Dear traders: May God bless your time with goodness
We inform you that the market has cycles throughout the year that are completely contradictory. For example, one of these cycles is significantly upward, reaching historic peaks where cryptocurrencies reach their highest price increase. As we all saw, the peaks of Bitcoin, Ethereum, Solana, Binance, and others in the previous cycle reached their maximum height. It is certain that these peaks will have a corresponding downward cycle, reaching the lowest possible point that the symbols can reach as a natural result of the concept of rising and falling.
(How to deal with market cycles)
First: You must understand when the market cycle is upward or downward to determine your method of operation.
Second: In the upward cycle to the highest peaks, a correction occurs, not a regular decline, and in the downward cycle, an upward correction occurs, but it is not a regular rise. So try to understand the difference between them.
If we agree that this phase is a (regular decline) to reach new lows, you should follow some methods to avoid risks, including for example
1_ If you are working on a futures trading system, in the downward cycle, you should operate on a short system, which is essential at this stage, and with a financial leverage not exceeding 9 times, with stop-loss and without risking sailing against the market in the long direction, no matter how tempting it may be, this is a trap.
2_ If you are working on a spot trading system, the most important thing is to hold your symbols and not rush to sell, waiting for the upward market cycle, in addition to searching for targeted projects and dealing with them when they have completely completed the downward stages.
3_ If you are operating on a bot system, here are some methods to avoid risks. Understanding how bots work is profitable if you use them correctly. If the cycle is declining, like what the market is currently experiencing, selling bots are your direction, but by following some simple steps. If you want to open a selling bot, you must be sure of the symbol you will start on in case of a repeated decline. You must disable the trailing feature, whether it is trailing up or trailing down. You should also cancel opening a trade when opening the bot and make the bot operate on a limited number of grids only. This has some advantages, including the price gap due to the filtering factor widening, and the price may be higher than the price on the trailing feature, but it is less risky, especially when the bot does not have an open and volatile trade with price fluctuations. Thus, you can profit from the bot more securely, and also use the isolated system feature instead of the mutual one.
Stay safe.
