Topic: Beginner Averaging future trading. (Read 178 times)

Usually I never recommend anything for derivative markets for crypto traders but if you are ready to risk then I guess you are right that high risk traders may opt for taking long positions in derivative markets with relatively small leverages. Small leverages can help to delay liquidation instead of what OP was mentioning about adding excess funds.

But, we are not suggesting to only one person or any particular person. I mean open discussion is for all type of people hence we need to suggest the best and cannot stay calm just because of "not my money".

I don't think it would be a wise decision to short bitcoin at this price.
Instead of this, it seems more wiser to long from the current price (with low leverage). And if the price drops to $13k buy again ( This will reduce your average price) and again buy if the price drops to $10k .

The above is just an example. You need to calculate your liquidation price and according to that, you have to plan your entries. Just wanted to say that I think a long position from here can be a good relative to short. Ultimately your money your decision.

Well, but this is something that you are making decisions based on what criteria? Not much can be done if you don't have some type of study previously done, I am one of the people who believe that a fundamental analysis and a technical analysis must be carried out to be able to reach conclusions like yours, and if I want to operate in the short term, I would with a time of 4 hours, because I believe that I can react quickly to any sudden change in the market, now if I do it at larger intervals I think it would be more seen as a long-term trade, or almost as an investment, but obviously I know that long-term trades are the ones that leave the most money.

I guess OP must be already having stoploss to prevent unexpected liquidation at any time. In my opinion, trading futures without plans like no stoploss or no target levels must be suicidal. Being profitable at any point of time is not a big thing in futures trading but exiting with profits is really a wise decision when considering the amount of fluctuations we do experience on day to day basis. I stopped futures trading hence I do not suggest anyone any trick these days still if I hear someone making profits out of futures trading, which really makes me happy and urging me to get into it as early as possible but honestly I am not having any plan to do so.

You are also right and it is also good to play safe just like you have explained because that is playing safe. It is better to have your funds intact than to carelessly lose it. Traders can choose to follow whatever trend they deem proper but I won't have to long a short position because of expectation of bull in the future but we don't know how long the bear will drag with our funds disappearing. In this kind of time, I will have to stay outside to keep my fund for another chance.

We have different trading strategies. This time that I know the market has been very bearish and I know bear trap is very possible with many traders fund liquidation, I do not just prefer to go short even if indicators are indicating it. When bitcoin got to $18000, I close the long position opened but I do not open a short position while I bought back when the market falled significantly as it dawned most on altcoins with over 10 to 30% price decrease. I can not risk opening a short position this time around. As you said, traders have different strategies.

Why not ? If the price of bitcoin is down doesn't mean the next minute will turn bull instantly. All it depends on is the trade's strategy to know if the price will soon go up. In this case RSI is a good indicator that can help to indicate the over sold so that you can prepare to exit the market. Because sometimes the market stay bear longer than expected and traders keep eating from it.

Thanks Alot Mate its all my thought and this time it worked but not every time so next time more analysis before opening the trade , but at the time seeing long term charts i see a clear resistance on 14k$ btc which needs to test before going 25k$ or more what you think ?

It looks like you don't need to average anymore and the position you hold is already making a profit. Now, if you decide to continue holding a short position, you need to set a stop loss in case the price starts moving in the opposite direction to your expectations.

It looks like you are still confused about trading and started shorting BTC at the wrong price. But if the market position changes and goes down again, you make a profit. And if you haven't closed your trade yet, profits are starting to show there as the bitcoin price is now $17,018. But if you have closed your trade out of fear of losing even more money, you have seriously lost your money.

Starting futures trading is not easy and requires experience and skills beyond spot trading. If you have not been able to determine where the market will move, you will take the wrong position and have experienced it.

I never encourage derivative markets due to its high risk factors. Imagine what is you would have been buying when bitcoin was trading around $30k and then $20k and finally around $16k levels. Yeah, you can simply keep holding and I am sure you will get at least 2x profits before end of 2024. If your point is immediate or monthly profits, I have answer for that as well.

If you focus on instant profits then you you should not have opened this topic because you must have plans before shorting bitcoins for the situations like market goes against you. When you do not have concrete plans for what to do when market moves as per your expectation and against your expectation, there are 90% of chances to lose your capital. I am sorry for saying that but fact is open. Switch to long term holding and enjoy massive profits over the time.

Are you a complete beginner or just a beginner when it comes to future trading but you already have experience spot trading?

If it is the former then I would recommend that you take your time learning how to trade and avoid using leverage as not only you will lose your money but you will not learn much either, now if it is the latter I will say I have never been a fan of averaging your position, if you made a bad read about the market then take the loss, by averaging the only thing you are doing is to go against the trend of the market, and when at the same time you are shorting it this can snowball into huge losses if you are not careful.

I guess the trader is learning. It would be better for him to just trade with the $10 he is using. Later he can increase the amount if derivative trading favours him.

