BTC
After our article recommended buying in the spot market yesterday, the BTC price rose overnight and is currently stable around 98,000. It has also successfully stabilized at the BOLL 4-hour middle track position and touched the upper track, with the middle track direction showing a slow upward trend.
From the perspective of the coin price, there is a demand for a correction. Of course, even if there is a correction, the price is likely to stabilize around 96,000. Therefore, I do not recommend shorting here. If it continues to rise, it may be a slow rise. Thus, the current operation focuses on buying in the spot market, while buying in batches without heavy positions.
ETH
Compared to yesterday's performance of ETH, although the current ETH increase is relatively small, its upward trend is very obvious. Additionally, the upward trend of the BOLL middle track is more pronounced. From the ETF data, it shows that the ETH ETF has been trending towards inflows in recent days, while BTC is still experiencing outflows, indicating that there is a demand for ETH to rebound quickly. Here we can consider increasing our position as long as it does not drop below 3350. If it effectively breaks below 3300 in the short term, we may consider buying a bit of short positions.
Escape the Peak Treasure's Practical Use
OKX released a product a long time ago - Bottom Fishing Treasure and Escape the Peak Treasure. I have researched and personally practiced it over the past few days, and I feel it’s quite good. Here’s an introduction. Of course, if Binance also releases a similar innovative product, I would be happy to introduce it to everyone.
First of all, this product is essentially a trading function packaged under options. Options are relatively easy to understand, which is the right to purchase a certain quantity of the underlying product at a certain price at a specific time. For example, if I buy an option for ETH with an expiration date of January 1, 2025, at a price of 3300u, then upon expiration, I can purchase ETH at this price. If at that time the price of ETH is higher than 3300, I effectively purchase it at a discount, thus making a profit. Of course, I can also sell this option to realize a profit. If upon expiration, the price of ETH is lower than 3300, I can either buy ETH at a high price or not exercise this option (invalidate it), thus incurring a loss due to this option.
Options are a form of advanced derivatives, and they have many functions based on what they can achieve. The Bottom Fishing Treasure and Escape the Peak Treasure are functions derived from them. Of course, we will not delve deeply into how these functions operate internally; I personally suspect the algorithms may be relatively complex and might utilize some hedging strategies. We ordinary traders just need to know how to use them.
The usage of the Escape the Peak Treasure is very simple. We sell at a certain price higher than the current price, and it guarantees that you will at least sell a percentage. For example, if I set the price at 3550 for tomorrow afternoon's transaction, and the current price is 3500, if the price after tomorrow afternoon's expiration (the price in between does not count) is higher than 3550, the system will execute all quantities at the price of 3550. If the price is lower than 3550, the system will execute 8.59% of our order quantity at the price of 3550, and the remaining quantity will be returned to our account.
In fact, this method might not be particularly helpful for us to escape the peak, because the middle price hits 3550 and does not execute; only the price at the final settlement time counts. However, we can use this method to reduce the cost of holding spot positions.
For example, if I sell 1 ETH at 3550 using the Escape the Peak Treasure and simultaneously buy 1 ETH in the spot market, if the settlement price tomorrow is greater than 3550, I will net a profit of 50u. If the settlement price tomorrow is less than 3550 but greater than 3500, then it will still be more cost-effective than buying spot directly now. At that time, I can sell 0.9141 ETH at a price slightly higher than the price at that time (since 8.59% is sold at the price of 3550). Only when the price tomorrow is lower than today's Escape the Peak Treasure opening price of 3500 does my operation count as buying at a high position, but the buying price is still lower than 3500; we are just passively increasing our position.
In simple terms, as long as it is used properly, this tool can statistically reduce holding costs, even though it may not reduce them significantly in the short term.