Thanks for answers guys. I guess there’s not a whole load of TA to go on right now as we are in price discovery for BTC market. Fibonacci is still a good indicator in I suppose as so many people are trading off it, becomes self-fulfilling etc. I tend to use the VPVR indicator for identifying key support/resistance as well. Anyone also use this? Very useful imo

Hi,

I’m just wondering what are the best indicators / candlestick patterns / charting TA to look for when the support bounce occurs after a significant dip.

I was in short positions on both Sunday and Monday during the big BTC correction and obviously there were points where they were significantly in profit. However, I held on too long and closed after the bounce. I still took profit but feel I could’ve “taken the meat of the trade” a lot better.

What do you guys look for? I guessing this is perhaps best done using the 1m (or similar short timeframe) and looking for a big green wick?

Thanks
 

This makes sense. Like one of the pros of having such good cryptography brings the con of not being able to develop coin ID technology based on an address. I hope in time something can be developed though. Not only is it prone to human error, but it's also time consuming to be manually checking addresses if you're frequently sending crypto.

A little while ago I was very tired, multi-tasking and finally made the dreaded mistake of sending some USDT to a BTC address. Fortunately it was only a small amount and the exchange were able to retrieve it but it got me thinking...

Would it be possible to develop some kind of address validation technology that runs a check and doesn't physically allow you to send crypto to a different coin address?

Coinbase Pro have attempted to implement something like this https://i.imgur.com/HD2l9jI.png but after running a test it still seems to give the green light for a PAXG address when trying to send USDC. I imagine this is because they're both ERC20 tokens.

I messaged another exchange and they said it would be hard to implement this technology because many coins have unspecific addresses.

I feel like this is such an essential thing to have in the crypto space if its to ever have a serious chance at mass adoption. The fact that one easy mistake can be so calamitous and then with no customer support to call because... well its crypto, seems like a fundamental flaw.

I've been sending crypto around for 6 years and I'm still just triple checking that the first and last 4 characters of an address match up after a copy paste. Then until it shown up at the deposit end I still have a slight fear that I might've made some mistake, as I'm sure many can relate!

Surely in this day and age (in a tech oriented scene no less) it is nonsensical that something so sensitive as sending money digitally is still subject to manual checks and human error.

Is there a way to develop this or any existing technology I don't know about?

Bump... Anyone?

Hi,

From backtesting various strategies on TradingView I've noticed a common pattern when trying to work out whether it's better use a set contract amount (eg 0.1btc for every trade) or compounding (using 100% of the available USDT balance).

I've noticed that the set number of contracts approach gains pretty consistently right from the start but doesn't yield so much %, whereas compounding doesn't see significant gain for a long time but then suddenly starts exponentially yielding %.

I've noticed this as a common pattern across various different strategies and pairs.

Heres an illustration: https://imgur.com/a/LXtHlPA

Can someone please explain the basic theory/maths of why it happens?

Also does this generally mean it's better to compound than not in the long run?

Thanks

Yes, well all I'm trying to do is tweak DCA a bit more in my favour. I'm very much of the "stack sats and chill" philosophy, aka just buying whatever amount of coin at whatever price whenever you can and chill because BTC's gonna moon eventually and they'll all be winners. Obviously this runs on the belief that BTC is not a "dead market" and therefore not having to pay too much attention to the charts. Basically I'm just trying to see if theres a way to get better buy-in prices for long term hodl using TA.

Yes, of course all TA is speculative and its all a fugazi (https://www.youtube.com/watch?v=hAQA_29Htts) lol. But don't you think if the price was to move past an open-low MA line on the weekly and/or monthly timeframes it would be a good indicator of a dip? It would be saying 'this price movement is more negative than average for this period of time'. If you had alerts on both it could tell you 'this price movement is more negative than an average week within a more negative than average month". Yes, the market could continue to fall but you'd know it was a better than average call...

Yes, I very much believe DCA is the best way to take emotion out of weather you're buying at the absolute "best" price as such.

Surely you must have at least some small criteria rather than "purchasing when the price drops no matter by how much or what criteria it is". I mean for example say BTC drops 10% maybe once or twice a month, where as it drops 1% (from open) pretty much every other day. Do you just mean you go in on these frequent smaller corrections (~10%) that happen over the course of a day, instead of the annual / bi-annual big ones than happen over a few days/weeks?

Apologies if this comes up a lot (as I'm sure it does) but when / how often do you feel is the best time to buy a dip?

