The wolf is keen, focused on the prize, Navigates both lows and highs. With cunning moves, she plays it smart, The wolf prevails, and masters charts.
Wolf Strategy
Tips, Tactics and Techniques
We present the most conservative strategy to keep your futures trading disciplined – its up to you if you want to loosen it, but let's see if you can make money without leverage first! 20-30% portfolio allocation if also using other strategies.
Considering the following two scenarios, which is better?
- Limit each trade to 1% of your equity and 4x cross-margin leverage with 20 tokens; allowing a 20% margin buffer.
- Set orders with 4% of your equity per trade and 1x leverage with 20 tokens; allowing a 20% just-in-case something goes wrong buffer.
Both approaches offer a similar risk profile, but the second option is preferred:
Lower Leverage: Using 1x leverage reduces the risk of liquidation and larger losses compared to 4x leverage (and less fees). Lower leverage ensures that even if the trade moves against you, the impact on your overall equity is more manageable.
Simpler Risk Management: Managing trades with 1x leverage is simpler, as you don't have to constantly worry about sudden market swings as much.
Improved Stability: Trading with a larger portion of your equity (4%) at lower leverage (1x) provides more stability and less volatility in your portfolio.
Better Sleep: With lower leverage and larger trade sizes, you can avoid the high anxiety and sleepless nights often associated with leverage trading. This leads to a more balanced and sustainable trading experience.
Cull the Herd
For this strategy, we’ll spend time on TradingView to analyze good setups to stalk our prey.
Start by making a list of all the coins that are tradeable on Binance Futures (always shown as XXXUSDT.P), and add them to your TradingView watchlist.
Reference USD-M: https://www.binance.com/en/futures/trading-rules/perpetual/leverage-margin
Next, go through the list a couple of times but on different timeframes with the DLI open. Give yourself time to just watch and see what’s happening. You may begin to see clear patterns of good timeframes across tokens, and tokens that seem to work well on most timeframes. We always recommend staying on the same timeframe when trading to maintain consistency, such as the 15 minute chart.
BUIDL Short List
Learn how to insert and name sections in your watchlist and color-code them. Make one section for your small list. You’ve got almost 300 futures tokens to choose from so start identifying which ones to put on that list next (for example: lowest SL and highest TPs on 15 min chart = AA rating = good risk/reward).
Later on, when setting alerts, other criteria to consider are popular areas. Right now in 2024: Memes, SOL ecosystem, and AI are on fire. This provides a good mix of quantitative and qualitative criteria to bring your list sizes down.
Active Alerts (current trades)
You can max out Finandy’s limit of 80 tokens being actively traded, which we would then recommend trading at 1x leverage and 0.80% trades since you are either short or long at any time (not both – don’t be in hedge mode), for reasonable risk management. While 80 is a good number for your small list, its quite a lot to monitor in trades, so we still recommend sticking with 20 tokens in active trading. If you follow that rule, then set 1x leverage and 4% trades in Finandy.
Summary to this point:
Watchlist (all futures tokens) -> Small List (best r/r ratio) -> Active trades (popularity / volume)
(Watchlist: 240) -> (Small List: 80) -> (Active Alerts: 20)
BUIDL Webhooks
Head back over to Finandy
- CAUTION: Since Finandy has a limit of 80 tokens that you can be in a trade with at any given time, if you are doing reversals and have alerts set for more than 80 tokens, then you will get errors preventing you from reversing (read: not exiting) your positions! BIG PROBLEM! Very important that you remember this!!
Create your trade conditions. Here are screenshots of our recommendations for long and short reversals so you catch alternating up and down moves.
- Tip: You don’t have to use leverage – just set the leverage to 1 (don’t take the candy offered for anything higher unless you can consistently profit at the lowest level).