The market was predictable, even I read on news and social media that some people might fall to bear trap which I too knew would happen. Before the FTX fud, bitcoin price was very low already, but FTX implosion result to more downtrend. After bitcoin got to $15400, it increased back to $16900, then decrease to $15800 the second and third time or so. That means the market is not going down further again. I expected traders to long than to short.

I do not short this days even as bitcoin is at $17400 today, I prefer not to trade than to go short because I prefer to just go long in a way I can hold for long.

It is good to use high amount of money to trade future while using very low leverage, but not for beginners. I think he started well as he even believes in averaging which could help swing traders.


Technical analysis can fail at anytime and it can be often if the right leverage, averaging and other strategies are not used appropriately, but as OP did not know he should long at a very low price like $16000, he needs to really still learn more about trading. Even the daily candle stick used with indicators are all suggesting bull market.

I know your frustration since I also experience that when I started trading in futures, when I go short, the price go up, when I go long, the price go down, very frustrating. The next thing you'll do is to doubt your technical analysis, but it's the right thing to do, because if your technical analysis fails you most of the time, it only means something is wrong.

Trial and error is a must until you find the right indicators that works for you. Don't put too much leverage especially if you're not that confident about technical analysis.

Averaging might cost your more especially with that amount, I’d rather to deposit huge one time and play with that capital already. The market is also unpredictable better not to expect that much and remember that it can’t go always according to your plan so be more flexible with your strategy. My advice is to continue learn how to trade perfectly and save more capital so you can really feel the good profit.

Am sure you will have don your analysis well before creating a short position, but I don't think the best thing to do now is to short bitcoin, actually the amount you deposited is kind of small, but no amount is small, no matter how small the amount you lose is, you will definitely feel It.

With the current movement of bitcoin, I think it will be better you avoid future trading for now, stay away from either long position or short position, if you want to trade its better you trade stop for now, and if you still insist on trading futures, then I think you should deposit like $10 and use only $3 to enter your trade, the other amount left will help you increase your liquidation price, make sure you use low laverage, the higher your laverage the higher the chances of being liquidated and also make sure you do your analysis well before entering a trade.
But the best thing to do currently is just to invest in bitcoin for long term and have rest of mind.

      I can't say that the strategy you are doing is wrong mate, because of course we are traders, we have our ways of making money here in cryptocurrency. Also, apart from that, what you are doing is good and good from what I can see.

I also agree with what you said about DCA because it seems like we're only saving this way, what you're doing is a strategy of day trading.

With $3 as your capital, you will have to use very high leverage that is very risky.

Too high leverage like 100x will kill your position anytime with about +/- 0.5% price change. Are you able to control if price changes only 0.5%? I believe you can not manage risk with this too minor price fluctuation.

Better when you have small capital to start, invest in Bitcoin. Work and buy more Bitcoin in 2023 bear market and wait for 2024 bull market. Don't trade spot. Don't trade margin. Don't trade future.

Websites for Dollar Cost Averaging

Can you share why you shorted Bitcoin right now?
Like if you can provide some technical analysis is much better.

I am not against your position like you are shorting the market. But averaging or using DCA short position on future trading or with leverage when doing trade is like not worth it because remember that there may be some fee or funding rate fee as long as your trade is open.
I suggest you also use low leverage.

It is very risky to invest in bitcoin in a short position and right --it could lead to a bull trap as a reply above.
Investing in the long term and waiting until there is the stability of a bullish trend in the market would really give you a good profit, no stop loss is needed because all you have to do is to wait for your desired profit when you harvest it.
DCA's way of buying bitcoin is also good if you have a lot of funds, as long as you are not selling your bitcoin under the price that you purchased it, you are safe from losses.

Use a much lower leverage instead of "shorting with DCA" maybe even x3 or lower so that you learn how the market works whilst not putting your funds at a high risk when using high leverage and panicking to adjust the margin of the open position.

Also, look out for Bitcoin historic support and resistance levels, they can be helpful for you to determine where your stop loss, take profit and liquidation price should be.

A short position might likely lead to bull trap. I will advice you not to average when bitcoin price is already low and the price drop is too much significant.

It is just like $10 in total which you are using to learn derivative trading, which is good and I will not advice you to go beyond that for now.

Start with low leverage. If you begin the trade at $17000 and later average with $3 and again average and the liquidation price is at $20000, that means you use around 10x leverage or more to first open the position. That is high, use low leverage.

Always think of making profit even without averagimg, but averaging could later help to increase the liquidation price range.

Avoid bear trap.

Deer Mates i have started a plain to shorting BTC at different levels i start my trade with 3$ at the price of 17091$ but market keeps going higher then i take another trade for averaging my opening position at 17269 with another 3$ and then i open another short trade at 17455$ and now market is going higher and higher and my liquidation price is 2090$ which is not far but i tomorrow deposit more money for take liquidation price further away , And make some more short DCA ,
So guys what are your thoughts and advices .