The Experiment 2.0: Day 10-21

Strategy? Who needs strategy! That’s what our novice trader Alex thought when he was pushing those Litecoins against the trend with a good chunk of leverage during the first 9 days of The Experiment 2.0. The result was expectable. He went too far and blew it all away, finishing the week with zero balance on his account. 

And while we were all feeling sorry for poor Alex, he had some time to think it through. Now he’s back with another 500 USDT on his balance, new research, and new pairs to choose from. Not only does he want to earn a handsome ROI on this new deposit but also to recover what he’d lost in the previous round of trades. Will he behave this time? Let’s see.

Love On The Brain

The market is merciless to emotional traders who underestimate the power of analyzing the data – that was a big lesson for Alex. So, again, Alex had to come back to the drawing board and study more. After digging for some time in the graphs, he felt more confident and inspired, ready to start it all over again but on a brand new level.

Here are the main points that he discovered.

When formulating your trading strategy, you need to:

  • Examine the market data
  • Gain a sound understanding of risk management techniques
  • Analyze the graph in different timeframes
  • Explore various crypto to spot the most promising coins
  • Pick strategies with a positive expected value

Now, he was all set with the new strategy. Let’s see how it worked for him and did he manage to control his thrill-seeking nature.

Mind Your Spread & Other Tips 

Okay, we need to admit that this time Alex tried his best to follow the predetermined strategy and not to let his emotions run away with him. At times, he might have been a little bit more responsive to the market trends but he was trading small volumes and then was furious that he didn’t hit it big time again. However, when trying to control his mind, he found a few tricks on the terminal that turned out to be quite useful. 

  • Watch the spread widening

When looking for favorable trading conditions on smaller time frames, Alex noticed that the spread plays a huge role. At the moments of a high market volatility and activity, supply and demand (represented by Bid and Ask) may differ greatly. This causes spread widening.

When you open a position without noticing that the spread is wide, you’ll see a sizable minus on your P&L, as you need to at least earn the spread before the position becomes profitable. When the spread is narrow, your position is a smaller price change away from turning profitable.

Notice the spread before opening a position – and you are better off already! 

  • Lock positions

When Alex jumped on quite a promising long position, he was afraid that the trend would suddenly go against him and he’d lose everything he hoped for. So he remembered one good tactic: to lock your positions by opening a short order exactly the same as the long one. Choose the appropriate stop/take limits and voila! You can go and have a life and not be afraid of what’s popping on the market every other second of time. Good thing that, unlike many other platforms, CEX.IO Broker allows you to open positions in the opposite directions at the same time.

  • Practice the limit orders

Limit orders have become a true relief for Alex who didn’t compromise his full-time working schedule for trading yet. When he was just starting out he’d open only market orders which means that the positions were opening in real-time at the moment he placed them. Such an approach required a lot of attention to watch for precise moments to begin trading. But later, Alex resolved to use more limit orders that would open positions only if specific requirements set by him were met. So now, when he was distracted at work, he wasn’t afraid to lose the best moment for filling an order.

 

  • Be aware of similar trends for different crypto

Alex also had to learn how to decide which assets are better to trade and when. This time, as a part of the experiment, he traded a lot of alternative coins. However, he noticed that their trends were often following each other. Let’s say if Bitcoin was going down, all the small coins were on the same track, one way or another. Yet, Alex figured that he didn’t have to place orders on each and every coin because otherwise, he’d spread his attention between too many cases. The risk of losing it all again was too high. So Alex tried to watch for the most prominent trends and to trade no more than one to three coins a day. 

  • Make use of the visual Stop loss/Take profit correction 

Another great tip that he discovered accidentally was the ability to adjust the stop loss and take profit limits right on the market graph. Alex found it to be so much more convenient than clicking on each position below the graph and typing in numbers. All you have to do is click twice on the line that’s representing your opened position limit on the graph and drag to adjust it higher or lower. In the case of Alex, this great tool became his curse because he was too tempted to play with his limits more than he should. Eventually, he didn’t take profit a few times only because he was adjusting the line all the time but the market price didn’t hit the higher limit. The greed!

