Here are some tips to increase your profit potential:

Prefer high-liquidity contracts:

When choosing trading targets, give priority to those with high liquidity. High liquidity means that buy and sell orders can be executed quickly, reducing waiting time. It also helps to reduce the risk of slippage caused by insufficient market depth and ensure that the transaction is executed at the expected price.

Be cautious against the trend:

Trading against the trend, that is, trading against the main trend of the market, may bring high returns, but it also comes with extremely high risks. Therefore, when trying to trade against the trend, it is important to carefully assess market conditions, set strict stop-loss points, and control position size to mitigate potential losses.

Pay attention to the volatility of news and market announcements:

Important news events or market announcements often trigger sharp fluctuations in market sentiment, resulting in greater price fluctuations. During such periods, it is recommended to pay close attention to market dynamics, flexibly adjust trading strategies, and take advantage of market fluctuations to capture trading opportunities, but also pay attention to risk management.

Optimize risk parity rebalancing strategy:

For portfolios adopting risk parity strategies, it is important to regularly review and rebalance the risk exposure of each asset class. To determine a reasonable rebalancing frequency, we must consider both transaction costs and market efficiency, and also make flexible adjustments based on the market environment and portfolio characteristics to maintain the consistency of the portfolio's risk and return targets.

Explore tail risk hedging strategies:

Tail risk, that is, the risk brought by extreme market volatility, is a threat to the portfolio that cannot be ignored. By using financial derivatives such as options, effective hedging strategies can be constructed to manage such risks. In-depth research and practice of different option strategies, such as protective put options or collar strategies, to protect the value of the portfolio under extreme market conditions.