Welcome to another interesting blog topic series - lately, I've been into crypto futures trading a lot.
So far I can report mixed results - yes, the gains are enormous - like I was able to make 189% gain with 100 trades in 9 days trading Ethereum, but meanwhile I also have blown up my account at least 4 times. The losses so far are far bigger than gains.
For now, I have decided to give it one more shot - trading Bitcoin futures with 50x leverage on Deribit.
This is not trading advice. Investments in stocks, funds, bonds, or cryptos are risk investments and you could lose some or all of your money. Do your due diligence before investing in any kind of asset.
Disclosure: This article contains affiliate links to the deribit.com bitcoin futures trading website, by clicking on links on this page and by investing with deribit, I will earn affiliate income at no cost to you. Also, I'm not a financial advisor and I don't give you any advice, I'm just sharing my own experience. Investments in stocks, funds, bonds, or cryptos are risk investments and you could lose some or all of your money. Do your due diligence before investing in any kind of asset.
My trading strategy is going to be very simple - trading a 1-min candle chart, using EMA's + MACD for trade confirmation, most important, for this time I will use stop loses and take profit - looking at a 0.5% stop loss and 1% take profit ratio. Might tune to 0.3% and 0.6% respectively.
What I have noticed, crypto is just way too volatile and can close my position with a loss just before turning into a winning trade. To improve it - I just have to place a higher probability of winning trades. Simple! Or I should look for longer time frame candle sizes
Let's hope I won't blow my account this time and let's hope I will be able to finish these 100 trades in the next 10 days and have at least a 20% gain.
In fact, as my starting trading capital is about $20, I'm looking to take from the market at least $1 per day - if my assumptions are right and it takes me 10 days to finish this test. I should have about $30 in trading capital or 50% gain. Will see.