Trading Psychology: Slow & Steady Wins the Race

One of the issues that Alex found was the fact that he was chasing the profit percentage which led to excessive emotions when the progress was minimal. Remember, he aimed to recover the funds lost in the previous liquidation? Because of this benchmark, he couldn’t stop himself from thinking something like “I have to earn that 36% more till the end of the month”. 

So he was feeling bored when moving slowly but steadily. He was caught up in the chase after big wins again. He didn’t want to swing because the market looked flat. He wanted a fierce day trading. Oh no, even better, the scalping. He was spreading out his timeframes up to a 1-minute span, expecting to catch the high on breathtaking market roller coasters. Not so fast, Alex!

Now, let’s learn from Alex’s mistakes, shall we?

Emotional patterns to watch out for:

  • Superstitious

Alex was fearing Litecoin because of his notorious biggest tilt on this asset a week before and even skipped Thursday trading because of his “black Thursday” the other day. But don’t you let the superstitions cloud your vision. If you feel down or insecure, it’s better to stop trading and have a rest. Go back when your mind is sharp and clear.

  • Monkey Business

Our trader was playing it safe even when he was watching the obvious trends and then regretted that he didn’t hold the positions for longer and didn’t stretch the stop/take limits. At the back of his mind, Alex knew it was ok to do it but he was choosing to stick to the strategy. He was aware of his emotional patterns bursting out and nulling his balance again. However, it’d be much better to perform an extra analysis and trade in regards to the ongoing market situation.

 

  • Psychic powers 

Alex earned quite a big deal when taking small, step-by-step risks. We doubt that he finally received the blessing from above, much rather it was a result of his prior knowledge. However, he wasn’t aware of the exact logical reasons why he’d been in for the risk, relying on his “courage” and kind of a sixth sense instead. Don’t be like Alex. Only take informed decisions even if you need to take immediate actions that are rational yet not in line with your initial strategy.

  • Reverse hypothesis

Oftentimes the only reason why Alex was trying to do more long orders was his concern that he wasn’t doing “enough” of them. That doesn’t sound like an analytical decision based on market watch and strategy, right? Truth is, the market won’t go up or down just because Alex has been doing a lot of shorts lately. Though, he sometimes tends to think that it starts a rally as soon as he takes his eyes off the terminal:)

  • Better be safe than sorry 

Panic is the ultimate recipe for a trading disaster. At one point, Alex was so frustrated that he lost a few positions that he was rushing to make another order while forgetting to put the stop loss on the open positions. Another time he accidentally bought $16,000 worth of coins. Even though he won big that time, relying on luck is what turns you into an addictive person and not a smart trader.  

  • Go hard or go home fallacy

Another indicator that Alex was too emotionally engaged is that he was regretting the money that he didn’t gain while he was following the play-safe strategy. However, one of the biggest lessons this time was not to chase big wins. Sticking to the strategy while occasionally taking small and calculated risks turned out to be a win-win in the long term. 

Another Big Idea?

One good thing about Alex is that no matter how rational or emotional he ends up, he always analyzes the outcomes and tries to make smarter choices afterward.

This time, he came up with the following conclusions:

  • Trade with small leverage 

Ok, 100x leverage was not the best idea. At least, for Alex. It was too often that his emotions and desire to catch up on the lost profit were driving his actions on the terminal. Using bigger leverage even increased his losses. That’s a no go. Can’t control emotions – find the way to control the risks.

  • Risk only the small percentage of the actual balance

Another good point for a trade-or-die type of trader like Alex. Never put all your eggs in one basket, no matter how sure you are about the current trends.

  • Stick to the strategy for the next 100 trades in a row. Start again if you lose it.

No one is there to teach Alex to stay cold-headed so he decided to become his own strict daddy. He challenges himself to do the next 100 trades according to the strategy and if he steps away – start it all over again!

  • Spend the gains on a custom algorithm using the new API options.

