Futures Strategy (5× Leverage, $10 Margin)
When trading WCT futures with 5× leverage, risk is dramatically amplified. Even a small adverse move can trigger large losses or liquidation. For example, Mudrex notes that with 5× leverage, a 2% price move against your position eats up 10% of your margin, and a quick 9% adverse swing can wipe out a 10× position entirely. Gemini likewise warns that “even a 5% market move can double your returns — or wipe out your position” when using leveragegemini.com. Therefore, any futures trade must use very strict stops and modest position size.
Currently, the chart shows WCT extended above its upper band (overbought). A reasonable trade bias is to sell (short), targeting a pullback toward the middle band or lower support. If taking a short position around $0.59, our plan might be:
Take Profit Targets (TP): (price levels below entry)
TP1: ~$0.56 – a ~5% drop (locking in modest profit if a pullback begins).
TP2: ~$0.53 – around the 20-SMA (middle Bollinger band) area.
TP3: ~$0.50 – near a lower support zone, about 15% down from entry.
Stop Loss Levels (SL): (price levels above entry)
SL1: ~$0.60 – just above current (~2% above entry), for tight risk control.
SL2: ~$0.63 – above recent minor resistance (~7% up).
SL3: ~$0.66 – just above the last swing high (0.6588, ~12% up).
