Six months ago I started trading cryptocurrencies, I studied and learned about trading analysis, how to read the charts, follow the news, etc. I started only with $120 because I didn’t want to lose money learning.
I am a quick-learner, at least that’s what I thought; in one month, I turned my U$120 into U$4800. You can imagine how I felt. When I started to multiply my income so fast I thought I had discovered a gold mine.
But, in less than one week, I lost my earnings of U$4800. I went back to $0 in my trading account. One week later, I deposited $1,000 of my own money; I lost them too.
What Happened?
Easy! The crypto market is quite new. It has barely $300 billion in market cap and that makes it very easy to manipulate for people with big amounts of money. So, you can make your analysis and interpret how is the chart going to behave but even when 90% of the most advanced traders think “Bitcoin price or any other cryptocurrency price” will go up, it could go down because of the market manipulation.
When that happens a lot of people lose money. This is not forex or stocks where the charts behave according to the entire global economy; the crypto market is a little baby that big moms with a lot of candies can manipulate easily. If you add emotions to the equation, it’s even worse.
Then, after losing U$5,800, I started with $100 again. This time I was not willing to lose; I applied what I learned, I became emotionless and I applied a different trading strategy. Today, I have 12.6718 BTC.
What Did I Do?
I cracked the system legally. I know it sounds like a movie but in fact, I found the way to trade cryptocurrency without any risk or at least a very low one.
Let me explain before you get all skeptical!
When you trade, there are two possible scenarios: the price will go UP or DOWN, right?
Just up or down. Nothing else! So, if you can bet for both options, then you will win for sure, or at least you won’t lose.
I want you to pay attention here because I will share with you how to make money trading with an extremely low-risk of losing money.
Before starting, I want to remind you that money is energy.
When you lose money is because your energy is not aligned with the energy of money… and when you find a way to make money is because you are attracting it.
If you are reading this, it’s for a reason and you should remove any energetical resistance before taking action.
The easiest way to know if you are ready to act on making some money is if you feel good. If you feel good, go for it; if you don’t feel very good, if you feel fear, anxiety, anger or any emotion that it’s not good then wait until you feel good.
Once you start making money, remember it’s like energy! You give and receive energy.
In the same way, you give money and receive money; that’s why I’m going to share with you my strategy and for your own financial benefit if you start making money with my strategy you should send me a donation (even if it’s only $1), because in that way you keep the money flow: giving and receiving.
So, How Can You Do It Too?
There is a very good platform to trade cryptocurrencies that allows you to use leverage.
The platform’s name is BitMex.
BitMex allows you to trade futures contracts of some important cryptocurrencies like Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Cardano, and Ripple.
Trading futures contracts means you can make money by shorting (selling) or longing (buying) positions on the price of those cryptocurrencies; this is beautiful because even if the market is bearish (price tends to go down) you can still make money in the same way that if it’s bullish (price tends to go up).
As I said before, if you bet for both positions (short/sell and long/buy) at the same time with the same price and one of those positions rockets; then you will make a good profit without losing money.
BitMex allows you to use leverage for trading, the higher the leverage you use the higher the risk because leverage means you are using the money of the company to trade.
If you use 10x leverage, it means you are investing 10 times the money you are using but you will lose it if the price moves 10% in opposite direction to the one you are investing (because 10% with a 10x leverage is 100% which is the percentage of your original investment).
What Do You Need To Start?
You can start right now if you have this:
- A Bitcoin Wallet with Bitcoins (minimum U$20 in Bitcoin). You can buy Bitcoins here
- Two BitMex accounts (Free). You can open them here
- One Trading View account (Free). You can open it here
Once you have everything, the first step is to send from your wallet, 50% of your Bitcoin to one of your BitMex accounts and the other 50% to the other account. Check the BitMex support if you need help.
Visit your Trading View account and choose your best option to trade from the cryptocurrencies available on BitMex: Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Cardano, or Ripple.
