Several friends have asked me for some tips on trading event contracts, so here I will share my personal practices and suggestions.
First, control your hands. Don't open orders frequently. If you open orders often without confidence, you are just gambling on luck. Even with a 50% win rate, you'll still lose on transaction fees!
Secondly, I personally make ten-minute trades based on divergence at tops and bottoms. If the time period is too long, the variables become too great. I use 15-minute and 30-minute charts along with hourly candles as references, and I start to counter-trade when there are more than three consecutive one-sided market movements.
Next, it's important to manage the size of your bets. When there is an opportunity to trade, start with a small bet. Don’t think about making a huge profit all at once; those who try to go all-in often end up losing a big chunk. Of course, if there is an opportunity with over 90% certainty locked in by three candlesticks, you can place a slightly larger bet (I generally don’t go over 50U).
Finally, once you’ve opened a trade, just let it be. No matter how much you watch it, you can’t change the outcome. The benefit of this approach is that if one trade hasn’t ended, don’t open a second one to ensure you don’t get too emotional.
I hope this can help my fortunate friends who follow me. If there’s a chance, I can also guide everyone in trading event contracts.
#Personal Operation in Event Contracts