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1: Margin and compounding
Basics:
Margin trading isn’t like futures/perpetual trading. You are not leveraging a contract/position.
Instead you borrow BTC/USDT/any coin and can trade in the SPOT books
Borrow = repay = long against this asset
You OWN what coins you buy -
Basics:
Margin trading isn’t like futures/perpetual trading. You are not leveraging a contract/position.
Instead you borrow BTC/USDT/any coin and can trade in the SPOT books
Borrow = repay = long against this asset
You OWN what coins you buy -
2: comparable with a bank loan.
You borrow - and everything you buy with this asset is yours.
You just still owe the original amount you borrowed in the borrowed asset to the exchange.
Aka pay the borrow - and you could transfer your *longed* coins out margin without selling
You borrow - and everything you buy with this asset is yours.
You just still owe the original amount you borrowed in the borrowed asset to the exchange.
Aka pay the borrow - and you could transfer your *longed* coins out margin without selling
3: trade fees are like spot trading % wise- just that you usually trade bigger positions (due to borrow)
You pay HOURLY interest on the borrowed amount (Depends on borrowed asset) ~ few $ per BTC per day
Max 1 BTC borrowed on 5x (4x+collateral)
Above only 3x (2x + collateral)
You pay HOURLY interest on the borrowed amount (Depends on borrowed asset) ~ few $ per BTC per day
Max 1 BTC borrowed on 5x (4x+collateral)
Above only 3x (2x + collateral)
4. Example:
I send about 0,5 $BTC worth of $ETH on the 4th April to a new account (Margin needs no KYC) as I assumed $BTC pairs to be bottomed and a new cycle
Borrowed 1 $BTC with it on 3x -> Bought $XTZ at 2500 sats
-> 0,5 $BTC worth $ETH + 1 $BTC worth of $XTZ
owe: 1 $BTC
I send about 0,5 $BTC worth of $ETH on the 4th April to a new account (Margin needs no KYC) as I assumed $BTC pairs to be bottomed and a new cycle
Borrowed 1 $BTC with it on 3x -> Bought $XTZ at 2500 sats
-> 0,5 $BTC worth $ETH + 1 $BTC worth of $XTZ
owe: 1 $BTC
5. You can do the same with 0,25 $BTC (5x) as collateral already or even use $XTZ as collateral. But 1. would initially not allow compounding. And 2. I feel safer with $ETH at support as collateral.
On the 5th April $ETH pumped 11% (see chart) and $XTZ stable -> 0,55 $BTC Equity
On the 5th April $ETH pumped 11% (see chart) and $XTZ stable -> 0,55 $BTC Equity
6. AKA directly borrow 0,1 $BTC more and buy more 2500 sat $XTZ with it.
Now 6-8th April $XTZ pumped straight for 3 days. Equalling around 16%. Our 1,1 $BTC $XTZ is now worth 1,276 $BTC.
-> we press borrow every time its possible but leave it in $BTC for no risk increase (0,35)
Now 6-8th April $XTZ pumped straight for 3 days. Equalling around 16%. Our 1,1 $BTC $XTZ is now worth 1,276 $BTC.
-> we press borrow every time its possible but leave it in $BTC for no risk increase (0,35)
7. When the next setup appears - the triangle I posted too and the chart looks like I would enter a position again anyways -> I buy 0,35 $BTC more $XTZ with my compound. (compound 1)
TLDR: You just log in all few hours and press borrow if possible -> buy setup when it appears
TLDR: You just log in all few hours and press borrow if possible -> buy setup when it appears
8. We now sit at 0,55 $BTC worth of $ETH and 1,626 $BTC of $XTZ = 2,176 $BTC - 1,45 $BTC borrowed.
$XTZ breakups - $ETH does.
We just borrow $BTC again and let it chill in the wallet. No risk increase.
Few days later - we see next setup (as shared too)
we buy again...rinse repeat
$XTZ breakups - $ETH does.
We just borrow $BTC again and let it chill in the wallet. No risk increase.
Few days later - we see next setup (as shared too)
we buy again...rinse repeat
9. In general our $ETH is up around 18% -> 0,59 $BTC worth -> 0,09 $BTC clean profit
In general $XTZ is up now like 41 % + margin -> a bit over 1 $BTC clean profit (hard maths because its not fully 3x due to $ETH)
BUT - we compounded!
In general $XTZ is up now like 41 % + margin -> a bit over 1 $BTC clean profit (hard maths because its not fully 3x due to $ETH)
BUT - we compounded!
10.
0,1 $BTC at 2500 -> 0,123 $BTC profit
0,35 $BTC at 2830 -> 0,273 $BTC profit
another batch at 3100 after SR flip + flag
another batch at 33 yesterday on the $BTC push
...etc.
So suddenly instead of having like 1,1 $BTC profit we are compounded to over 2 $BTC profit.
0,1 $BTC at 2500 -> 0,123 $BTC profit
0,35 $BTC at 2830 -> 0,273 $BTC profit
another batch at 3100 after SR flip + flag
another batch at 33 yesterday on the $BTC push
...etc.
So suddenly instead of having like 1,1 $BTC profit we are compounded to over 2 $BTC profit.
11.
We used nothing but 0,5 $BTC initially.
We traded always only setups we would trade anyways.
BUT - we are not forced to reduce a trending winner. But we can still add with new setups (and stops)
You don't increase your risk/position - all you do is risk your current profit
We used nothing but 0,5 $BTC initially.
We traded always only setups we would trade anyways.
BUT - we are not forced to reduce a trending winner. But we can still add with new setups (and stops)
You don't increase your risk/position - all you do is risk your current profit
12.
This leads to over 4x on the initial investment after paying back the borrowed amounts.
You can maximise this even more - my $LINK entries were also compounded in lagging $XTZ as $LINK gave me no reentries on the 50% pamp (this accounts are up even more)
This leads to over 4x on the initial investment after paying back the borrowed amounts.
You can maximise this even more - my $LINK entries were also compounded in lagging $XTZ as $LINK gave me no reentries on the 50% pamp (this accounts are up even more)
13.
This does not take much time - you just swing and add on clear higher frame setups.
Its basically swinging but with lower own capital exposure and importantly easy compounding WITHOUT selling your winner.
Trade every new entry as its own setup - and risk stays similar
This does not take much time - you just swing and add on clear higher frame setups.
Its basically swinging but with lower own capital exposure and importantly easy compounding WITHOUT selling your winner.
Trade every new entry as its own setup - and risk stays similar
