The bitRage Profit Maker Hedging Strategy
Hedging is a risk management strategy employed to offset losses in investments, but with our bitRage Profit Maker Hedging Strategy we can trade BTC vs USDT using arbitrage but profiting when BTC pumps and accumulating when BTC dump, here’s how
bitRage will be searching for arbitrage opportunities between BTC-ETH and USDT-ETH but by doing that if the price of ETH drops even though we profited from the triple trade we may find ourselves with a portfolio losing estimated total value against USDT, the opposite will be true if the ETH value goes up. Please keep in mind this is just an example to keep it simple, in reality, we are looking for opportunities whit at least top volume coins on the exchange, sometimes even “All Pairs”
The bitRage Profit Maker Hedging Strategy
So what can be done to solve this problem? Enter The Gunbot, one more time with the ability to use built-in trading indicators and give us the advantage of using a well-known trend following signal, in this case, we use Parabolic SAR (PSAR). The parabolic stop-and-reverse indicator which will tell us whether the current price trend is likely to continue or to reverse. You can check this technical indicator basically on every exchange trading chart or in Trading View, usually as a dotted line below or above the price depending on the trend, when switch it indicates that a potential change in price direction is underway.
The bitRage Profit Maker Hedging Strategy will set its Main course of action to Sell BTC and profit from it when PSAR is going up and will accumulate when the signal reverses and BTC gets cheaper, to be more specific, bitRage will Sell High and Buy Low taking advantage of the trend direction.
As a cautionary note, I will tell you that this strategy also uses the PSAR reversal signal as a form of stop loss and will sell all your assets at market orders, so if you enter the trend and reverses before you make any gains, you may incur in losses, also make sure to check out the WiKi and use a Period supported by the exchange.
Are you ready to start making money with this bitRage Profit Maker Hedging Strategy? Wait No More, get your Gunbot Licence from an Official Reseller and if you are in the top 20 you’re ready for bitRage, ask your Reseller to add you in our bitRage group, and start testing this amazing strategy for yourself!
Leave your comments below and ask if you have any doubts. Start Raging Now!