Many of us afraid of using leverage option of exchanges because of the liquidation risk of all our money.
Yes I believe it is for professional traders but is there a way to make a good profit without taking big risk at leverage options?
I was searching on internet to find a working formula for a long time but i can not manage to find a good one so i developed mine.
It worked for me at least in volatile markets to get the profit faster, otherwise it takes both time and attention to follow the price changes.
As all of us know the price of a cryptocurency raise and fall, but the price can not go up all the time so the formula depends on the falling of the price.
To gain profit in this method we need to open 3 short positions on the same crypto.
Yes I know it is not possible to open the second position on most exchanges with the same account but some applications like Stormgain allow their users to do that.
Or you have to open 2nd and 3rd account and make deposit to your each account on futures of your regular exchange with different id.
So what is the formula and how to make profit?
1st step: We open a 10x Short position (For example 10$/10x leverage at 10000$BTC)
2nd step: we make an order 25x Short position slightly close below the first order (for example 10$/25x leverage at 10950$BTC)
3rd step: we make an order double amount 25x below the liquidation price of the 2nd order (for example 20$/25x leverage at 11430$)
If the first order gains profit we take profit and close all positions.
If the first order get liquidated we take profit from the 2nd order.
If the 2nd order also liquidated than the 3rd order will cover all our loss if the price goes 4% down and will make us more profit if it falls more.
The best situation is to come closer to the liquidation price and activate our 2nd or 3rd order without liquidation and take the profit of the two orders at the same time.
As you know the price change of bitcoin is no more than 15% except big crises. On our formula our price change is 18%.
This is not a suggestion but it is up to you to use this formula. Take your own risk.