Successful Scalping…

Hey Fam,

So for those that have been following my weekly $BTC post series (a new post every week and updated daily).

You will know that I only trade BTC using 100 x leverage daily, I SCALP and not trade.

But, one of the cornerstones of my practice is advancing my SL relatively quickly and this results in my getting stopped out quickly while the price later proceeds to hit my targeted TP zone.

I have become a full time trader, and thus have the time to sit in front of the screen all day; day after day and reload my trade if I do get stopped out and the price retraces back into my buy zone. 

Max lvg. requires max attention.

Maximum leverage, allows you to take full advantage of this notoriously volatile asset class that is crypto. But, it also opens you up to the increased risks that come with the increased rewards.

One of the first concerns that I had when setting out on the task was that of fees.
How do I trade these rapid turns successfully and still make a profit despite the cumulative depreciation  of exchange fees.

Using yesterday's trade as an example I'll demonstrate my reasoning.

The first thing is understanding the sources of fees.

1) Fees to open a trade
2) Funding rate
3) Closing fees

Initial fees
The exchange charges you on every transaction you make, that is why when you open a trade there is an initial loss under the section "Realised P&L" (green circle).

For some reason it always costs slightly more to short an asset than long one, possibly because it assumes that shorting requires a greater level of sophistication / experience or it may be a subtle nudge to create a more bullish market. 

Funding rate
The funding fees are a transaction that occurs between market participants every 8 hours.
When the funding rate is positive market participants that are long on a given asset pay a portion of their position margin to the participants that are shorting that asset, and vice versa when the funding rate is negative.

ByBit does not disclose the percentage of the transaction that they pocket as commission.

The funding rate is always listed with the time until expiry (yellow circle).

If the funding rate is close to expiry and I am in profit, I will often close the trade to avoid paying the funding fees if I suspect that the price may retreat, but if we seem to be going higher I'll deem these fees to be worth the cost of maintaining the trade.

Closing fees
Whether you limit or market execute a close the fees will be the same.
It is often necessary to see what your closing fees are by checking in either of the close by options (limit or market) as it is not shown in your Take profit / Stop loss selection.

The fact that these fees are hidden is how scalpers often lose by trying to close the trade too early.

In most cases you will need a minimum of 9% profit to more or less break even…
Not accounting for the funding rate.

When conducting a trade I like to put my SL to profit as soon as possible.
An easy way to ensure this is described below.

When the trade is greater than 10% profit, paste or enter a value greater than that of the 10% value as your SL and hit confirm.

Just sharing what I am doing 

DYOR

Banter 0n, Banter Strong!
✌️