$BTC The following are some contract trading strategies that Feng Ge gave to his brothers:
Through short-term trend trading and strict risk management, obtain stable returns in contract trading and avoid large drawdowns.
1. Applicable market
Mainstream cryptocurrency (such as BTC, ETH) contracts, because of their high liquidity and moderate volatility.
24/7 market, suitable for high volatility strategies.
2. Strategy structure
3.1 Trend following strategy
Core logic: follow the price trend and use short-term fluctuations to make profits.
Technical indicators:
Moving average combination: EMA 7 (short-term) and EMA 21 (medium-term) to determine the trend direction.
EMA 7 > EMA 21: Bullish trend, look for long opportunities;
EMA 7 < EMA 21: Bearish trend, look for short opportunities.
RSI (Relative Strength Index): Set at 14 periods to determine overbought/oversold conditions:
RSI <span Price is oversold, waiting for a long signal;
RSI > 70: Price is overbought, waiting for a short signal.
3.2 Stop-loss and take-profit settings
Stop-loss: ±1.5% to ±2% of the entry point (adjusted according to market fluctuations).
Take-profit: 1.5 times the stop-loss ratio (i.e. the risk-return ratio is set to 1:1.5).
Moving stop-loss: When the profit reaches 50% of the target, the stop-loss position is automatically moved to the entry point to ensure that there will be no loss even if the market retreats.
3.3 Position management
Each position is controlled within 3%-5% of the total funds of the ** account to avoid excessive risk in a single transaction.
If there are three consecutive losses, stop trading and re-evaluate market conditions and strategies.
3.4 Time period
Main period: 15-minute chart, used for trend judgment and entry decision-making.
Auxiliary cycle: 1 hour chart, used to observe the larger trend background and avoid trading against the trend.
4. Trading rules
4.1 Opening conditions
1. Long:
EMA 7 crosses EMA 21 (forming a golden cross);
RSI is between 30 and 50 and turns upward;
Breaking through the key resistance level (such as the recent high point) with large volume.
2. Short:
EMA 7 crosses EMA 21 (forming a dead cross);
RSI is between 50 and 70 and turns downward;
Breaking through the key support level (such as the recent low point) with large volume.
4.2 Closing conditions
Stop loss/take profit in place: Execute stop loss/take profit to avoid greed.
Signal reversal: such as the reversal of the moving average trend or the price breaking through the key support/resistance.
4.3 Avoid chasing ups and downs
Do not chase the market that has risen/fallen sharply, wait for a callback
