How to do a defensive trading strategy? - page 2.

imstillthebest

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I encountered this "defensive trading strategy" term from a post in one of the social media platform. I tried
searching for it in the web but haven't seen anything.

me either its my first time to hear such strat .
i guess this was only a made up term by a random trader but its easy to understand the word defensive and i think what it means is you need to hodl and play safe rather than be offensive and trade in a volatile market .
what was your playstyle before ? are you a patient person because if not then this strat will be difficult to fit in you .

justdimin

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Quote from: BetronParks on July 14, 2021, 01:44:16 AM

I encountered this "defensive trading strategy" term from a post in one of the social media platform. I tried searching for it in the web but haven't seen anything.

Sounds like some fancy termed marketing term hence you may not get any detailed information on this at any corner of this entire internet resources. Do not waste your time. By defensive, we may try to derive a strategy which is not protective against losses but we are already doing that with the help of stop-loss levels hence I am not in favor of developing a strategy which is defensive.

Quote from: BetronParks on July 14, 2021, 01:44:16 AM

How do i execute a defensive trading strategy? What indicators do I need for it?

So a defensive strategy is a combination of indicators? Then I guess it will be easier to develop one new strategy and will name it as defensive strategy. Not a big deal. If you ask me, I will name it with my initials rather than calling it defensive, lol.

XCANA

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The whole bottom for trading is to make profit either with the use of indicators or which ever strategies you are using. If you are too greedy to go all in or after making 5% you want to wait till it reaches 10% and then later wait till 20% and 30% , in a single move against your position you will loose all your profit if not capital. So, be careful with whatever trading strategies you are using to avoid too much lost.

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Quote from: BetronParks on July 14, 2021, 01:44:16 AM

I am planning to add this to my overall trading strategy.

How do i execute a defensive trading strategy? What indicators do I need for it? How can i determine the entries and stop losses on such trading strategy

I am not sure if "Defensive Trading Strategy" is a fixed term for a particular strategy that gives you fixed guidelines on how to trade. For me this sounds like a more defensive approach and trying to protect any profits you made. The best tool here would be to work with stop loss orders. As soon as the prices rise and you make a decent profit you should put a sell order in place that if prices drop 10-20% you would sell your coin again.

Same from how I see this, defensive means you are protecting both gain and losses,

If you are already familiar with how the market works, setting up stop loss might give you the help that you need,
it will triggered once the numbers beens set. Just have to consider the volatilty of this market and adjust a little with your set buy and sell targets.

Hobo66

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Use the buy low sell high strategy in the crypto market. Hold cryptos for 5-10yrs. Cryptos are becoming more and more integrated into our lives. Some of these alt coins will be gems soon enough. Patience my friend..

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Quote from: BetronParks on July 14, 2021, 01:44:16 AM

Hello everyone. This is my first time posting a thread here. I have been trading for already 2 mos. But still learning a lot and building my overall trading strategy.

I encountered this "defensive trading strategy" term from a post in one of the social media platform. I tried searching for it in the web but haven't seen anything.

you have not found in Web because there is no existing things like defensive trading in generally but this is our own desire and willingness to add in our trading activities.

Quote

I am planning to add this to my overall trading strategy.

How do i execute a defensive trading strategy? What indicators do I need for it? How can i determine the entries and stop losses on such trading strategy

Know when to enter and when to exit, never be greedy and never listen to any one but to your instinct and knowledge only because that is your money.

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I would really appreciate those people who will enlighten me regarding this strategy.192.168.0.1 routerlogin 192.168.l.l

But wait , What are these links? why need a router log in?

Rengga Jati

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Quote from: checkmatesir on August 02, 2021, 08:55:18 AM

I will definitely suggest you to use stop loss for most of the coins which you can't analyzed which will definitely help you and will prevent you from a big loss, i don't say that it will be 100% but at a certain level, which will be beneficial.

