Practical skills for Bitcoin contracts: How to make stable profits in volatile markets
Jul 29, 2025 pm 01:48 PMSix techniques are required to follow in a volatile market: 1. Trend tracking and trading with the trend, use moving averages, Bollinger bands, etc. to judge the direction and avoid counter-trend operations; 2. Strictly set stop loss and stop profit, set stop loss according to support resistance levels, adopt batch stop profit and tracking stop loss; 3. Position management and leverage control, adhere to the principle of light positions, and do not exceed 5% of the principal in a single transaction, dynamically adjust and increase positions; 4. Use volatility indicators such as ATR and IV to assist decision-making, and adjust strategies according to the intensity of volatility; 5. Use hedging and arbitrage strategies, such as cross-period arbitrage and option hedging to reduce risks; 6. Maintain emotional stability and trading discipline, avoid FOMO, and develop review habits; through the combination of technical analysis, risk management and psychological control, achieve less loss and more profit, and ensure long-term stable profit.
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Practical skills for Bitcoin contracts: How to make stable profits in volatile markets
The high volatility of the Bitcoin market is both an opportunity and a risk. If contract traders want to make stable profits, they need to combine technical analysis, risk management and psychological control. The following are the key practical skills:
1. Trend tracking and trend trading
In a volatile market, trends are friends. Use moving averages (such as EMA50, EMA200), Bollinger bands or MACD to determine the trend direction. For example, when the price stands above the EMA50 and the MACD golden cross, the main one is long; otherwise, be cautious in shorting. Avoid counter-trend operations, especially before and after major news (such as ETF approval and halving incidents), volatility intensifies and it is safer to follow the trend.
2. Strictly set stop loss and stop profit
Stop loss: Set according to support/resistance level or fixed ratio (such as 2%-5% of principal). For example, go long after the breakout and put the stop loss below the front low.
Take profit: Use batch stop profit, such as closing the position at a 1:1 risk-return ratio of 50%, and tracking stop loss for the remaining positions. Avoid missing out on the opportunity to play due to greed.
3. Position management and leverage control
The principle of light position: a single transaction shall not exceed 5% of the principal, and a lower position is required for high leverage (such as more than 20 times).
Dynamic adjustment: After making a profit, you can increase your positions step by step, but you need to ensure that the total risk is controllable. For example, after the first position makes a profit of 5%, the second position stop loss will move upward simultaneously.
4. Use volatility indicators to assist decision-making
ATR (Average Real Amplitude): Measures the intensity of market volatility. When the ATR value is high, expand the stop loss space; when the position period is low, shorten the position period.
IV (implicit volatility): The surge in the IV in the options market often indicates a short-term change, and you can reduce your positions or hedge them in advance.
5. Hedging and arbitrage strategies
Cross-period arbitrage: Take advantage of futures contract price spreads, such as shorting for the long month and long for nearly a month when the contract premium is too high in the quarter.
Option hedging: Buy put options to protect long positions, or reduce holding costs by selling call options.
6. Emotion and discipline
Avoid FOMO (miss-phobia): do not chase the rise and sell the fall, and wait for a pullback or rebound signal.
Review habits: record the entry and exit logic of each transaction and analyze error cases (such as frequent transactions and orders).
Conclusion
The core of Bitcoin contract profits lies in "loss less and makes more profit". Through technical confirmation of trends, strict risk control and calm implementation, profits can be continuously accumulated even if the market fluctuates violently. Remember: Survival is more important than huge profits, and long-term stability is the ultimate goal.
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