Topic: Crypto Trading Diary - page 2. (Read 8084 times)

Thanks apachebalou, sorry for delayed answer, have been laid low with flu. Regarding you questions. The stop level is NOT an arbitrary % below the price action, it is placed behind any obvious points of support that if broken would indicate further lower prices would occur. For this trade there was an ascending support line + rising moving averages + recent price bounce all above my stop. The idea being to keep the stop away from normal price volatility but close enough to protect when price stops moving the way you hope it will. The idea for this trade was that the price would breakout, consolidate below $530 level then continue through that point, however that didn't occur and the breakout failed and the support points above my stop failed. I exited the trade at the area of my stop $504. As I knew $530 was resistance I could have taken profit at that point, but if it had continued to breakout above there and I took profit then I would have a small profit and missed the move I was trying to trade. As it is I was out with a small loss $510 entry $504 exit.


I am using technical analysis, support/resistance, patterns, averages and strict money management. There is a lot of online resource I haven't really any to recommend above another as there is so much and to a certain extent it is a personal interpretation that you fit to suit your own approaches. If I were you i would google and read up on topics you find interesting and see what starts to appeal to you.


There is a lot of such sites in the FX World where traders post their ideas and people follow them either actually taking the same trades or just to learn.

awesome thread, i'll be watching.

draws the lines using previous tops and bottoms, its not that hard really.  the way i learnt it was just by watching these types of threads, for a while, eventually you get it.

he puts his stop were the triangle he draws is invalidated.

This is a very interesting approach! I think a lot of people should just go and try their strategies on (public?) virtual portfolios, so that people can see whose strategy (or wild guessing) is best! Is there a site to do this?

Do you have any recommendations for good resources that I could study to better understand the basics of your decisions?  I'm new to all this, seems very interesting.

Very interesting thread, definitely following this! Nice with some honesty for a change.
So I have been following crypto for a while, but is new to technical trading, so please forgive me for newbie questions.

So how do you decide the stop level? I saw in your excel sheet that you put the stop level 3 % under current value. Do you calculate that percentage in relation to market volatility or something? I guess I have the same question for the exit region.

Also, do the fact that the 515 level seems to have some resistance alter your current strategy?

BTC/USD$ Trade Update:

Price pushed on so confirmed reason for entry. This 1 hour chart shows the trading situation. The ascending support line guides the direction. I will trail my stop behind the price action / ascending support. It now sits at $499. If price can break $516 then it should move on next to $530 resistance area. Will update as trade progresses.

Edit: Adjusted stop below ascending support to $504

Buying 5 BTC:

Average price of $510.
Stop is $494.
Target around $550 to be adjusted.
Risk $80

Nothing definitive in current price action other than $530 area being the ceiling and $490 area being floor. Sideways channel between these points is emerging. Buying in the low $500's / high $490's is a relatively safe proposition based on current price action.

Updating the next possible phase of BTC/USD$ price movement and watching for tradeable set-ups.

Position Sizing and knowing your risk

Interested to hear how traders work out their trade risk when trading? Do you just buy in and worry later when you see your account turn a bit red? Or do you use tools to help?

For me I use a simple spreadsheet that I enter my trade plan into (Qty to buy, price, stop loss, profit target) then I get an immediate picture of the trade and its possible outcomes. I can then tweak the trade parameters until I am comfortable with the risk. I also use it during a trade to adjust and monitor so that anytime I know what my risk is if the trade goes against me or for me.

Screenshot of the sheet below with some notes as to what it shows.

Channels are a powerful trading ally.

Thanks  

This channel trade has now reached the channel top, so if I were actively trading it the lowest risk option would be to close out the trade and take the profit, alternate approach would be to move stop loss up a bit and trail the price a couple of candles back (below is a 4 hour chart) in case of breakout.
Interesting to see what develops here, if price moves out of the drawn channel then the channel pattern is busted and we start all over again. Breaking $500 area resistance will require some buying volume to come in.

Great description of how to trade with a disciplined professional way, breath of fresh air compared to the majority of comments in this speculation forum. Keep it up.

Not foolish if you trade with a defined plan and strategy. That includes analysis, reason and justification for entry and exit (loss or profit). Correct risk management relative to your tolerance and portfolio size, then it is trading.

All trades are risky, you use the tools at your disposal to mitigate the risk and manage your actions.

There was no luck involved, I outlined the trade plan in detail. If it had been a loser the loss would have been controlled and just part of the business of trading.

Good luck with your trades and thanks for the comments.

Is it me or is it foolish to go long in a downtrend like this

You are lucky you hit what looks like a W formation (trend change).

Btw I'm also a newbie trader

Updating the channel trade idea with close stop. I have updated the chart as if I were trading it. As stated this trade I didn't take but updating outcome for all to see. As per chart I would move stop up to break-even point and let the trade progress some more, essentially I would now have a free trade (risk covered). This approach would enable me to take a new position if I wanted without increasing my risk of loss more than the new risk + the possible loss of profit in the first trade. The alternate approach is close out trade at the target area with about 5% profit (Entry $465, Exit $485 ish).

Yep agreed, better outcome possible trading nearer the defined channel edges / bands. This is why I am just showing it as an idea. as I said it can be low $ risk due to the nearness of the logical exit, plus that $450 area is acting as decent support for the moment. Thanks for the comments, I see you are very comprehensive and active in your analysis I will check it out.

First, welcome to the forum! Edit: I guess you've been here for a few months

That would be a high risk:reward ratio, no? Similar to entering a trade in the middle of the BB where price is equidistant from top and bottom. It could really go either way!
Now, if you open at the lower and sell at the upper with a stop just below the lower trend line, this would seem like better R:R ratio to me :/

Carry on!
I'm interested to see how this all comes along