3 Comments

SilverGate is good news for crypto, nothing better for investors in the space than volatility. Most of my investing in crypto is in futures betting the trend short and long based on the funding rate. All my positions include a stop loss, with a take profits at 2x my entry. Yes, it is gambling a win gains 2x while hitting the stop loss loses the money bet. The theory is 2x will on the average happen 45-50% of the time. $100 bet overall will be will be a losing trade while 2X will provide $200 50% of the time.

Like I said it's a form of gambling, but the same as futures markets in general only crypto futures are perpetual contracts, the time basis of the trade is factored using 15 minute candles and confirmed using 30 and 60 minute candles. Currently I'm paper trading to test the theory, so far it has been working out with some success.

Expand full comment

I’m curious as to what you use for trigger points: some sort of overbought / oversold boundaries on a stochastic model (volatility)?

Expand full comment

Touch of the upper Bollinger band with a Shooting Star candle within the next 5 candles without breaking the high of the candle that broke or touched the upper Bollinger band sets up a Short position. There's a few other signals used to confirm the trend, with a few other confirming actions. Moreover, the reverse action or a touch of the lower BB signals a long position set up. I didn't come up with this strategy on my own, I'm part of a crypto alpha group and one of the members has a subgroup investing in crypto Perp Futures.

Expand full comment