futures trading with BTC and ETH is interesting. Hedge strategy
Strategy Overview
Initial Setup:
BTC: Short position with 5x leverage.
ETH: Long position with 5x leverage.
Capital Allocation: 50% for BTC and 50% for ETH.
For Exemple
BTC: Start shorting at $59k. Add to your position at $65k, $70k, and $75k.ETH: Start longing at $2500. Add to your position at $2300, $2200, and $2100.Risk Management:Stop-Loss: Set a stop-loss for BTC at $78k and for ETH at $2000 to limit potential losses.Take-Profit: Set take-profit levels for BTC at $50k and for ETH at $2800.Position Sizing:BTC: Use 5% of your total investment for each entry point.ETH: Use 5% of your total investment for each entry point.Monitoring and Adjustments:Regularly monitor the market and adjust your stop-loss and take-profit levels based on market conditions.Be prepared to close positions if the market shows signs of extreme volatility.Detailed StepsBTC Short Strategy:Initial Short: Open a short position at $59k with 5% of your capital.Add to Position: If BTC rises to $65k, add another 5%. Repeat at $70k and $75k.Profit Taking: If BTC drops to $50k, close your position to take profits.ETH Long Strategy:Initial Long: Open a long position at $2500 with 5% of your capital.Add to Position: If ETH drops to $2300, add another 5%. Repeat at $2200 and $2100.Profit Taking: If ETH rises to $2800, close your position to take profits.Risk Management TipsDiversification: While focusing on BTC and ETH, consider diversifying a small portion of your portfolio into other assets to spread risk.Leverage: Be cautious with leverage. While it can amplify gains, it also increases the risk of significant losses.Market Analysis: Stay updated with market news and trends. Use technical and fundamental analysis to make informed decisions.Final ThoughtsNo strategy can guarantee no losses, but by carefully managing your positions and being prepared for market fluctuations, you can increase your chances of success. Always be ready to adapt your strategy based on market conditions and your risk tolerance.