Which strategic products should you choose to trade in a bear market?

OKX (formerly OKEx)

Okx free download

Is there any chance to make money in a bear market? Of course, there are, such as bargain hunting, and earning short-term gains in fluctuations.

However, for most users, your so-called bargain-hunting may be halfway up the mountain. Or find the wrong point and direction in the volatile market. In short, the operation of the bear market tests skills and humanity, and most novice users may not have these potentials for the time being.

In addition, the volatility of crypto circle during the bear market is wider, which also puts forward higher requirements for traders' time and energy. In this regard, the following strategies launched by Ouyi OKX can help everyone to better complete the transaction in the bear market and obtain better returns without spending too much time and energy.

1. Martin's strategy:

To put it simply, the Martingale strategy is an operation in which the system continuously buys after the price drops by a fixed percentage in a long or short period of volatile market, and automatically sells after the market reverses and the selling point is suitable. Relatively speaking, the risk is controllable and the income is safe. It is suitable for most markets except unilateral markets, especially for medium and long-term volatile markets.

Give the simplest example:

When the price of bitcoin enters the downtrend channel, traders buy the first order (initial order) when the price of bitcoin is $10,000, and the next one (plus warehouse receipt) when it drops by 1%, that is, the second one (plus warehouse receipt) when it is $9,900, and the third one (plus warehouse receipt) when it is $9,801. And so on, the overall average buying cost is continuously reduced.

If the bitcoin price rises and reaches the profit-taking price set by the strategy (that is, the price that the trader expects to sell), the system will automatically execute the selling and complete a trading cycle. The take profit price is directly determined by the take profit percentage (the proportion of expected profit). Before the strategy is started, traders need to set this parameter on the system.

2. Grid trading strategy:

Spot grid and contract grid are all derivatives of grid trading. Grid trading is to divide the principal into n equal parts in a specific price range. When the asset price reaches the preset price rise and fall, the corresponding operation of buying low and selling high will be automatically executed. It is assumed that one copy will be bought for every 10% increase and one copy will be sold for every 10% decrease, so as to earn low-sucking and high-selling income.

So, why is it called grid trading? Because traders divide the principal into equal parts, just like fishermen set the size of fishing nets. The more equal parts, the smaller the fishing nets. In the fishing net compiled by time and price, traders can get ideal harvest like fishermen as long as the parameters are set properly.

1. Spot grid transaction:

Specifically, the spot grid strategy is to implement the automation strategy of buying low and selling high in a specific price range. Traders only need to set the highest price and lowest price in the interval and the number of subdivided grids (that is, how many equal parts mentioned above) to start running the strategy. The strategy will accurately calculate the price of each small grid to buy low and sell high, and automatically buy and sell.

For example, traders use this strategy between 20,000 and 40,000 bitcoin prices, and divide the $20,000 into 20 equal parts, so every time the bitcoin price rises by $1,000, it will automatically buy $1,000, and every time it falls by $1,000, it will automatically sell $1,000, and so on.

It is worth mentioning that spot grid trading has the characteristics of adding positions at a low level and lightening positions at a high level, which is naturally suitable for the shock market. Relevant data show that about 70% of the encrypted circle market is in the shock range, so the launch of grid trading strategy by Ouyi OKX is of great significance to users.

2. Contract Grid Transaction:

The operating logic of the contract grid is basically similar to that of the spot grid, but the differences between them are as follows:

First of all, the contract grid supports the choice of direction (long or short), and the spot grid can only be long;

Secondly, the contract grid supports the amplification of principal, and the corresponding income is a multiple of the spot contract income;

Finally, the contract market is more volatile, so the benefits of the contract grid are higher than that of the spot grid under the same proper operation.

Remarks: Ouyi OKX contract grid strategy currently supports USDT contracts in all currencies, and will support currency-based contracts in the future.