The market maker's trading methods and corresponding trading strategies for strong market makers (2)
Trading opportunities
1. Short-selling opportunities Short-selling opportunities mainly occur when the following signals are met at the same time:
(1) The funding rate turns negative rapidly, and even the spot contract has a price difference. The market maker quickly closes long orders and opens short orders, resulting in a huge trading volume in the contract in a short period of time, but the price no longer rises. In addition, the market maker does not sell the spot, so there will be a price difference between the contract and the spot, thereby attracting arbitrage parties to open multiple spot contracts.
(2) Multiple and rapid price cuts. The market maker's large position closes long orders and opens short orders.
(3) The market maker's position address begins to transfer large amounts of money to the delivery wallet (millions or tens of millions of US dollars). This means that the spot market has begun to crash. You can consider monitoring addresses and other operations.
It is important to note that when trading short orders, you must wait for the signal to be met and open a short position after the trend is formed.
Do not try to compete with the market maker for the first profit at a high position with high leverage, because there is a high probability of being pulled out.
Moreover, this type of token that is pulled up usually has a drop of 75%~80%, and the high short position and short position are opened after the trend is formed. The profit difference will not be very large.
2. Long opportunities
The long trading opportunity is in the middle and late stages of the rise, and it is difficult to grasp the timing compared to short positions.
During the rise, the dealer will continue to pull and smash to clear the 3-5X leverage position, and the trading range is only in the middle and late stages of the rise.
When the dealer opens a short signal, close the position quickly. And because there will be a price difference between spot and contract before the market crash, there will be more time to buy spot than contract operations.