Simple Strategy for Trading Cryptocurrency
2018-01-14, 12:18 AM,
The criteria for identifying trading opportunities are as follow:

The crypto has move up in pricing previously breaking new highs (fundamental of the crypto is not my concern as I am a trader, I only trade for profits or take my losses)
The crypto has pulled back and drop in pricing
Bottom out scenario has occured ( refer to diagram below whereby I enter my trade on the 15th)
Cutloss of 30% strict rule must be enforced, holding period of max 30 days.
Trailing stop loss applies (this depends upon your exposure level and this is a subjective moving target.)

Personally I prefer to to trade on crypto on big exchanges (though lesser known or china exchanges gives much profit potential) due to liquidity concerns. I usually enter a min trade size of $20k and this amount is enough to cause big price movement for low liquidity exchanges and crypto. 

In the above case, I enter my position on the 15th Dec after seeing signs that the drop has bottom out. Refer to 12th-13th Dec whereby price is appreciating as a guide. The candle on the 8th Dec is important as the daily low for this particular candle cannot be breach in order for this trade to stand. 12th - 13th Dec shows proof that the candle low on the 8th Dec has not been broken. Thus I decided to enter my trade at the closing candle price of the 8th Dec.

I tend not to chase winners unless price break out occurs. Usually this means that a price movement of at least 30% for 2-3consecutive days. I noticed that usually price will go even higher due to market anticipation of positive news. 

Credits: honestIM
Latest Thanks - View all

iBrobot(2018-01-31 09:36 PM) 
Share This Thread :

2018-01-14, 12:24 AM, (This post was last modified: 2018-01-14, 12:24 AM by CrypticEagle.)
This is a good method, But i feel that holding the money for a long term is also useful sometimes, at least in cryptos.
Latest Thanks - View all

FadePawn(2018-01-21 06:00 AM) 
2018-01-14, 12:34 AM,
Interesting post, thank you for the detailed guide.
2018-01-14, 12:47 AM,
Thanks for your tips, I will follow it.
2018-01-14, 12:53 AM,
Thank you for the useful tips mate.
2018-01-16, 12:51 AM,
Great tips buddy, thank you.
2018-01-19, 12:08 AM,
This is very good post, I will follow your strategy...
2018-01-31, 09:36 PM,
This is a very interesting strategy, I'll follow it mate.

Related Threads
Thread Author Replies Views Last Post
  [ICO] CoinMetro - The next level exchange supporting fiat and crypto trading Draguny 5 176 2018-03-04, 03:25 AM
Last Post: CharlieHarper
  Cryptocurrency news sources for shares Flipin_jackass 3 636 2018-03-03, 01:05 PM
Last Post: smmstations
  How to earn money with Cryptocurrency (bitcoin,litecoin,dogecoin, ethereum) vicsrel 3 292 2018-01-30, 11:07 PM
Last Post: iBrobot
  FAQ on UK Tax for Cryptocurrency JustPlainLucas 4 252 2018-01-24, 09:20 PM
Last Post: dontme
  Understanding the Psychology of Bitcoin and the Cryptocurrency Bubble Xaos 4 302 2018-01-12, 11:36 PM
Last Post: nutnuts

About Us | Contact Us | CPA Elites | Advertise | Stats | Staff Team

© 2013-2018 CPA Elites Ltd
Enhanced by MyBB and WallBB
Return to top