Re: BitcoinCrystalballTrader - Bitcoin Trading Predictive Analytics
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WITH THE TREND EXAMPLE
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To follow-up, here is an example trade that is going with the trend. The idea of a trend trade (although less exciting than counter-trend trades) is to latch onto the trend of a higher timeframe. So you use the smaller timeframe as a zoomed-in approach to fine-tune your entry, and take less risk.
But the profit motive is BIG. The objective is to catch the bigger wave of movement and then ride the larger wave.
In the example below, you can see that everything is in the green. So although this signal fired quite a while ago, you are still in it, riding the profits.
With a trend-trade you want to then manage your trade with a gentle hand. You want to let the trade breathe a little, managing the trade pivot by pivot. As bitcoin keeps pushing new highs, and doesn't pull back so far as to take out a prior low, you can let it breathe and continue to push upwards.
As the trend extends into higher and higher time-frames, you can just let that single trade turn into an "investment" for a longer hold.
Then look for another low-risk opportunity to get more bitcoin, and ride it upwards into an investment (longer term trade).
SO WHY WOULD ANYONE WANT TO COUNTERTREND TRADE?
It seems silly to trade against the trend, or to scalp trades when bitcoin is stuck in a congested price range. But there is an advantage to countertrend/scalp trading. The advantage is accumulation of bitcoin, piece-by-piece.
If you started with 1 bitcoin (for example), and only took scalping trades, you would only be making between $50-$100 per trade. But 10-20 successful trades later, you have basically doubled your account and now have 2 bitcoin. So you accumulated another bitcoin, bit-by-bit (no pun intended, well, intended a little.)
WITH THE TREND EXAMPLE
===============================
To follow-up, here is an example trade that is going with the trend. The idea of a trend trade (although less exciting than counter-trend trades) is to latch onto the trend of a higher timeframe. So you use the smaller timeframe as a zoomed-in approach to fine-tune your entry, and take less risk.
But the profit motive is BIG. The objective is to catch the bigger wave of movement and then ride the larger wave.
In the example below, you can see that everything is in the green. So although this signal fired quite a while ago, you are still in it, riding the profits.
With a trend-trade you want to then manage your trade with a gentle hand. You want to let the trade breathe a little, managing the trade pivot by pivot. As bitcoin keeps pushing new highs, and doesn't pull back so far as to take out a prior low, you can let it breathe and continue to push upwards.
As the trend extends into higher and higher time-frames, you can just let that single trade turn into an "investment" for a longer hold.
Then look for another low-risk opportunity to get more bitcoin, and ride it upwards into an investment (longer term trade).
SO WHY WOULD ANYONE WANT TO COUNTERTREND TRADE?
It seems silly to trade against the trend, or to scalp trades when bitcoin is stuck in a congested price range. But there is an advantage to countertrend/scalp trading. The advantage is accumulation of bitcoin, piece-by-piece.
If you started with 1 bitcoin (for example), and only took scalping trades, you would only be making between $50-$100 per trade. But 10-20 successful trades later, you have basically doubled your account and now have 2 bitcoin. So you accumulated another bitcoin, bit-by-bit (no pun intended, well, intended a little.)