Long Gainers, Short Losers || My 4-Layer Altcoin Hedge Trading Strategy
If we look at businesses around the world, in trading there is such a scope that is good then every other business. let me say it in simple words: a person who knows trading well is like having an ATM machine installed in his home and whenever he wants he can take money from there.
Of course it is a charming business where if you understand it properly it can give you good earnings. And above all the important thing is that unlike other businesses there are not many difficulties here. There is no running around or physical effort.
Rather having a good internet connection and a laptop is enough and this can give you a good business plan while staying at home.
Before this I have already shared many strategies with you. Some of them are working, some of them I am modifying and some have failed.
HEDGE TRADING STRATEGY
Today I am going to share a new strategy that is definitely more profitable. And in this, the risk of loss is minimum. Or through a stop-loss we will cut this loss.
Before this I have already told you about hedge trading in silver and gold, how I am doing it and how earnings are made.
This is a safe side and slow earning strategy. But if you want to go into altcoins with this kind of hedge trading then read this content until the end because it will be very useful for you.
What you have to do is, first of all you must have an account on Binance. And there, in futures you have to adopt this strategy with only 1x leverage.
Dividing the Capital into Four Layers
What I do is I have divided my money into four parts.
My first layer is $100..
My second layer is $200..
My third layer is $400 and my fourth layer is $600...
SELECTING THE GAINERS AND LOSERS
What I will do is, from the top 15 gainers I will look at five altcoins that are potentially above the EMA 200 and potentially have strong bullish momentum.
Similarly from the top 15 losers I will find five coins that, after dipping have pumped and are around the EMA 200 but are below the EMA 200.
I will select these five coins from the losers. So in total I have 10 coins.
Long the Gainers and Short the Losers... Now what I will do is, the top five gainers that I have selected I will invest a total of $100 in all of them. Meaning the investment per coin will be $10 per coin.
I will simply long the gainers and I will simply short the losers.
This first layer will basically work as my monitor. When to Enter the Second Layer?
Now, whenever I see that from the overall $100 there is a 1.5% loss, meaning I have a $1.5 loss and my amount has become $98.5 then I will invest the second layer.
How will I invest the second layer? I will again long and short the same coins. But this time I will do it with $200. Meaning this time $20 per coin will be invested.
After doing this now I will wait until I get only a 0.5% loss from the second layer of dollars.
As soon as there is a 0.5% loss or overall I get a $2 loss from the capital of my second layer then I will invest the third layer which is $400. This time I will invest the third layer where my investment will be $40 per coin.
Now again, I will wait for it to crash another 0.5% so that I can invest my fourth layer.
The fourth layer investment will be $600, meaning my fourth layer capital investment will be $600. So the investment will be $60 per coin.
WAITING FOR RECOVERY
Now after investing all four layers I will wait for the recovery that I get from each layer. As I keep getting recovery I will keep closing those positions.
Remember, when the overall index goes down by 2% to 3% there is a very high chance of getting a 1.5% recovery.
So, that is your profit. Closing the Layers in Profit...
As I keep taking the layers out in profit, I will look at the overall result and see how much profit I have made.
When the overall profit from all my layers is good then in that situation I will close all the layers and book the profit.
USING A STOPLOSS
Now, of course, these are altcoins so they can go anywhere. So what will happen in such a situation? In this situation, I will also use a stop-loss.
Whenever I get an overall 2% loss across all these layers which is very rare and I am practicing it I have not seen such a situation so far.
In that case that will be my stop-loss which will give me around a $20 loss.
But by booking profit from each layer and investing again and again these losses will be recovered again.
Why Use This Hedging Strategy?
This is a very easy and simple strategy and a safe investment and safe trading method, which works in the form of a hedge.
Because I know there are many users who cannot trade on a single coin where they always have the problem of losses. So they should apply the hedge.
Even if they initially invest and trade with a very small amount they can adopt this strategy. Start Small and Increase Slowly...
If you like it and it is profitable then slowly and gradually increase your amount.
If you earn from this strategy then definitely tell me in the comment section so that I can work more on this strategy.
I hope you guys will like this post and is interesting as well. If you find it informative then dont forget to give me a support. Share you reviews in the comment section below. Thank you all for your time reading the content.
PICTURES DETAIL
REMEMBER: We should prepare for the unexpected and always hope for the best. Life may not be easy but you must do your best and leave the rest to God...