Now that’s a big one. He gets professional! Will automated signals allow him to catch the best opportunities while also not having to stare at the terminal screen all day long?

Wow, these 12 days were a sick ride! Alex tried new strategies, failed them again, made some good money, and presumably, became a better trader in the end. 

Yet, he finished another round with losing all his gains and his new deposit after he got caught up in the illusion of controlling the market. How many liquidations does it take to learn the lesson? Apparently, not enough! Now he decided to stick to the strategy for no less than 100 trades in a row. No more irrational risks! So for his next trading series, yet again, he starts from a blank slate. 

Wanna see if he sticks to his New Year trading resolutions for the next week? Stay tuned!

And for now, let’s recall these days of Alex’s trading:

Day 10

😖 How scary it is to trade now. I spent the weekend analyzing my deals and my mistakes in order to recover hope in my own strength 💪. But I didn’t trade, I just watched the price, looked at the history, checked how my strategy works, and studied my approach 🤔. This is great for recovery. 💡 After all, when you see that your approach is working, it’s cool for trading. Because patterns, outcomes of situations are imprinted in your head and you can notice moments that will positively affect your trading in the future 🧑‍💻.

🙌 Overall, I had a fruitful weekend. 💻⛔ But when I sat down in order to start trading, I froze up. The moment of liquidation of positions and a lot of doubts appear in my head 🙈🙉🙊. This is a psychological barrier, I’ve heard about it. In this case, you need to start with small volumes, 👉 earn the first profit 👉 and then the psychological block will go away.

👇 So I started with one position, with a small volume. XTZ/USD long. I immediately placed stop loss and take profit ✊. So as not to overload the account I won’t open new positions. I need time. But the market is very vibrant! Golden time for day trading 🤭.

💁‍♂️ If approaching trading professionally, there are a lot of nuances to which I did not pay much attention before. It’s about psychology 🙄. I need to take control of myself, need to work with my emotions and greed. The worst thing for me is tilting. So I need to work on this. This is what I will do at my free time 😇.

Day 11

🤪 All attention to the markets. I’ve even lost the count of days. Anyone who is attentive noticed that yesterday was only the 10th day of the trading month. Today is even a more productive day 💪. I looked through a bunch of historical data on different timeframes for different pairs and determined the scope of work ✊.

📊 So the statistics indicate that the most profitable assets for trading are XRP, ADA, ZRX, NEO, LTC, UNI on the m15 timeframe. 🔙 For the rest of the pairs, there have been more losing trades than profitable ones in recent weeks. And most importantly, they crossed. What do I mean. 💁‍♂️ If there was a buy point for LTC and it was profitable, then one of the other assets had a long entry point and it was profitable, too.

💭 That is, very often entry points appear on several assets at once and there is no point in going for all of them at the same time, because if they work out, then I’ll make great money, and if they go in the opposite direction, I’ll lose a lot at once. Filtering assets for trading is needed so as to focus the attention. I will also look at other coins, but I will carefully evaluate the situation and signal quality 🧐.

🤩 I looked through these statistics with great pleasure and the result amazed me. And to be honest, it added to my confidence. After all, if I am at least half as effective as statistics, then I will make great money 😋. A new term for me is the mathematical expectation of profit. If the strategy is with a positive mathematical expectation, I can earn 🧠.

🙏🏻 I already want to trade, but I restrain myself so as not to do something stupid. Volatility is high and assets are jumping in different directions 📉📈 while I hold two positions. Yesterday I moved the take for XTZ higher and the price did not reach it just a little. Sad enough 😐.  But sh*t happens, I am still in the market and this is the most important thing. I watch the risks, even though it’s boring 😅. Let’s see how long can I handle this.

