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Market: Linear Derivatives

Held Asset: ETH

Settlement Asset: ETH

Strategy: Long / Short
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​Available from: BTC.D bottom
​Available until: BTC.D top

Key Features:

Description: This strategy utilizes ETH as collateral to trade in linear derivatives markets. It programmatically buys (long) or sells (short) contracts priced in USD, depending on the market trend.

The strategy then closes these positions when the trend reverses, allowing for profit settlement in USD even though the collateral is denominated in ETH.
This strategy is available across all market cycles.

example:

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​Important!
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When it comes to derivative strategies, users should be aware that, due to convexity and leverage, there is a price at which the position will be liquidated unless additional margin is added to the account, also known as a margin call.
​This accounts for both the initial margin used and the effects of convexity.

​At cryptobots.io, we adopt a conservative approach to risk management by limiting leverage to a maximum of 1x out of 125x possible.
​This conservative leverage level provides approximately a 50% safety net (measured from the average buy/sell price) before additional margin is required to maintain the position.

These exchanges are available to activate this strategy:

CB004 and CB005 are other strategies related to this one as far as deposit and profit settlement currencies.

Do you need more information?
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