Recently, I've often been asked how to open a position in perpetual contracts, so I thought I'd整理一下我的思路 and share it with everyone.
**Layer 1: Signal Confirmation** First, select a fast EMA as the baseline. A signal is issued when the price deviates and crosses above 80 or below 20—why these two values? Because these are left-side signals, which can significantly reduce the lagging issue of the indicators. Left-side signals are crucial because perpetual contracts focus on two main things: the entry point and timing. If the price drops, go long; if it rises, go short, to achieve the ideal position.
**Second Layer: Noise Filtering** The combination of fast line + left signal is sensitive, but false signals can occur relatively frequently. Therefore, it is necessary to overlay other indicators for filtering. It is recommended to first use the channel indicator to grasp the overall position of the 1-minute candlestick — for example, when the K reaches the top of the channel and triggers a crossover at 80, it would be more reliable to consider opening a 10-minute short position.
Secondly, overlay a potential change indicator. For example, if a certain K has been moving sideways for a long time and suddenly drops, triggering a signal to cross below 20, but upon checking the potential indicator shows that the momentum is strong, then don't rush to open a long position, because at this time, no matter what you do, it's easy to fall into a trap. Conversely, when the momentum starts to weaken and you see the corresponding signal, the success rate of opening a position will be much higher.
Another detail is the price fluctuation of a single K. During weekends and early mornings, it often happens that the 1-minute K behaves like a "loom". At this time, either switch to the 5-minute K to open a 30-minute position, or add a condition to the signal K to limit the price fluctuation to greater than 0.04%.
**Third Layer: Execution Standards** Why choose to open an order at the exact moment of the 1-minute K closing? Because it simplifies to a comparison of "the closing price after 10 candles vs the closing price of the order K", making the issue clear.
In practical operations, multiple trigger signals may appear. At this time, observe the momentum indicator in the sub-chart—the signal when the momentum is still high should not be rushed; only when the momentum starts to decline is the corresponding signal a genuine opportunity to open a position.
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MEVSandwichMaker
· 12-24 01:41
Wow, this is so detailed. I never understood the signal on the left side before; it turns out it's to get the upper hand.
Recently, I've often been asked how to open a position in perpetual contracts, so I thought I'd整理一下我的思路 and share it with everyone.
**Layer 1: Signal Confirmation**
First, select a fast EMA as the baseline. A signal is issued when the price deviates and crosses above 80 or below 20—why these two values? Because these are left-side signals, which can significantly reduce the lagging issue of the indicators. Left-side signals are crucial because perpetual contracts focus on two main things: the entry point and timing. If the price drops, go long; if it rises, go short, to achieve the ideal position.
**Second Layer: Noise Filtering**
The combination of fast line + left signal is sensitive, but false signals can occur relatively frequently. Therefore, it is necessary to overlay other indicators for filtering. It is recommended to first use the channel indicator to grasp the overall position of the 1-minute candlestick — for example, when the K reaches the top of the channel and triggers a crossover at 80, it would be more reliable to consider opening a 10-minute short position.
Secondly, overlay a potential change indicator. For example, if a certain K has been moving sideways for a long time and suddenly drops, triggering a signal to cross below 20, but upon checking the potential indicator shows that the momentum is strong, then don't rush to open a long position, because at this time, no matter what you do, it's easy to fall into a trap. Conversely, when the momentum starts to weaken and you see the corresponding signal, the success rate of opening a position will be much higher.
Another detail is the price fluctuation of a single K. During weekends and early mornings, it often happens that the 1-minute K behaves like a "loom". At this time, either switch to the 5-minute K to open a 30-minute position, or add a condition to the signal K to limit the price fluctuation to greater than 0.04%.
**Third Layer: Execution Standards**
Why choose to open an order at the exact moment of the 1-minute K closing? Because it simplifies to a comparison of "the closing price after 10 candles vs the closing price of the order K", making the issue clear.
In practical operations, multiple trigger signals may appear. At this time, observe the momentum indicator in the sub-chart—the signal when the momentum is still high should not be rushed; only when the momentum starts to decline is the corresponding signal a genuine opportunity to open a position.