The CB003 strategy is designed to help you hold Bitcoin (BTC) profit in US Dollar (USD) by trading on linear derivatives markets. This guide explains how the CB003 strategy works, its key features, and important risk management considerations.
Understanding CB003: Hold BTC Profit in USD
The CB003 strategy operates within the Linear Derivatives market. It uses Bitcoin (BTC) as the held asset and collateral, with profit settlement occurring in US Dollar (USD). The core strategy involves both Long and Short positions, allowing it to adapt to various market trends.
This strategy is available to activate from the Pi Cycle + top indicators and remains available until the Pi Cycle + bottom indicators, ensuring its application across relevant market cycles.
Key Features of the CB003 Strategy
The CB003 strategy comes with specific parameters designed to manage risk and optimize returns:
Leverage: The strategy utilizes a conservative 1.25x leverage.
Safety Net: A built-in safety net provides approximately -40% protection (measured from the average buy/sell price) before a margin call would be triggered.
Minimum Deposit: To activate CB003, a minimum deposit of 1 BTC is required.
Maximum Deposit: The maximum deposit allowed is $4,000,000 per account or sub-account.
Expected Return: Users can expect an average return of 2%+ per month.
How CB003 Works
The CB003 strategy employs BTC as collateral to engage in linear derivatives trading. It is designed to programmatically buy (go long) or sell (go short) contracts that are priced in USD. The decision to go long or short is dynamically determined by the prevailing market trend.
When the market trend reverses, the strategy automatically closes these open positions. This mechanism allows for profits to be settled directly in USD, even though your initial collateral is denominated in BTC. This strategy is robust and designed to be effective across all market cycles, adapting to changing conditions to secure profits.
For more details on how our trading systems work, you may find our article Why Cryptobots Shares Its Trading System with the Public helpful.
Strategy Examples
Below are examples illustrating the strategy's performance:
Managing Risk: Leverage and Liquidation
Important! When trading with derivative strategies, it's crucial to understand the risk of liquidation. Due to the effects of convexity and leverage, there is a specific price point at which your position will be liquidated unless additional margin is added to your account. This is commonly referred to as a margin call, and it accounts for both the initial margin used and the impact of convexity.
At cryptobots.io, we prioritize risk management through a conservative approach. We limit the leverage used in the CB003 strategy to a maximum of 1.25x, significantly lower than the 125x maximum often available in the market. This conservative leverage level is designed to provide approximately a 40% safety net, measured from the average buy/sell price, before any additional margin would be required to maintain your position.
For more information on risk, please refer to our article Does the bot experience losses during trading? and Do Cryptobots Custody My Funds or Manage My Portfolio?
Supported Exchanges
The CB003 strategy can be activated on the following exchanges:
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Getting Started with CB003
If you are ready to register and explore the CB003 strategy, follow this link to cryptobots.io. You can also visit our Get Started page for initial setup information.
For specific strategies related to Bitcoin, explore our Bitcoin Bots page. Learn more about our unique profit share model.
Related Information
Explore other related strategies and articles:
Still Need Help?
If you have further questions about the CB003 strategy or need assistance, please contact our support team through the website.