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TheWolfofPoloniex
May 6, 2018 4:12 PM

Optimizing Profits for BTC by Hedging! 

Bitcoin / DollarBitfinex

Description

What's up everyone. Quick update for BTC.

So, I'm still in my Short from above when I tracked the Rising Wedge + Bearish Butterfly, and because that position is in profits with plenty of play room, I've decided to keep the position open to absorb the capped out funding in a few hours + double-down on futures (or alternative account) to hedge into a long position to get ready for the trend reversal.

DO NOT GET TRAPPED BY THE FUNDING!!!!

Funding is capped for Shorts, however there are a lot of indicators pointing towards bullishness, including a local double-bottom, 1D StochRSI, 4H Stoch, 1H Stoch, 15M Stoch as well as a Falling Wedge that was already confirmed, Ichimoku Clouds + we already got very close to the 0.5 Fib Level on this retracement we had today.

All of this + the high funding looks like a set trap to get some juice for a short squeeze.

My strategy for this is to stay neutral and practice risk management for optimum profits with this funding opportunity.

Stay frosty.

-Wolfie
Comments
Jonty1985
Thanks for the analysis. What do you mean by "Funding is capped for Shorts"?
nmurray
@Jonty1985, Yeah i would like to know also
TheWolfofPoloniex
@nmurray, It means that Shorts got paid 0.375% for having a short position open.
nmurray
@TheWolfofPoloniex, I didn't know that was possible. I thought it was those who lended security got paid. Why do people get compensated for shorting?
isoygalarza
Thanks for you analysis!
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