BTC Long Positions and Their Implications for Proprietary Trading Strategies

Bitcoin will always be the blue eyed boy for the Crypto Markets. And this has been proved over a period of time. All the technological advancements in the field have been post arrival of Bitcoin and the whole industry is benchmarked with its performance. For every proprietary trader the BTC positions for their traders is extremely important. There are few points that all traders should keep in mind when there is a long position for a BTC pair and its significance. BTC long position is a basic strategy that is used by Prop Firm Traders.

Market Sentiments

BTC pairs represent the market trends and lead the way. As a trader keep a close eye on the market sentiments and key events that are happening as this impacts all Crypto Pairs. BTC is generally the most reactive one, so keeping a track of price levels will help with an entry and exit strategy.

Strong Risk Management Set Up

As crypto is a volatile currency, traders need to have a sustainable Risk Management set up in order to protect the equity and margin balance. The price fluctuations are significant and put an impact on the whole portfolio.

Usage of Leverage and Margin Provided

While taking advantage of the leverage and margin provided for the prop firm challenge, it’s a financial discipline to take advantage. If unchecked one wrong trade can wipe out the whole portfolio. Take help of a good mentor or have a check at Hola Prime Academy that can help you with concepts.

Understanding Technical and Fundamental Analysis

Trading is a mix of art and science. As a trader keeping oneself updated with the latest Technical and Fundamental moves is extremely important. With a long term position of BTC in the portfolio a good understanding of the Technical and Fundamental analysis shall help plan the position for exit or re entry levels.

Hedge Opportunities

The fluctuations in long positions at times help in Hedge position for the portfolio. This carefully needed to be tread with so that it can one can navigate through volatility of the market.

Setting up a Performance Metrics

Setting up the right level of trading performance metrics in place is extremely crucial. Unless the long position is monitored closely, managing a challenge is not going to be easy. Invest in a good metrics monitoring system as this will assist in the overall Risk Management framework.

Conclusions

Navigating through the BTC long position is not an easy task. This requires a lot of skill, knowledge and patience to get the right positions in place. The best part about trading with Prop Firms is the ability to think through and then place the trade as the risk of loss is limited but the gains can be an upside. Take right advantage of the conditions provided like leverage and margin, use the know-how available with the Prop Trading firm and have a good time while trading. Keep learning as this will help you grow in time to come.

Become an Hola Prime Trader

Start trading within minutes!

Disclaimer: All information provided on this site is for educational purposes only, related to trading in financial markets. It is not intended as financial advice, business or investment recommendation, or as an opportunity or recommendation to trade any investment instruments. Hola Prime only provides an educational environment to traders, including tools, materials and simulated trading platforms which have data feed provided by Liquidity Providers. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local laws or regulations.