[Trading Method] Simple strategy that I use for trading crypto

Discussion in 'CryptoCurrency' started by honestIM, Dec 25, 2017.

  1. honestIM

    honestIM Power Member

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    I agree with you if I comes from the perspective of investment. For trading, I have a trailing stop loss in place so that the min profits are protected when the there is a negative movement. I cast this rule in stone to avoid human emotion getting involved. Example, price move up by 40%, stoploss for me will be at 30% of the crypto price that I have purchased. If the crypto falls and touch my stoploss, I am out. I have no regrets even if the crypto raises for the next few days as taking profit is never wrong.

    I am preparing to exit from the following crypto.

    NEM: $30k invested, potential profits currently is around 90%. Trailing stoploss at around 80% profits.
    XRP: $350k invested, almost hitting 300% ROI. Trailing stoploss at 300% so that the profit can be protected but I expect this to go higher.
     
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    Last edited by a moderator: Jan 6, 2018
  2. adonthenet

    adonthenet Jr. VIP Jr. VIP

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    Great thread man.
    As I'm looking to put ~$100K to start with, could you recommend me how did you purchase the coins in the first place? which exchange is trusted ? and how do I eventually cashout back to my bank? fees on that?
    I know it's basic stuff for most of you guys, but hearing the go-to places from a trader who'se putting down $100K's I will feel much better than just searching on the internet and fall to fraud.

    Thanks in advance!
     
  3. honestIM

    honestIM Power Member

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    First thing first. I want to make this very clear. The reason why I can afford to invest the amounts that I quoted is because these are profits. NOT CAPITAL!!
    I will not risk $100k into a risky venture and I deem crypto as risky due to current high valuation that I do not know how to compute and back with fundamentals.

    Now to answer your question. I am being paid by CPA network in BTC initially. So I do not need these money and I want to put them into use. Thus I started with about $7k and the rest was a wild ride of history. Within a period of 8 months, this principle grew to more than a million (currently I have more than this amount from trading crypto). Yes I know this sounds crazy but this is true.

    However given the sum of money on hand currently, I am constantly caution about losing all. Thus I uses a min trade size of $20k and do not risk everything. I doubt crypto will always be giving out more than 10x returns within 30 days everytime.SoI do not want to lose all.

    With a larger capital pool, I do not expect 300% ROI etc. When sum of money involve is lesser such returns looks realistic. However when you start to trade bigger pool of funds, you tend to aim for lesser returns that are easily achieve.

    Initially I uses coinbase to cashout but nowadays I uses third party services as I do not want to pay taxes for my gains. To purchase BTC, you can use coinbase or simply promote CPA offers and get your network to pay you in BTC.

    Remember risk only money that you can afford to lose and DO NOT PUT $100k into crypto unless these are profits.
     
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  4. ibroxworld

    ibroxworld BANNED BANNED

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  5. adonthenet

    adonthenet Jr. VIP Jr. VIP

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    Thanks for taking the time to answer :)
    I can get BTC, how do I go about trading from BTC to those alt coins? where do I do that? and how do I switch them back to BTC ? what's the best place you recommand ?

    Regards the $100K, no worries, I'm running a business doing very well, this is a good amount for me to 'play with' :)
    Thanks again and waiting for your reply regards where to put those BTC into action on those other coins.
     
  6. master999

    master999 Newbie

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    How do you set trailing stoploss? Do some of the exchanges offer this feature or do you use some trading tool for this?
     
  7. honestIM

    honestIM Power Member

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    Yes some exchange does avail this feature to you. Again, if you have never traded crypto I DO NOT ADVISE you to start anytime soon. Focus on business or investment that you can control. Stocks/crypto/forex are painted beautifully so that brokerages can make money out of you. So if you do not know how to play by THEIR RULES, it is better that you focus on your own business instead. You can easily make money by buying cheap stuffs from 1688 and then resell locally in your native country. Or you can simply do traffic arbitrate using two different native ad networks. Example, MGID to monetize and adnow to send traffic.

    Like I say, I traded on crypto because I AM LUCKY to catch the crazy uptrends. And I am GAMBLING with profits not capital. So even if I lose all I won't feel any losses. Crypto has made me a millionaire but it can potentially cause many others to lose money especially if they are buying at such high price. Remember crypto do not give out interest nor dividends, it all boils down to the popularity or usage for that crypto to determine its value.

    If you read further up, my initial bitcoins were earned from CPA earnings. And not putting my cash and exchanging for crypto. People lose money because of greed. Do be careful.
     
