Ok so boom I’m a truck driver I zoned out and I was thinking real hard and I hope it wasn’t for nothing.
You get 2 accounts right. 2 leveraged accounts with the same size. So for example let’s just say 1000 on each. We are bullish on bitcoin long term. Only way this fails if bitcoin drops 90-100% and I will explain and I hope I don’t sound dumb ????
On one account you are only buying and on 1 account you are only selling. To calculate your risk you will divide your balance so 1,000 and divide it by whichever one your feeling 80,90 or 100% let’s just stick to if bitcoin dumps 90%. So 1000/90 =11.111 ok and you will sell half of that on the other account. So let’s do 12 and 6. You will buy bitcoin and if it pumps 1% you make $24 but you will lose $12 on the other account since you sold $6 with a 1% stop loss. That’s a net profit of $12 every time bitcoin pumps 1% from your entry. This is where things get interesting.
When price dumps 1% you DO NOT close your buy position, but every time price drops 1% you will take 50% of the profit. For example, if price dumps 10% you’re up $60 on the short but your down $120 on the long side. Remember you are taking 50% each 1% drop so you took out around $27. If price pumps back up 11% you will make $24 from your long that you did not close out. You will lose $12 from the short position and you will be in profit yet again. Obviously with more leverage you could make more and don’t forget about fees. But do I sound dumb? This makes sense
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