Stocks and Perps
507 Posts
Stocks and Perps
Consistently profitable, low-risk trading strategies focused on perpetual stock futures.
8 Following
1.5K+ Followers
2.0K+ Liked
Posts
All
Quotes
I trade on more than a dozen exchanges for obvious reasons: if one of them goes under, it doesn't take all my cash with it! If I or the exchange gets hacked, same deal. I can confidently say that Binance is better in almost every aspect: APIs, fees, withdrawals, conversions, deposits, limits, etc. Many of the exchanges in the screenshot allow trading without KYC, whereas Binance requires KYC upfront. But be careful: I always recommend doing KYC, as skipping it greatly increases the chance of having your funds frozen. I've had my account locked for the equivalent of a car because I tried to withdraw without KYC. They only released it after I proved I wasn't trying to launder money! The key is to maintain transparency with exchanges, regulatory bodies, and governments, even to improve the bad image the media has built around this industry.
Until yesterday, my monthly performance was looking great at 77%, placing me better than 99% of other traders. However, I can't guarantee I'll close the month like this, as I shorted some AI alts and a few are pumping on fundamentals; it's tough to hold. But it’s still impressive, right?
There are two correct ways to risk a maximum of 1% of your capital, but I prefer one of them. Suppose you have $1000 to invest. So 1% of $1000 is $10, which is the maximum you're willing to lose. Remember that number.
The first way to manage risk, the more common one, is to open a position much larger than $10 but use a tight stop. For example, disregarding leverage, you open a position of $100 with a 10% stop or $200 with a 5% stop. In both cases, you won't lose more than $10.
The second way, less commonly used, is to apply exactly $10 per position, with the stop, in this case, being 100%, which corresponds to liquidating the position if you're in Futures.
Both methods have their pros and cons. In the first, if the price moves in your favor, you gain 10x or 20x more than in the second. But if it moves against you, you're liquidated 10x or 20x faster. In fact, we already know that the price can even move in your favor, but first, the stop-hunting wicks will easily take out your 10% or 5% stops. Am I lying? Another downside is that you'll be stuck with a maximum of 5 or 10 positions.
In the second method, you'll earn less if the price moves in your favor, but believe it or not, you’re unlikely to get liquidated by the wicks because your stop is 100% of the position. It's not impossible, but statistically rare for the price to move 100% against you. This means that almost always you'll come out ahead even with a small investment. Plus, you'll have the ammo to open up to 100 identical positions.
So remember, less is more! Cheers.
The first way to manage risk, the more common one, is to open a position much larger than $10 but use a tight stop. For example, disregarding leverage, you open a position of $100 with a 10% stop or $200 with a 5% stop. In both cases, you won't lose more than $10.
The second way, less commonly used, is to apply exactly $10 per position, with the stop, in this case, being 100%, which corresponds to liquidating the position if you're in Futures.
Both methods have their pros and cons. In the first, if the price moves in your favor, you gain 10x or 20x more than in the second. But if it moves against you, you're liquidated 10x or 20x faster. In fact, we already know that the price can even move in your favor, but first, the stop-hunting wicks will easily take out your 10% or 5% stops. Am I lying? Another downside is that you'll be stuck with a maximum of 5 or 10 positions.
In the second method, you'll earn less if the price moves in your favor, but believe it or not, you’re unlikely to get liquidated by the wicks because your stop is 100% of the position. It's not impossible, but statistically rare for the price to move 100% against you. This means that almost always you'll come out ahead even with a small investment. Plus, you'll have the ammo to open up to 100 identical positions.
So remember, less is more! Cheers.
We're moving forward day by day. Zero Bitcoin in the wallet, 73.36% monthly gains. Yes, it's possible, folks.
At the end of every month, I'm gonna clear out the posts with less than 1k views. If something caught your eye, make sure to save it.
Want to know if the market is leaning more towards short or long across multiple exchanges at once? The CoinGlass app shows you for free.
Log in to explore more content