Ok... so I'm looking for ideas, just in case I'm missing something. My BTC trading strategy is incredibly simple. I sell after I have a small profit or we enter an area I consider resistance, and then I put in multiple buy orders lower down, hoping price drops and they fill. If it keeps running, oh well, I miss out on some profits, but as we can see, there is always sideways action, so I think I can outperform buy and hold. Just for context, my trading account is much smaller than what I have in cold storage, and long term holds of IBIT. But I really want to generate income. The reason why I'm so excited about my strategy is that I'm not scared to hold bitcoin. If it drops 10%, no problem, I just hold it. If it drops 50%, I guess the bull market is over, but no problem, I just hold it. I plan to have multiple accounts so no matter what price level we are at, I will always have a winning trade somewhere. For example, I am playing the 115k to 120k range quite well now. If we drop down to 100k, I just go to a different account and start trading in the 100k-110k range until I can clear a profit on the first position of scaled in trades. Of course most of my money will be tied up in the trades that I scaled into higher up, but since I can add more money into the account every month from working, I can always scale in lower and add more money. Just for fun, here is the what my chart looks like for the past couple of months trading IBIT. As you can see, only the two areas I outlined with blue stars are areas where if I held, I would have had a nice profit, but instead, just got a small win. But its ok since most of my Bitcoin position is buy and hold and so I already got this price appreciation. So here are my issues/concerns that I'm trying to overcome. Trading in IBIT is of course not 24/7. Overnight trading is better now at IB, but order types sometimes don't match up, so I don't get proper fills overnight, and its not even the whole 24 hours, and never on weekends. If I go to something like Kraken, I'm noticing the fees are very high. It works fine if the positions are $100 or lower, which means you're making a dollar here or there, but once the order is to sell only a few hundred dollars worth, the fee is easily $1 or higher. The fees of 0.1 to 0.4% are crazy, when trading only 10k. Contrast this with fees at IB to trade IBIT, and that is around 34 cents. (You know, this is probably why all the OG's are selling their coins and moving to ETFs. The friction to sell bitcoin at exchanges is just too high) On IB when I trade IBIT, I am generally buying 10 or 20 shares at a time, with 10 or 15 entries, and then selling for as low as a $50 to $100 profit on the whole stake. But you can see that 34 cents to exit on a $10k-15k position is nothing compared to Kraken. And I do have another account I am starting up with zero fee trading, but I don't like the platform as much since it can't connect to my Sierra Charts. Anyway, so Kraken allows 24/7 trading, but fees as high. I don't want leveraged plays because the core of my strategy is that I need to be able to hold it long term if we go into a bear market, and I also don't want any time decay. I got lucky with BITX, the 2x BTC ETF earlier last year when it was going up, but then after January, it blend during the sideways chop from 110k down to about 75k. So does anyone have any ideas? There isn't enough money in the account yet to trade even the micro futures MBT from the CME. With IBIT, 10 shares is about $600, which is perfect for wanting to scale in 10 or 20 times as price drops, and the fees are very low. Any futures products wouldn't allow for too much scaling in since even 1 contract is a large position.
nano bitcoin futures on the coinbase derivatives exchange? Ninja and Ironbeam are 2 brokers that support such.
I'm not sure how I feel about Coinbase. I constantly see people saying their accounts are frozen or they can't withdraw. But I will check this out to see what the fees are. Nano sounds 1/10 the size of micro... so if BTC is 100k, a nano position would be $1000, which is roughly close to 10 shares of IBIT for about $650. Oh, the other thing to mention with futures though is that when you enter 10 times, you need to exit 10 contracts, so 10 times the fees. For IBIT, the exit for 200 shares is the same price as the entry for 10 shares, roughly 34 cents for me, so that is something to consider. Thanks for the tip.
I love how in the PDF, they quote bitcoin at roughly 30k so the contract size is $300. We have come a long way! Does anyone have any idea about the cost to trade this contract?
I see on Bookmap, they quote zero cost to trade these... Of course you are probably having to buy the Bookmap platform Then on Optimus Futures, it states 25 cents per contract. I'm in Canada, so probably none of these options will work for me, but its good to be aware of everything that is available. With futures of course, you also have to worry about rolling over every month. With IBIT, you can just hold for years if necessary.
Noah I switched over to Bitunix and haven't looked back. The fees are reasonable. I'm paying about .02 - .05, they have even better security than Binance right now, all funds are stored offline in cold wallets, and are fully in compliance with US regulations. And the best part about this exchange is the liquidity, there is plenty of it. Plus the interface is nice. Hope this helps, Here's a refferal link if you want to use it. https://www.bitunix.com/register?inviteCode=s87zvq
The only sweet and awesome thing about trading cryptocurrency is you don't have to worry the least bit about wash sales. It's a beautiful thing!!!!!
Coinbase has announced the launch of perpetual futures, which apparently, in the US, means futures with an expiration of five years out, and some sort of periodic settlement mechanism that happens daily, or every eight hours or something: https://www.coinbase.com/blog/perpetual-futures-have-arrived-in-the-us https://www.bloomberg.com/news/arti...futures-us-debut-is-edging-closer-under-trump
The 5 year time frame is certainly intriguing. Some positions at the beginning of the year took months to go profitable, and I expect that to happen again, so rolling over contracts monthly would be costly. I will look into this.. thanks!