The safest futures trading strategy?!
The lowest risk corresponds to a reasonable PNL, but one cannot expect to double or triple account value quickly.
1. Only buy (long): because expectations for the crypto industry are still very high.
2. Isolated, x2 (margin): required. According to the principle of lowest risk. X2 causes low funding rate pressure.
3. Coin: only coin with transaction volume > 500m. 50% value for cryptocurrency exchange/trading platforms, 50% other remaining coins. Simply put, whether the price of BTC or any coin increases or decreases, trading platforms still benefit the most when there are many traders.
4. DCA. When the risk method is lowest, the coin is the best but the price still drops, apply average price buying. Principle: use idle money every month to buy at low prices, absolutely do not borrow or increase leverage, which will break the principle of lowest risk.
This strategy is better than spot buying because you can invest at least double the initial capital. The risk of price falling, causing negative profits, but you can still hold long-term to buy on average at low prices and wait for long-term expectations to be met. Reason: funding rate is low (due to only x2), in a downtrend, many traders will sell (short) a lot, leading to the funding rate often being negative, meaning the short side has to pay a fee to the long side. The pressure to endure losses will be reduced, and even profits will be achieved thanks to the funding rate.
I'm not sure the above trading strategy is correct and effective. I just happened to trade the above way for a long time (1 year) and discovered the low risk involved. As a result, PNL in 2023 will reach 150% reliably and without wasting time on daily trading.
Hope everyone shares and contributes more advice
#BNB🔥 #FutureTradding #fundingrate