How to invest $100 in Bitcoin Futures and not blow up your account

Updated: 25 April, 2022 seen 27

For the past couple of months, I have been trading bitcoin futures with leverage on the deribit platform with some good success. 

By saying good success - I mean  - I see how it can be profitable, and currently, I'm profitable trading bitcoin futures with a win rate well above 80%, also in the past, I have been profitable, with the same win rate, but I have always blown up my account. And I have blown it up because of overtrading and overleveraging.

By now I can report about 158% return in about 15 days from 71 trades. These are quite outstanding numbers.

Trading Bitcoin futures
Trading Bitcoin futures

My success lies in small trades or I trade only about 1/10 my account size. I started trading with $10 and was able to grow it to about $80 in just two weeks, for the truth sake I deposited  $10 three times, in total $30, just to avoid forced liquidation, when market was moving against me, and back then I was trading more like 1/4 of trading account. 

50x times margin can give really nice returns on relatively small amounts invested, but they can also blow up really quickly if overleveraged.

Today I received $99 from a new subscriber from covered calls with Reinis Fischer newsletter and I thought how about if I would put this $100 into work for trading Bitcoin futures?

As I already have a small bitcoin account at Deribit I decided I should invest about $10/week into funding this account. 

At the time of writing these lines, I was holding 

0.00183467 BTC on my trading account (worth about $80)

Trading with leverage means every deposited dollar gives me $50 in buying power, but I have found - that trading all in is very dangerous and in most cases just blows up your account, I prefer trading with 1/10 from the trading capital. $10 deposited each week would increase my buying power by $500, but I would increase my trade lot just by $50.

As I already have about $80, which gives me about $4,000 in buying power. Today I'm looking to withdraw from my account $50. I will be left with just $30 on my trading account. which will decrease my buying size to about $1,500 or $150 per trade to be on the safe side. Additional deposited $100 over the next 10 weeks, should add about $5,000 buying power or $500 per trade.

It's hard to do the math now, and predict what the future will bring, but in the next 10 weeks I'm looking to grow my trading account to about $500. $30 current account size + $100 deposited. The rest should come from the bitcoin future trading.

If I would be able take 158% in every 14 days for the next 10 weeks I would have more than $7,000. Here is the math: $129 in 2 weeks, $384 in 4 weeks, $1,042 in 6 weeks, $2,739 in 8 weeks and $7,118 in 10 weeks. Crazy. Possible. Doable. With setting my goal much smaller at just $500 I'm just humble. All, numbers are possible, but key is not blowing up the account.