Crypto futures trading has become one of the most exciting ways to earn profits from the volatility of cryptocurrencies.

However, many traders, especially beginners, find it hard to navigate the ups and downs of the market.

Enter the ‘Hand of God’ strategy, a popular approach used by experienced traders to capitalize on the sharp price drops that often occur after newly listed futures contracts hit the market.

In this post, I’ll show you how to make money by shorting newly listed crypto futures using a strategy called the ‘Hand of God’.

---

Post Summary

This post will cover:

Let’s get started!

---

Key Terms You Should Know Before Using This Strategy

Before diving into the ‘Hand of God’ strategy, it’s important to understand a few key terms related to crypto futures trading:

(i) Futures Trading: A type of trading where you agree to buy or sell a cryptocurrency at a future date, at a predetermined price. In crypto futures, you can trade with leverage, meaning you can control a larger position with a smaller amount of capital.

(ii) Short Position: When you ‘short’ a crypto asset, you are betting that the price will go down. You borrow the asset, sell it at the current price, and plan to buy it back at a lower price, keeping the difference as profit.

(iii) Leverage: This allows you to control a larger position than your initial investment. For example, if you use 10x leverage, you can control $1,000 worth of crypto with only $100.

(iv) Pump and Dump: This is a term used for the typical price movement of newly listed tokens. A ‘pump’ is when the price quickly increases, and a ‘dump’ is when the price rapidly decreases.

Now that you’re familiar with the basics, let’s break down what the ‘Hand of God’ strategy really means.

---

How the “Hand of God” Strategy Works

Here’s how the ‘Hand of God’ strategy works in simple steps:

1. Watch for New Listings:

Keep an eye on new crypto futures contracts that are about to be listed on exchanges like MEXC.

These newly listed contracts often experience a price surge right after launch.

2. Identify the Pump:

Once the new futures contract is listed, you will often see an initial price spike (the ‘pump’).

This is driven by speculation and excitement about the new listing and in some cases, deliberate price movements orchestrated by market makers.

4. Open a Short Position:

After the initial pump, the price typically starts to drop. As soon as you notice this price surge, you open a short position.

This means you’re betting that the price will go down.

5. Wait for the Dump:

After the pump, the price will typically ‘dump’ or fall, often quite rapidly.

Now, your short position will allow you to profit from this drop.

6. Close the Trade:

Once the price has dropped enough and you have made a profit, you close your short position and take your earnings.

Here is an example of how this strategy works:

Let’s say a token like “ZKX” just launched and got listed on MEXC. In the first 20 minutes, the price shoots up from $0.01 to $0.035.

You notice it’s stalling and wicking hard on the 1-minute chart. You open a short at $0.033. 10 minutes later, it dumps to $0.015.

That’s a 50%+ move, and potentially massive profits if you caught it with a good leverage.

Now, if you’re wondering where to actually pull this off, MEXC is one of the best platforms. Let’s dive into how to use it.

---

How to Use the “Hand of God” Strategy on MEXC Exchange

This screenshot shows how my trade played out while shorting PAWS using the ‘Hand of God’ strategy.

MEXC Exchange is one of the most popular platforms for crypto futures trading.

This is particularly because almost all newly launched coins are almost instantly listed for futures trading on the exchange.

Here’s a simple guide to help you use the ‘Hand of God’ strategy on MEXC:

Step 1: Create and Verify Your MEXC Account

• Sign up on MEXC by visiting their website here and completing the registration process
• After signing up, you can choose to verify your identity, however KYC isn’t mandatory

Step 2: Deposit Funds into Your MEXC Account

• To trade on MEXC, deposit funds into your trading account.
• You can do this by transferring USDT from another wallet or exchange or buying through P2P

Step 3: Locate the Newly Listed Futures Contracts

• On MEXC, navigate to the Futures section and find the newly listed futures contracts
• These are usually highlighted or shown on the homepage or under the New Listings tab

Step 4: Open a Short Position

• When the new contract is listed and you spot the price surge, you can open a short position
• To do this, select the contract you want to trade, choose the amount of leverage you wish to use (e.g., 5x, 10x), and set the size of your trade
• Make sure to set a stop-loss to manage your risk. This is a crucial part of risk management because the crypto market is volatile, and you want to protect yourself from big losses

Step 5: Monitor the Market

• Keep an eye on the market, and as soon as the price starts to fall after the initial surge, your short position will start to generate profit
• Once you’ve reached your target profit or feel that the price has dumped enough, close the position to lock in your profit

Step 6: Withdraw Your Earnings

• After closing the trade, you can withdraw your earnings or keep them in your MEXC account for future trades

Sounds exciting, right? But hold up! Before placing that short, let’s talk about the one thing that can make or break your trade: risk management.

Click on the image to register a MEXC account.

---

Risk Management and Important Tips

While the ‘Hand of God’ strategy can be profitable, it comes with a high level of risk, especially because it relies on shorting the market, which can lead to significant losses if the price moves against you.

Here are a few tips for managing your risk:

(i) Use Stop-Loss Orders:

Always set a stop-loss to limit your losses in case the market moves in the opposite direction

(ii) Start Small:

If you’re new to futures trading, start with a smaller position and lower leverage. This will help you get comfortable with the strategy and minimize the risk

(iii) Be active on X (Twitter):

Staying active on X, could help you discover newly listed crypto futures contract to short, and spot the perfect shorting opportunities by following expert traders.

Luckily, MEXC offers a $50,000 funded demo account. If you’re a newbie, you can practice with this account before trading with real money once you feel confident.

With the strategy and platform in place, let’s wrap things up with a few key takeaways to keep in mind before you start trading.

---

FAQs

Conclusion

The ‘Hand of God’ strategy is an exciting way to trade crypto futures, especially for those who are comfortable with high-risk, high-reward strategies.

By shorting the market during the ‘pump and dump’ cycle of newly listed futures contracts, traders can potentially profit from the price swings.

However, it’s important to remember that this strategy is not foolproof. The crypto market is highly volatile, and there are risks involved, especially when using leverage.

Always practice proper risk management and use tools like stop-loss orders to protect your capital.

It’s time to hear from you…Have you ever used this strategy or spotted a perfect dump after a pump?

What token would you try this strategy on next? Do you know any expert traders on X who consistently call out the next big ‘Hand of God’? Drop their @ in the comments!

Lastly, if you found this post helpful, share it with your fellow traders or repost it on X — someone out there could really use it!