> 2 Bitmex accounts > 1 Short - 1 Long at exact same leverage and value > 1 Futures Short - 1 Futures long at same leverage and higher value than swaps.
On a break out in either direction your short liquidation acts as a advanced stop loss. If you have your futures at a higher level you can always scale down or scale up to anticipate further inverse action against your position. This way you do not have to guess a price, all you have to do is rely on a break out. Furthermore you can do set up similar positions on each account on ETHUSD long/short.
catch:
> 1. No profit in between ranges > 2. A double liquidation if there is a 1000$ bart > 3. If you stay in range too long (lets say 1-2 weeks) funding rate will eat your position. > 4. Brainlets won't comprehend this, not sure why I am even posting it here.
B-b-but Bitmex is for degenerates.
> t. 7~ BTC in profit this month, testing out new strategy at the moment.
When was the last time there was a 1000$ bart followed by a 1000$ bart in the opposite direction on the same candle? Because that would have to happen for a double liq. Obviously you would set a stop right above your long liq. to catch profits and ride out the futures to go hard into profits. Funding rate eating your position only happens at a few % over weeks, it is negligible. But yes, those are the catches.
Charles Barnes
>all you have to do is rely on a break out
yes that's pretty much it, I remeber somebody else posting about this exact strategy like a month ago, It might be more common than you think
> 1 Short - 1 Long > 1 Futures Short - 1 Futures long >If you have your futures at a higher level you can always scale down or scale up to anticipate further inverse action against your position.
wait i dont get it. why 4 positions? how does the futures position help you?
why not just short on one account and long on the other with pretty high leverage on cross? on breakout, one account will get rekt, the other will profit (hopefully more than the loss of the rekt account. ie. the breakout has to be large enough)
Lucas Reed
Pretty sure it wont work t.tried something similar
Logan Thompson
I wonder why no one ever thought about this before. Maybe time to start a hedge fund?
because if you get liq'd on one position you still have a chance of the mark price not going above profit on the opposite side before going back down. It's a small chance, but its a risk you will have to put in the equation. With the futures at least you'll be in profit, not liquidated and can adjust without losing out on your swap margins loss. You will still be in loss, but it will be comparable to holding a regular margin position at that point.
ps. this is not how i am doing it, I am working this out on the testnet and currently doing mental gymnastic trying to understand how to profit of such a strategy.
great, thanks!
Dominic Lee
so it's a strategy where you pay out of your ass to do it and whatever you win you also lose? sounds good.
Joshua Jones
you only win on a break out which is great when the price is flat. Lets say we break out 10-50 points above your short liquidation, then you will be at 10-20% profit on the long (depending on margin it could be as high as 100%+). Likewise on the opposite side if we break down below and the long gets liquidated. The futures are there for extra risk management. Inside the flat price channel however there is a 0 profit zone, but it is also a 0 risk zone. the only risk is directly at your liquidation point (in case it decides to reverse right there).
Christopher Parker
ok well you will profit as long as the market is relatively flat then has a large enough breakout
doing a long straddle (buying a call and a put option) will be similar. it can be done on Deribit. it's most profitable if the market has been flat for a while, so the options are cheaper
Brandon James
why don't you just close the short position right before hitting liquidation and take whatever the leveraged long gets you? wouldn't that be massively more profit?
Jacob Hughes
so this is basically scalping. you rely on the market not turning around before you are on profit and have time to execute your counter trades. sounds like high risk low reward to me. you also have to take account your hedging on total % of return.. too good to be true, sadly
Cameron Hernandez
and if nothing happens you keep losing money.
Jordan Gray
I was doing it on forex trading for about 2years, you can do it there from single acc. It is called hedging, and everyone can do it but it take some patience. Just add more money in your long or short position, depending on market trend. Simple stuff but you need twice more action to make money.
William Anderson
Its a strategy in options trading called "saddle", you buy a put and a call for the same date on opposite positions, its a bet on volatility - basically betting that the price will exit a certain range. You lose if the price stays in the range ( between your long and the short). also, if it takes too long for the price to move, you start losing real money on leveraging fees.
t. Work at an index fund.
Jonathan Lopez
since when does hedges generate profit
Luke Flores
i tried this already.
made small gains until one time i got position hunted. the price moved up and liq my short, then it dumped and liq my long, all in a matter of a few minutes lol then both my accounts were on zero
Levi Martinez
if he uses futures contracts there is no cost to holding the position though. they trade at spot price these days
actually there is no cost to holding the swap either, since he has opposite positions the funding will cancel out
Jackson Lopez
“Just add more money in your long or short position, depending on market trend“
