When trading contracts in the cryptocurrency market, systematic operations should be conducted from four levels: trading preparation, strategy formulation, risk control, and mindset management. Here are specific suggestions:
1. Strategy Formulation: Combine trends and leverage to reduce ineffective operations.
1. Trend Following Strategy
Bullish Trend: In an upward trend, consider going long when BTC retraces by 10%-20%, for example, opening a position after the price stabilizes from 50,000 USDT to 45,000 USDT.
Bearish Trend: In a downward trend, go short when ETH rebounds to a key resistance level (like the 30-period MA on the 4-hour chart).
Technical Indicator Assistance:
A golden cross above the MACD zero line is a buy signal, while a death cross below the zero line is a sell signal.
When the Bollinger Bands widen, prices move along the upper/lower bands, which allows for trend-following positions.
2. Leverage Usage Principles
Beginner Advice: Start with leverage of 1-5 times, with a single position not exceeding 10% of total funds.
High Leverage Scenario: Only use leverage greater than 10 times when the profit-loss ratio is above 3:1, and it requires extremely low position sizes (e.g., 2% of total funds).
Leverage Formula: Liquidation Price = Opening Price × Leverage / (1 + Leverage × Maintenance Margin Rate). For example, with 50x leverage on BTC, and a maintenance margin rate of 0.5%, the liquidation price would be 48,543 USDT.
3. Arbitrage and Hedging Strategies
Inter-Period Arbitrage: Hold positions in contracts with different expiration dates to capture basis change profits. For example, when the weekly contract price is lower than the quarterly contract, buy the weekly and sell the quarterly contract.
Options Hedge: While holding a long contract, buy put options; if the price drops, the option profit can offset contract losses.
2. Risk Control: Set stop-loss and take-profit levels to avoid emotional trading**
1. Stop-Loss Strategy
Fixed Point Method: For example, with DOGE at 0.1 USDT, set a stop-loss at 0.095 USDT (5% loss).
Dynamic Tracking Method: When BTC longs rise from 50,000 to 55,000 USDT, move the stop-loss price from 48,500 to 53,000 USDT to protect unrealized gains.
Technical Indicator Assistance: Set stop-losses based on support levels, such as triggering a stop-loss if BTC falls below the 30-period MA on the 4-hour chart (49,500 USDT).
2. Position Management
Position Diversification Strategy: Divide funds into three parts, using only one part to open positions each time, with the remaining funds as a risk buffer.
Isolated Position Testing: Positions of the same direction and coin pair are independent; if one position is liquidated, only the margin for that position is lost, avoiding total liquidation.
3. Avoid High-Frequency Trading
- Trading more than 10 times a day can incur monthly fees of up to 15%-30%. Data shows that 92% of users with over 50 trades a month incur losses.
4. Mindset Management: Stay calm and ensure long-term survival**
1. Emotion Control
Prohibit revenge trading after losses and adhere to preset strategies. For example, if the stop-loss line is 5%, then immediately close the position when the price hits the stop-loss level, without delaying operations due to the 'holding position' mentality.
Keep a trading log, analyzing the basis of each decision (such as entry price, stop-loss price, target price, holding time), and summarize win rates and profit-loss ratios weekly.
2. Long-Term Perspective
Professional traders usually have a win rate of only 55%-60%, with the core of profit being 'keeping monthly losses within 5%'.
Set the goal during the beginner phase to 'keep monthly losses ≤ 5% for three consecutive months', rather than pursuing high returns.
3. Continuous Learning
Pay attention to market dynamics (such as policy changes or major project updates) and adjust strategies in a timely manner. For example, after the approval of the Bitcoin spot ETF in 2024, market sentiment turned optimistic, and one can appropriately increase long positions.