Follow this example and feel free to use any amount of investment you want:
You have U$100 in BTC. You open two BitMex accounts (BitMex doesn’t have restrictions about opening more than one account per user).
You send U$50 to one of your accounts in BitMex and U$50 to the other one. Then, let’s suppose the BTC price is U$6700 and after your trading analysis, you and many other traders think the BTC price will go up in the next few days.
You open a position to BUY/LONG BTC at the price of U$6700 with a leverage of 10x in one of your BitMex accounts; then you go to your other account and open a position to SELL/SHORT BTC at the same price of U$6700 with a leverage of 10x.
Then, since you are more convinced that the price must go up you will set a CLOSE POSITION in the account where you have the SELL/SHORT position opened; you will set the closing position when the price goes down 10% or you can simply copy the “Liquidation Price” of your Buy/Long position (that means when the price reaches U$6030); in this way, if the price goes down 10% ($6,030) you will lose your investment in the account with the BUY/LONG position opened but at the same time, you will automatically recover it with the SELL/SHORT position closed.
In other words, now both positions in both accounts are closed. The buy/long position because the price reached 10% loss (which means 100% with a 10x leverage) and the sell/short position because you set to close the position and take profit automatically when the price reached 10% profit (which means 100% with 10x leverage).
Then you repeat the steps again with the new price, in our example, it would be U$6,030.
Eventually, the price will go up. When it goes up more than 10% you will lose the SELL/SHORT position but at that moment you already recovered it in the BUY/LONG position and now you just have to keep the buy/long position open as long as you consider convenient. The price could go up 15%, 20%, 100% you never know but that’s your decision to take depending on how greedy you want to be.
In my case, I take a decision depending on the cryptocurrency I am trading and in the analysis I made. In BTC I would take profit with 15% to 20% (with the leverage of 10x you are having a profit of 150% to 200%). Because of the money lost in the sell/short position, anything above 10% (100% with 10x leverage) is a profit. If I am trading other coins like Cardano, Ripple or Bitcoin Cash, depending on the analysis I would take profit between 20% to 40% (with leverage 10x is 200% to 400% profit).
As you can see, I am betting on the only two possible options for the price to go, but I always have one option that is my favorite and the other one is just a parachute.
Eventually, my favorite option will skyrocket and I will make a profit from that.
Is There Any Risk?
Yes, but it’s very low and it could only happen if you are not cautious.
If the price for the example goes up 15% and you decide not to take profit because you expect it will go higher but because the market manipulation goes down again by 15% then you will lose both positions and all your investment.
But this could only happen if you don’t check your trading positions every day and if you don’t make a trading analysis. I recommend you to use this website to make your trading analysis and/or to find advice, resources, and information about trading: Trading View
If you make a trading analysis, then you and other traders publish that the price is going up and then it starts to go up all the way more than 10% is very unlikely it will suddenly drop 10% again; so you track the price and try to close the position as high as you think the price will go up without using your EMOTIONS, only your BRAIN.
Your emotion will say: “We are getting a lot of money, hold and don’t close it yet” but then you can lose it.
While your brain will say: “we just made 50% (150%-100%=50% with leverage) but it’s better than nothing, let’s close it now and follow the strategy to minimize risks”.
It will seem you are making money slowly but you are not because you are using 10x leverage; that means if you use $100 to trade is like using $1,000 with the leverage. Every 10% profit is $100. If the price of your crypto rallies, it could easily reach 60% to 100% price movement; which means $600 to $1000 with a $100 original investment.
Did You Get It? Don’t Be Greedy
I hope you get it. I want to remind you that this is not financial advice, I am not a financial adviser but I have been using this strategy for a few months and so far it’s working beautifully.
Don’t forget about giving and receiving energy. Don’t be greedy and if you think this strategy is useful for you, send me a donation (any amount is welcome) and attract the sense of abundance to allow the energy of money to flow through your pockets.
Keeping money only for you in a greedy way without being grateful will only block your energy and your money income. Don’t do that to your bank account just to save a couple of bucks.
