1 to 1 risk to reward ratio ?
I am really trying to look at how that has been playing out for you in a bear market. Even though you said 1 - 3% profit per trade, the fact that you included that 1 baffled me a bit. Nonetheless, I do not agree with the fact that for you to be a good trader, you have to be able to trade different markets, either bear or bull, as that is bullshit as it depends on your style or pattern of trading.
The fact that you are a day trader does not necessarily make every professional trader a day trader. Even for a bear market if I have to trade, I am not looking for anything less than a 2% profit to 1% loss ratio which is more reasonable to me.
Topic: Bull market/Bear Market trading strategies - page 2. (Read 599 times)
As for me when it comes to the phases of the market, bearish or bullish, down or up etc. the great buying of assets is when the price is low and decreasing why? because the chance of gaining from that coins is huge. Buy, buy , buy when it is bear market and sell, sell, sell if it is bull market. Because it is really hard being successful while its bear market, once in a blue moon.
Always stock your funds in USD and hold it after the bull market get away and so far it will also recover in the mean time to avoid lossing money if the cryptocoins will drops it's price.
I've been successful during our bear market this year, by using the Depth Chart, or Micro-analysis of the order book. I've set a tight stop-loss at 1% risk, with 1-3% profit exit per trade. I use the principles of compound-interest to grow my btc stack with trades.
IMO this kind of profit is extremely insignificant and thus not worth spending time on. And for the trading fees to be less that this 'profit' one needs a really big amount of money, while having that kind of money probably means that this person doesn't actually need to earn it. Anyway, it's nice that people manage to trade even these days, but I think that bearish market is perfect for long-term investments. Buy low and wait for better times. They are probably worth it and there's no need to be constantly involved, as is the case with trading. Trading is a hard thing to do, while investing can end up very successful even without significant experience. 
Much better if you could mix other indicators to prove your decision together with orderbooks
It could help you out where the market is truly heading and may avoid contradicting whales
I am using orderbooks as confirmations together with other 3 indicators
Using order books alone will not even help. I have tried it before, I have seen fake orders several times and the best way to just go about trying to trade a market, is to make use of the indicators and then the price actions on the chart to make a decision, while making stop loss a very important thing to never discard.It could help you out where the market is truly heading and may avoid contradicting whales
I am using orderbooks as confirmations together with other 3 indicators
Personally, I make use of momentum indicator such as Stock RSI, trend indicator such as Ichimoku cloud and then add this up with price actions on certain supports and that has always worked out fine for me. However, it all balls down on each individual's level of knowledge and experience when it comes to trading both bull or bear market as the case may be.
Other way to earn profit on the bearish trend is by shorting the price in margin trading, there are 2 different trading product that offer profit from shorting the price, that is CFDs and futures trading platform. Margin trading is more risky than spot trading, so its better to trade in this platform only in bear market.
Doing margin will be dangerous for the traders because they will need a high-skills in analyze besides that, they will need accurate analysis so they can know where the price wants to moves. But the profit will bigger and of course to get a bigger profit, and we need to use a big balance because this is what I see in the past in the poloniex on the margin trading section. We have our strategy, and we cannot say that our strategies are the best than the other because we don't know how much profit that every trader can get with their strategies. It is better to stick with our strategy and keep trying to make a profit even for small profit.
Its nearly the same as you are having. Because the market in the downtrend doesn't move much then it is always good thing to put the smaller profit taking limit for example I will always play around 3% and not more than that. Expecting higher trends in this situation is almost impossible because when crypto enters the bear market then it slows down in the up and down of its prices. Its like it starts getting little much stability because no one is ready to invest during that period (which they should be actually) and thus makes the market crawl for the bull. So getting 3% spikes is possible but expecting higher than that will always lead to loss. Better to stick to this strategy only and try the luck hard.
Other way to earn profit on the bearish trend is by shorting the price in margin trading, there are 2 different trading product that offer profit from shorting the price, that is CFDs and futures trading platform. Margin trading is more risky than spot trading, so its better to trade in this platform only in bear market.
