We are seeing that Bitcoins price is continuously going down and at the time of writing it is around 66K. There can be two main reasons for this. The biggest reason is the current war situation between Iran, America and Israel which is now slowly affecting other regions of the world as well. This situation creates negative sentiment for the market.
The second reason can be manipulation in the market where big players take advantage of war news and move the price up and down. In such an environment volatility increases because of which normal traders and investors have to face more risk.
Still no matter how the market is because its mechanism is such that it keeps going up and down. Because of this many traders face problems and investors get worried because their investment goes into loss and traders do not get clear trade setups.
But even now I have a strong trading strategy where the risk of market ups and downs can be controlled to a good extent. This is a strategy where I believe the win rate can be around 80% to 85% and if applied properly the profit ratio can improve even more.
As I mentioned before I created a bot that can open more than 30 trades on Binance with one click automatically. This means I do not need to open positions manually the bot itself handles trading which improves both speed and efficiency.
Through this bot this strategy is still running. This strategy was developed by me and my two uncles together and we named it “Profit Hedge Trading”.
The basic concept of this strategy is that you open trades on multiple coins at the same time so that the risk is diversified. You have to take a total of 20 coins into trade at once.
The method of working is that first you long the top 10 gainers from one system and short the same coins from another system. Then for the top 11 to 20 gainers you do the same... long from one system and short from another system.
This means that at the same time you are using 4 systems where you cover both sides of the market. In this way whether the market goes up or down you are generating profit from one side or the other.
The mechanism of this strategy is that when you first long and short the top 10 gainers then you have to note one important thing and that is a 5% difference. This whole setup gradually starts behaving like an index.
As soon as on either side whether gainers or losers, a 5% difference is formed you take action. For example if the gainers index goes to +5% and the losers index is at -5% then at this point your balance is almost equal because you have taken long on one side and short on the other.
Now since the gainers index has gone up to +5% then in this situation you “market close all” the gainers side. This means that with one click all your positions that you opened long on gainers are closed.
After this your short positions (which you opened earlier) are still open. Here the core of the strategy works because you have around an 80–85% chance that the market will retrace a little and you can get at least around 2% profit just within a few hours.
If the scenario becomes such that your short positions go further into loss then you apply your second layer. In this way you can apply up to a maximum of 3 layers to manage your trade. Because of this layered approach the chances of profit become quite high while the chances of stop loss being hit remain quite low.
this is a strategy that we designed and I thought to share it with my friends so that you can also benefit from it in this uncertain and risky market condition.
Also remember that you can apply this strategy on #hive-engine tokens as well such as Helios, LEO, Colony, Script and other coins that you are holding. Also you can read my post about coin rotation which works best with hive tokens.
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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