Disclaimer:Disclaimer:
Don’t be a degen and waste sats like me.Don’t be a degen and waste sats like me.
BUT!!
If you have an appetite for risk and want to grow your stack you can trade on LN Markets.
I do this for the reasons below.
- The LN Markets team has built a tremendous trading platform only using lightning. I want to support the platform and use lightning every day (why I am addicted to SN)
- As the price rises you can stack moar sats with the sat stash you have. Plus you know your sat stack is increasing with every price pump. So not only are you feeling richer in fiat terms but also in sat terms
- As the price falls you can catch a falling knife and play the “when is the bottom in”
- I am not risk adverse. I trade on sats I can afford to lose. I zapped and spent way more sats on SN than I have traded on LN markets
- It takes the edge off on FOMO.
The Strategy:The Strategy:
It’s quite simple I enter a trade every day. With the following parameters
- I do a modest position size.
- If I feel bearish I do $15
- If I feel bullish I do $150 to $200
- Then I set it to 10x leverage
- Then I set the take profits at 25% and the stop loss at 8%
- I market buy
I let the trades run for as long as possible. Once the price moves up I move the stop losses up accordingly to preserve capital.
If we get a massive pump before my take profits get triggered I let the trade just run
I never do puts or shorts! I AM FORVER LONG PERMABULL
Progres to dateProgres to date
I only got 22 running trades. I had a lot more open but when the bitcoin price dips my stop losses hit.
My longest run trade goes back to 2024:My longest run trade goes back to 2024:
Summary of all my running tradesSummary of all my running trades
My overall performance on LN marketsMy overall performance on LN markets
Exit Strategy:Exit Strategy:
Not sure if I have one. I was thinking of doing this until bitcoin hits $1M per coin in fiat but I’m not sure if that is prudent. I could get rugged and LN markets can go down at any second but I am comfortable with that risk. I have fun doing this and it takes the edge off of FOMOing in
Thanks to @Aardvark for sharing his option wheel strategy. I been doing this for quite sometime vark inspired me to share!
Looking at the historical funding rates on LNM, it seems that if you held a long position your cost is roughly 10% a year... which is about 2x as high as say a Robinhood, but on par with a Fidelity
For some periods, like recently where sentiment is very bearish, funding is negative and you actually get a yield to have a long open.
Most of the time though you pay to have a long open, but over time, its roughly equivalent to borrowing fiat at 10% to buy Bitcoin with.
So the only thesis you need is that Bitcoin grows at >10% a year and can simply not trade it, set and forget a long.
You might even use it to "borrow" against your Bitcoin at 10% to cover life expenses, eg sell some Bitcoin, then buy an equivalent amount back on LNM.
Volatility however is how you get "chopped" up through liquidation. Price dumps, you get liquidated, it bounces and you buy back higher to chase. You need very low leverage to mitigate that... and ideally only adjust your positions when the market is boring.
The trade-off for low leverage ofc is greater impact of rug pull / technical risk of LNM itself. Afaik, they back their books with Bitmex, and price calculation is an average of exchanges that have API's that can break. Glitches further exacerbates volatility risk.
Thanks for this in-depth review. During the October dump LN markets ran into some issues. I’m not sure how deep the liquidity is but a few traders were pissed at the team
This is definitely true. The dumps and the chop crush this strategy.
True but this is boring. Idle hands are the devils playground! Using LN makes life worth living!!
I think I recall seeing that the October thing was an exchange API breakage, something external reported the price incorrectly which caused their engine to mis-price and liquidate people.
Very similar to what broke some stableshitcoin on exchanges that started the cascade in the first place.
Liquidity shouldn't be an issue since Bitmex is the ultimate market maker, may just want to use slugs to avoid slippage if you go big.
lol very true, until the price starts to run and you log in to check and see a whole bunch of free sats... or when there's blood in the streets and you log in and see you're not liquified
Exactly I need that rush when the price action is so dull
It must be exhilarating to have play money and just do something for the hell of it! We all need to live!
I was going to give LN Markets a try but I got a "Your country is not allowed to us LN Markets" when trying to register.
It would appear to be by IP Address Range, as I was trying LNURL register.
Does anyone know what countries they are blocking?
I think just USA.
Good set up but I would reduce leverage to as low as possible 10x is crazy talk
Yeah 10x to the down side sucks for sure. But my risk is low due to using extremely small capital. Now if I was doing 100k or 1M sat positions I would def lower the leverage ratio
You know some idiot definitely not me 🤐 put on a long at 125k 🫣 luckily that idiot had minimum leverage so margin call is 70k, the idiot is been stuck in it for months, definitely not me 🤣🤣
Hahaha
Two questions:
No kyc, use ln login (phoenix works great)
No lending
long or short or calls and puts but thats for extreme psycho degens
Yeah I did one options contract then stopped.
I just remembered I made a trade on lnmarkets a couple months ago and forgot all about it. Haha. I have to log in and see if I got liquidated before it went back up.
That's definitely interesting. I've never used leverage but it seems like you have a pretty good setup that works for you. So far, the wheel has been enough to keep me entertained, but I don't hate the idea. I'll bookmark this for later.
Another day another trade!!
Amount: $75
Degen rate: 10x leverage
Sentiment: medium