Zero to Hero: Beginner’s Guide to Trading Well on Kollider

Getting Started on Kollider

There are two main portals to trade on Kollider. Kollider Lite aims to reduce extraneous information that beginners would mostly find confusing. It’s complete on its own for trading and works well for doing directional trading, anything that holds positions longer, or strategies that don’t require very active management of orders.

Understanding Lightning Network Requirements

Once you’ve chosen which version of Kollider you want to use (side note: you can use both Lite and Pro to access the same account), you need to decide whether you want to trade straight from your Lightning wallet or by depositing.

Login has an option for “Lightning Sign In” at the bottom

Figuring Out Your First Strategy

Once you’re on Kollider, figuring out your next steps could still be daunting, especially if you’re new to trading or even just investing (i.e., buying and selling financial products in general).

Starting With Something, Anything

(Important reminder: this is only what we would do starting out and is not trading advice. This may not work as well for you, so proceed with a lot of caution and healthy scepticism).

  1. Entry signal to help us increase our position
  2. Risk settings to help us manage the max amount we could lose
  3. Exit procedure or signal to help us reduce our position

Step 1: Exploring Your Product

The first step for us would be to connect to Kollider Lite through the Breez app store and play around with $1 contracts using 1x leverage. Although Lite has a nifty chart, we would also open up a TradingView 30-min chart for BTCUSD to have a detailed reference point. We would then start with the idea of going off price bounces and momentum. For example, if the prices recently dropped, slowed down, and stopped, we might get into a long $1 position and buy 1 BTCUSD perpetual swap position if the prices start going up.

Step 2: Creating Entry Signal

In a sense, we are now starting to iterate and improve our own understanding and framework for trading. We could then improve the signal, or the very aspect we calculate, to give us an idea of direction. Reviewing technical indicators would give us some ideas of what’s popular, but we would start with common ones like RSI or MACD and experiment with using them on TradingView to just experiment with as we had with bounces.

Example of MACD and RSI values on BTC/USD (image credit: TradingView)

Step 3: Setting Up Max Positions and Leverage

Continuing with the MVS, when we feel confident enough with that signal, we would then work on our max position and order sizes. This is partly a function of what’s already available in the book. So, we may want to send order sizes of 100 contracts into the bitcoin perpetuals, but might allow ourselves to go up to 1,000 contracts of position, long or short. As far as leverage, without doing further analysis, we would likely opt for something just slightly higher than 1x (probably at most 3x since we know that bitcoin can be quite wild and going much higher than this could significantly increase the chance of liquidation unless we are more advanced and/or closely paying attention all the time).

Step 4: Using a Simple Way to Exit Positions

Finally, we would figure out the signal or procedure for reducing our position. We’d start simply with this by just using a stop loss and a take profit.

Step 5: Iterating and Improving Your Strategy

Eventually, we would experiment with changing those stop loss and take profit thresholds as we get more trades. We might even start to use a weaker version of our entry signal (e.g., if the entry needs an RSI value of 90 to take an entry, possibly it just needs 70 in order to take an exit).

Finally, Understanding and Beating the Competition

As a bonus, our competition can allow you to possibly win some sats for your trading. Because the competition is volume-based, you could win with strategies that tend to lend itself towards stable, higher volume, but lower expected profit per trade.

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