​​Day 12

🤦‍♂️ Into the same trap again. Yesterday, late in the evening, I opened a short on Litecoin, according to the strategy, put a stop loss and take profit, and went to bed 😴. Woke up in the morning – and I hit the stop loss.  Well, ok, everything is according to the strategy 👌. Then I started looking for entry points intraday. Found two excellent ones for ZRX and XTZ 👀. I saw bitcoin was dropping so I thought altcoins would do the same. Plus, the entry points were perfect. These positions were open during half of the day, with profit and with loss, but they did not reach protective orders. Then I removed them ✖. They were not needed because I was monitoring the situation. Then I got distracted by work 🧑‍💻. For 30 minutes I walked away from the terminal and when I came I saw the line going up ⬆! And I had no stops. How did it happen? So much time they were around zero and as soon as I walked away – bam – got losses 😨. Bitcoin returned to growth and the alts too 😳.  And there was another entry point. Entered. I sat thinking what to do. And the price went against me 😖. Isn’t this an example that the market is waiting for a trader to make a mistake? 

💡 If you work according to strategy, if you follow your own rules, then everything is fine. If you decide to cheat, can’t make a courageous decision to admit the mistake – get the result 🤷‍♂️. Losses happen when mistakes are systematically made 😕.

😡 I’m angry in the evening, the mood immediately turned bad as soon as I saw a green line up on the chart. And now I’m also discouraged, since I did not dare to fix the minus right away, but got into another trade. I decided to fix the situation and messed up even more 😤.

🤔 It will be nice if I get away with it, but it’s unlikely. I am against the trend. Maybe I’ll cover about a hundred of loss. This is my “threshold for pain”. I will not allow the same situation as on day 8 🙅‍♂️.

🧠 The longer you stay in the market, the more chances you have to make money. And you will stay longer if you stick to risk management and place stops. Somewhere I heard this clever phrase, but so far I haven’t learned to apply it in practice 😅)))

ROI will be calculated by equity, not by closed positions. It’s more accurate.

 

  • ROI for today -$33 that’s -6.6%.
  • ROI for the last trading week -6.6%
  • ROI since the beginning of the trading month -$533, this is -106%.

Day 13 

🥳 I got away with it. And even with a profit.

🔙 Yesterday I was very upset about my actions. I proved to myself that I couldn’t make informed decisions. And on emotions high, I decided to add a position ➕. Moreover, I did that aggressively. I was just lucky that the price went my way 😅.

But you know what is really sad? 🤯 I got short positions at the very high of the price 🔝. Both XTZ and ZRX. I just went short at the maximum of the day and from that moment the price just collapsed without pulling back.

💬 Of course, it is wrong to think so, but I am 100% sure that many people do or have done this at least once in their lives, and now you will recognize yourself: “If I did not close it, if I simply forgot about the position, if I just went to bed… then I would have earned so much! “

 

😤 So I’m sure that many had such thoughts in their heads. And now this under-earned profit is eating me away from inside. I don’t understand why I was counting, but I figured out that if I was keeping all 5 short positions until this morning and did nothing, I would have earned $1,430. I would have earned almost fifteen hundred dollars per night. I would have covered all the losses, came out with a plus, I would have withdrawn some and ordered my wife the last iPhone 😖😖. I think about it all day. I wish something happened and I couldn’t close positions…

👉 But I could act differently. 🤔 The price went my way. I closed half of the volume, fixed the profit, and set stop orders. So that if the price goes against me, m​​y positions will be closed at zero. This is more realistic than losing the access to the terminal. I wish I knew…

😕 Even the Litecoin fell((( the same one that ruined my first deposit. And if I was smart enough to reduce the position and wait … I would have come out a winner from that situation. But what happened, happened. Let’s move on 💪.

📊 Today I had a couple of speculative short trades, generally without much results, but the account is profitable now)) 👌👌

 

  • ROI for today +$86 is +10% to the deposit.
  • ROI for the last trading week +10%.
  • ROI since the beginning of the trading month -$447, this is -89%.

Day 14

🐢 I am gradually restoring my positions, restoring the account balance. I have been holding a position on ZRX since yesterday. Everything is according to the rules — I set up stop/take profit orders 👌. It’s nice that bitcoin went down, but my position didn’t 😌. The price approached the stop level and stopped only a few points from it. Feeling that I outwitted everyone 😏. I set up the stop order which is not profitable to follow.

