My Trading strategy on KuCoin

Hello Freinds,

There are a lot of different ways to trade crypto, but having a solid strategy is important if you want to be successful. There are all sorts of different strategies out there, so you need to find one that works for you and stick with it. Different strategies work for different people, so don't be afraid to experiment until you find something that works. The most important thing is to have a plan and stick to it.

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Remember, in trading never play with more than you are willing to lose. You will not win all the time, and don't put your emotions into your trades.

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My trading strategy for KuCoin .

Milehigh summary :

Use cross margin trading with x 5 leverage to take loans out on tokes that are pumping, sell them when high, place a buy-back under my sell point, and waite.

Break Down :

On KuCoin you can leverage up to x5 your total amount on your margin account on tokens you don't own.

So, if you have $100 in your margin account in USDT, you can trade with up to $500 in leverage on any token listed under the margin setting. This means your profits would be x5 too.

Yes, there is a risk and we will talk about that too.

To start, log into KuCoin
and go to Trade > Cross Margin

When the trading view opens up, then click on the names of the tokes, and sort them in descending order by the percent of change. See the image below.

Here you see a bunch of tokens that are pumped up over the last little bit. Some of them are up over 10%!

The tokens we want to look at are the ones that are over 10% or higher, the higher the better.

When you see a token that had a nice high pump, we are going to leverage our holdings and take a loan out in that toke, then sell it right away into USDT. This will give us a fixed amount of USDT.

After this, we place a buyback order for the same token loan, shorting the market.

Here is a chart from LUNA.

In this chart, LUNA pumped up high in a short time on the 1 hr chart.
This means that there is a HIGH chance that it will re-trace at least a little bit.

The key thing to remember is that there is a HIGH CHANCE (* Chance being the important word here). The high the pump, the great the chance for a retrace back down.

So, we take a "Loan" in Luna when it pumps up high, then sell that LUNA right away into USDT. For example, we take a loan of 300 LUNA at 0.0125 and then sell that into USDT.

We now have the USDT in our wallet. HOWEVER - We must pay back the LUNA lone of 300. It's not about the value of LUNA, just we need to pay back 300 LUNA any way we can.

This is where the limit buyback comes in. Set a limit order below your buy point. So, in the LUNA example, the buyback would be set at 0.0119, a difference of 0.006. In this example then, your profits would be 300 x 0.006 = $1.8 (Less any trading fees.

This is also where you have to not be too greedy.

If you set your Limit buyback too low, you have a higher chance of the market rebounding up and having a margin call on your collateral. So let's talk about risks.

Cross Margin Risks.

To take advantage of the x5 leverage and take loans out in any token listed, you have to put up collateral.

For example. If you put 100$ USDT in your margin account, that is the total amount you can lose.

In the Luna example above, let's say you put a sell order very low with 100% of your leverage (not a wise thing to do), and a buy-back below that, but the market kept on moving up, see the example below.

Remember you have to pay back the loan in LUNA. So, if the value of LUNA increases to where your total owed is above what your wallet can pay, you will have your margin account liquidated to close that loan at the market price.

This is called getting wrecked. You want to avoid this.

It stands to reason that you have to take steps to reduce the chance of that happening.

My best recommendation is to NOT take out loans over 50% of your barrow limit.
in this way, the market has to PUMP high to do a forced liquidation on your account. Yes, that can happen and did happen to me once. But it is not that often and, this is one way to lessen your risk. Even better to use only %25 of your borrow limit.

Also, remember when you looked at the percentages of changes above? That is the over way to hedge your bet. If you find a large percent change up, then it has a higher chance of going down.

A 5% rise can still pump to 10% or 15%, but a 20% pump in an hour has a higher chance to retrace back down, rather than to pump up to 40% or 50%.

Small profits? Why bother.

You start small, but with each trade, your overall collateral keeps increasing. With each $10 in profits you make, that opens up a leveraging of 50$ more to trade with. With each $100 in profits that is $500 more to trade with. Over time you increase your collateral/profits and your leverage to make greater profits.

When you have $1000 in your account, you can trade with up to $5000 in loans. Then on average, you will be making about $20 - $60 a trade.

But remember, don't be greedy! When you have larger amounts to use, take out smaller percentage loans. remove funds from your margin account to cover your initial investment. Then when you make profits, take some out.

This way if the market pumps in a strange way that wrecks you, you will still have some profits in your trading account and can start again, or not lose all your hard work.

This is a system that works for me. Here are some of my last few trades.

You will get wrecked doing this a few times... I did get wrecked and forced liquidated one time and lost about $1000 in collateral :( . Why, well, I saw a big pump on the GODS token (up about 30%), so I broke my own rule, and took out a 75% loan on my collateral (*perhaps a bit more). Then the market did a 5 min spike up / pump another 30%-40%, liquidating my account, then in the next 15 minutes it retraced back down to my buyback point, but at that point, it was too late, I was wrecked. #LessonLearned

Remember, you will lose some, you will win some, but don't play with more than you can afford to lose. It will take time to learn and understand how to use leverage trading, but when you do, it will be a nice stream of income.

Thank you for reading and I hope this helps you... :)

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Disclaimer

The information presented is for educational purposes only and is not to be considered investment advice. Please do your own research before making any investment decisions. Cryptocurrency investments are volatile and high-risk in nature. Don't invest more than what you can afford to lose. I make no representations, warranties, or assurances as to the accuracy, currency, or completeness of the content contained in the information or any sites linked to or from this document for future material.

The links in the article are affiliate links to KuCoin as well. If you sign up for a new account, I will receive a commission for referring you to them. This is the naked link you can view : https://www.kucoin.com/ucenter/signup?rcode=Ma8gvK

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