Simple Strategy for Trading Cryptocurrency
2018-01-14, 12:18 AM,
#1
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
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2018-01-14, 12:24 AM, (This post was last modified: 2018-01-14, 12:24 AM by CrypticEagle.)
#2
This is a good method, But i feel that holding the money for a long term is also useful sometimes, at least in cryptos.
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2018-01-14, 12:34 AM,
#3
Interesting post, thank you for the detailed guide.
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2018-01-14, 12:47 AM,
#4
Thanks for your tips, I will follow it.
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2018-01-14, 12:53 AM,
#5
Thank you for the useful tips mate.
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2018-01-16, 12:51 AM,
#6
Great tips buddy, thank you.
Reply
Yesterday, 12:08 AM,
#7
This is very good post, I will follow your strategy...
Reply


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