I want to share the strategy I developed for trading Kalshi event contracts.
This strategy will be simple and straightforward that anyone can trade. Please follow and try.
The platform I will use and highly recommend is called Kalshi
Table of Contents:
What is Event Contract Trading?
Event Contract Trading is a new type of trading where instead of trading price action you answer simple yes or no questions.
Let me give you an example of how it works.
Do you think the S&P 500 will close below 3600 on October 14, 2022?
Yes or no?
If you’re right, you win the trade.
This makes trading simple and can help with major issues occurring in bear markets with traditional investments. The advantages of trading event contracts are that you have a 50% chance of being right about any trade.
It also makes trading simple, one of the problems with trading is that there are so many complicated strategies out there that following them is challenging. Trading with event contracts can make trading easier.
I believe that if you keep it simple you will have a great chance to follow the strategy, so a great chance to have successful trading.
Is the event contract a game of chance?
There are two things to know about event contracts. They are a federally regulated financial instrument.
#1 Information trading – contracts of trading events, such as stocks, and based on your research and analysis. At Kalshi, there are many different types of information shared on the platform that allow the trader to come up with their own strategy, which is why we share ours with you today.
#2 Incentives – While gambling, you are betting against the “house”. Their revenues are generated based on the losses of their customers. Kalshi is like any financial exchange that makes money on trading fees.
Trading Event Contracts with Kalshi
Kalshi is a new federally regulated broker to trade using event contracts.
The reason they call it event contract trading is simply because you trade on the outcome of events rather than traditional trading strategies.
Kalshi has created a new web-based trading platform that has a simple and easy-to-use interface.
Just enter the event you want to trade and click on it and choose yes or no. Each answer has a number assigned to it so that we can see what payment you are right will be.
Payments are determined by what the overall market is currently trading. While other traders weigh the values of your trades can change by what the market s
Types of event contract trading.
One advantage of event contracts with Kalshi is that there are so many things you can trade. Here are the categories they have available for trading right now.
time:
You know how the meteorologist always gets it wrong. Now you can show your knowledge of the weather and make money by trading it.
You think it will be above 60 degrees tomorrow take a trade on Kalshi and get paid to be right.
economy:
You can trade economic factors such as inflation and interest rates.
politics:
You can trade election events; Surveys aren’t always fair, but trading is all about probabilities.
Financial data:
Where will the markets close tomorrow? If you are good at predicting this type of trading it would be great for you.
COVID 19:
You can also trade on whether covid infection rates will rise or fall.
Other categories you can trade are world events, transportation, culture, and science, and they’re always adding new things, so check back often to see different things to trade and different ways to profit from your knowledge.
How to get started with Kalshi
It’s easy to go to their website by clicking here and then sign up. It only takes a minute and you can start with as little as a dollar.
How is Kalshi regulated?
Kalshi is regulated by the CFTC, and this is considered a new asset class, and this is officially the first futures exchange for event trading.
Is Kalshi legitimate?
Yes! Kashi is definitely legit and will be the leader of event contract trading. The team behind Kalshi are great people and can be trusted.
Kalshi Event Contract Trading Strategy
There are so many ways to trade event contracts.
I want to help you get started by sharing my strategy using daily charts. For this example, we will focus on the financial side of trading with Kalshi
.
This first strategy is a daily trading strategy based on daily charts on the S&P 500.
This strategy can be traded in just 5 minutes a day.
Step 1 of this contract strategy for events:
Review the daily chart of the S&P 500
Step 2 of this event contract strategy:
Then, write down the previous day’s high and the previous day’s low by adding lines to the daily chart.
See the following image:
Step 3 of this contract strategy for events:
Once you have scored the maximum and if the price is below both of these levels, you have the information you need to start watching a trade on Kalshi.
Step 4 of this contract strategy for events:
Trade Kalshi by choosing the best price based on the charts.
Here are the things to consider when developing your best event contract trading strategy with Kalshi.
1. Choose high probability trades. This is looking at trades that will win 80% of the time or more. These trades are great because you will win most trades. The disadvantage of taking these operations is that when you win your payout is not so big.
However, if you keep your payout percentage high, you can consistently make a profit in your trading account.
This trade is asking investors to determine whether the weekly price of West Texas Oil Settle will be between 89-89.00.
If you say no, it costs .87 and if you are right, you will earn .12 to be correct.
Now if you
select yes, the same contract costs only .18 and if you are right, you will earn .80 reward.
The difference between yes and no is that with no you get a lower reward and a greater probability of being right. If you select Yes, you get a much higher reward with a lower chance of being right.
The secret to being a successful trader with Kalshi and event contracts is to find the right balance and learn to have a successful money management strategy.
Summary of how to conduct a great contract trading strategy
This is a new type of trading that can be a wonderful way to simplify trading. Kalshi offers traders a way to monetize their competency knowledge, and you can start with as little as $1 per contract. We hope that this event Kalshi contracts trading strategy that will be useful to you today. Event contract trading is something I’m excited to start trading. I have years of experience as a trader, so this type of trading is something I would like to do more.
