What do you think is the annual pnl potential of cryptos for someone with a 200k account? Many exchanges already allow lending out your cash/bitcoins for over 50% annualized return for almost no work involved. The bar is set high.
The problem is that you need 24/7 coverage to do it properly. On 200k, 25k a day. But 4-5 people to cover all the shifts.
That sounds too good to be true. On 365 trading days, that's almost 10mm a year on 200k capital. Even if you are by yourself and can only cover half the hours, that's still 5mm in profits for one person...
As an uninformed person who just buy-and-holds cryptocurrencies, I wonder what kind of strategies would work on trading bitcoin? Momentum following? Trading by looking and 'feeling' an orderbook? I'm not asking for any free lunches, I'm just curious as to how a novice should approach trading in these markets.
I'm impressed , a hundred million futures contracts broken down to a daily basis( 396 825) is around a third of all e mini sp500 dec contracts traded on Friday , or the t note, and far more than the total nasdaq100 future or Euro dec future. So yes you must really know of what you speak.
That's right. And I'm telling most people they should be trading cryptos. Futures are hard and there aren't many corners left where a human is going to have a competitive advantage.
To give perspective. Virtu was pulling in $3m/day on 150 people. 20k per person. Also, 12 hours a day 7 days a week isn't going to happen. And if the full 24 hours isn't covered you miss out on some synergies. For 1 person, my guess would be 5-10k per day. 1-2 m per year. Specific strategy doesn't matter much. (As long as it's not TA.) Just build a slightly better mousetrap than the people currently in the space. It's not that hard. There are lots of things to look at.