Trading on Binance Futures allows you to earn huge profits through leverage and margin trading. However, to achieve a daily profit target of $15 with minimal risk, a careful strategy is needed. One method that can be used is scalping—a strategy that takes advantage of small price movements in a very short period of time. Here is a complete guide to using a margin of 30% of capital with the scalping method, while keeping the risk low.
1. Capital Preparation and Margin Setting
Before starting trading, it is important to determine how much capital you want to allocate and how to use margin effectively.
- Margin 30% of Capital: For example, if you have a capital of $300, then you will use $90 as a margin for each position. This ensures that you do not risk your entire capital in one position and have a reserve for unexpected situations.
- Safe Leverage: Use 3x to 5x leverage. Higher leverage can increase potential profits, but also increases the risk of liquidation. With moderate leverage, you can enlarge your position without significantly increasing risk.
2. Scalping Method: Profit from Small Movements
Scalping is a strategy that focuses on taking small profits from rapid price movements. On Binance Futures, these small movements often occur due to high volatility, especially in popular crypto assets such as Bitcoin (BTC) or Ethereum (ETH).
- Trading Time: Focus on 1-5 minute timeframes. Scalping requires intense attention to real-time price movements, and shorter timeframes allow you to catch small price fluctuations.
- Profit Target: To reach $15 per day, target a small profit per position, such as $2 to $5. By making several trades in a day, you can reach that target without opening too large or risky positions.
3. Technical Analysis to Identify Entry and Exit Points
For scalping trading, it is important to use technical analysis to identify the best time to open and close positions. Here are some indicators that can be used:
- Moving Average (MA): Use the 50 MA and 100 MA on a 1 or 5 minute timeframe to identify short-term trends. If the price is above the 50 MA, it indicates an uptrend, and vice versa.
- Bollinger Bands: This helps measure market volatility. When the price approaches the lower line of the Bollinger Bands, there is a chance of a rebound, and vice versa when it approaches the upper line.
- Relative Strength Index (RSI): If the RSI is below 30, the market is considered oversold (potential for an upward reversal), and if it is above 70, the market is overbought (potential for a decline).
4. Strict Risk Management
Risk management is key in scalping strategy to avoid big losses. Here are the important steps:
- Use Stop-Loss: Always set a tight stop-loss to limit your losses. For example, if your capital is $300, limit your losses to $5 to $10 per position. This prevents bigger losses if the price moves against your prediction.
- Risk-Reward Ratio: Use a risk/reward ratio of at least 1:2. That is, for every $5 risked, aim for a minimum $10 return. This helps maintain a balance between risk and potential return.
5. Discipline and Fast Execution
In scalping, speed of execution and discipline are very important. Don't let emotions influence your trading decisions. If the stop-loss is triggered, close the position without hesitation. If the profit target is reached, take profit and close the position before the market reverses.
- Don't Overtrade: Limit the number of positions opened each day. Overtrading can increase risk because you may become less focused on market analysis and signals.
- Follow the Trading Plan: Stick to the planned strategy, especially in managing margin and leverage. Do not be tempted to increase leverage for greater profits if market conditions are not supportive.
6. Example Trading Scenario
Here is an example of a trading scenario to achieve a daily profit of $15:
1. Initial Capital: $300
2. Margin: $90 (30% of capital)
3. Leverage: 5x ($450 Position)
4. Profit Target: 0.5% to 1% of position, or around $2.25 to $4.5 per trade.
5. Number of Trades: 3-5 trades per day to achieve a total daily profit of $15.
For example, if you open a position with 5x leverage on the BTC/USDT pair with the price approaching support on the 1-minute timeframe, and the price rises by 0.5%, you can make a profit of $2.25 to $3. Repeat this several times a day to reach the target of $15.
Conclusion
Trading strategy with 30% margin of capital and scalping method on Binance Futures allows you to achieve daily profit target of $15 with controlled risk. The key is to maintain moderate leverage, use technical analysis to determine entry and exit points, and have strict risk management. With disciplined approach and fast execution, you can achieve small consistent profits without having to take big risks.
Always remember, although scalping can generate quick profits, the crypto market is very volatile, so it is important to remain cautious and manage risk well.
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