or stay on with BE or a trailing SL.
👉It also inculcates that profitability in the market is LONG term.
One of the tips there in the attached images shows that you can stay on any level until u build ur morale to go to the next one
For instance I can get to level 7 and decide not to move to level 8, and start again from level 1 either with one trade with starting margin ($10) or multiple trades with the starting margin per each trade and grow them separately up to level 8 again before deciding to go to level 8 where you'll trade with a higher margin.
Bottom line is you will learn how to trade based on making a 25% profit which is easily attainable in the crypto space.
I for one believe crypto should be traded long-term and have my BNB token reserved for years or months locked away in Binance Vault, so I am not moved my emotions to sell at lows and regret when am supposed to be enjoying the fruitage of my labour.($BNB @ $10,000)🥳
But then trying a new strategy doesn't hurt anyone💯