View Binance cryptocurrency contracts as a 'store' that requires refined operations, and systematically build a trading framework. The following strategies are planned from six major operational dimensions, integrating practical data and platform characteristics:
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1. Market positioning and 'product' strategy (selecting trading track)
1. Main 'product' selection
- High liquidity varieties (e.g., BTC/USDT, ETH/USDT): high depth, low slippage (mainstream coins slippage < 0.1%), suitable for large fund high-frequency trading;
- Potential small coins (e.g., ACT): high volatility (some daily fluctuations exceed 40%), but beware of liquidity traps (±50% depth <1M USDT can be manipulated);
- Strategy adaptation:
- Trend store: Mainly focus on BTC/ETH medium to long term;
- Pop-up stores: Capture event-driven opportunities for small coins (e.g., layout before project announcements).
2. Contract type pairing
| Type | Applicable scenarios | Risk warning |
|------------|---------------------------|---------------------------|
| U-based | Newcomers' first choice, straightforward profit and loss (USDT priced) | Need to pay attention to funding rates (shorts pay when the rate is positive) |
| Coin-based | Earn coins when bullish (e.g., using BTC as collateral) | Risk of 'double kill' when coin price drops |
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⚙️ 2. Building an operational system (systematizing trading)
1. Position management 'inventory model'
- Single transaction risk ≤ 2% of total funds (e.g., for a $10k account, single stop loss ≤ $200);
- Leverage control:
- Mainstream coins ≤ 10x, small coins ≤ 5x (leverage dropped from 25x to 10x during the ACT event, triggering a chain liquidation);
- Margin model:
- Use isolated margin for small coin positions (to separate risks), and use full margin for mainstream coin fluctuations (stronger against volatility).
2. Automated 'sales system'
- Grid trading bot:
- In a volatile market, use arithmetic contract grids (e.g., set 100 grids for BTC in the $60k-$70k range, arbitrage every $100 fluctuation);
- Directional strategies can choose long/short grids (needs to be paired with leverage ≤ 3x to reduce liquidation risk).
- Conditional order strategy:
- Trigger breakthrough: Automatically go long when the price > previous high by 1% (e.g., chase the rise when ETH breaks $3,850);
- Stop-loss linkage: Immediately set 3% forced stop-loss + 5% trailing take profit after opening a position.
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3. Financial risk control (fund security is the lifeline)
1. Daily settlement rules
- Forcing a stop when daily losses ≥ 5% to prevent emotional over-investment;
- Withdraw 20% profit as 'store reserve' (similar to undistributed corporate profits).
2. Cost control
- Use BNB to pay transaction fees (enjoy extra discounts);
- Avoid high-frequency trading (annualized transaction fees exceeding 105% will eat into profits).
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4. Team and tools ('employee' automation)
1. Strategy 'employee' allocation
- Trend strategy: EMA7/30 golden death cross signal (15-minute cycle win rate 68%);
- Hedging strategy: Event contract long positions + perpetual short positions combination (reduce black swan losses).
2. Monitoring tools
- Use Binance API to track the difference between spot price and mark price in real-time (be wary of spikes when > 0.5%);
- Subscribe to funding rate alerts (avoid shorting when the rate > 0.1%).
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5. Risk management (responding to 'black swan' events)
1. Extreme market situation plan
- Enable holiday mode during policy-sensitive periods (Binance automatically raises margin rates);
- Avoid holding heavy positions over the weekend (the insurance fund paid out $230 million in a single day during the 519 event).
2. Technical defenses
- Use the latest price to trigger take profit and stop loss orders (not marked price, to avoid data delays);
- Check the depth chart before opening positions in small coins (give up trading when the buy-sell spread > 1%).
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6. Continuous optimization ('store' iteration and upgrade)
- Weekly review:
Record trading logs (opening logic/profit and loss ratio/error reasons), optimize strategy parameters;
- Dynamic adjustments:
Increase grid range in a bull market (e.g., adjust BTC upper limit from $70k to $80k), switch to neutral grid in a bear market.
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Conclusion: Operate contract accounts with a business mindset
The essence of cryptocurrency contracts is a probability business:
- Positive expectation strategies (e.g., cross-period arbitrage monthly return 8%) need strict discipline support;
- Reject 'gambler-style operation' (event contracts expected return E = -1U/time).
> If a simulation drill is needed before the store opens, it is recommended to complete more than 50 transactions in the Binance simulation account before going live, turning mathematical advantages into continuous cash flow.
