How to Trade Profitably on Binance Futures with 100 USDT Capital

Introduction

Trading on Binance Futures with a small capital such as 100 USDT requires diligence, precise risk management and an understanding of trading tools. Here is a strategy that can help you trade profitably with leverage.

1. Selecting Leverage

Leverage increases potential profits, but also potential losses. The recommended leverage for beginner traders is a maximum of 10x, although a more conservative approach suggests 3x to 5x.

- 5x leverage: With a capital of 100 USDT, it allows you to open positions worth up to 500 USDT. This is a moderate risk level that allows for profitable trades while maintaining risk control.

2. Capital Management

- Maximum risk per transaction: 2-5% of capital (2-5 USDT).

- Stop-Loss: Automatic closing of the position when the price reaches a loss level that you are willing to accept.

- Take-Profit: Closing the position after reaching a certain profit level.

3. Indicator Settings

Moving Averages (EMA):

-EMA 20 and EMA 50: Helps identify the trend.

RSI:

-Period 14: Identify overbought (>70) and oversold (<span conditions.

MACD:

-12, 26, 9: Identifying momentum and turning points.

4. Trading Strategy Example

A. Uptrend

1. Trend Identification:

- Check if EMA 20 is above EMA 50.

- RSI is in the range of 30-70, confirming the lack of overbought or oversold.

2. Entering the Position:

- Enter a long position (buy) when the MACD line crosses the signal line from below and is confirmed by an increase.

3. Stop-Loss and Take-Profit Settings:

- Stop-Loss: Set at a support level (e.g. 2% below the entry price).

- Take-Profit: Set at a resistance level or at a specific profit level (e.g. 4% above the entry price).

B. Downtrend

1. Trend Identification:

- Check if EMA 20 is below EMA 50.

- RSI is in the range of 30-70, confirming the lack of overbought or oversold.

Continuation in the next post... sub, tip :-)