 💡 I have noticed one more thing. It’s very nice and practical. So, I execute a market order and then I set up protection orders. Previously, I inserted stop loss and take profit levels manually, as numerical values. But now, I double-click on my position on the chart, put a checkmark for protection orders, and move them around right on the chart! Great thing 👍. There is no need to remember the level and write it manually, you can simply tap and drag the stop and take profit lines to the right place. I was pleased with such a find. The terminal is full of possibilities that I didn’t know about 😎.

😜 I successfully caught the moment when bitcoin began to go up and jumped into it with a few long positions on altcoins. I control the volume of my positions. Although when I looked at Litecoin and decided how much to buy, I wanted to go with 100 coins at once 🤑. Sounded like a great deal. But I stayed calm and took only 10 coins because I realized that I might be wrong 🙅. And when the price went in my direction, of course, I regretted that I took not so much 😐. Classic.

🤔 When you took a lot and the price went against you, then you regret for going with a big volume. But when you took not so much and the price went in your direction, you constantly think that you could have taken more. Trading is an amazing thing 🙃.

 

  • ROI for today: $33, that’s +5.9%.
  • ROI for the last trading week: +8.6%
  • ROI since the beginning of the trading month: -$414, that’s -82%.

Day 15

💣 Awesome day according to the results. But I’m not very happy with myself. I again angled off from my strategy. I started to add positions again 😤.

👀 At the beginning of the day, I reviewed all pairs for the presence of entry points. Looked at a couple of assets. But most of all I was interested in DASH. It has grown a lot 🚀. And about a week ago, I read a review by one trader that the dash is about to shoot. And I even thought to buy this coin for the medium term but did not buy it. It’s a shame 😕. And so I see that it is high, that it is near the resistance level and, as a hunter, I wait for the entry point 🏹.  It is not there, I go to a smaller timeframe. And then it turns up, I take a little volume and go short. The price doesn’t move for about half an hour and then approaches my stop loss ⛔, which is behind the level. I move the stop and add another short position ➕. Then another movement upwards, I open the third position at the very maximum and everything falls down 🤩.

🦄 Under the influence of positive emotions, I started shorting UNI. History repeated itself. But in this case, I did it four times! And I was ready to open the fifth one, but the price fell very quickly and I closed the profit 💰.

💡 The most convenient is the aggregation mode, because the average price is immediately visible and you can close all positions at the same time. This is what I used.

On the one hand, it’s good that I have made a profit, on the other hand, it’s not according to the strategy 🙃. And there is also a third side – the regret) After I closed the positions, the price went up a little and I was very glad that I fixed it. But then it continued to fall and I was wondering why I didn’t hold it for more, and why I didn’t close the part. Why don’t I learn and do the same thing… 😌 After all, the outcome will be the same as in the first week. Sooner or later I’ll come to liquidation 😬.

In the meantime, I look at the balance and feel happy 😄🤞.

 

  • ROI for today +$104 is +17% to the deposit.
  • ROI for the last trading week +38%.
  • ROI since the beginning of the trading month -$310, this is -62%.

​​Day 16

 🥳 Another awesome day. I got into the very heat 🔥. I opened the terminal, looked through the pairs, and found short for XRP. And even the entry point was on an older timeframe. 📉👀 But just before my eyes the price began to fall, I quickly looked at the bitcoin chart, and at that time it was dropping down like a stone. I understood that the altcoins would also fall and I quickly found an asset that had not yet started falling 🕵️‍♂️. It was UNI. Opened short. The price moved weakly and I got a small profit 💰.

🤔 Then I looked at the ripple again and it seemed to me that it should bounce off the level. And then I made a mistake 😐. I clicked buy, quickly confirmed the trade, and only then noticed that I had bought the maximum volume of 25,000 coins. That’s about $16,000 😳. And it happened because I wasn’t attentive. So minus $50 immediately. This is not surprising at such a volume 😬! But I was lucky, the price went up sharply and I fixed +$108. In one deal. In less than a minute!!! 🤩😎 This is one of the biggest profits in my entire history 🤑!

