10 times profit in 7 days, a BTC trader's trading experience

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Recently, a BTC trader gained 220,000 US dollars at a cost of 20,000 US dollars in a 7-day cycle of BTC transactions, and shared his trading strategy experience, which is very helpful for users of Crypto transactions. BlockBeats compiled and compiled it as follows:

First declare:

This article does not constitute financial advice;

Trade within your affordability, and never take risks with an unbearable amount;

Trading is hard, don't imitate it just because you think you are great and find my trading strategy is not bad.

Going back to the beginning, I zeroed out multiple trading accounts and didn’t want to touch contracts anymore. I was mainly a “fundamental-driven” on-chain investor, because that was the way I could get the greatest return. But why should I open another trading account?

Most of my portfolio is long term and I don't stop investing until my point of view is validated or invalidated. At the same time, from the perspective of trading, I don't want to sit still. A transaction can either make money or lose money. It can't be stable to invariable. I know that I am not good at trading-so this is what I have to learn. At first, it was for learning, and I chose an amount that would be painful after a loss, but I was able to actively invest without any worries. At the beginning, I used the scientific method to formulate assumptions, analyze variables, test, analyze results, and evaluate.

There was no emotion involved in these trades, as I treated myself as a lesson worth taking seriously, trying to understand how the market was behaving and creating a mental model of how the variables interacted with each other.

Unlike before, this time no longer:

- If I don't win the deal, I'm done;

- I just want to make quick money;

-Maybe I can finally make money this time.

Another way of saying it is:

-I hope I lose this trade so I can be sure if I'm making a mistake;

- If I win, it means my thinking is right, how can I continue to trade?

- I'm not afraid of losing the trade, I'm just validating my hypothesis, and if it's wrong, I can improve my personal trading system.

Once the account changes to a size that breaks this "emotionless zen state," I stop trading. In actual trading, I trade momentum, sentiment and levels. If you are good at independent thinking, there is an advantage in independent trading, which is absolutely crazy. After this, I feel that all quantitative data is useless.

The strategy evolves every day, and backtesting is nearly impossible. Totally different from what I'm used to, just trading with "market swings, averages, feel".

10 times profit in 7 days, a BTC trader's trading experience

In fact, there are some KOLs in the market who will share the data graphs of technical indicators such as EMA and Hull MA. The momentum trigger is displayed through momentum undercurrents + quick little pinescript, and the range and obvious level are also marked, as shown in the following figure:

10 times profit in 7 days, a BTC trader's trading experience

To be honest, metrics are arbitrary. Does it really matter whether you use the 12 EMA (exponential moving average) or the 11 EMA? The only thing that works is that they raise deeper questions:

-why the price follows a certain MA /line/level

- Why momentum/range strategies work

-When/why technical indicators start/fail

Also, needing some level of understanding of macro events (which crypto seems to be in control of) and having a plan for every eventuality that could happen is very helpful, knowing when and what happens is irrelevant to the market What is the situation that violates the consensus transaction.

A large part of my profit comes from the market's understanding of Circle's long-term fuds, such as concepts such as balance sheet and term risk, and dollar-weighted average maturity.

These news/FUD spikes/make or break trades at a level where you have to cut positions if the market doesn't react immediately, these numbers make leverage go up significantly. I learned to look for those moments and bet them.

Another important lesson is that Altcoins are hard to make money in trading, they are only the BETA version of BTC , unless you have "MMs hunting stops" or overreacting trading behavior, which will cause BTC to drop by 2% Losing 20%, BTC only earned 10% when BTC rose 2%. In fact, it is much easier to trade BTC with a slightly higher leverage.

I'm comfortable with a long-only or only-short style of trading on a trend-following basis, and in an uptrend, I'm not shorting pullbacks - just buying, and in theory, I could make more money, but Callback (short selling) in an upward trend is reasonable in technical analysis, but difficult to accept psychologically.

A very important lesson - the importance of biding your time. Sometimes a candlestick will form below the high, but the price will oscillate above the high with a Bullish trend, and finally come back below. Manage the timetable and only wait for the K-line to change, which can save a lot of money.

If my momentum indicator is falling, even if it is not invalid, I have learned to TP before reaching the target. The interesting thing is that it is easy to stop believing in what made you profitable in the first place, and that feeling of "PA feels tired" is often is reliable.

Also, even a $100 trade helps myself to keep an eye on the market, get close to the market and inform decisions about LT investments (eg entries/outlook). At the very least, as an investor, it's interesting to see what you know about the market.

For what it's worth, I still think mid- to long-term betting on DeFi is preferable to normal crypto trading and will reap most of the rewards. But I can't continue to increase my account with such a high risk and unscrupulous mentality, and I won't try to do so, just learning.

Of course, this kind of situation definitely makes me think "Am I getting better at trading, or did I just happen to be long when this year's skyrocketed", I honestly don't know, I just learned along the way Some things that I think are awesome, I will continue to learn in the future.

Finally, imitation is not recommended. In any case, strictly control the risk and trading account funds, and only use the assets I am willing to lose to bet.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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