This graph of BTC I posted is telling me that Bitcoin is on the UP trend. I will try to explain a little of what I do with this informations on futures (ps: this my strategy works only on Binance). Letâs say, I have 10,000 usdt, how do I allocate them properly?
1. Iâll open a trade setting it with isolated
2. Iâll choose 20x max (anything above is risky)
3. Iâll open a trade with 100 usdt at e.g 42,000 and wait until it catches or Iâll chase the market and open a position at 43,000.
4. After the position has entered, Iâll allocate 7000 usdt to manage the liquidation leaving me with 2900 usdt.
5. Iâll watch the trade to manage for instance if the market goes to 41,000 which means Iâm seeing loss, I watch the movement again to open a counter trade to reduce my position which means, liquidation will also be affected but the secret there is, the liquidation price is still too far because I have enough money to hold the liquidation.
6. If it goes down more, I open another position to counter the trade.
Now if you understand this process, you understand that youâre not losing but adding more money and bringing your open position point to a reasonable turn if the market turns right, you have more money.
I donât think a lot of people understands this. Please donât do it if you donât understand it. Chat me and Iâll help for free.
