Last Tuesday, Bitcoin suffered a correction where BTC and ETH fell 10% in one day. The market decline continued, once approaching the position of $55000. Technical indicators show that the recent strong rise in the cryptocurrency market will stop. When it comes to times like this where there is a sharp correction and even a sharp decline, it is the upmost important thing to understand how to reduce losses effectively.
As we can see that Bitcoin fell by more than 40% in 24 hours on March 12, 2020 and reached the highest of 30% in 24 hours on May 19, 2021. In this time of intraday amplitude of more than 50% and wide fluctuation of hundreds of thousands of dollars, it is difficult to survive even if you only use 10% position and do not set a stop loss.
When the currency price is plummeting, the public is worried that bargain-hunting at any time may be bottomless. How to reduce the risk in the falling market? Some people may just consider getting off early and getting on again after confirming that there is no more danger. But we can also do the opposite where we sell short and do quantitative trading.
Quantitative trading has a number of benefits. When the market rises, everyone makes money and you make money along with them. When the market plummets and the public tends to sell at a much lower price, you can make a short profit. Especially for a quantitative trading tool that is beginner-friendly such as Vtrading, you can almost participate in quantitative trading with zero threshold. You only need to select the investment you want, make an order with one click, and the AI quantitative trading robot will serve you intelligently. A variety of quantitative trading strategies are free and easy to use. Even entry-level users can start the quantitative trading journey with the help from the recommended strategy parameters based on the big data model.
When the market is falling, we can choose strategies in two ways: long-term and short-term. In the short term, we can use Vtrading's contract grid strategy to short orders, and in the long term, we can buy on bargain hunting. How can we decide on the low point of this bargain hunting? In order to do so, it is necessary to combine your intuition about the market along with the K-line analysis. For example, some people have a good intuition about the market and will buy at a price that is in line with their own expectation. Some people buy when they encounter the lower shadow line. The forming of lower shadow line happens when the sales order is relatively large and the purchase order is also large. The moment they hit the lower shadow line, they are all eaten by the purchase order, so the price rises and a lower shadow line is formed. Therefore, the longer the lower shadow line, the safer it is, indicating that the purchase order in this position is large. Some look at the weekly level support and some look at the daily level support. We can judge the support level of currency price through factors such as moving average, price, gap and channel.
Generally speaking, there must be a rebound after a slump, so we can use Vtrading's Martin strategy to buy on the low point. Using DCA tracking strategy through multiple fixed investments, the cost gradually increases. Once it rebounds and the income increases, the leverage of the contract can also play a good role. By using Vtrading, we can use the Martin tracking strategy under its Strategy library on the trading page. Then select the customized startup, fill in the parameters or use the default parameters, finally entering the invested capital for the startup. If the currency fluctuates, the tracking interval is set to be bigger. If it rebounds, it is recommended to set a little bit bigger. If the rebound is not high enough, the system will not buy-in, helping to prevent collapse.
The well-known saying that "a sharp fall will always follow a rebound" is only a matter of probability. There is a big chance of it being rebounded but a small chance to be continuing to fall. What if the big rebound turns into a disaster? If that happens, the most important thing is to control the position and use DCAstrategy to control the order quantity, so as to ensure that there is still enough funds to cover the position when the price falls to a relatively low point. If you want to make a quick profit, follow the trend. When the signs of decline are obvious, use the contract grid strategy to short or increase the grid interval. The greater the interval, the smaller the risk. If the spot strategy is used, you can suspend the strategy and wait until the sharp decline situation in the market is getting stable.
Generally speaking, quantitative trading can stand the test in the plummeting market. If you are interested in cryptocurrency, you might as well participate in quantitative transactions from now on. Maybe it will not take long for you to benefit from it.
As we can see that Bitcoin fell by more than 40% in 24 hours on March 12, 2020 and reached the highest of 30% in 24 hours on May 19, 2021. In this time of intraday amplitude of more than 50% and wide fluctuation of hundreds of thousands of dollars, it is difficult to survive even if you only use 10% position and do not set a stop loss.
When the currency price is plummeting, the public is worried that bargain-hunting at any time may be bottomless. How to reduce the risk in the falling market? Some people may just consider getting off early and getting on again after confirming that there is no more danger. But we can also do the opposite where we sell short and do quantitative trading.
Quantitative trading has a number of benefits. When the market rises, everyone makes money and you make money along with them. When the market plummets and the public tends to sell at a much lower price, you can make a short profit. Especially for a quantitative trading tool that is beginner-friendly such as Vtrading, you can almost participate in quantitative trading with zero threshold. You only need to select the investment you want, make an order with one click, and the AI quantitative trading robot will serve you intelligently. A variety of quantitative trading strategies are free and easy to use. Even entry-level users can start the quantitative trading journey with the help from the recommended strategy parameters based on the big data model.
When the market is falling, we can choose strategies in two ways: long-term and short-term. In the short term, we can use Vtrading's contract grid strategy to short orders, and in the long term, we can buy on bargain hunting. How can we decide on the low point of this bargain hunting? In order to do so, it is necessary to combine your intuition about the market along with the K-line analysis. For example, some people have a good intuition about the market and will buy at a price that is in line with their own expectation. Some people buy when they encounter the lower shadow line. The forming of lower shadow line happens when the sales order is relatively large and the purchase order is also large. The moment they hit the lower shadow line, they are all eaten by the purchase order, so the price rises and a lower shadow line is formed. Therefore, the longer the lower shadow line, the safer it is, indicating that the purchase order in this position is large. Some look at the weekly level support and some look at the daily level support. We can judge the support level of currency price through factors such as moving average, price, gap and channel.
Generally speaking, there must be a rebound after a slump, so we can use Vtrading's Martin strategy to buy on the low point. Using DCA tracking strategy through multiple fixed investments, the cost gradually increases. Once it rebounds and the income increases, the leverage of the contract can also play a good role. By using Vtrading, we can use the Martin tracking strategy under its Strategy library on the trading page. Then select the customized startup, fill in the parameters or use the default parameters, finally entering the invested capital for the startup. If the currency fluctuates, the tracking interval is set to be bigger. If it rebounds, it is recommended to set a little bit bigger. If the rebound is not high enough, the system will not buy-in, helping to prevent collapse.
The well-known saying that "a sharp fall will always follow a rebound" is only a matter of probability. There is a big chance of it being rebounded but a small chance to be continuing to fall. What if the big rebound turns into a disaster? If that happens, the most important thing is to control the position and use DCAstrategy to control the order quantity, so as to ensure that there is still enough funds to cover the position when the price falls to a relatively low point. If you want to make a quick profit, follow the trend. When the signs of decline are obvious, use the contract grid strategy to short or increase the grid interval. The greater the interval, the smaller the risk. If the spot strategy is used, you can suspend the strategy and wait until the sharp decline situation in the market is getting stable.
Generally speaking, quantitative trading can stand the test in the plummeting market. If you are interested in cryptocurrency, you might as well participate in quantitative transactions from now on. Maybe it will not take long for you to benefit from it.