Definitely, stop loss is one of the very important things to set when we are doing trading, moreover, we are a daytrader, IMO.
This is because, especially in futures trading, we can manage how losses we can afford in the trading and it is better to end the loss on a small scale, then turn to another trading to get profits and cover the previous losses. Instead of we have to wait for the coin to rise again which we don't know when it's certainly, and this could make us more loss.

But, back to each trader strategy, sometimes some people don't like this stop loss and prefer to hold coins to rise again. This is more common in Spot Trading.

checkmatesir

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I will definitely suggest you to use stop loss for most of the coins which you can't analyzed which will definitely help you and will prevent you from a big loss, i don't say that it will be 100% but at a certain level, which will be beneficial.

checkmatesir

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I will suggest you two things in trading, first one is that you should get even a small profit from the coins whether it is too small but is should be profit and another one is stop loss. You should keep stop loss on the coins to stay away from loss.

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Quote from: dothebeats on July 16, 2021, 04:41:28 PM

You can also consider stop-losses as defensive trading strategy, as you are trying to limit the losses on your capital and trying to save something for your next ventures.

I think this is in fact the most important way of defensive trading because it actually gives the trader another opportunity to try a trade again. This is important for traders, even myself has realized the positive side of stoploss when applied on a trade. It is saviour and a better way to do defensive trading.

Well, I heard so many times this stop-loss strategy --but how you can accurately execute this matter even if we know ourselves that the market is unpredictable in the first place. I think the best defensive move is to use automated tools in trading like a trading bot because it seems you have an advantage because you can do research further while your bot executes on its own by your command. In short, there is on behalf of you that will decide to buy and sell at that point. Makes your trading easier that the manual one.

Bots are great in the sense that they can trade the markets all the time unlike a human and they will make no mistakes and they will not get afraid when the market begins to go down really fast like a human do.

However a bot by itself is not going to be defensive, bots just follow the rules that you give them and if you give them an aggressive trading strategy then that is what they will do, so the only way for bots to be defensive in their nature is if you code it that way.

Adorakelv

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We can say for sure that this practice is in order to be able to do it all correctly.

michellee

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Quote from: taufik123 on July 24, 2021, 12:33:58 PM

Quote from: michellee on July 24, 2021, 02:34:17 AM

Maybe the defensive trading strategy is about knowing when we should get out from the market before it is too late. But hold the coin can be a defensive strategy as we do not sell the coin when the price is down instead, we will buy more amount at a low price. But all in all, it is not easy to have a strategy that will always work for the crypto market, as we know that the crypto market will always change from time to time. We can just analyze the market and think about how to make a profit and leave the market for a while.

Defensiveness is securing the profit that we have gotten so as not to be trapped when the price starts to fall. However, if you hold the coin and haven't sold it when there are some profit gaps, until the price drops again, that's a different strategy. it is a holding strategy. Defensively only secure any profit and also see the market situation that does not allow it to go up again. Defensively also requires balance, defensive but not too defensive as I described above.

Securing the profit means you sell the coin when the price is at a high price, which means that you are getting out from the market. Maybe hold can be called a defensiveness as you do not do anything, only hold the coin but you need to accept the risk because the price can go down lower and not take profit at a high price. But we have different defensiveness trading strategy and we create that strategy base on our experience.

taufik123

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Quote from: michellee on July 24, 2021, 02:34:17 AM

Maybe the defensive trading strategy is about knowing when we should get out from the market before it is too late. But hold the coin can be a defensive strategy as we do not sell the coin when the price is down instead, we will buy more amount at a low price. But all in all, it is not easy to have a strategy that will always work for the crypto market, as we know that the crypto market will always change from time to time. We can just analyze the market and think about how to make a profit and leave the market for a while.

Defensiveness is securing the profit that we have gotten so as not to be trapped when the price starts to fall. However, if you hold the coin and haven't sold it when there are some profit gaps, until the price drops again, that's a different strategy. it is a holding strategy. Defensively only secure any profit and also see the market situation that does not allow it to go up again. Defensively also requires balance, defensive but not too defensive as I described above.

