Why You Shouldn’t Lose Money
There is a hyper focus in the Crypto Ecosystem on finding the next 10x, 100x, 1,000x. What is often less discussed is how we manage risk to ensure our portfolio lasts long enough to trade into the winners and exit at the opportune time.
It’s a common adage that 90% of the traders lose 90% of the money. When you lose money, you need to make more money back to break even. Adjusting for trader skill, this tends to be an impossible situation for most traders. Therefore, once most traders are down, they stay down or eventually leave the market altogether.
At Good Entry, our development philosophy since inception has been all about finding the GOOD in every entry.
One might ask now what is a good entry? It’s simple where our thesis proves right and we see positive P&L, that is a GOOD entry. Where our thesis proves wrong, we don’t see significant negative P&L apart from the cost of the hourly funding rate. When the losses are not significant in the portfolio, we keep the trader in the game longer so they can reflect and improve on their skill.
We encourage the traders in our community to focus on self-development by considering where our trading technique went wrong in that particular trade and iterate to improve the technique for the next. The aim of good entry is to allow users to adapt, improvise and achieve their positive P&Ls seamlessly with the best day trading experience.
Many trades with the same skill will yield the same results over time.
Many trades with more skill will naturally lead to improved results over time.
It is the combination of our trading platform and a GOOD mindset that ultimately ensures our GOOD traders lose less, grow more and trade better. For our community members to get the GOOD outcome is therefore a certainty.
How do we not lose money
When traders trade on Good Entry, we replicate a ‘spot’ like trading experience with options. In this example, a user is buying out-of-the-money options at $2,100 where spot is trading at $2,000. Trader pays a funding rate in terms of the Uni V3 swap fees and AAVE borrow fees. These funding rates can be approximated to premiums paid for options. The catch here is that the options expire on a per block basis. What this means for traders is that if spot trades higher than $2,100. The payoff is linear. Where spot trades below, traders merely lose the funding fees which is equitable. With good position monitoring, they should not pay significant costs.
This allows for traders to cheaply validate their trading thesis and maintain most of their position if the thesis is invalidated. For more information, please explore Good Entry Documentation
How does the project not lose money
Part of having a GOOD mindset is not losing money and that means GOOD security with audits.
Good Entry is proud to say that we have completed our audit with Peckshield in May 2023. The Peckshield team is an industry leading blockchain security company with advanced threat detection tools and have audited many leading projects such as: BNB Chain, Maker, 1inch. The report can be found on our github.
The Good Entry team continues to be focused on improving our security with more audits to come.
With the completion of this Peckshield Audit, we foresee more GOOD things can kickstart.
Focus on the GOOD. Those who look closely and focus on getting better will make it!
Follow Good Entry:
Twitter:https://twitter.com/goodentrylabs
Discord: https://discord.com/invite/goodentry
Documentation: https://github.com/GoodEntry-io/audits
