The secret weapon for crossing bulls and bears, Ouyi launched a strategy square

As the Federal Reserve continues to raise interest rates, traditional financial markets continue to suffer setbacks, and it is difficult for encrypted finance to survive alone. In the past few months, Bitcoin has continued to fluctuate around $20,000, and it has not released a strong bullish signal.

Although analysts from many institutions such as Grayscale, Pantera Capital, Ark Invest, and Goldman Sachs often speak out, declaring that the Bitcoin and encryption markets are "close to or at the bottom" and refilling the market with faith, there is no unified answer for how long the bear market will last. .

How to grasp the volatile market in the bear market and obtain sustainable and stable income has become the most concerned topic of crypto investors. Institutional traders have a complete set of complex trading strategies that can continue to make profits in a bear market; however, retail investors are hard to come by, either because they have no access to bear market trading strategies, or because the strategies are complex and difficult to implement implement. All in all, retail investors are still the most injured in the bear market.

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1. Overcoming the bear market: from extensive trading to strategic trading

The crypto winter continues, with Bitcoin and other cryptocurrencies remaining at relatively low levels, and it is uncertain when the bull market will return. But only sufficient capital is the "bullet" when the next round of bull market comes. Therefore, the primary strategy for retail investors to survive the bear market is to:Control the retracement and keep sufficient funds in hand.

However, relying solely on themselves, more than half of retail investors simply cannot meet this requirement in a bear market. Most of the time, the state of retail investors is extensive trading, never set profit and stop loss points, and it is easy to chase ups and downs. This kind of extensive trading may help retail investors pursue excess returns in a bull market, but it will cause huge losses in a bear market. For example, some altcoins can continue to fall by 99% after falling by 99%. At this time, some holders are in an embarrassing situation, whether to cut the meat and stop losses or continue to hold and wait for the next bull market.

In contrast, institutional users, whether it is a bull market or a bear market, have formulated a complete set of refined strategies to avoid risks. For example, while some institutional users usually hold bitcoin spot, they will buy multiple future bitcoins at different points (such as price increases of 10%, 20%, 30%, etc.) in batches during the price increase phase. dated put options. Although the cost (capital and management) of this method is higher, it reduces the uncertainty caused by the price drop, locks in a part of the profit in advance, and avoids missing future benefits, and realizes risk hedging.

Therefore, changing from extensive trading to refined strategic trading is an important prerequisite for retail investors to survive the bear market. However, institutional strategies are more difficult to operate and are not necessarily suitable for retail investors. It is not realistic for retail investors to match institutional users in a short period of time. For retail investors, this refined strategic trading needs to meet several requirements:

• One is that the transaction threshold should be low, and it is best to operate in a "fool-like" manner. Users do not need to set additional parameters, nor do they need to understand the code. It is obviously not suitable for institutional users to use scripts to run trading strategies.

• The second is that there are various types of strategies to meet the trading needs of different retail investors. Some users may want to grasp the volatile market and try to conduct quantitative transactions; You may be keen on hoarding coins, but want to dilute the cost of holding positions... The diversity of needs leads to different strategies.

In response to the above requirements, Ouyi OKX has recently launched a strategy square, which includes 9 strategic trading products (grid strategy, fixed investment strategy, Tunbibao, etc.), which can effectively help users survive the bear market and obtain excess stable returns. The most prominent feature of Strategy Square is that it is relatively simple to operate:On the one hand, in addition to manually setting parameters independently, OKX will also provide intelligent parameters to help users set trading parameters scientifically; It greatly reduces the threshold for users to use strategy trading.

After my personal experience, my favorite function is to copy master strategy with one click. Judging from the results, the income of the grid strategy set by me is -1.5%, while the income of the copy strategy in the same period is 2.3%, and the gap is huge.

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2. Strategic trading experience

"Ouyi OKX strategy trading has built-in rich intelligent strategies, performs preset operations for you, and runs around the clock to help you easily lie down and win." Ouyi OKX official website said. The so-called strategic trading is a tool to help users conduct automatic trading. Compared with manual trading, strategic trading has the advantages of reducing trading risks, reducing operating costs, and controlling trading opportunities.

According to the data, at present, the number of Ouyi OKX strategy trading users worldwide exceeds 752,000, the cumulative income of strategy users exceeds 24 million US dollars, and the number of strategy transactions exceeds 351 million.

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(1) Grid strategy

Grid trading is a quantitative trading strategy that can help users automatically buy low and sell high within a certain range of price fluctuations and according to the set grid interval. Specifically, grid trading is based on a price, and a certain number of buy/sell orders are placed at the upper and lower prices in an equal ratio or equal difference method, and profits are made by selling high and buying low within a volatile price range. OKX Grid Strategy consists of three products, namely:Spot grid, contract grid and world grid.

Taking the BTC spot grid as an example, after the user clicks to enter, he can choose the parameters of "smart creation" or "manual creation"; Copy; if you choose to create manually, you need to enter five data: the lowest price in the range and the highest price in the range, and the grid transaction will automatically stop running if it exceeds or falls below this range; the mode selects equal difference or equal ratio; choose the number of grids, the more the number , the more times of shock arbitrage, the more funds need to be invested; the last is to choose the investment amount, set the stop profit and stop loss, as shown below:

So, how does grid trading work? Take the above picture as an example. We set the highest price of the interval to be 30,000 USD and the lowest price to be 20,000 USD. There are 10 arithmetic grids in total, and the input amount is 100 USD. Assume that the BTC price is 21,500 USD at the time of creation; ……30000 These points are respectively placed with buy orders; when the price falls below 21000 US dollars, the buy order will be filled (low buying), and at the same time, the sell order will be automatically set at 22000 US dollars to wait for the sale; if the subsequent price rises above 22000 US dollars, the sell order will be placed For a transaction (high sale), the system will continue to set a buy order at $21,000 and wait for the next cycle; in this way, with market fluctuations and cyclical pending orders and transactions, you can continue to earn fluctuations in the volatile market.