Your donations will be appreciated on this
BTC wallet:
1LYBU43mkj2egLxo2kYst7Hp6Qp6M4iDd3
EDIT 2021:
If you want to minimize the risk, even more, go for the long term without leverage (1x). In this way, you are playing safe.
Please do your research first. This is not financial advice.
Hi Christian,
Thanks for the inspiration.
I am testing this strategy but i find the BitMEX platform a bit confusing. Maybe you have a video that shows how you are trading? And how you are monitoring and managing the accounts?
Thanks.
Unfortunately, I have no video, I recommend you to read the FAQ section on Bitmex, that helped me a lot when I started. To manage the accounts, I just use different browsers, sometimes I have one on my laptop and the other on my iPad. If you set an automatic closing position when the price goes up or down, for example, 10%, you don’t have to worry about that account, the position will be closed and your money safe. The only one I track is the one I think it will go further than 10%, if after the trading analysis I believe the Bitcoin will go up, that’s the one I have to check. Use the resources mentioned in the article and try with the DEMO version of Bitmex first if you don’t feel ready.
Hello Christian, does this strategy works only with crypto trading or with forex too?
Thank you.
To be honest, I haven’t tried with forex or anything else. Usually, when trading you need to open an account and verify it, most of the companies don’t allow users to open more than one account. I know for sure that Bitmex has no restrictions about it, but I can’t talk about others. But the strategy about going long and short at the same time should work in any kind of trading in theory, I don’t see why not. I guess you should just try.
I HAD SMALL QUERY REGARDING ( LEVERAGE) FEES ON BITMEX…
IF I TRADE WITH 100$ WITH 10X LEVERAGE …WHAT WOULD BE BITMEX FEES. FOR THAT. ?
A) $100 X 10 = 1000. × 0.075 = 75 $
Or
B ) $100 × 0.075 = 7.5 $
Does leverage affect fees.?
Thanks
it is a strategy called hedging and u can use it with any financial instrument. Yes you can definitely use it to great effect in forex.
Hello Christain, happened to come across this article of yours. Sounds interesting.
Two questions however:
1) Cant we open a long and short position with just one account instead of 2?
If not possible, should we create the second account with a different email id, but with the same name?
2) The chances of a 10%move either way on a short term seems remote under present circumstances. From your experience, how long do you have to hold to make a 5% profit (15%-10%).
I appreciate your articles. Do keep up the good work.
Thank you.
You cannot open a long and a short position in the same account. They will just simply cancel each other. That’s why you need two different accounts that you can open just with another email account. About the second question, when you use 10x leverage, 1% movements are 10% with the leverage. So far I have been using 10x, 20x and 50x leverage with the same strategy, it works well. Cheers
You kinda can, but u use the ethusd pair. ethusd and btcusd is fairly correlated, but often times one outperforms the other.
Hi Christian,
A couple of questions for you: do you ever let your position liquidate, or do you set up stops before the liquidation price? From what I have discovered, if you set up a stop right before liquidation price (on both your long and short position), you at least get a small portion of your investment back instead of losing the entire thing.
Also, let’s say I’m using this strategy with 25x leverage and I’m betting the price will go up. For your short position, do you look at the liquidation price on your long position to determine where to put the stop, or is there a set percentage gain/loss to use (similar to your example where for 10x you used 10%). Thanks and appreciate you sharing your strategy!
Thanks for your comment. I don’t use stop loss because I like to give some margin to the coin to move on the price. I just choose one option Long or Short, I open both positions with the same price, then I set up a closing position in my non-favorite option because then I recover the investment in case the price is not going as I thought and that’s it. If the price goes as I thought I track it and then I close my position with the profit I want; always being careful that the price won’t go back and leave me without profit at all.
Hello Christian,
Thanks for sharing you strategy, it looks very great.
One more clarification on this.
Does that mean that if the price is going up, you leave your short/ selling option open and close your buy/ option at let’s say 10% to avoid losing all your money buying at a higher price?
