IX.19. Altcoin Futures Trading Strategies.

Altcoins are characterized by strong price movements during the trading day, which makes them a very specific tool. With such strong movements, putting the feet becomes a loss-making undertaking, because they are knocked out all the time. What to do?

We will describe, however, possible strategies that allow you to trade altcoins confidently.

1) Trade in two directions at once, placing stop-limit orders. When one of the orders is triggered, we immediately put a stop, which we move behind the price before it is triggered.

2) Trading by levels with stops.

3) Trading of breakouts of levels and bounces from the level with stops.

4) Buying according to the trend with reasonable stops (0,2% – 2%).

5) When trading in short, it is necessary to remember about sharp reverse movements up to 1/3 of the candle. I.e. here we use a stop moving behind the price.

6) When trading altcoins, you should remember about the principle of two windows, i.e. we observe both the movement of BITCOIN and the movement of your altcoin at once. Therefore, it is possible to place applications for altcoin, focusing on the BITCOIN chart. For this strategy, it is necessary to choose a suitable altcoin that reacts strongly to the movement of BITCOIN.

7) Staking, i.e. storing coins at an attractive interest rate for a short period of time.

8) It is possible to perform hedging using futures. We buy a spot and if it starts to fall in price on the futures account, we sell futures for the same amount. This allows you to sit out the fall, take profit from the short and buy a cheaper spot. 9) Recently, it has become possible to use different pairs of the same coin, for example, LUNA2USDT and LUNA2BUSD. I.e., we buy on one pair, sell on the other for hedging.

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