How to operate in contracts to achieve stable profits?
Different market conditions require different strategies!
1. Sideways Market:
1. Only trade high and low for BTC/ETH, do not trade any altcoins!
2. Shorting:
2.1. Entry Point: Mainly judge the entry of short positions in batches based on the important moving averages above the 4H level.
For example, if the MA60 moving average above the 4H level continuously suppresses the price, then use this moving average as the timing to enter a short position.
2.2. Stop Loss:
Place it above the previous high after a spike up and then retreat, for example, if the resistance level is 2440 and the spike reaches 2450, then
the stop loss should be placed above 2450.
3. Long Position:
3.1. Entry Point:
Generally use the support below the same level or a higher level as the entry point for long positions in batches.
3.2. Stop Loss:
Place it below the previous low after a spike down and then pull back, for example, if the support level is 2320 and the spike reaches 2310,
then the stop loss should be placed below 2310, around 2300.
4. Drawdown Control:
4.1. Stop Loss Capital: 20% of total capital, if reached, no more trades for the day
4.2. Daily operations generally focus on two trades, with a single stop loss controlled at 10%
4.3. The position size for each trade should remain consistent!
5. Entry Method:
5.1. Try to primarily enter in batches, do not load all your bullets at once!.
5.2. Try to follow the trend when entering, the main trend is down, try to go short, and vice versa!
2. Major Uptrend Market: Use intraday trading strategy
1. When the overall market trend is good, chase hot coins (top 3 in growth rate, or highly popular coins)
2. Control the profit-loss ratio, keep it around 3:1
3. Daily stop loss drawdown is 10%-15% of capital, if reached, no more trades for the day
4. Daily review
3. Market Crash:
Hold cash and wait to enter in batches,
If there are no opportunities, just wait in cash,
In this market condition, not losing money is equivalent to making money!
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