**** Disclaimer – This is for educational purposes only, this is not trading recommendation or suggestions, serious amounts of risk are at hand. Iam not responsible for any trade you may take or execute using any of my educational material. Remeber previous statistics are not indicative of future results***** Thank you. (Phillips Investments)
So it’s been awhile since I blogged about anything, no particular reason other than it was summer and blogging was obviously very low priority compared to patios, pints and partying. Coincidentally September has rolled into our lives and the sun began its retreat and I have decided to come back to the drawing board because there is one very large elephant in the room. This topic pops up in my direct messages routinely 2-3 times a day not to mention all the drunken talk. Iam sure you already know what iam about to discuss, BITCOIN! lol, I can’t pretend it doesn’t exist anymore and I have decided to outline a very basic strategy to trade bitcoin for people who do this type of investing (hobby investing/ gambling) hopefully I can help take a lot of the risk out of it.
So.. you bought a bitcoin or 2 and you’re holding onto it until it reaches a million dollars? You are my favorite people in the world, Why ? you ask. I make a living off you, every time someone buys and holds hoping its the next big thing there’s about a 99 percent chance you are wrong, on top of that there’s an another 95 percent chance you’re going to play it wrong. As you can see the odds are piling up against you, you need to deal with volatility and timing and you need to beat 50 percent of the other traders out there to make money. Think of it this way, 95 percent of traders don’t make money, then every time you take a trade, win or lose there is someone on the other end, trading is a zero sum game. Essentially you need to beat 95 percent of traders or 97.5 percent of traders to make money. Think about it, are you more intelligent than 98 of 100 people trading Bitcoin, if you don’t have a plan or a strategy the answer is easy, not even close!
Now that China has shut the doors to BTC the fundamentals have changed. I don’t expect you to understand the macroeconomics of BTC’s environment but there is a lot of downside risk now. One way to fix that risk is to have a system or a strategy that goes short(bet it’s going to fall)(essentially an insurance policy but google shorting stock to find out more we don’t have time for that)
So iam going to line out a very basic method to trade Bitcoin and take advantage of the volatility in any direction it goes.
Channel Breakout * 4-hour candle sticks*
- When the high or low of 4 Bars is broken it takes a new position until it breaks a 4 bar high or low in the opposite direction it holds. It’s that simple.
- You could add stop losses or profits targets as well.
results and examples: (Live Chart Below in LINK)
https://uk.tradingview.com/chart/BTCUSD/LJJ3Dljn-Testing/
It makes 6500 dollars from 1 Bitcoin. Has a very nice equity curve and is very basic to follow. Has a 47 percent success rate which is pretty damn good for a momentum based strategy ( i trade a 30 percent success rate momo system).
It only has 9 dollars per trade but, it includes the years when BTC wasn’t as volatile so realistically it is a much higher average trade rate. This also includes 4 dollars USD per round trade. Profit factor of 2.5 is amazing I trade with much less.
With all that said and done, this is a very basic strategy and could use many improvements but from what I know of people who trade Bitcoin, you’re probably not looking for more work you just want to cash in on the side. If you curious how to create a better system you can email me at phi.investments@icloud.com or add me to Instagram @baystreetbull or twitter with the same handle!
Bay Street Bull 