Scan to Download Gate App
qrCode
More Download Options
Don't remind me again today

How to play contracts without being wiped out by the market? Let's talk about my practical rhythm.



I often receive private messages asking: What indicators do you look at when trading contracts? Do you have any tips?

It's actually not that mysterious. The truly effective methods are often the simplest ones.

**First look at the funding rate, understand the sentiment**
Every time the market opens, the first thing I do is check the funding rate. Is the positive rate off the charts? That means the bulls are scrambling for funds, ready for a crash and harvest. Is the negative rate ridiculously deep? The bears have already been squeezed out, and a rebound is imminent. My strategy is simple—stand on the opposite side of the emotions and cut leeks with the big players.

**Long cycles set the direction, don't be clever by half**
The daily and weekly charts tell you what the trend is, so just follow it honestly. Go long if it's going up, and go short if it's going down. Those who like to guess tops and bottoms in smaller time frames may make a profit once by luck, but will lose ten times inevitably. The market won't change direction because of your little cleverness.

**Clearing Intensive Zone, it's a Hunting Ground**
The densely packed orders on the liquidation heatmap are the lambs waiting to be slaughtered. Once the price touches these areas, a chain liquidation will create severe fluctuations. My strategy is to wait in advance and follow the main players when they take action to profit.

**Light positions and slow execution, holding on will lead to death**
The biggest taboo in contracts is to bet your life with a heavy position. I control a single position to be within 10%-20% of the total funds, with leverage not exceeding 5 times. Got the direction wrong? Admit defeat immediately and walk away, not a second longer. Those who like to hold on stubbornly end up becoming the nourishment for the market.

**Profit should be pocketed in batches**
Sell half after a 30% increase, then clear half again when it reaches 50%. Don't fantasize about capturing the entire big market trend; the consequence of greed is a roller coaster ride. The market will never give you all the profits.

**The signal has changed, retreat immediately**
The key moving average has been broken, the support level has collapsed, and the funding rate has reversed—if any one of these signals appears, I will immediately close my position. It doesn't matter whether I'm making a profit or a loss at the moment; when discipline is broken, one is prone to failure. This iron rule has helped me avoid countless liquidation events.

Many people feel that these methods are too rigid and always want to rely on their instincts to seize opportunities. However, in the contract market, those who survive have never relied on intuition, but rather on an execution ability that is mechanically obsessive.

The method is right here, whether you believe it or not is up to you. But what I can tell you is that I have tested these things with real money.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 6
  • Repost
  • Share
Comment
0/400
Fren_Not_Foodvip
· 17h ago
You're right, discipline is more important than anything else. I've fallen for greed too many times.
View OriginalReply0
DaoTherapyvip
· 17h ago
You're all right, but the last sentence hits hard - the cost of testing with real money can be devastating, only those who have gone through it truly understand.
View OriginalReply0
ZKSherlockvip
· 17h ago
actually... this whole "mechanical execution" framing is kinda missing the point, no? the real issue here is information asymmetry—you're reading funding rates like some probabilistic proof of market sentiment, but that's treating a noisy signal as cryptographic certainty. totally different trust assumptions than what you'd need for actual edge.
Reply0
SybilAttackVictimvip
· 17h ago
Sounds good, but actually executing this trap is another story.
View OriginalReply0
GasWastervip
· 17h ago
nah bro this is just futures with extra steps... remember when everyone said "just check the funding rate" before getting liquidated at 3am? lol
Reply0
GweiWatchervip
· 18h ago
You are right, it is important to follow the big cycles and not to be clever in the small levels, as that is a path that only leads to giving away money.
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)