I believe considering the bull and bear market is for those who are here for the long term investment strategies. And by long term I really mean more than few years. If you are small investor which always outnumbers in the market, then it wont be much difficulty to trade even when you are in the bear trend. Lets assume that you are holder then it should be concerning factor for you because you have to be patient for the market to recover and wait for the ROI. Now this could be very hard to digest as sometimes it can take up lot of time. So whenever you are in the bear trend then you should be in the position where you are just having the normal swing trades, day trades going on. Because they dont ask for the big bull runs and stuff like that.
I've often heard that to know that you are a successful trader you have to pull profitable trades in a bear market, not just a bull market.
This is not always the case. I do not believe in hyping individual trade ability because I have monitored this crypto trade to know that, nothing is perfect about making gains. Even where one makes some profit in bear market, it is not always a guarantee.
The OP categorically stated a day trader pattern and saying that as a successful trader you have to pull profitable trades in a bear market, sounds pretty much absurd to me. Market can come in different ways and your pattern determine how you want to be going ahead with your trade and if the OP trades for real, setting a tight stop loss 1% risk and then looking for a 1% does not sound right for a good risk reward ratio. At least 2 - 3 % when you have a 1% risk is a whole lot better.
Snip**
2.5% is nice, but sometimes you have to take a 1% gain to avoid taking a 1% loss, and if you set your exit just above 1% it covers the trading fees on binance. And if I make 3 trades at 1% in a day, which is, most of the time pretty easy using the depth charts. I like to look at the total BTC on the order book cumulatively of over 100BTC in Bids/Asks. That way the faking out of the order book isn't as easy, and whales have to dump large or buy large in order to move it much. Also if the Volume is over 1000BTC/24Hr is another one of my rules for trading a particular coin. For example the only coins right now on binance for considering a trade in are : ADA, TRX, ZIL, FUN, XRP.
That's how we get around the misleading of the orderbook.
Much better if you could mix other indicators to prove your decision together with orderbooks
It could help you out where the market is truly heading and may avoid contradicting whales
I am using orderbooks as confirmations together with other 3 indicators
Its easy to say that one is successful even on a bear market but that is their claim and we cant that away from them. If they got lucky even on a bear market then good for them, but let us also give caution to newbies that trading on a bear market is very risky, let us not make it sound that its easy by using different tools. They might get the idea to just jump in and trade away and loose more money.
Risky for those who has no proper experience on trading mate, but for those who had wiser visions for his/her ability to grab bearish opportunity it's a brilliant strategies to do. Upon checking the prices on the market we tend to be amaze for those cheaper coin price despite of how it behaves in the last few months ago. The predictions was a failure but still people demanded to buy cryptocurrency.
Its easy to say that one is successful even on a bear market but that is their claim and we cant that away from them. If they got lucky even on a bear market then good for them, but let us also give caution to newbies that trading on a bear market is very risky, let us not make it sound that its easy by using different tools. They might get the idea to just jump in and trade away and loose more money.
I've been successful during our bear market this year, by using the Depth Chart, or Micro-analysis of the order book.
That's surprising. I've always found order book analysis to be misleading. People are always playing games on the order book.
Another thing is that I see a lot people here talk about how well they are doing with trading, but it's pretty difficult for me to believe that this is actually happening. The far majority of the people trading are losers overall.
Funny thing however is that the people pretending to be trading successfully never bother to point out their trades before cashing them out. With that in mind I can make myself look like a solid trader here as well, but I don't.
I've often heard that to know that you are a successful trader you have to pull profitable trades in a bear market, not just a bull market.
Either that, or you need to play to your strengths. I know some crypto traders that primarily only trade during bull markets (like 2016-2017). After the crash, they pack it up and leave until the market is hospitable again. One reason for that is the lack of safe places to short sell, especially for traders in the US.
I've been successful during our bear market this year, by using the Depth Chart, or Micro-analysis of the order book.
That's surprising. I've always found order book analysis to be misleading. People are always playing games on the order book.
I've set a tight stop-loss at 1% risk, with 1-3% profit exit per trade. I use the principles of compound-interest to grow my btc stack with trades.
I'm all about compounding gains to grow my BTC stack too. But IMO 1:1 reward vs. risk is really low. You also need to beat trading commissions and hedge against a bad stretch of trades. I look for an absolute minimum of 2.5% reward vs. 1% risk. In cryptocurrency, there are opportunities for much better than that too.
Ugly nested quote response, but bear with me.
