Lately, futures trading has been really unpredictable. The market has been moving in unexpected ways, and the high volatility is making it hard to keep a steady return.
Just yesterday, I went 100% long on POPCAT with 20x leverage. Things looked good at first, but within 30 minutes, the price came back to my entry point and I ended up making nothing on the trade.
I would say that you are the one shooting yourself on your foot but trading with a 20x leverage on popcat that is a token with higher volatility, because by doing so your liquidation price will be much more closer to your entry price.
But before I fully switch, I’m wondering if there’s a way to manage or hedge against this kind of volatility while still trading futures. Is there a smart way to protect my trades or reduce the risk? Any advice would really help.
Stop trading with high leverage, if you can trade without a leverage it would even be much more better because by doing so, your liquidation price will be far off from your entry price.
Additionally, with what you explain above, even though it's Bitcoin that you are trading, you are still going to be losing a trade that you should be winning because you are not letting the trade to breath, any small volatility will take you out, so try trading with small leverage like 2 or 3x or no leverage at all, and you are going to see the result.