I. Basic Strategy: Trend Following and Oscillation Capture
1. Trend Following Strategy
Core Logic: Identify the main market trend using technical indicators, open positions in the direction of the trend, and dynamically adjust the position size.
Entry Signal: Moving Average Cross: Go long when the short-term EMA (e.g., 50-day MA) crosses above the long-term EMA (e.g., 200-day MA), and go short when it crosses below.
Breakout Confirmation: Enter long when the price breaks through key resistance levels (e.g., previous highs) with increased volume; enter short when it breaks support levels.
Dynamic Management: Trailing Stop: Set the stop-loss at the nearest support/resistance level and gradually adjust it upwards (for longs) or downwards (for shorts) as price fluctuates.
Position Adjustment: Use 5-10x leverage in the early trend, gradually increasing to 20x after trend confirmation, but total position size should not exceed 30% of account equity.
2. Oscillation Trading Strategy
Core Logic: Buy low and sell high within the price range, profiting from support and resistance levels.
Range Identification: Bollinger Bands: Short when the price touches the upper Bollinger Band (e.g., 2 standard deviations), and go long when it touches the lower band.
Fibonacci Retracement: Set entry points at 0.382 or 0.618 retracement levels, for example, go long on ETH at 1,800 USD (0.618 retracement) with a target of 1,950 USD and a stop-loss at 1,750 USD.
Capital Management: Fixed Position Size: Use 5%-10% of account funds for each trade to avoid liquidation due to unilateral breakouts.
OCO Orders: Set both take-profit and stop-loss simultaneously, for example, in the ETH range of 1,700-1,900 USD, set take-profit at 1,900 USD and stop-loss at 1,650 USD after going long.
II. Advanced Strategy: Volatility and Market Structure
1. Volatility Trading
Going Long on Volatility: Strategy: Buy straddles when implied volatility is below historical average (simultaneously buy at-the-money call and put options).
Parameters: Choose options with 30 days remaining until expiration and strike prices close to the market price, for example, establish a position when BTC options implied volatility is 15% (historical average 20%), with a cost of about 500 USDT, and close the position when the target volatility returns to 20% for profit.
Shorting Volatility: Strategy: Sell straddles when implied volatility is above historical average (sell out-of-the-money call and put options).
Risk Control: Set the stop-loss at 1.5 times the premium received, for example, if you receive a premium of 800 USDT, set the stop-loss at 1,200 USDT.
2. Market Structure Arbitrage
Long-Short Ratio Imbalance Arbitrage: Signal: When the Bybit contract long-short ratio exceeds 2.5, indicating an overheated long position, consider shorting with a small position.
Open Interest Breakthrough Strategy: Logic: When contract open interest reaches a historical high and price breaks through key levels, follow the trend to open positions.
Case Study: In March 2025, when SOL contract open interest exceeded 100,000 contracts and the price broke through 100 USD, go long with a stop-loss at 95 USD and a target of 110 USD, yielding a profit of 9.5%.