1) Not being able to short sell effectively sucks, but there are definitely ways to profit without that particular perk.
2) Order book micro analysis can be misleading, on coins with low order books. This discord only trades on coins with greater than 1,000 BTC 24/h volume and at least 100 BTC on the order books. That makes it expensive, and therefore less frequent, that the books are being manipulated.
3) Trading is all about probabilities, right? If you're profit/stop is 2%/1%, you only need to be right 35% of the time to profit.
Quote
I use the principles of compound-interest
I like this little piece of statement that you have made here. Yes, thats the perfect way to win this market. As long as you staking up the base coin with the profits and compounding of the same then you are always in the profit after certain amount of time and thus no one can take you down in the crypto space itself. The thing that happens here is, you are not actually looking at how much profits you have gotten in terms of USD or your local currency but you are looking at how much base coin you have gotten. This way it keeps rising all the time and thus you can end up having huge coins and thus even with small change you can get lot of money back to you.
When I first started, I used this strategy on Cobinhood, trading for just increasing my COB stack because I believed in the token and exchange a lot...now I trade on binance and try to grow my BTC stack.
I've often heard that to know that you are a successful trader you have to pull profitable trades in a bear market, not just a bull market.
Either that, or you need to play to your strengths. I know some crypto traders that primarily only trade during bull markets (like 2016-2017). After the crash, they pack it up and leave until the market is hospitable again. One reason for that is the lack of safe places to short sell, especially for traders in the US.
I've been successful during our bear market this year, by using the Depth Chart, or Micro-analysis of the order book.
That's surprising. I've always found order book analysis to be misleading. People are always playing games on the order book.
I've set a tight stop-loss at 1% risk, with 1-3% profit exit per trade. I use the principles of compound-interest to grow my btc stack with trades.
I'm all about compounding gains to grow my BTC stack too. But IMO 1:1 reward vs. risk is really low. You also need to beat trading commissions and hedge against a bad stretch of trades. I look for an absolute minimum of 2.5% reward vs. 1% risk. In cryptocurrency, there are opportunities for much better than that too.
2.5% is nice, but sometimes you have to take a 1% gain to avoid taking a 1% loss, and if you set your exit just above 1% it covers the trading fees on binance. And if I make 3 trades at 1% in a day, which is, most of the time pretty easy using the depth charts. I like to look at the total BTC on the order book cumulatively of over 100BTC in Bids/Asks. That way the faking out of the order book isn't as easy, and whales have to dump large or buy large in order to move it much. Also if the Volume is over 1000BTC/24Hr is another one of my rules for trading a particular coin. For example the only coins right now on binance for considering a trade in are : ADA, TRX, ZIL, FUN, XRP.
That's how we get around the misleading of the orderbook.
Quote
I use the principles of compound-interest
I like this little piece of statement that you have made here. Yes, thats the perfect way to win this market. As long as you staking up the base coin with the profits and compounding of the same then you are always in the profit after certain amount of time and thus no one can take you down in the crypto space itself. The thing that happens here is, you are not actually looking at how much profits you have gotten in terms of USD or your local currency but you are looking at how much base coin you have gotten. This way it keeps rising all the time and thus you can end up having huge coins and thus even with small change you can get lot of money back to you.
My strategy is if have prediction bull matket of crypto will coming, i will put the money for crypto trading and after the price of all crypto overbought, and then i will withdraw it and move to the stocks market. In bearish crypto market is very hard to earn profit so its better i quit from the market.
You are right where you say that a trader needs to be able to take out the profits in a bear market in order to be a successful trader.
A bull market is good for a short term trader and I believe that a bear market is good for a day trader. I see people saying that day trading should not be done in a bear market. I see price swings up to 3% and sometimes more on daily basis. I believe this opportunity must be used well for day trading.
A bull market is good for a short term trader and I believe that a bear market is good for a day trader. I see people saying that day trading should not be done in a bear market. I see price swings up to 3% and sometimes more on daily basis. I believe this opportunity must be used well for day trading.
I've often heard that to know that you are a successful trader you have to pull profitable trades in a bear market, not just a bull market.
This is not always the case. I do not believe in hyping individual trade ability because I have monitored this crypto trade to know that, nothing is perfect about making gains. Even where one makes some profit in bear market, it is not always a guarantee.
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