How to Use Delta Invest: Yield Strategies & Robo Trading
Crypto derivatives trading has come to be the next hottest thing in the crypto space along with NFTs, DeFi, and others that rule the crypto market. Given how the behavior of the derivatives market influences the price dynamics of cryptocurrencies itself, crypto derivatives trading is gaining a lot of traction and even sees more trade volume than the regular crypto spot markets.
A one-of-its-kind crypto derivatives exchange with several innovative products, Delta Exchange is a one-stop solution for all crypto derivatives trading needs. Delta Exchange also offers yield strategies and robo trading strategies on its platform with very good returns. Listed below are the several yield farming strategies and robo trading strategies available on Delta.
Yield strategies
Delta Exchange offers options based enhanced Yield Strategies.
- Enhanced yield BTC
The Enhanced Yield BTC strategy aims to increase the yield on BTC holdings by selling BTC at a higher price (strike price) on a specific date (expiry date).
This strategy is more suited for investors who believe that Bitcoin’s gain potential is limited in the short term and are ready to forgo Bitcoin’s upside potential beyond a strike price at the product’s expiration. If investors believe that Bitcoin will not rise over the strike price before the expiration date, they can rely on this strategy to receive a higher return on their Bitcoin investment.
2. Enhanced yield ETH
The Enhanced Yield ETH strategy provides yields by writing monthly “call” options. Because a notional sum equal to the value of ETH is written, this approach has no risk of liquidation. However, traders who use this technique may lose money if the price of ETH rises dramatically and the expiry price settles higher than the strike price. In a downtrending market, this technique is predicted to perform well.
3. Enhanced yield USDT
In this strategy, the yields are made by writing monthly “put” options. Just like the Enhanced Yield USDT strategy, this strategy also has very little risk of liquidation since a notional amount equal to USDT value is written, however, traders may make a loss if ETH price goes down dramatically since the expiry price will settle below the strike price. In contrast to the Enhanced Yield ETH strategy, this one is expected to perform well in an up-trending market.
Robo trading strategies
Robo trading strategies on Delta Exchange are automatic cryptocurrency trading strategies that allow traders to sit back and relax while they have invested their funds and leave the trading to bots. Delta Exchange offers three broad categories of Robo Trading strategies: momentum strategies, arbitrage strategies, and AMM (Automated Market Makers) strategies. A DETO staking pool strategy is also available, which allows traders to earn a risk-free yield on DETO.
Momentum Strategies
All momentum strategies on Delta Exchange are characterized by their primary function of maximizing the holding period for profitable trades while reducing the holding period for loss-making transactions in an effort to improve performance while lowering drawdown. This strategy also takes long or short directional positions on the basis of short-term price momentum on coins. All momentum strategies are generally expected to perform well in volatile and trending markets. The various types of momentum strategies available on Delta Exchange are as follows:
- Top 20 Momentum
The Top 20 momentum strategy trades in top cryptocurrencies based on market capitalization. This strategy can accept up to 2x gross leverage and is expected to perform well in a volatile market.
There is also a Top 20 momentum (DETO) strategy that follows the same systematic trading algorithm as the Top 20 Momentum strategy, except users can earn DETO rewards through this strategy. Even though users of this strategy can only add or withdraw DETO, Delta Exchange’s utility token, the strategy itself trades USDT margined futures and perpetual contracts. Profits and losses in strategy trades are realized in USDT and converted to DETO in the DETO-USDT spot market instantaneously.
2. DeFi Momentum
The DeFi momentum strategy invests in top DeFi assets based on market capitalization and takes long or short directional positions based on price momentum.
3. Top 2 Momentum
The Top 2 momentum strategy trades in the top 2 cryptocurrencies only – BTC and ETH. It has all other characteristics of momentum strategies, except for the fact that the maximum gross leverage for this strategy is capped at 3x.
4. BTC Momentum
As is obvious from its name, the BTC Momentum Strategy trades in BTC inverse perpetual only. This strategy also can take maximum gross leverage of 3x.
5. ALTBTC Momentum
The ALTBTC Momentum strategy trades in top altcoin pairs and takes maximum gross leverage of 3x.
AMM Strategies
- Large Cap AMM
The Large Cap AMM strategy is an AMM (automatic market maker) that makes money by providing liquidity on the books of large-cap coins like BTCUSDT and ETHUSDT. This strategy provides returns to users by capturing the premium that liquidity seekers are prepared to pay over the fair price. It then looks for opportunities to transfer this position by utilizing momentum indicators and arbitrage opportunities.
There is an additional Large Cap AMM (DETO) strategy where users can earn DETO rewards. Subscribers of this strategy receive 5000 DETO every day in proportion to their ownership of the outstanding units.
Arbitrage Strategies
1. Cash future arbitrage strategy
The Cash Future Arbitrage strategy, with a maximum gross leverage of 3x, captures the premium in BTC and ETH futures over the spot market price of BTC and ETH. When trading futures, this strategy usually involves waiting for futures and spot prices to converge at a point where futures are expiring.
DETO Staking pool
Users can earn DETO rewards as well as a risk-free yield on their DETO holdings using the DETO staking pool strategy. In this strategy, users typically stake their DETO in the pool and gain ‘DETO APY’ as the staking yield. Users are also eligible to earn a pre-defined DETO APY on a daily basis.
Conclusion
If you’re into crypto derivatives trading and looking for the best exchange, look no further than Delta. Its unique and innovative product suite is just what every crypto trader needs. To learn more about Delta Exchange, check them out on their Twitter, Facebook, Telegram, and Medium.
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