Here is another Hedge Mode trading strategy that is very simple and can also be profitable. You just need to follow a few steps. So stay with me until the end of this content and learn another trading method that actually works.
You can apply this strategy to any asset, whether it is cryptocurrency, metals, the stock market or any other market. The only requirement is that your trading platform must support Grid Trading. In other words, if your trading bot offers Spot Grid or Futures Grid then you can easily implement this strategy.
Since I am more confident in trading metals, I believe they are among the most valuable assets. Their demand continues to increase and they have many real world use cases. That is why I believe that even a long term investment in metals has a very high chance of being profitable.
Personally I prefer trading Gold and Silver. Among these two metals I prefer Silver because it is more volatile which creates more trading opportunities.
You can use Binance Futures Grid Trading to apply this strategy.
This is a Hedge Trading method for Silver.
To use it, you should have one main Binance account along with one sub account. (Easy to create)
At the moment, Silver is trading around $59.
Now, you need to create one Long Futures Grid and one Short Futures Grid.
If I have a total capital of $3,000, I will invest $2,000 in the Long Futures Grid. I will set the trading range from $50 to $70.
Like this
Amount $2000
Range : 50-70
Number of Grids: 150
Position: Long Side
On the Short side, I will use only half of the Long investment. Since I invested $2,000 on the Long side, I will invest only $1,000 in the Short Grid.
The trading range will remain the same, from $50 to $70.
I will use 150 grid levels for both bots.
Like This
Amnount: $1000
Range: 50-70
Number of Grids: 150
Posistion: Short Side
After completing these settings I simply start both Grid Bots. The bots will continue buying and selling Silver automatically within the selected range, allowing me to earn grid profits from every completed trade.
The biggest advantage is that you are controlling your risk through a hedge.
Since I believe that Silver is more likely to move upward in the long term I open a double sized position on the Long side. On the other hand since Short trading carries more risk, I only open a single sized position.
There are only two possible scenarios.
Either Silver falls from $59 to $50 or it rises from $59 to $70.
In the first scenario, if the market becomes bullish and Silver continues moving upward, my Long position will generate much larger profits because it is funded with $2,000. Meanwhile, my Short position which only has $1,000 invested, will gradually accumulate losses as each grid level is filled.
As soon as Silver reaches my upper target of $70 I will close both positions.
What Will happen?
I will accept a small loss on the Short sid while my Long position will produce a much larger profit because it has double the investment.
In addition, every completed Grid trade on both sides will generate extra Grid profits, which become an additional bonus. If Silver remains within this range for one or two months, the total Grid profits can become significant.
If Silver falls and reaches $50 I will close my Short position and book the profit.
My Long position will be in a loss but I will continue holding it.
After closing the Short position I will create a new trading range from $50 to $40.
At the same time, I will open another Long Grid as a second layer and start another Grid Bot.
This will continuously improve my average entry price. When Silver eventually recovers, my Long positions have the potential to generate a much larger profit.
This is a simple Futures Grid strategy that can help you generate relatively safe and consistent income while controlling risk through hedging.
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.
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