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Perpetual futures – or perps – let you go long or short with leverage and keep positions open without expiry. They trade 24/7 with deep liquidity on majors, which makes them a core tool for expressing directional views on BTC, ETH and top alts.
Below you will find a brief theory primer for each strategy, then detailed playbooks with clear execution notes and price-based examples using BTC at 120,000 and ETH at 4,500.
Disclaimer: Trading cryptocurrency futures carries significant risk. This article is educational, not financial advice. Always do your own research, test your plan and only trade with funds you can afford to lose.
Strategy overview – the idea behind each
• Trend trading follows momentum. You define market structure, wait for a pullback, then enter with a clear exit if the idea fails.
• Day trading and scalping aim to capture short-term moves using technical patterns. You plan setups in advance, trade liquid pairs, and exit quickly when the idea is no longer valid.
• Hold trading targets larger price moves over days or weeks, often using higher timeframe analysis and patience.
• Paper trading and practice help make your plan repeatable. You track setups, log results, and refine your process without risking capital.
Trend Trading (Long or Short)
Trend trading means trading with the current direction, not against it. When price makes higher highs and higher lows, traders look for long setups. When it makes lower highs and lower lows, they look for short setups. Keep confirmation simple: clean structure on the 1-hour or 4-hour chart, moving averages pointing the same way, prior breakout levels acting as support or resistance.
Example
BTC has climbed for two weeks. It dips from 121,800 to 118,800. If the uptrend is still valid, a trader might look for a re-entry near 119,200, place a stop under 117,800, and set a first target around 121,500. If price breaks and holds above the prior high, the stop can be trailed under new higher lows.
How to do it
• Setup: clear trend on 1h or 4h
• Entry: pullback to support in an uptrend or bounce to resistance in a downtrend
• Exit: first target at the last stall, then trail behind higher lows or lower highs
Common mistakes
Chasing green candles, widening stops after entry, using high leverage that turns normal swings into forced exits.
Day Trading and Scalping
Day trading and scalping use strict rules to capture intraday volatility. Perps fit this style because order books are deep and fills are fast. The work starts before the session: mark key levels, decide what price action you want to see there, and only trade when that behavior appears.
Here, scalping is best described as trading based on recognizable technical analysis patterns – such as continuation setups, reversals, “head and shoulders,” breakouts, or pullbacks – on small timeframes. The average trade length is often around 30 to 60 minutes.
Example – BTC range fade
BTC bounces from 119,400 into intraday supply near 120,200, shows a clear rejection on lower timeframes, and forms a short setup with a stop at 120,420 and a target near 119,700. The trade is typically closed within the hour.
Session rules that help
• Limit trade count to protect focus
• Use fixed dollar or percent risk per trade
• Place hard stops in the order book, not just in your head
Hold Trading
Hold trading shifts the time horizon to days or weeks. You use perps’ no-expiry feature to stay in a position without rolling contracts. Traders map support and resistance on the 4-hour and daily charts, respect prior weekly levels, and look for confluence like channels or moving averages to increase confidence.
Example – news catalyst
Rumors circulate about a major ETH partnership. A trader takes a position ahead of confirmation, holding it for multiple days. Two weeks later, the news is officially announced and ETH rallies from $4,500 to $4,560 and beyond. This approach relies on patience and conviction over time.
Example – range setup
BTC ranges between 115,000 and 122,000 for two weeks. A trader might plan entries near 115,500 with targets near 119,800 and 121,500. If 122,000 breaks and holds, the stop can be trailed and the position held for further gains.
Management notes
• Scale out at predefined targets to secure profit
• Move stop to breakeven after the first target if it fits your system
• Track funding if you hold for multiple intervals so costs do not eat into gains
Paper Trading and Practice
Paper trading and practice help you test and refine strategies without financial risk. This can be done by recording hypothetical trades on paper or in a spreadsheet, noting the entry, stop, and target, and checking later to see how they would have played out.
Example
You log 50 hypothetical ETH trades around $4,500 on a 5-minute chart. You record whether price would have hit your target or stop, note the time taken, and track market conditions. After 50 examples, you can see patterns in what works and what doesn’t – all without risking a single dollar.
What to track
• The setup type and reasoning
• Entry and exit levels
• Time in trade
• Win/loss patterns over time
Risk management that ties it all together
Put risk first. Choose your invalidation level before the entry, then size the trade so a stopped loss is acceptable. Treat leverage as a tool, not a thrill. In most cases 2x to 5x is enough. Higher leverage narrows your margin for error. Check the funding rate if you plan to hold across several intervals. Paying funding for days can drain results, and receiving it can tempt you to hold beyond your plan. Write the plan in advance, then follow it. If the market proves it wrong, exit and review later – not during the trade.
Perps coming to Blum
Perpetual futures are coming to Blum soon. You will be able to go long or short, set leverage, place stops and targets, and watch funding inside our Telegram mini app and Terminal. The goal is a simple, reliable flow so the strategies above are easy to execute.
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