AguilaTrades has just consecutively closed three short ETH positions as ETH prices surpassed 4,300 USD.
This trader has opened and closed multiple short ETH positions over the past three days, resulting in a total loss of about 3.8 million USD despite previously earning 11.3 million USD from a long position.
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AguilaTrades closed short ETH positions three times when ETH prices exceeded 4,300 USD.
This trader previously earned 11.3 million USD with a long ETH position three days ago.
Lost about 3.8 million USD in three consecutive shorts due to early stop losses.
What transactions has AguilaTrades conducted with ETH in the past week?
AguilaTrades has implemented several ETH trading strategies over the past week, including long positions and short selling.
The repetition of the short strategy despite losses shows an effort to exploit price drop opportunities in a highly volatile market, but it also carries significant risks.
Why does AguilaTrades continuously close short positions on ETH when the price rises?
AguilaTrades closes short ETH positions when prices rise to limit losses.
According to tracking data, short positions opened early in the trading day were gradually closed via TWAP (time-weighted average price) about 20 minutes before the algorithm reported confirmation. This tactic aims to avoid uncontrolled risk in the context of ETH frequently experiencing strong volatility near 4,300 USD.
This is evidence of serious risk management, choosing to cut losses early instead of trying to hold positions that trend unfavorably in a highly unpredictable cryptocurrency market.
The continuous closing of short positions when ETH prices rise shows that the trader has a strict risk management strategy to avoid excessive losses.
Market expert commentary, August 2024
What does closing short ETH orders via TWAP mean in trade management?
Closing orders through TWAP helps traders gradually sell at the time-weighted average price to minimize the impact of large price fluctuations.
TWAP is a technique commonly used in finance to evenly distribute the quantity sold over time instead of closing all at once, helping to avoid price drops and market manipulation.
In the case of AguilaTrades, applying TWAP allows for flexible closing of short positions, increasing effectiveness and better risk control in the highly volatile cryptocurrency market.
What effective ETH trading strategies should be noted from the AguilaTrades case?
The AguilaTrades case shows the importance of being cautious with short positions in a strong bull market.
Risk management strategies such as early stop losses and using TWAP to minimize volatility are essential for protecting trading capital. Investors should carefully consider trading short ETH to avoid losses due to sudden bullish market movements.
Conversely, opening long positions can yield substantial profits if the sustainable upward trend of ETH is correctly predicted, as AguilaTrades has successfully done before.
Frequently Asked Questions
Did AguilaTrades profit or lose when trading ETH recently?
Why does AguilaTrades close short positions when ETH prices rise?
How does TWAP help in closing short orders?
Is risk management strategy important in cryptocurrency trading?
Should one trade short ETH in a bullish market?
Source: https://tintucbitcoin.com/aguilatrades-thua-lo-38-trieu-usd/
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