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Author: Admin | 2025-04-28
Intraday volatility and market noise. The main requirement for position trading is to maintain a risk-to-reward ratio. Ideally, it should not exceed 1 to 3.2. Adding up to positionsAdding up means buying small amount of BTC when there are signals for an upward movement in the chart and gradually adding up to the long position as the price rises. For example, you can increase the position volume when the chart enters the breakeven zone, and add up more, when key levels are broken, or local highs are broken through. Thus, if the growth signals are misinterpreted, the trader will reduce potential losses.3. AveragingYou the BTC in small shares of the deposit when the price declines. This approach can be used on a short-term correction when you are confident that the Bitcoin price will be growing in the long term.4. HedgingYou enter short trades that hedge against the losses on Bitcoin longs. For example, you buy the BTCUSD on the spot market and simultaneously enter a short on the futures market. The short trade hedges against the price drop for the long trade. At the same time, the loss on the short position will actually be an insurance premium and will reduce the profit yielded by the long trade in case the price goes up.There is another feature for hedging BTC shorts vs longs. Instead of shorting Bitcoin, you can repurchase any asset negatively correlated to the BTCUSD. It is quite difficult in the crypto market as almost any currency on the blockchain asset-class goes in the same direction as Bitcoin. Let us compare the BTC longs vs shorts. Trading is always associated with risks, doesn’t matter whether you go long or short. However, these risks are different.The profit for a long trade is not limited as the price can rise
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