Advanced Trading Strategies on Bybit: Tips and Techniques for Maximizing Profits

TL;DR
This article delves into advanced trading strategies on Bybit, offering tips and techniques to boost your profits, manage risk, and navigate complex trades, all aimed at seasoned traders looking to up their game on the platform.

Bybit offers a comprehensive and deep menu of trading products, tools, and related services. This selection dwarfs that of most other exchanges. So, if you’ve got the trading basics covered, and you’re ready to begin using more advanced strategies, then Bybit is a damn good place to do it.

So let’s peel back the onion and discuss advanced trading strategies on Bybit. The odds are high that you’ll walk away from this article with a few new weapons in your trading arsenal. And please note that this article builds from the concepts discussed in the following three articles.

• How to Trade with Leverage on Bybit: A Step-By-Step Tutorial
• Understanding Bybit’s Derivatives Market: How to Trade Futures, Options, and Perpetuals
• Spot Trading on Bybit: A Beginner’s Guide to Buying and Selling Cryptocurrencies

Building the Right “Foundation”

The absolute best thing you can do to maximize profits is developing and maintaining the right trading “foundation”. Here’s what I mean by that.

• Your Mindset: Be patient and play the long game. Shift your perspective to understanding that trading is not a get-rich-quick scheme, but rather it’s a skill that’s developed over a lifetime.
• Learn Technical Analysis (TA), Fundamental Analysis (FA), and Macroeconomics (ME): Work on understanding all three. A decent understanding of these subjects will better help you spot both opportunities and traps.
• Make a Trading Plan: Write down a clear and defined plan. Clarify things like how much you’ll allocate to trading per month, what’s your strategy, what indicators must flash before you initiate a trade, and when you’re going to sell.
• Test Your Plan with ByBit’s Demo Account: Once you’ve got a plan, consider testing it with Bybit’s demo trading account. Check all the features Bybit has to offer. If you’re hitting your profit goals, then deploy real cash. If not, then rework your plan and retest it.

Know Your Strategies

Next, you want to have a good understanding of the main trading strategies, and then to focus on those that appeal to you. The isn’t a comprehensive list, but it comprises the types that I believe are most likely to produce success in the crypto markets.

1. Position Trading.

• Definition: Building positions (long or short) over extended periods of time, due to the belief that prices will eventually trend in your favor.
• Time-Frame: Long-term (i.e. position traders often hold their trades open for several weeks, to months, to years).
• Skillset: FA and ME are primary. TA is secondary.
• TA Indicators: Long-term price patterns (i.e. identifying market bottoms and tops), 200 day MA, MACD and RSI on weekly time-frames.
• Helpful Tools on Bybit: Limit Buy Orders, Scaled Buy Order, DCA Bot.

Interesting read: Short Selling on Bybit

2. Trend Trading

• Definition: Identifying a price trend (i.e. up or down), and then “riding” the trend with a trade until indicators suggest that the trend is waning.
• Time-Frame: Variable, depending on the time-frame of the trend in question.
• Skillset: TA is primary. FA and ME are secondary.
• TA Indicators: Recognizing price uptrends and downtrends, 20, 50, and 200 day MAs, support and resistance levels, MACD, RSI, and chart continuation patterns like channels ,flags, pennants, and wedges.
• Helpful Tools on Bybit: Leverage, Market Orders, Stop Loss & Take Profit, Trailing Stop Loss.

3. Range Trading

• Definition: Identifying an asset’s sideways, or ranging, price action and then trading within it.
• Time-Frame: Variable, depending on the time-frame of the ranging price action.
• Skillset: TA is primary. FA and ME are secondary.
• TA Indicators: Identifying sideways channels, support and resistance levels, volume analysis, RSI, and stocahastic oscillator.
• Helpful Tools on Bybit: Leverage, Limit Buy and Sell Orders, Scaled Buy and Sell Orders, Stop Loss & Take Profit, OCO Orders, Grid Bot (both spot and futures).

4. Breakout Trading

• Definition: Initiating a trade when price “breaks out” of a certain range (i.e. busting above resistance or falling below support). Just be wary of “fake-outs”!
• Time-Frame: Variable, depending on how long it takes for an asset to breakout, and how long the price might run after the breakout.
• Skillset: TA is primary. FA and ME are secondary.
• TA Indicators: Identifying support and resistance levels and numerous chart patterns, volume analysis, 20, 50, and 200 day MAs, Bollinger bands, and RSI.
• Helpful Tools on Bybit: Leverage, Stop Loss & Take Profit, OCO Orders, and Conditional Orders.

Know Your Orders

It’s important to know how to apply Bybit’s more complex orders to your trades and trading strategies. This is super important when you’re using leverage. Now, Bybit offers more order types than what’s detailed here, but I think these are the most important advanced order types that you need in your arsenal.