It should be noted that when the price falls below the set range, although the strategy stops running, the user actually holds the token, and its value will also depreciate as the price falls, so pay attention to exit in time.

The introduction of the principle may be more complicated. As mentioned above, ordinary retail investors can copy the trading strategies provided by the platform with one click or copy the strategies of other masters on the platform. At present, ROAD/USDT is the strategy with the highest annualized rate of return on the platform, reaching 510%. This strategy also has the largest number of copies.

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(2) Average cost strategy

In a bear market, if you choose to be a coin hoarder, then OKX's spot investment strategy is more suitable for you.

Specifically, OKX spot fixed investment is a strategy of buying selected currency combinations with a fixed time period and a fixed amount. When the market fluctuates violently, using an appropriate fixed investment strategy, you can buy more chips at low points with the same investment amount, helping users to obtain more considerable returns.

After the user clicks to enter the strategy, he can choose the currency that needs to be configured, such as BTC, ETH, OKB, and up to 20 currencies can be selected at the same time; set the proportion of each currency for each fixed investment; set the fixed investment time, such as every 12 o'clock on the 1st of the month; enter the amount of each scheduled investment to complete the setting. As follows:

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(3) Price locking strategy

The so-called price locking strategy is to help users to buy bottoms and sell high, so as to minimize costs and maximize profits.

For example, the current price of bitcoin is 20,000 US dollars, Xiao Qin wants to lock in the position of 18,000 US dollars to buy, and the expiration date is 7 days later; if the price of bitcoin on the day of expiration is lower than 18,000 US dollars, the system will automatically execute Full purchase operation; if the price on the due date is higher than 18,000 US dollars, the system will ensure that the user buys a certain share of Bitcoin according to the lowest ratio calculated by the background. As follows:

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(4) Combination arbitrage strategy

Portfolio arbitrage is a strategy to help users do hedging and arbitrage and reduce transaction risks. This strategy can choose to trade different or the same currency/market at the same time, and automatically and timely help users to take profits by taking advantage of market fluctuations and price differences between various trading varieties. Portfolio arbitrage strategies can effectively help you reduce potential loss risks in response to future market uncertainties. OKX's combination arbitrage includes arbitrage order placement strategy and Tunbibao.

Derivatives users may notice that the funding rate of some altcoins often soars in a short period of time, even exceeding 1%. At this time, some users may establish positions for a short time in an attempt to capture profits, but often lose their principal. How to carry out arbitrage safely and risk-free, at this time OKX's arbitrage order strategy may be helpful. Specifically, there are three means of arbitrage trading: funding rate arbitrage, futures and spot arbitrage, and futures and futures arbitrage.

Take BABYDOGE, which has skyrocketed recently, as an example. When users click to enter, they can see that its cumulative fee rate in the past three days is -1.8%, and the next period's fee rate has also reached -0.342%. Sell ​​more at the same time and choose the same quantity. According to official calculations, the annualized return can reach 114%, as shown below:

Note that users must pay attention to observe the two markets when placing orders, and place orders at the same time, so as to avoid slippage, so it is best to check "Order with two legs".

Another arbitrage strategy of Ouyi OKX is "Tunbibao". Tunbibao strategy is an automatic strategy for intelligent dynamic adjustment of positions in the currency combination selected by the user. The dynamic adjustment will help the user to keep the ratio of each currency in the currency combination constant. The user can choose two adjustments: The warehouse mode is used to trigger the rebalancing, respectively according to the fixed time period and according to the change ratio of the market value of the currency. The advantage of this strategy is that it can take advantage of exchange rate fluctuations between different currencies to earn and deposit coins.

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(5) Big order split strategy

Large order splitting is a convenient trading strategy for large traders. This strategy can help users split large orders into small orders and place orders in batches, and the orders can be intelligently set through the strategy, which can minimize the impact of large orders on the market while maintaining a relatively high average transaction Price levels, thereby greatly reducing transaction costs for large traders. OKX's large order splitting strategies include iceberg strategy and time-weighted strategy.

Iceberg order is a strategy of placing orders in batches after splitting large orders. When users conduct large-value transactions, in order to avoid excessive impact on the market, they need to automatically split large orders into multiple orders. This strategy will calculate the order price based on the current latest bid/ask price and the price distance set by the user, and then automatically place small order orders for pending order transactions. When the last order is fully executed or the latest price deviates significantly from the current order price , automatically re-entrust.

Time weighting is a strategy of time-sharing orders after splitting large orders. When users conduct large-value transactions, in order to avoid excessive impact on the market, they need to automatically split large orders into multiple orders. This strategy will trigger the order according to the interval set by the user, calculate the order price according to the current latest bid/ask price and the price distance set by the user, and then place a small order to take the order.(If the taker order is not fully completed, the order will be canceled directly, that is, the IOC order logic.)

There is no sustainable profit-making effect in a bear market, and the difficulty of operation is much higher than that in a bull market. For retail investors, if you don't want to lie flat on short positions and passively continue to lose money, it is best to adopt one or more combinations of the above strategies. The emergence of Ouyi OKX strategy square can meet various investment needs and help retail investors to go through bull and bear smoothly.