Market: Inverse Derivatives / Swaps
Held Asset: ETH
Settlement Asset: ETH
Strategy: Long / Short
Available from: BTC.D top
Available until: BTC.D bottom
Key Features:
Leverage: 1x
Safety Net: ~ -50%
Minimum account balance: $5,000
Maximum Deposit: $4,000,000 (per account or sub-account)
Expected Return: 2.5%+ per month
Description: This strategy employs ETH to trade in the inverse derivatives or swaps markets. Depending on the market cycle, it programmatically buys (longs) or sells (shorts) contracts priced in USD when their price trends against the system's direction.
It then closes the trade profitably when the trend reverses, allowing the settlement of profits in ETH regardless of the strategy's direction.
While it is one of the most popular strategies among clients, it carries the risk of a margin call and is available in all market cycles.
examples:
Important!
When it comes to derivative strategies, users should be aware that, due to convexity and 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.
This accounts for both the initial margin used and the effects of convexity.
At cryptobots.io, we adopt a conservative approach to risk management by limiting leverage to a maximum of 1x 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.
These exchanges are available to activate this strategy:
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If you are ready to register follow this link https://cryptobots.io