• Stop Loss & Take Profit

Use liberally. With regards to stop losses, you almost always want to use them when dealing with leverage. So, pay close attention to your TA, in order to find the balance between managing your risk and not getting “stopped out.” Regarding take profits, determine your take profit levels before you initiate your trade. And multiple Bybit charting tools (i.e. Fibonacci, long and short positions, forecast, projection) can help you with determining realistic take profits.

• Trailing Stop Loss

My personal favorite. It’s always hard for me to click the sell button, and crypto prices can run much further than most expect. So I like using trailing stop losses when I’m already in profits, in order to keep the possibly open that I can get more big gains. But at the same time, the order forces me to sell and take profits when there’s a pullback.

• OCO Order

“One-cancels-the-other” order. This is a pair of conditional orders whereby if one executes, then the other will be automatically canceled. In particularly volatile markets, it might be better to use an OCO order than separate stop loss and take profit orders, as to avoid any unintended consequences due to volatility.

• Scaled Order

Bybit’s scaled order allows you to buy or sell in set increments, or tranches, at different price levels. I think scaled orders work well when building larger position trades over longer periods of time, with range trading, or when taking profits by “scaling out”.

• Conditional Order

Bybit’s conditional order allows you to set a trigger (i.e. your conditional price) that must be met before your trade is executed. For example, imagine you believe that if a price falls to a certain support level, then the price will bounce hard off of the support, and begin to pump up. A conditional buy order could be good here, as you’d use the support area as your trigger price, to then open up either a market or a limit buy order.

Bybit Bots

Bots are an efficient way to execute a high number of trades. Basically, bots allow you to designate automated purchases and sells within a particular price range. You set the parameters, deploy the money into the bot, and then let it work.

Bots can be used both in Bybit’s spot and futures market, and with or without leverage. You can manually construct the parameters yourself, or use an AI strategy. You can also customize the bot to trade in alignment with how you believe the market is trending (i.e. sideways price action, upwards or downwards trending markets). Finally, you can use the bots that others have made. Just rank order Bybit’s list of bots by market, asset, and ROI, and use the one that looks good to you.

I highly recommend taking a good look at Bybit’s bots, and doing some experimenting. The right bot can absolutely print money for you while you sleep.

Cash-Generating Options Strategies

Entire books are written on options strategies. It’s a deep topic. However, to get the gears turning, here’s a few cash-generating options strategies that you can start using on Bybit right now.

• Selling Puts in a Bull Market

Image that bitcoin is trading $70K. You’re bullish, you’re trying to stack more sats, but you love buying the dip. If these boxes are checked, then sell puts at strike prices below the current market price. When you do this, people will pay you money (i.e. premiums), and worst case scenario is you’ll eventually buy bitcoin at prices lower than bitcoin’s current market price. Publicly-traded companies are doing this right now (i.e. Metaplanet).

• Selling Covered Calls in Sideways Markets

Imagine that you own a full bitcoin. You bought it at $50K, and it’s currently trading at $70K. You think bitcoin will likely range sideways. Now, you’re ok with selling your bitcoin at a price above $70K, but what you really want to do is generate some income on it. If these boxes are checked, then sell covered calls. When you do this, you’ll get paid a premium up front, and worst case scenario is you end up selling your bitcoin for the strike price higher than $70K.

• Execute Covered Strangles in Sideways Markets

This combines the two strategies above. You’ve got that full coin with a cost basis of $50K, and it’s now trading at $70K. You think bitcoin will continue to range sideways. You can perform a “covered strangle” whereby you sell both a covered call option at a strike price above $70K, and a put option at a strike price below $70K. Essentially, you’re betting that bitcoin will continue to range sideways, and you’ll collect two premium free and clear. However, be very careful with covered strangles (i.e. think about your strike prices carefully) in the crypto markets, because crypto is volatile!

Mastering Trading Course – by Lark Davis

Want to take your trading skills on Bybit up a notch? Check out the Mastering Trading Course, created by Lark Davis himself. Inside, you’ll find practical, step-by-step guidance on reading market signals and using technical analysis tools. Plus, there’s a dedicated module on how to get the most out of Bybit—perfect for anyone aiming to become a confident, skilled trader on the platform. Whether you’re new to trading or looking to sharpen your strategies, this course has everything you need to trade smarter and with real confidence.

Closing Thoughts

While this article covered a lot of ground, there is still plenty more to learn when it comes to advanced trading (e.g. we didn’t cover good-till canceled, immediate-or-cancel, fill-or-kill, Iceberg, or TWAP orders, numerous other options and futures strategies, other trading strategies etc, etc). The point is, there’s plenty to learn and use on Bybit.

But given that good trading skills are developed over years, you’ve got the time to do it. So try to incorporate what’s presented here into your personal trading toolkit, and build off of it from there. Good luck!

ps. we compared Bybit vs Coinbase and Bybit vs Binance, might be interesting to give that a read too.