Long Canine Settings
BUIDL a Long Webhook: Open Long
BUIDL a Long Webhook: Enter Stoploss
BUIDL a Long Webhook: Close Long
Enter exactly as shown - trade 20 tokens with this input
BUIDL a Long Webhook: Close Long
BUIDL a Long Webhook: Enter Stoploss
BUIDL a Long Webhook: Close Long
Enter exactly as shown
BUIDL a Long Webhook: Enter Stoploss
BUIDL a Long Webhook: Enter Stoploss
BUIDL a Long Webhook: Enter Stoploss
In TradingView, make sure your calendar is set 60 days back in settings, and then enter the value from DLI table for Long SL (don’t use ours!)
BUIDL a Long Webhook: SLX
BUIDL Long Alert in TradingView
BUIDL a Long Webhook: Enter Stoploss
Enter exactly as shown
BUIDL a Long Webhook: TPs
BUIDL Long Alert in TradingView
BUIDL Long Alert in TradingView
TP1 is from the DLI table on the chart for Long Target. Multiply it by 2 and that is TP3. The average of these two values is TP2.
Based on your SLX settings on the previous tab, your position will close if the price drops back down after hitting TP1, but now you have the opportunity to make significant profit if the chart moves quickly in your favor.
BUIDL Long Alert in TradingView
BUIDL Long Alert in TradingView
BUIDL Long Alert in TradingView
1. Be sure correct pair on 15, 20 or 30 min chart
2. Set your candles to Heiken Ashi to help to enhance trend detection, reduce noise, and provide clearer signals
3. Right click on a DLI alert or the table, and select “Add alert on DLI ツ”
4. Paste webhook and URL from Finandy
5. Always should be set "Once per Bar Close"
Short Canine Settings
BUIDL a Short Webhook: Open Short
BUIDL a Short Webhook: Enter Stoploss
BUIDL a Short Webhook: Close Short
Enter exactly as shown - trade 20 tokens with this input
BUIDL a Short Webhook: Close Short
BUIDL a Short Webhook: Enter Stoploss
BUIDL a Short Webhook: Close Short
Enter exactly as shown
BUIDL a Short Webhook: Enter Stoploss
BUIDL a Short Webhook: Enter Stoploss
BUIDL a Short Webhook: Enter Stoploss
In TradingView, make sure your calendar is set 60 days back in settings, and then enter the value from DLI table for Short SL (don’t use ours!)
BUIDL a Short Webhook: SLX
BUIDL Short Alert in TradingView
BUIDL a Short Webhook: Enter Stoploss
Enter exactly as shown
BUIDL a Short Webhook: TPs
BUIDL Short Alert in TradingView
BUIDL Short Alert in TradingView
TP1 is from the DLI table on the chart for Short Target. Multiply it by 2 and that is TP3. The average of these two values is TP2.
Based on the SLX settings on the previous tab, your position will close if the price spikes back up after hitting TP1, but now you have the opportunity to make significant profit if the chart moves quickly in your favor.
BUIDL Short Alert in TradingView
BUIDL Short Alert in TradingView
BUIDL Short Alert in TradingView
1. Be sure correct pair on 15, 20 or 30 min chart
2. Set your candles to Heiken Ashi to help to enhance trend detection, reduce noise, and provide clearer signals
3. Right click on a DLI alert or the table, and select “Add alert on DLI ツ”
4. Paste webhook and URL from Finandy
5. Always should be set "Once per Bar Close"
Get Ready to Profit with Degen Legion
BAM! BAM, BAM, BAM!!!
We love to see all the extra signals you picked up as you kept meeting your target over and again! How hard is this pig going to drop? 30% profit with 1x leverage? They say that trades go up in steps before they fall out of windows, but flash crashes are always an unexpected bonus! There will always be scam wicks, but now you'll see them as a feature - not a bug. 🚀 🚀 🚀
Buy or Die Losing
There are infinite ways to lose your money as 85% of traders find out. It's not easy to make money in the market, but joining the Legion might give you the edge you needed to turn the tables on them! ツ