When a stock market crashes and panic sets in, traders using borrowing protocols face immediate liquidation risks as Loan-to-Value (LTV) ratios spike. How you handle your positions during chaotic or bear market conditions dictates your long-term survival. At Powerful, we approach these high-volatility situations through a structured, two-step framework combined with strict collateral guidelines. 1. The Powerful Approach: Trend Following & Liquidity Sweeps Trend Following & Liquidity Sweeps: We combine trend-following mechanics with liquidity sweeps to pinpoint high-probability entries and exits. Active Position Management: Holding a borrow position blindly during a confirmed downtrend or bear market is a critical risk error. Execution: We analyze long-term market trends using dedicated parameters, buying and exiting at key structural levels based on the team's core strategy. 2. Four Essential Rules Before Using the Borrow Market Before committing capital to a borrowing pr...
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