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Yeah it’s been part of it VERY HAPPY to have managed to avoid REKTS (without stops), I like how you approach that long, indeed 0 is the way to calculate max risk 🙂
I have also thought …. [kob remembers…(and yesterday saw my whale sniper confirm the idea is solid
A whale bought 900k of ONE/USDT on spot and sold/opened a 99k short on Binance-Futures for ONE/USDT (nifty as I was not happy to enter, this way solves all risk /doubt)
That short he will likely add to average when uptrend is finished and he sold part of his spot position…
about When you have or are building a long position on Spot say a $5000 amount in USDT of.coin open a Short Bot for $100 at 50x and have your haasbot trade the next leverage bracket, this is ideal if you buy a falling coin with a grid or to hedge account, but that is less clear..
key is to have sufficient balance so your bot might be allowed to spend max leverage bracket, and if you find it messed up a few averaging orders at some key levels it may fill and waiting is enough, definitely not perfect, a hedge that makes profit at a higher rate than this is dropping was one:
In my early (very costly in the end) sessions on Deribit: market splash multiples of 1000 contracts I would when a small position reversed down in a relatively sideways market where you could use Bollinger Bands to see this immediately open 3x o4x the size on opposite direction.. This would catch up and surpass the losses the dropping position (left untouched)
When I’d notice that winning 4x size was exhausting and reversal eminent, close the big ‘Degen Splash Hedge’ for good profit.
And like it makes sense add 3x the size to the now -400 ROI or so long position to get it close to its break even level in one quick order, might have added some here and there it was at a brief phase where I thought market orders were handy 😉
But it works unless you encounter a monster trend then you simply drop the initial recouped loser position.
I also tried the passive set maker orders for rebate or no orders at all to increase the loser, eventually it gets in range and if funding is favorable etc all things to ponder, re-think (for me)
I’m gathering info, parts and am eager to do a new SMMB
Looking up the whale trade, it appears more sinister, first Whale (assuming it is one person as it is within minutes in sequence) buys large amounts to move and create momentum from traders following ‘gainers’. he ends up opening a digit bigger Short 🙂