
🐻In prolonged bearish periods, you could start thinking about hedging strategies for your "spot" positions. Strategies through trading, options and bots. In this first part we will see "delta neutral" strategies and the classic "short". Remember that in all cases they can erode your profits from spot positions.
DELTA NEUTRAL STRATEGY: you can use it to not be exposed to volatility. It involves having a token in staking on chain or in a launchpool/launchpad on exchange and simultaneously shorting the same asset. What is the profit? The income from staking or farming. You can use it, also to trade Perps/Futures. You could have an additional profit based on the funding rate (if positive or negative).
SHORT: similar to the above case (even if you are not farming or using a launchpad), you can open a "short" (to cover your spot position) in case of bearish signals on the weekly: double top, head and shoulters, structure reversal with breakdown, lower low, higher low, top W construct broken downwards, etc 2 replies
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