#MarketTurbulence :
Long-term investors should integrate risk management tools inspired by traditional markets, while short-term traders may see fertile ground for swing trading or arbitrage around macro announcements.
Below are 5 steps to follow
1. Integrate the macroeconomic calendar into your trading
Note all key dates: PPI, CPI, Fed rate decisions, employment reports (NFP), etc.
Anticipate volatility before these announcements: reduce leverage, secure gains, or place well-calculated stop orders.
2. Diversify beyond cryptocurrencies
Include less volatile assets in your portfolio: government bonds, index ETFs, gold, cash in stablecoins.
Goal: cushion shocks if BTC/ETH move at the same time as the S&P 500 or Nasdaq.
3. Use risk management like in stock markets
Risk a maximum of 1 to 2% of capital per trade.
Place stop-losses based on average volatility (ATR) rather than fixed levels.
Implement hedging (e.g., short BTC to cover a long portfolio).
4. Exploit sector rotations in crypto
Monitor flows: if BTC weakens but altcoins or thematic ETFs (e.g., Ethereum, Layer 2, AI) receive inflows, temporarily reposition capital.
Use on-chain data and exchange volumes to identify the current “safe haven” assets.
5. Plan with two horizons
Short term: volatility trading around macro announcements (scalping, quick swings).
Long term: gradual accumulation during corrections, with a DCA (Dollar Cost Averaging) on fundamental assets (BTC, ETH).