What are Perpetual Futures? A must-read for newbies.

It's not gambling; it's a game of leverage and risk.
Play well, double your gains; play poorly, and you'll lose everything overnight.
Here are the systematic strategies I've summarized over the past few years, dedicated to my brothers who are still fighting in the market.
1. Understanding the mechanism is essential for longevity.
1️⃣Funding Rate
It determines the rhythm of long and short positions.
•Positive rate: Long positions pay short positions, indicating that the market is too hot, do not chase long positions.
•Negative fee rate: Short sellers pay long holders, indicating that the market is too cold, be careful of a crash.
Remember, the fee rate is a thermometer for the market, don't go against the temperature.
2️⃣ Leverage Multiplier
Leverage is a double-edged sword.
Newbie ≤5x, experienced ≤10x.
If you dare to use 50x, the market will make sure you get wiped clean.
3️⃣Mark Price
Don't focus on the latest transaction price, look at the mark price.
It is a pin protection mechanism to avoid being maliciously swept.
4️⃣Automatic Reduction of Position
Liquidation is not just your problem. The system will share the losses from the liquidation.
This is why position control is always the first lesson.
2. Four-step strategy for Perptual Futures
Step 1: Observe the trend (set the direction)
Daily EMA30 > EMA60 + MACD histogram turning positive, indicating a bullish start.
If the trend is not confirmed, do not open a position. If the direction is wrong, even the highest win-rate strategy is useless.
Step 2: Find the opportunity (set the entry point)
4-hour pullback to the middle Bollinger band + RSI rebounding from below 40 is a buy signal. $ETH
A breakout of the downward trend line in 1 hour + increased trading volume confirms momentum.
Remember: Only trade in the direction of the big cycle; trading against the trend will only lower your win rate.
Step 3: Use good tools (improve efficiency)
•Chart Analysis: TradingView (EMA + MACD + Volume)
•Rate Monitoring: CoinGlass Funding Rate Heatmap
•On-chain Alerts: CryptoQuant Liquidation Data
•Strategy Testing: Pionex Strategy Backtesting Engine
Step 4: Control Risk (Ensure Survival)
Set a stop loss before opening a position; trades without stop losses are called gambling.
A 15% stop loss and locking in half of the profits at a 20% gain is the key to long-term survival. $SOL ‌
3. The Ultimate Principle: Capital management is the shield, and discipline is the throne.
Newbie should start with a demo account (Bybit/Binance), and after maintaining a win rate >65% for 3 consecutive weeks, then trade with real funds.
In this market, it's not about being slow, but about being chaotic.
Remember, only those who survive have the right to talk about making money.