I know its not an exact science but I've heard a few different preferences on this such as:

- Whenever the price decreases x% on the weekly
- Whenever the price moves below the weekly negative average
- Whenever the price moves below the monthly negative average
- Only a couple of times a year after a major correction + dead cat bounce
- Just look at the chart and go on your experience / gut

Ah ok, I think this information may have helped solve an ongoing mystery with my bot! Basically I've been getting major API latency issues with the 00:00UTC trade but not with any others. Automated orders were taking up to 10s for this, compared to < 1s for all the others. I couldn't work it out.  I'm now guessing that theres a load of traffic as everyone rushes to close positions before funding, or perhaps to deploy strategies based on the predictable price movement you mentioned.

I think I'm gonna experiment to find out if I would in fact be better off getting out before funding. I'm guessing I would and this has already been heavily researched, hence why most traders do it. I'm also gonna experiment to find the sweet spot / latest possible time to close before getting caught in the Binance traffic.  

With one of my automated strategies, a position gets closed at the exact same time as one of the three daily funding fees occur (+00:00UTC Binance Futures).

The Binance docs on funding say the following "In general, traders prefer platforms that provide the lowest funding rate as it can have a significant impact on profits and losses."

So does this imply that funding would ideally be avoided wherever possible?

I know it might seem like a silly question, but I my transaction history shows that its pretty 50/50 as to weather funding is charged positive or negative. I'm wondering if long-term it might just work out fairly balanced anyway?

Otherwise, of course I would aim to implement something that closes the position a few seconds before 00:00UTC to narrowly avoid the funding fee.

I should say I'm fairly new to futures/derivatives and am getting to grips with it using a tiny balance a 1x leverage (basically I'm aware of the risks before anyone points this out).

Are the fees really a big factor? I'd buy at Coinbase which has a 0.5% taker/maker fee (cheeky as it used to be 0.3% taker, 0% maker). I thought that these fees would be insignificant compared to the % gains btc is widely expected to make over the next couple of years proceeding the upcoming the halving...

Thanks very much everyone for your replies, I understand the difference now.

It certainly seems to make sense to be part HODL'er part swing trader in blatant bull/bear markets.

My only concern with trading in the near future is the PlusToken scammers. Don't they still have loads of btc/alts that they're randomly going to keep dumping, thus significantly messing with price action?

I'm fairly new to this space and I'm quite keen on the "stack sats and chill" DCA approach as opposed to trading as I believe in btc long term. I mean I just want to add to my btc holdings whenever I can at whatever price and don't care much for short term price movement, no matter how drastic. Do many of you follow this approach or are you mostly traders?

Another question- When people preach HODL philosophy (obviously I know it means hold) is this the same "stack sats and chill"... or are the HODL'ers just those that invested big at some point in the past and are long-term holding a single position?

Yes, I'm not new to trading. Getting stuck in a trade (or having to close at a really bad price) due to insufficient liquidity is a pair/instrument specific problem. I'm trying to research this in order to develop a bot. I have some rough ideas but would like some more experienced traders than myself to weigh in with some exact parameters / rules of thumb...

Hi, sorry if this is a blatant repeat but I'm after some up to date info on this topic.

What are some of the red flags you'd look out for when aiming to avoid trades you could potentially get stuck in on the Binance USDT market?

A specific minimum 24h volume on that coin i.e. $100k? Basically how much liquidity do you look for to feel confident...

Are there coins that are notoriously tricky to trade for other reasons perhaps?

I'd appreciate any tips on this. Thanks.

Yes, its always so hard to tell with btc but it does seem that the mania has settled a bit for now.

However, there seems to be a lot of speculation that the drop was related to people cashing out due to the Christmas period. If this is true then I also wonder if this will have an effect on btc price in January as people are often left with big credit card bills after Christmas and they might need to cash out to pay these...

Thanks. I changed it to 12.7k. Hopefully the order will get filled in the next week or so.

Basically I'm just looking to buy Profit Trailer for 0.03btc before the end of the month as they're offering a free extra Binance licence until then. I'm not really fussed about making fiat profit off btc etc but rather I'd just like to avoid having to put more fiat into btc to make the purchase.

I suppose I could trade alts against btc but I can't really be bothered to do all that over the holidays. It'd be much easier if btc could just have another quick dip!

So are you saying a support bounce generally signifies the end of a btc correction?