How stablecoin trading can be a risk free strategy?

Actually, if you want to be consistent when trading stable coins, do not use leverage.
When trading stablecoins, there are some basics you need to take note of as follows:

  1. identify a pair, say BUSD/USDT.
  2. Ensure the pair trading volume on future markets is within the expected range.
  3. If you are starting, you need at least $10,000 as your capital.
  4. Actually buy when the asset, say BUSD, de-peg by 0.0004. that’s to say, buy when it’s @0.9996 and sell @ $1.
  5. Do not use robots start small.
  6. some valid examples. if you buy $10,000 @ 0.0004 discount.
  7. After 24 hours, if manually done and sell @ $1 the bought $10,000. it means you will earn $ 4 per day.
  8. If done consistently every day, it means you will earn $ 124 in a month.
  9. Simply, you will likely earn 14.88% per year. Imagine in the bear market how many investors achieve that performance.
    You only trade a stable coin pair without leverage.
    You only trade without trading bots, one trade per day circle, i.e. buying and selling within 24 hours.
    You have enough capital to make the small de-peg meaningful.
    You are patient, and you focus on your goal of capital preservation during a bear market.
    NB: I personally trade the strategy but I have never registered a loss if you do not use leverage.
    I welcome other traders’ ideas if they have ever used the trading strategy.

Paused on crypto trading for now but good to know others are still actively trading crypto.

Hi Crypto2,

I liked your post in principle, then realized that you neglected to mention the black swan events that have happened over the past two years that make this trading idea extremely risky. For such small gains relative to a sizeable capital commitment, your idea is almost the exact opposite of what a trading strategy and plan tries to achieve.

One of the basic principles of trading is that you never bet the farm on any one bet, regardless of what the cumulative outcome may appear to be. If you commit $10,000 and that is 1% of your bank, you are basically banking $1M to earn $4 per day. Nobody can guarantee the continuity of a stable coin, and on that basis, I have to say that your risk free strategy is anything but risk free, and is dangerous because so many people know so little about crypto, and hopefully do not blindly follow such a suggestion.

I am keen to be criticised on the forum in case I have misinterpreted your risk free strategy. We will all learn something.


Correct, flash events and the risk of ‘hijacked’ capital are not taken in to account, you need to generate consistent returns every day and also avoid flash events plus CEX/Coinswap hijacked capital.

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So do you agree that the title of the post is somewhat misleading to a lesser experienced trader?

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the words “somewhat misleading” in your post should really win you the “Extreme Tact & Understatement Award” of the year :grinning_face_with_smiling_eyes:

The title is misleading to an experienced trader as well, I was asked to install a successful crypto arbitrage system for someone which used stablecoins with historical datasets.

When we compared it to the ‘point in time’ which every other bot available uses being the same this this original posts ‘risk free strategy’, the point in time could never produce any results as losses always equaled profits until either a flash event or a ‘capital hijack’ event occurred.

Every single public strategy, bot, mentoring, comment will use ‘point in time’ which may work for days or weeks or months but will eventually lead to capital loss for anyone using it, that is the first and hardest thing to teach people as they fight it the whole way, historical trends are your friend.

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I fully agree that risk free trading is not easy to achieve. however, i have been trading this method but to me it has been profitable. what i know even if i publish a winning trading strategy few people will try to test it.
This strategy is only proftible if there is no trading fees charged by the exchange to trade the pairs. its profit margins are small but once compounded it will be a great strategy. Try it on 100 trades and then analyse the outcome.

Are you familiar with UST or USDC. Huge depegs. UST collapsed, bringing Luna down with it. $40b disappeared in like a weekend.

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