#SpotVSFuturesStrategy #SpotVSFuturesStrategy
✅ Spot Trading Strategies:
Accumulation (DCA): Gradually buy at set intervals (daily/weekly) to average out entry price — great for long-term plays.
Swing Trading: Hold positions for days/weeks, buying dips and selling rallies based on TA (RSI, Moving Averages).
Trend Following: Ride major trends, using indicators like EMA crossovers or market structure shifts.
Risk Management:
Lower leverage (typically none).
Use hard stop-losses but with more flexibility since assets are owned outright.
Allocate smaller % of total portfolio per trade (2-5% common rule).
✅ Futures Trading Strategies:
Scalping: Fast in/out trades, exploiting tiny price moves, often on 1-15min timeframes.
Hedging Spot Positions: Use futures to protect long-term spot holdings during downtrends (e.g., shorting futures while holding spot BTC).
High-Leverage Breakout Plays: Trade breakout zones (support/resistance flips) with 5x-25x leverage but tight stops.
Funding Rate Arbitrage: Profit from positive/negative funding rates by opening offsetting positions on different platforms.
Risk Management:
Much stricter stop-losses due to liquidation risks.
Position size usually smaller due to leverage (1-2% capital per trade or less).
Max loss per trade typically capped to avoid account blow-up.
⚖️ Key Differences in Risk Approach:
FactorSpotFuturesOwnershipActual AssetContract (no ownership)LeverageNoneHigh leverage (1x-100x)Risk LevelLower (unless altcoin risk)Higher (liquidation risk)Time HorizonLonger-term biasShort-term/speculation focusDrawdown ToleranceHigher (HODL possible)Minimal (forced exits likely)
💬 My Prompt for You:
Do you prefer low-stress accumulation or high-volatility action?
Are you risk-averse or risk-tolerant? These will guide your balance between spot and futures.
I can help design a personal strategy template if you want. Just let me know your goals and risk appetite!