The CB002 strategy is designed for users who wish to hold their profits in Bitcoin (BTC) by trading in inverse derivatives or swaps markets. This guide explains how the CB002 strategy operates, its key features, and important risk considerations.
Understanding the CB002 Strategy
The CB002 strategy specifically targets the Inverse Derivatives or Swaps markets, using BTC as both the Held Asset and the Settlement Asset. This means that all trading activities and any profits generated are denominated and settled back into BTC.
The strategy dynamically adapts to market cycles, programmatically executing Long (buy) or Short (sell) contracts. These contracts are priced in USD, and trades are initiated when the price trends against the intended direction of the trade. The system aims to close the trade profitably when the market trend reverses, ensuring that profits are settled in BTC regardless of whether the initial strategy was long or short.
This strategy is available across all market cycles, from Pi Cycle + bottom indicators until Pi Cycle + top indicators, making it a versatile option for various market conditions.
Key Features of the CB002 Strategy
The CB002 strategy offers several distinct features designed to provide a balanced approach to trading inverse derivatives with BTC:
Leverage: The strategy utilizes a conservative leverage range of 1.0x
Safety Net: A built-in safety net provides protection against market movements of -50% from the position's break-even price before a margin call is triggered.
Minimum Account Balance: A minimum account balance of $5,000 is required to activate this strategy.
Maximum Deposit: The maximum deposit allowed is $4,000,000 per account or sub-account.
Expected Return: Clients can anticipate an expected return of 2%+ per month.
The CB002 strategy is a popular choice among clients due to its direct BTC profit settlement and adaptability across market cycles. For more information on Bitcoin-specific trading options, visit our Bitcoin Bots page.
Risk Management and Margin Calls
Important!
When engaging in derivative strategies, users must understand the inherent risks, particularly concerning margin calls. Due to the nature of convexity and leverage, there is a specific price point at which a trading position will be liquidated. This liquidation occurs unless additional margin is added to the account to maintain the position.
This risk accounts for both the initial margin used and the compounding effects of convexity. At cryptobots.io, we prioritize a conservative approach to risk management. We limit the leverage to a maximum of 1.0x, significantly lower than the 125x leverage often available on exchanges. This conservative leverage level provides an approximate 50% safety net, measured from the position's break-even price, before additional margin is required to sustain the position.
For further details on how your balance is utilized, you may refer to Does the System Use Your Entire Balance for Each Trade? and Does the bot experience losses during trading?
The images below illustrate examples of the CB002 strategy in action:
Supported Exchanges
To activate the CB002 strategy, you can use any of the following supported exchanges:
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Getting Started with CB002
If you are ready to register and begin using the CB002 strategy, follow this link to cryptobots.io. For a comprehensive guide on setting up your account, please refer to our Get Started page.
Still Need Help?
If you have further questions about the CB002 strategy or require assistance, please visit our homepage at cryptobots.io for more resources or to contact our support team.