Balancing risk in crypto trading: The iron condor approach

economictimes.indiatimes.com:

cryptocurrency trading, finding strategies that balance risk and reward is crucial. One such strategy, the Iron Condor, has gained attention for its effectiveness in navigating market fluctuations. This approach is particularly valuable in crypto markets, where volatility can be both an opportunity and a challenge.

During a recent ETMarkets live stream, in association with Delta Exchange, seasoned crypto trader Saketh Ramakrishna delved into the Iron Condor strategy, providing practical insights for traders. He highlighted how this strategy can be applied to cryptocurrencies like Bitcoin, drawing parallels with traditional markets such as Nifty.

Saketh emphasized the importance of understanding both the potential rewards and the risks involved in crypto trading. «The market's volatility is significant, but with the right strategy, the leverage available can help manage the costs,» he explained. Throughout the live sessions, Saketh demonstrated this approach by starting with a Rs 1 lakh account, achieving a 6% gain over five to six weeks through disciplined trading.

The Iron Condor strategy, as Saketh outlined, is particularly effective when traders expect the market to remain within a specific range. He noted that while a broader