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Author: Admin | 2025-04-28
You to trade the news easily, assuming you correctly guess how the market will react.For example, the appointment of Elon Musk and Vivek Ramaswamy to lead the Department of Government Efficiency (DOGE) on November 12, led to a rally in Dogecoin’s value. The acronym “DOGE” mirrors Dogecoin’s ticker symbol, causing investors to associate the news with the cryptocurrency, boosting its price.The homonymous cryptocurrency, Department of Government Efficiency (DOGE), has also experienced a significant rally. On November 12, it was priced at approximately $0.1670. On November 13, it peaked at $0.5085, marking an increase of over 204.49% in 43 hours.Pros Provides opportunities to trade quick bumps Can be automated if using trend-spotting bots Cons Easy to misread market reactions News may be unsubstantiated7) HFT and Algorithmic Trading – Best for Technically Inclined TradersAlgorithmic-based trading is common in the stock market. High-frequency trading (HFT) software makes trades automatically, with the largest financial firms trading millions of times daily.Now, HFT is available to crypto traders as well. One method is a bit more complicated and requires connecting to the application programming interface (API) of an exchange. This method uses bots, which are automated trading programs. You can hire someone to write one, write your own, or buy one from a provider.However, a simpler option is to use an exchange that provides bots. OKX and Pionex both offer an assortment of pre-built AI trading bots. Or, you can build or fine-tune your own. These bots trade 24/7 following defined rules (algorithms) for buying and selling.HFT or crypto trading bots can rack up trading fees quickly, though. So, it’s important to keep an eye on your profit and loss figures. Also, just like the bots used on Wall Street, black swan events can cause mixed signals that could be costly if your HFT bot runs amok.Pros Hands-off trading 24-7 trades to maximize profits Historical performance stats (backtesting) Cons More fees due to frequent trades Can be unpredictable in fast-moving markets8) Countertrend Trading – Best for Contrarian OpportunitiesNothing goes straight up or straight down. A countertrend strategy bets on inevitable reversals in trends. The trick is to know when to close your position. Michael Burry famously made a fortune betting against the 2000s up-only trend in real estate. Ultimately, Burry was right, but first, he was wrong for a long time.To find reversals for countertrends, you can use several types of indicators, including RSI, stochastics, and
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