So the first part went well, but there are questions about the details of how to close and withdraw the maximum profit
If you don't know what I'm talking about, read the article where I described trading.
The content of this article nuances:
1. Where and how to close a short profitably
2. What is the best way to close a spot profitably and take another plus from a short?
3. How to profitably re-enter the market again.
Let's go:
When you have bought the spot according to your strategy and a counter short, and the price goes down, and the short gives a profit, you need to watch what Bitcoin is doing and the asset you bought. Consider the sessions: England - America, from morning to night.
If the price is pushed down, it is more likely to be pressured until the end of the American session, but you need to watch the buyback.
For a short position, you need price movement reserve. If the price drops, first set a stop at some profit, preferably below the order block above the high in case of its retest and further decline. But simultaneously set a trailing stop at the price where you see the price may come, calculate the trailing percentage on a calculator where you will be stopped out and what profit you want from it.
In TRB, I mainly set 4, 7, or 4.5 percent.
So if the price does not reach the trailing stop, it reverses and hits your simple stop with a profit, and if it goes down and triggers the trailing stop, it may drop even lower and your stop will yield more profit.
This concerns the futures short position.
Now regarding the spot when the price is rising.
It’s all the same; first, look at Bitcoin; if the price is rising and hitting a level and starts to push it for a breakout, wait for the breakout. After the breakout, see where it stopped and shows consolidation, or if sales begin, then sell the spot and place the short stop at the price where you sold the spot, or a little higher; that’s why I wrote in the first part that it’s advisable to take the short a little above the spot.
You will have, say, 100 profit from the spot and a 50 loss from the short; you are already guaranteed 50, even if the short retraced down and returned 10 or more dollars, but if the position is in the red, you can close it; you have already earned that money with the spot.
If I can't take a short at the same price as the spot or higher, I enter a little lower, but when it goes above the spot price, I close at a loss and immediately enter short again only above. You will cover this loss later.
And finally, how to re-enter.
I usually check the market; if it has dropped, I take it lower; if it is standing still or higher, I take it immediately at market price.
Now regarding the short when you closed it by stop or the trailing stop knocked you out.
You have already made a profit from the short, and I initially place a limit order below the price where I bought the spot; sometimes it hits there and drops again, and I close the short according to the scheme.
If not, I take a short a little lower depending on the market volatility.
If there are any unclear points, write them in the comments; I will collect them and post the third part.
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