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Quote from: Zilon on July 23, 2021, 12:12:01 PM

Always have in mind that no strategy is %100 realible. If you need more strategies to add to your trading chat I would suggest you should always back test to ensure the strategy actually works.

The defensive trading strategy isn't new and has been working for centuries even before the introduction of the cryptocurency market, the defensive strategy as the name implies simply means you're protecting yourself and the best way to do that is setting up your take profit or stop loss orders. That way if the market was to move in a direction that won't favour you, the automated orders you have set will come into effect.

The only thing that can make the strategy not to be 100% realible is if the exchange you're using can't handle the volume it's recieving which causes malfunctions regularly. Apart from this, this plan is perfect if you want to play it safe but do understand that, when you okay it safe, you reduced your chances of profiting more form the market.

But since you didn't lose, it could be considered okay for newbie still learning the market. The market can be manipulated at anytime making your automated orders get executed as the whales knows where the stop losses and take profit orders are priced that's one disadvantage about this strategy. The charts can easily review that to you, if you know how to interested what it has to say.

michellee

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Maybe the defensive trading strategy is about knowing when we should get out from the market before it is too late. But hold the coin can be a defensive strategy as we do not sell the coin when the price is down instead, we will buy more amount at a low price. But all in all, it is not easy to have a strategy that will always work for the crypto market, as we know that the crypto market will always change from time to time. We can just analyze the market and think about how to make a profit and leave the market for a while.

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Quote from: lablab03 on July 23, 2021, 08:00:30 AM

Be careful when choosing a coin to trade if you want a defensive trading strategy, and always remember to set stop loss because it's very useful to avoid masive losses, and of course before that always include to your bucket list that learning how to use indicators is the most important things also if you want to trade different crypto in the market. Which never trust on your own skills because when it comes trading "knowledge" is the real key to become successful. Just don't be lazy i suggest because in the future while trading its a big advantage to have enough information than having skills only.

These are basically the most important things in trading compacted into such a tiny message. I mean everything you have said is basically the route towards being a good trader and unfortunately there are so many people that end up not being able to do anything of like that at all.

I personally would prefer to actually do these but I also understand some people who end up not following this road because they have way too many emotions and sometimes their emotions take over and they make silly moves, I know that sounds silly and why would anyone let their emotions decide on their trading when the numbers are there but unfortunately there are tons of those people out there. I used to be like that too, I had great time thanks to it but I had horrible times as well, I was lucky enough to sell at peak but unlucky enough to sell at bottom, so I do understand them. Thankfully I am doing better now but I get it.

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The "defensive trading strategy" should be a word coined by a trading tutor or an academy to help it's student get a clear picture of his illustration. Always have in mind that no strategy is %100 realiable. If you need more strategies to add to your trading chat I would suggest you should always back test to ensure the strategy actually works. For the main time develop on price action using the market trend, candle stick and noticing a major turning point in every chat

taufik123

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Defensive trading strategy is a good strategy to secure the profits that we have gotten so as not to get out of the agreed signal.
The best and safest way to carry out a defensive trading strategy is to determine beforehand what percentage of profit to maintain.

Defensive strategies also need balance, Defensive means emotionally not easily tempted by price movements that cause traders to enter the market outside the agreed signal, while being too defensive refers to the fear of excessive losses that will undermine the profits that have been previously obtained.

solitarywolf

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It is a very general rule but hugely important. Never think in a binary way. Trading is about a probability game, so we have to stop thinking that there is something that guarantees defence our money in 100% certainty.

lablab03

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Be careful when choosing a coin to trade if you want a defensive trading strategy, and always remember to set stop loss because it's very useful to avoid masive losses, and of course before that always include to your bucket list that learning how to use indicators is the most important things also if you want to trade different crypto in the market. Which never trust on your own skills because when it comes trading "knowledge" is the real key to become successful. Just don't be lazy i suggest because in the future while trading its a big advantage to have enough information than having skills only.

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