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  8. rayraymack

    rayraymack Newbie

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    What's the best way to cash out? Been making some gains but realised this is a volatile scene would like to cash out to usd/gbp/EUR to invest in other investments while still leaving a bit on crypto. Would bitpay and coinsbank be an option on small chunks.
     
  9. master999

    master999 Newbie

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    Thank you for your answer, @honestIM.
    I'm aware of the risk, I'm playing with the money I can afford to lose. I tried to trade before with other things and trading is not for me. :) I'm in crypto as a side investment but still, you need to sell it at some point.

    Looking forward to other useful posts from you. Thanks. :)
     
  10. revenue20

    revenue20 Junior Member

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    I am interested in doing this. Would appreciate much if there is a thread on bhw you can direct me to (or resources online) where I can gain the knowledge to kick this off.
     
  11. fly84

    fly84 Registered Member

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    Hi please clarify.

    Do you do a 30 day holding period for every coin that is dropping or you sell right away when the coin price drops by 30%?

    Lets say one coin drops by 30% in one day, would you sell the coin right away or would you hold it for 30 days and hope that it wont drop futher?

    Additional question:

    At what gain would you sell your crypto? Some people sell even with a 1% gain.

    $20k x 1% = $200

    Not bad for a seconds job.
     
  12. shamoney

    shamoney Registered Member

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    honestIM what book would you recommend for reading price action
    i'm currently reading the al brooks series
    Al Brooks - Trading Price Action Trends
    Al Brooks - Trading Price Action Ranges
    Al Brooks - Trading Price Action Reversals
     
  13. honestIM

    honestIM Power Member

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    It is just buying native ad traffic from a cheaper source(lesser quality) and then monetizing through MGID or Taboola that pays higher rate. Simple. But do not use adsense. I have a couple of adsense account banned because of this method. Feel free to ask if you have further questions.

    I have two cut off in place for trading.
    1) Stoploss of 30% that get converted to trailing stoploss of 30%. The reason for this move is to conserve my capital.
    2) Max holding of 30 days, it can be lesser even one day but never more than 30 days. This is because I need to have velocity on my cashflow to create returns.
    If either one is hit, I get out of the trade. Remember I am a trader, not investing. Market can prove me wrong and I have to accept my losses. No hoping for miracle here.

    I usually target 30% which is easily achieved. Note that brokerage fees are very expensive for crypto trading. So 1% return will cause you to have losses instead of profits. And yes from a trader point of view I will be happy with $200 profit as long as this is net profit. If you want to invest, I rather you invest into your own business which you can control or real estates, or dividend shares, or simply purchase T bills or govt bonds with it.


    I won't advise you to read. Instead apply for an apprenticeship position with proprietary trading firm to learn directly. I was on six month internship with a big firm and learn the ropes starting from the basic. You can learn so much more than what books can teach. The best part is that the learning is free. But you are not compensated with salary as well. You are on profit sharing and if you make three losses straight or end up with losses at the end of the month than you are off the program. Only the fittest survive. High pressure environment and we have to trade without emotions aka behaving like robots.
     
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  14. shamoney

    shamoney Registered Member

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    no everyone lives in USA to get one of those jobs
     
  15. rayraymack

    rayraymack Newbie

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    @honestIM as per my query above on cashing out what's the best way to go about it, coz it would be a waste to make all gains and be unable to cash out. Am in Eu BTW.
     
  16. ibroxworld

    ibroxworld BANNED BANNED

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    @honestIM Can you please help me with the guide how to make money with cpa?
     
  17. honestIM

    honestIM Power Member

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    Prop Trading firm do hire internationally but you need to prove yourself.

    Try localbitcoins for a start if you do not want to pay for taxes. The govt around the world is going to make it very hard to cash out crypto in months to come. Do be careful. VISA already closed all cards issued to tenx with immediate effect. More such cases will happen soon. This is also one of the reason that I do not think the crypto market will crash since no one can easily cashout large sum of money. So it will eventually turn into a case of moving one crypto to another to inflate the value.

    I have a few guides out there. But currently try live streaming method. Check out my post on Bigo live and another members thread on persiscope. Use search button to find them.
     
  18. Floydiohead

    Floydiohead Newbie

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    which sites/apps do you use for trading? i am new and would like to get some information :)
     
  19. Edvard Benk

    Edvard Benk Senior Member

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    I use tradingview and MT4/MT5, if that helps :)

    If you're getting into stocks, start on investopedia.com

    If you're getting into forex, babypips.com is your first stop

    good luck
     
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  20. issorc

    issorc Power Member

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    On which exchanges do you trade mainly? How do you set stop loss at bittrex? Do you use conditional sell orders? Thanks in advance and good luck on your further trades, although it seems like you don't need any luck :)