On the morning of March 3, I was unsure how to enter the market after seeing the cryptocurrency market rebound, so I established some short positions at a high level, but the position wasn’t large. As the White House was about to hold a cryptocurrency meeting, I predicted that the market would experience fluctuations and adjustments, so I attempted a neutral strategy trading for ETH (Ethereum) that ran for a day, and I have gathered some insights I want to share with everyone.
This time I chose ETH perpetual contract grid trading against USDT, with 10x leverage added. The trading time started at 3 AM on March 3, 2025, and has been running for 21 hours and 46 minutes since then. The results are somewhat grim, with a total loss of 632.27 USDT and a return rate of -10.54%.
Let’s first talk about the basic situation of this strategy. The price range is between 2258 - 2658 USDT, a total of 40 grids were set, and the mode is arithmetic. Each trade amount is 1170.73172 USDT, with a profit per grid ranging from 0.33% to 0.4%. It sounds pretty good, but in practice, the market volatility is too severe, and it is not as simple as imagined.
From the profit and loss data, the realized profit and loss is -364.74 USDT, the unrealized profit and loss is -267.06 USDT, and the funding fees have also incurred a loss of -0.48 USDT. Although there is a paired profit of 280.42 USDT, the unpaired profit and loss is -912.22 USDT, and the annualized return rate is as low as -4240.96%. This indicates that market changes are too rapid and strategy adjustments are not timely enough.
Summarizing this experience, there are a few main points:
• Leverage risk is really high: Although 10x leverage can amplify profits, the losses can also be frightening. A slight market fluctuation can drastically shrink account funds. Next time, be cautious with leverage or reduce the leverage ratio.
• Grid settings should be more flexible: The price range set this time may not be very reasonable, and the number of grids and profit per grid have not fully considered market volatility. In the future, adjustments should be made dynamically based on market conditions, rather than being set in stone.
• Have a more accurate judgment of the market: Neutral strategies are not万能的 and must be combined with the overall market trend. When the market is unstable, do not enter blindly; observe and analyze more.
Here are some suggestions for friends who want to try the ETH neutral strategy:
• Start small: Don’t invest a large amount of capital at the beginning; use a small amount of money to familiarize yourself with the strategy and the market, and increase your investment after accumulating experience.
• Manage risks well: Set reasonable stop-loss and take-profit points, control your position size, and avoid overtrading.
• Continuous learning and attention: The cryptocurrency market changes too quickly, so it is necessary to continuously learn new trading knowledge and skills and keep an eye on market dynamics and related news.
Trading involves risks, and investment should be cautious. I hope my experiences can provide some references for everyone, helping you avoid detours in your trading journey.