Tagged: Futures Platforms and Products
- April 24, 2019 at 11:14 pm #3852
I am looking to trade futures or margin for the ability to go short and long and for the reduced risk of having your coins hacked on an exchange. I thought I might share my ideas below for any opinion on them. I am also interested to hear anyone else’s experience with trading futures (contracts) or margin (short selling), which they prefer and if anyone has any exchanges they would recommend including why.
I have noted that several key exchanges that I am interested in for the ability to go both long and short are: Kraken, BitMEX, Huobi and OKEx since these exchanges have good volume, arguably low fees and no history of being hacked, particularly OKEx since I have an existing account with them and they permit both futures and margin with decent volume and low fees.
The major pro and con of futures is that most exchanges settle in the underlying currency. This could be great in a bull market but poor in a bear market e.g. come settlement or closing a position early, the underlying currency may continue falling.
The solution I have thought of would be to sell as soon as possible in a bear market but hold in a bull market, depending on the market index signal. As a contrarian in this long term strategy (only for coins earned as profit in the bull market), i would sell out once the market index crosses 50-60 (will need to further research first) and/or an abnormally large trading range (greater than last 50 candles) on a red candle with strong volume (greater than 100 day moving average for example). Alternatively, you could just sell the coins regardless of the market index or use the current Crypto-ML open/close signal as a guide e.g. hold if “open”, sell if “close”.
The other difficulty i have encountered with futures is it is more difficult to track the right entry and exit prices to determine profit and loss in my trading journal given the payouts in the underlying currency and each exchanges profit and loss formula. Does anyone have any excel spreadsheet trading journals for crypto futures they may like to share or any examples you have used to overcome this? One idea I’ve already had would be to record the value of the underlying coin at the time it was received and then create a new entry in my trading journal whereby the cost basis is the USD value of the coin at the time it was received. This would only be required for profitable trades since you would not receive any coin after a losing position.
Any thoughts on these issues would be welcomed and any experiences shared appreciated.
- April 25, 2019 at 1:14 pm #3855
Great post @moonraker. I’d be curious input from others as well.
And thanks for the list of exchanges.
A real challenge we’re looking at is the heightening apprehension governments have related to crypto. You can see this with the list you provided. Some don’t support the US, some support some states in the US but not others (which affects us). The exchanges seem to each have different lists that are continuously changing. I guess that’s the challenge of an emerging industry. 🙂
And this is what is hanging us up on the regulatory side–things are unsettled.
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