#HODLTradingStrategy
🔁 Spot vs. Futures Day Trading Strategy (Arbitrage & Momentum Hybrid)
✅ Objective: Exploit short-term price inefficiencies between spot and futures markets, while riding momentum in the dominant trend.
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🔍 Core Concepts
Spot Market: Immediate delivery of asset; price reflects real-time supply/demand.
Futures Market: Derivative contract; price can diverge due to funding, leverage, or speculation.
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📈 Strategy Rules
1. Setup: Look for a divergence between spot and futures prices.
Use BTC, ETH, or NDX as examples.
Track premium/discount (futures - spot).
2. Entry Conditions:
🔻 Short Futures / Long Spot: If futures price is >0.5% above spot + negative momentum on RSI/EMA.
🔺 Long Futures / Short Spot: If futures price is <0.5% below spot + bullish momentum.