And set your short/ selling option to stop at the profit you desire to make, let’s say at 15%?
Waiting for your guidance.
Be blessed.
Hi Christian, thanks for the article, I was just wondering if it was viable to use this method with 25x leverage.
No, definitely, I advise to do it only with 10x leverage. The 10x leverage is the only one that makes it easier to recover 100% investment when the price moves 10%.
Very clever bro! i will give this a spin. I like the angle and the creative thinking my man. Money energy your way if I come right!!
How do you account for slippages? What if the automatic stop you set does not trigger? What happens then?
Why wouldn’t it trigger? There is no reason to not get triggered if the price reaches the stop price. I am not sure if i am understanding your question, sorry.
Hi, the idea of using two accounts to simultaneously place two opposing positions to reduce risk is promising, but I’m a bit confused by the efficacy of your strategy. If you put two opposing positions at the same price, wouldn’t that lead to net zero gain either direction? I may have misunderstood your strategy so I apologise in advance if my interpretation is off.
Have you tried using this strategy in symmetrical triangle formations? Placing two opposing positions with a decent spread between them so that way, only one position is activated.
The idea about this strategy is to get the tendency of the price. Sometimes, even with TA, we think the price will go up and then it goes down, or the opposite. But with this strategy, we can be sure that the price will start to move in one way, once we are in that tendency we can keep going until we get a profit and then close the trade with green numbers. The idea is to get two positions (BUY and SELL) opened at the same time, but you can experiment and try the best option for you. You can use the Demo Version of Bitmex for that.
Hi man,
I find your strategy interesting as I have been thinking the same from a long time however I never thought on using bitmex, could you clarify what do you do once you finish a first cycle on your strategy (you either win on the upside or downside) ?? I assume once that happens there is one account where you lost your investment and another where you had the profits, in order to start another round (so you can apply your strategy again) you must somehow send funds to the other account right? (the one where you lost), can you explain how do you send funds between accounts on bitmex?
Thanks in advance
In the same way you send BTC to a wallet. You have a BTC wallet address in both accounts. You just have to withdraw from the “win” account to the other account. AS simple as that.
In your 6700 scenario, why bother placing the stop order on the short. If the price drops, then the margin call will liquidate the long position, so why not let the short run past 10%? Basically one position will liquidate itself and the other one will be in the money. Please explain??
The stop order in the Short position is assuming that you are more convinced that the price will go up. So, you believe it will go up, that doesn´t mean it will, in fact, go up, so if the price goes down you will lose the Long position and you need the stop order to make your short position get closed as soon as you recover what you lost in your long position (10%). In this way, you are not losing money… The opposite would be if you believe the price will go down, then you need a stop order in the long position to make sure that in case you lose your short position, you can recover your investment with the stop order on your long position. I really recommend to have a tendency about the price, don’t try to monetize from any position because it’s too risky, use TA or follow some good traders like EXCAVO from Trading View and follow their signs, then act accordingly. I hope that makes sense.
Hi, Quick question, do you use Limit orders or market orders to enter both trades. Just thinking the fees on Bitmex are quite high. So in the event that your trades dont run well and into good profit then you would still be losing money with the fees?
Please let me know. Thanks.
Hi Christian, SO I have tested this and it works perfectly, I cant believe my eyes haha. The only issue is that you cant really use it so good when the market it like it is now as I am writing this. There is no real market movement and what tends to happen is that the market bounces off your liquidation price, literally liquidating one position. However bouncing so giving you no profit and left having to close at a very slight loss and then pay the fees on both sides.
However when the market is moving I dont see this being an issue, cant wait to try it and will let you no how it goes, I plan on spedning BIG!
Thanks so much… amazing find.
