Well Im not banking yet like the guy in the image above, today I took a bit of a rush decision on the 4hrchart that didnt go well, this does not mean Im going to stop going through learning how to trade, rather than trying to make money out of it Im trying to learn the still first through practice and applying a strategy that technically has a 60% accuracy but includes speculation that is the hardest part to learn, this weekend I will start to document a kind of checklist or requirements for it to work and put more time to it.
Bitcoin 1D Chart
Here we can see how the strategy has been on point on the 1D as it works the best or most accurate during high time frames, every time the ADX loose its impulse and the squeeze turns dark red the price eventually drops, some times it takes a few more candles, here comes the speculation to identify and essentially project the prize in the future through speculation and the strategy, the indicators are a warning sign although is not what tells what to do during a certain moment in the market. This time again the price drops and potentially will look for the lower part of the $50k ish.
Through Mistake I Learn
Today when the price was dropping I took this position, 5x leverage (paper trading on Trading View) looking or a bounce thinking that the price would bounce in such short drop, bouncing from the $60k level and it didnt, price went down all the way to $58k activating my stop loss, Im working with 10% of my wallet and only risking 1.5% meaning $15 out of each $100 trade, at 5x leverage that’s a 3% price change direction.
I have realize that until I finally dominate the strategy at times it will look like Im guessing, I dont want to loose money so I would rather just play Tradingview and paper trade and buy Bitcoin on spot on the side, as long as I keep it like that its fine.
After this drop there will be a bounce, just based on a few basics of the startegy, once the ADX have a positive direction like its doing right now and the SQZ turns light green, there will be a bounce to $60k before it keeps dropping based on the 1D chart, this time I got my entry at $57,721 and stop at $55,976, same 5x leverage with a tight 3% stop, the price is going to fill that wick and then bounce back.
So far my PNL is flat, two win two lost, all I have lost are my gains from my first two trades, just a small dent on my feelings after making that mistake this afternoon, I think it mainly happen because I still feel I fumble the trade at $56k where I thought it was going to $54k and had that ghost hunting me.
EMA are never support thats another point that I forgot about the strategy today, reason why I want to start not only documenting each trade but document what works on each one of them and building a type of guide that can work for future case reference, I will make this a single post that will eventually update when ever I find something useful or that have work for me multiple times, I have time and no rush to keep this experiment going until I learn how to trade and start working with the same parameters only with real money, at the end of 100 trades I would like to be 70% efficient, meaning I will loose a good amount of trades and even though if I loose 30 trades before I’m done I will reset and repeat until I feel I can do it to make some $$$.