Saturday, January 7, 2017

EFFECTIVE Strategy: ARBITRAGE Hedge #BTCUSD Decline With #DX FUTURES

Ahead of the Market has its Advantages! By Expecting the Unexpected Before & After the Fact.

#BITCOIN prices had plunged on China's warnings that BITCOIN is a virtual good and does not carry any legal tender status. This was the statement made by the PBOC similar to its previous statement in 2013. These are the type of external forces that may still dominate the volatile market for Bitcoin.

However, with a $246.94 price net change as of this writing, in spite of such decline the #GBTC has a limited decline of $23 from its recent high which is quite tolerable to this point. This is also where we have been hedging and subsequently protected its gain equivalent to its value by the US Index point value by way of its equivalent contract size with the DXH 2017 - March futures market in the event of a continued decline as a correction. And monitoring positive net value of trades thereafter.

CORRELATION is a valuable knowledge knowing how it works and how to 'ARBITRAGE HEDGE - VALUE' through proper trading strategies can always be an EFFECTIVE way to level the playing field from unexpected market conditions while utilizing the FUTURES market as another form of 'ALTERNATIVE STRATEGY' to protect, enhance trade position with gains and avoid unnecessary loss in rapid price swings.. The ability to further anticipate any surprising move which the market would be vulnerable.

#DXH2017 - USD Futures

#BTCUSD: Chart & Price Comparison

1 comment:

  1. From the 103.40 levels, the DX Futures have delivered in so far as anticipating a decline relative to its topping formation, while offsetting the decline equivalent to the BITCOIN which took a beating from the Chinese report from the PBOC.

    100.00-100.50 basis range would be a crucial price to watch as this may further retest the levels to eliminate more bull positions in the market. Although, from 103.40 to the current levels of 101.20 is not bad at all.

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