Indeed! You are right, this works better when we have volatility
The thing that I don’t get is if you open a long and hoping 10% up and set the closing short for 10% down, when BTC moves up 10% that means the short is automatically close at lost and BTC has to move more that 10% like 11%, 12% 13% or more up in order to close it with profits. What about if it moves up 10% and after that, immediately goes down. You will lose money there 👎🏻. You will need to close the long at lost and you already lost the short right❓
Yes, when you are using this strategy, you must have an understanding of where you think the price will move based not only on feelings, ideas or hope; but also in some information got from TA, if you are not an analyst like most of the people then you should be following ideas of people who make trading analysis, once you make up your mind of where it is more likely the price to go, then you use the strategy… if you see the price in the opposite direction of where you thought it was going to move, you must be ready to close that position as soon as you get back what you will lose in the other position. However, if you were right and the price is moving according to your idea, then it is your decision to close the position at any percentage that is giving you already a profit. If your decision is based on a trading analysis or the analysis of someone else, you must have an approximate of where the price will rally to; in other words, you should know where is the resistance and the support and use that information to take profit and to start the strategy again. Hope that makes sense to you!
I have been doing something similar like your strategy and getting amazing results using Kraken and USD/BTC – USD/ETH.
Let me explain to you:
Let’s say that you’re gonna start from scratch. I open a long BTC of $20 and a short ETH of $20. One is always gonna go against the other. My idea is that they hedge each other and they move up or down almost at the same percentage (so far). If the market goes up, take profits from BTC, add another long of 20$ and doble the short for ETH = $40. If it goes up again, take profits from BTC, add another BTC long of $20 and at the same time add another short ETH = $80 and the next one will be $160, next one $320 and so on. I’m doubling the shorts every time cuz, the next time that the market change direction, I will be able to break even ETH easily and start all over again. When BTC went down 3000+ points (almost 50%) in a few weeks, I was able to break even BTC, cuz I was longing it, after it bounced back only 10% or so and kept the ETH gains.
It’s a little more complex than your strategy but I don’t rely in TA I just need the market to move, let’s say every time BTC moves 300+ points I will take profits and add shorts.
People out there think that I’m crazy but, I’m glad that I found your article cuz it gave me hope that I’m not the only one using kind a similar strategy opening long and shorts at the same time. Thanks a lot.
Mmmmm well, not sure about this. One of the main signals of a bullish scenario on BTC is that altcoins are bullish too. In other words, when altcoins, including ETH, go up, that’s a sign BTC is going up too. But if it is working for you, keep going and thanks for sharing
Very nice article I have a question do you leave that run over night or you keep an eye on the trade if the times to sleep approaches you close the trades and you will come to start tomorrow?
That’s totally up to you and how convinced you are about your decisions. In my case, sometimes I open the positions and I don’t check for a day or two, especially now that the market is most of the time moving sideways.
I am intrigued by this method and would like to give it a try. Can you suggest which trading analysts I should follow to make informed trades?
Go to Trading View and you can find analysts with very good reputation. I like EXCAVO but he hasn´t been publishing that much in the last weeks.
Sorry, I might not understand well however I am not seeing why you need to have double position, fees, your strategy is exactly same are not doing anything until the price is up 10% from your starting price and then open a long …., am i missing something ?
I think you need to read the article again slowly and without distractions. You will get it. Cheers!
You are, indeed, correct.
Plotting a payoff chart would show they are indeed the same (excluding execution costs, slippage, and liquidation costs, which are very likely to be higher with the two-direction approach). There is absolutely zero good reason to open positions in opposing directions. It’s more costly and complicated.
Perhaps Christian will get his head around this eventually 😉
Can this work with 50× or 100× if I keep eye on laptop watching it so take profit when I feel I am in profit?
Thats way to risky but use the DEMO version of Bitmex to see if it works. I wouldn not recommend to use 50 or 100 leverage but it’s up to you.
Christian thanks for this.
In the current state of market, should we not look for 2% movement either way and 75% leverage .
may result in net 50% profit.
Apologies if I am not getting it
Hey Christian Trejo,
Could you show us an entry and exit for both positions on a chart?
