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 --- A GOPHER-LIKE INTERFACE FOR HIVE BLOCKCHAIN ---

New Trading Strategy

BY: @cryptoaddict | CREATED: Aug. 4, 2018, 12:28 p.m. | VOTES: 6 | PAYOUT: $0.08 | [ VOTE ]

I have outlined my Trading Rules in this post: https://steemit.com/cryptocurrency/@cryptoaddict/trading-rules
They are still valid and the trading strategy adds a little more detail on the technicality of how the trade is executed rather than changing the rules of trading dramatically.
The trade should still be entered near support/resistance or when such a level is broken decisively. The biggest difference in the new strategy is that the full position is split into as much as 10 trades. Most often 3-6 trades until a full position size is achieved. The other important point is that you only add to your position if the market is moving in the direction of your trade. Never averaging down. The stop gets moved with each additional trade so it's important that the levels and timing for adding more to the position are carefully considered. The benefit is that every time your stop is hit you will only lose 1/6 of a potential loss in the case of 6 trades. Trade only in the direction of the current trend. That can be tricky as you might have conflicting trends on different time frames. You need to be clear on which time frame you are trading. Of course the best trades will come when a few time frames have the same direction of the trend. This is when you commit more capital to your trades. If trends are opposite on the different time frames you should be committing only 1/3 to 1/2 of your usual position.

Here is an example chart:
[IMAGE: https://cdn.steemitimages.com/DQmXALDP8L7zNmRtjYuYnXYf3yDZEGvK6XsYR35Rx1xMgor/download.png]

You want to trade the trend with a full position. Don't trade the consolidation areas and trade the correction or possible reversals with a half position.

Here is the strategy in bullet points:

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TAGS: [ #cryptocurrency ] [ #bitcoin ] [ #trading ] [ #strartegy ] [ #derivatives ]

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