Choose this strategy if you anticipate Ethereum's value will continue to rise relative to the USD, and discontinue it once you expect Ethereum's upward trend against the USD to come to an end.
Market: Linear Derivatives
Held Asset: USD
Settlement Asset: USD
Strategy: Short
Available from: BTC.D top
Available until: BTC.D bottom
Key Features:
Leverage: 1.5x
Safety Net: 50%
Minimum Deposit: 10 ETH in USD ($10,000 using Hyperliquid exchange)
Maximum Deposit: $4,000,000 (per account or sub-account)
Expected Return: 3%+ per month.
Description: This strategy utilizes USD as collateral to trade in linear derivatives markets. It programmatically buys (long) or sells (short) contracts priced in USD, depending on the market trend.
The strategy then closes these positions when the trend reverses, allowing for profit settlement in USD.
This strategy is available across all market cycles.
Important!
When it comes to derivative strategies, users should be aware that, due to leverage, there is a price at which the position will be liquidated unless additional margin is added to the account, also known as a margin call.
At cryptobots.io, we adopt a conservative approach to risk management by limiting leverage to a maximum of 1.5x out of 125x possible.
This conservative leverage level provides approximately a 50% safety net (measured from the average buy/sell price) before additional margin is required to maintain the position.