A chart example. One that resulted in profit, and one that didn’t?
I really would like to try this some day.
Regards,
Carl
I suggest you try the DEMO version of Bitmex before you jump in any trade with real money. With the demo version you can test and you will see if it works and how you can make it better for you
Can you show me some trades you made, so I can better understand how you are doing this?
This strategy has gotten a lot of attention and because of that I might make some videos and even a small course about this. In the meantime, I suggest you to try the DEMO version of Bitmex before you jump in any trade with real money. With the demo version you can test and you will see if it works and how you can make it better for you
How much USD do you have to do per trade to make it worth it (taking the Bitmex fees into account)?
Also, when referring to a close position, are you referring to a stop loss?
The fee is only a percentage of the amount of BTC you use to trade. It is not a fixed amount in USD. If you trade 0.050 is going to be a percentage of that so it is irrelevant if you trade 0.001 or 100 BTC.
Hey Christian,
Another question, do you use SL’s on both positions?
Do you use a specific %
Chris
I am a swing trader and this idea passed from my mind and I found that you already did it. congratulations for you success.
in a squezee of the Bollinger bands this could work perfect but if extend too much the sideways the fees will eat you.
question how you avoid to be a day trader using this? we normally made the set up a let it go and the SL or the closing targets will do the job but here you have to be there to do trailing and decide when to close you position and TP, how you automate this? do you use any BOT for that? Thanks a lot
there a cornix bot, google you will find
Cornix is for signals, how is it going to help with the setup mentioned in this article?
Wow, this is a great idea. I was actually thinking something similar and, reading this just threw more light. Am gonna try it out and once it rakes in profits, I won’t forget the giving energy.
Hello Christian,
Many thanks for sharing your experience.
I have a question and appreciate if you kindly guide me through it. How can I make sure that when I place a Long order in one ACC at a short order on the other ACC with the same level, both trades actually being executed? How can I define the right level so both orders are being filled?
Thanks,
Mat
Hi – isn’t this just wash trading ? And illegal ? I know it is in regulated markets (equities, forex) but unsure about crypto. Have you done your research on it and is it safe to implement?
I don’t think is illegal. Let’s say you and your wife decide to open a Bitmex account and trade in opposite positions. Would that be illegal? No, the advantage, of course, is that Bitmex is not registering your name with your SSN… you are just an email, a number; and you can open more than one account without restrictions.
Hi Christian,
Did you manage to automate this strategy – If yes then what do you use?
I haven’t tried it
Hi Christian,
Thank you for your insightful article. Could you please let me know how this strategy has worked out for you until now? And if you’re still using it in the current market conditions.
Many thanks!
So far so good and now it is about to get better, since the bull season is on.
hi Trejo.does it work on other exchanges that are not bitmex? I want to try it;))
Unlikely, I don´t think other exchanges allow you to open more than one account but you can always try.
HI Christian, thanks for sharing your strategy. I cant believe you have been using this method since 2018. I see this strategy as a protection against whales pumping and dumping. A 10% move is more unlikely now right so what is best methods of deciding to exit the LONG or SHORT?
Well, as you can probably see, we had plenty of this volatile movements this month. Perfect time to use this strategy.
Hey Christian,
I love the concept. How do you protect the position that stays active, if the market reverses.
Once your one position gets liquidated, or stop closed, how do you protect your open position from a reversal, where you would then lose on both?
Good question! I like to know too.
Good question! I like to know too.
hi Christian, why can’t we use a 50 or 100x leverage?
It does the same, but then faster, if i understand correct?
It’s too risky, with the volatility of bitcoin, its way too risky.
Hi Christian,
Just found your strategy and i am about to try out.
I have one tip for better trading for whoever want to try your strategy.
I am trading on Phemex and there are option in your main acc to crate sub/account and you can open Long/short position at the same time within your account (up to 20sub accounts).
And if you use limit order instead of market order you get paid: Maker：-0.025%.
(this is not an AD).
Hope this can help someone.
thanks