Wenger (@MindwingsD) recommended two strategies on Space: spot grid trading and options trading.
His reasoning is clear: it's unlikely to break through 90,000 in the short term, nor is it likely to fall below 50,000. Within this range, the market is more likely to fluctuate repeatedly.
What are the advantages of the grid trading strategy? Simplicity is key. You don't need to predict the direction, nor do you need to worry about selling too early. As the market fluctuates within this range, you continuously buy low and sell high, passively accumulating coins.
The logic of the options trading strategy is similar. Sell calls at the upper edge of the range and puts at the lower edge. The premiums on both sides are relatively high. Wenger said he uses the same approach on Polymarket.
What do these two strategies have in common? They both profit from range-bound markets. They don't predict breakouts, but rather utilize the market's inefficient volatility.
Of course, this assumes you accept the risk at the range boundaries. If the market does break out or fall below, you need to have contingency plans. However, when the direction is unclear and there is ample time, range-bound trading may be a more pragmatic choice than directional trading.
Excerpted from "Trading Veterans" Episode 12 (Bear Market Survival Handbook: What Else Can We Do Besides Lying Down?)