Hopefully, this guide has helped you feel a bit more comfortable with cryptocurrency trading. That may seem too little, but this is to make sure that a few inevitable bad trades won’t blow up your account. So, once you’ve got this defined, you need to determine where your stop-loss is. You do this for each individual trade, based on the specifics of the trade idea.
Performance testing applies the STS logic to the requested historic data window and calculates a broad range of risk & performance metrics, including max drawdown, Sharpe & Sortino ratios. Most all of the frameworks support a decent number of visualization capabilities, including equity curves and deciled-statistics. Make sure that when you compare programs, you check reviews first. Even those that proclaim to be one of the ‘top 10-day trading software’ can have some serious drawbacks.
Of course, if the price does not adjust as you expect, you could either lose money or Bitcoin in the process. bitget began offering Nano Bitcoin Futures trading on June 27, 2022. The contract sizes are 1/100th of a Bitcoin, have a tick value of $.05 per contract, and minimum price increments of $5.
Phemex is a new derivatives platform that has grown to over 5 million users since being launched in 2019. Their exchange offers deep liquidity on over 150 crypto pairs with up to 100x leverage on their secure and highly performant centralized trading platform. Phemex is widely regarded for its low fees, tight spreads and feature-rich exchange that includes staking, spot trading, options and more. Bybit is a derivatives platform that allows traders to speculate on cryptocurrency futures pairs with leverage. However, the platform is not regulated by AUSTRAC but individuals within Australia are still eligible to use its services to trade crypto.
Now that we’ve seen an example of the data and understand each row’s meaning, let’s move on to configuring freqtrade to run our strategy. This article is for educational purposes only, and we do not advise you to do anything with it. A trading bot comes with no guarantees, even if it does well on backtesting.
Discover the best crypto apps you can use on your iPhone or Android phone, based on security, data, availability and more. Learn more about the most Popular cryptos and altcoins worthy of investment based on reputation, historical price and more. No, you cannot make money by paper trading, although you can develop a successful track record. You can also make money if you apply the knowledge you gained from paper trading in a live account.
Hence, the formula includes a provision for computing the returns, which are at least at par with the risk-free rate over time until the contract expires. If there is no chance of arbitrage, the futures price is the sum of the spot price and the cost of carry, which is reflected in the formula. Futures trading is derivative contract to buy or sell an underlying asset at a future date at an agreed-upon price. In the case of bitcoin futures, the underlying asset would be bitcoin.