#SpotVSFuturesStrategy 🚀 Spot trading vs. futures: key strategies for each
Spot trading and futures trading are two distinct approaches that require different strategies, risk management, and position size handling. Here’s a clear and comprehensive summary of how to effectively approach them:
📌 STRATEGIES FOR SPOT
1. Progressive accumulation (DCA)
Periodic investment with fixed amounts regardless of price.
Reduces the impact of volatility.
2. Buy & Hold
You buy and hold for months/years.
Ideal passive approach for cryptos or strong stocks.
3. Rebalancing
You adjust your portfolio according to preset weights.
Very useful for diversification and exposure control.
4. Confirmation technical analysis
Identify important support/resistance for timely purchases.
Combine with RSI, MACD, and moving averages.
📌 STRATEGIES FOR FUTURES
1. Scalping
Multiple quick entries/exits (1-15 min).
High accuracy and strict risk management.
2. Day trading / Swing trading
Based on market structure, candle patterns, divergences, etc.
Useful in 1H to 4H and 1D time frames for swings.
3. Leveraged directional trading
You take advantage of strong trends with leverage.
Very profitable but risky without emotional control.
4. Hedging
You use futures to hedge spot positions.
Example: You have BTC in spot, you open a short in futures when the market drops.
📊 RISK MANAGEMENT AND POSITION SIZING
In SPOT:
❗ Liquidation risk: None
📉 You can tolerate deeper corrections.
✅ Use a fixed % of portfolio per trade (e.g., 5-10%)
🧮 Use strategic entry prices with long-term objectives.
In FUTURES:
❗ Liquidation risk: High if you use leverage
⚠️ Maximum risk per trade: 1% of capital
🧮 Use position size formula:
Size = (Capital x Risk%) / Distance to stop
📌 Keep leverage adjusted to the context: lower in high volatility.
🛑 Always place stop loss. Without exception.
💡 FINAL TIPS
Spot is for building wealth. Futures is for generating cash flow.
Never trade futures
⚠️ WARNING ⚠️
📌 This is a personal and subjective analysis from Cripto Analista Latam, it is not advice, and under no circumstances should it be taken as a signal to trade.
💡 Remember that the cryptocurrency market is very volatile and unpredictable, so trade with caution and at your own risk.
🔎 Do your own research! (DYOR)
👤 By Cripto Analista Latam