😋 And then gambling began. I sold, bought, and sold again. And all that at the maximum volume! And when the balance grew to $800, I closed all positions and sighed with relief 😌😏. All about huge volatility, unique opportunities, and I didn’t miss them. It was just a miracle that at that moment I opened the terminal. The day was great and productive, so I decided not to give into euphoria and closed the terminal 🤪. It was difficult, I wanted to continue, but I was able to stop and did not lose what I earned. Good job 🙏.

💡 Conclusion for today: I need to wait for increased volatility, need to look for coins that are actively moving, and take risks at these moments. I can make a lot of money in a couple of seconds. And when the market is calm, it is better to wait. 

 

  • ROI for today +$109 is +15% to the deposit.
  • ROI for the last trading week +59%
  • ROI since the beginning of the trading month -$201, this is -40%.

​​Day 17

😌 Quiet and calm day. I did not catch especially strong movements in the market, but I made a couple of cool trades 📊. I preferred LINK. I earned both on the short and on the long 💰. I took a small volume.

🧠 The psychology in trading is such that after a series of profitable trades, the trader loses his head and starts taking risks in order to exceed the previous results 🤪. In the morning I woke up with the thought that today I need to earn not $100, but $200. And then I realized that the volume should not be exceeded today. This is a game, not a professional approach 😤.

✊ Therefore, today everything is under control, everything with stop losses and volume control. The euphoria will pass and it will be possible to start aggressive trading. 

😬 Plus, I’m afraid to repeat my Black Thursday when I approached the liquidation. I’ll get through Thursday and it will be possible to take a little more volume 😋.

🧑‍💻 Today I also practiced entries with limit orders. Sometimes you look at the chart and an entry point appears, you distract for a second and that’s it, the price is gone. And in order not to miss such situations, I place limit orders. I set the volume two times less than the standard one, because I do not look after the transaction, but this allows me to be distracted and not worry that the market will move without me 🧐.

👌 This is how I entered NEO. And everything worked out perfectly.

 

  • ROI for today +$35 is +4% to the deposit.
  • ROI for the last trading week +67%.
  • ROI since the beginning of the trading month –$166, this is -33%.

Day 18

🥳 I survived Thursday)) without liquidations! This is sarcasm, of course, but there is something in it. It became more difficult to trade on Thursday, according to statistics, it is not my most profitable day of the week 🙃. Volatility fell a lot ↘. Assets practically do not move. It is very difficult in such a period to find an interesting entry point with a normal ratio of risk and potential reward. 🤭 Or maybe I have just traded on high volatility and now want to see the same every day.

🧑‍💻 Today I went down to the 1-minute timeframe to find the entry point. And here’s what I noticed: it’s important to monitor the spread 👀. Supply and demand during such periods are low, so at the moment the spread can diverge quite well, and if you look at M15 or H1, then the spread is not noticeable. But if you switch to M1, then it plays a role. I need to be careful and attentive 🙄🧐.

🧠 While the market is calm, it’s time to analyze my work, analyze my mistakes. So I noticed that I have almost all short trades 📉. Although I deliberately do not choose entry points for the decline. This is my mistake. I need to learn how to go long, given that the market is growing 📈. Therefore, I will have an experiment, the next two trading days I will try to trade only long. And since I am going to trade long, the market will begin to fall)) To make my life harder 😅.

🥱 There is nothing to boast about today. 📊 I have opened UNI position in the afternoon, I am still in it. I found a couple of situations, but there the ratio was very weak. And for an intraday trader, it is important that the risk/reward is at least 1/2, preferably more. If there are no such situations, then you need to wait. Saving my capital for better times 💰.

 

  • ROI for today -$14 is -1.6% to the deposit.
  • ROI for this trading week that started today -1.6%.
  • ROI since the beginning of the trading month -$180, this is -36%.

Day 19

Market slack is exhausting 😩. At the beginning of the day, I boringly looked at sideway movement, then I left, came back, and saw how everything fell down. Without me 😐. I didn’t have time to open the short positions, and it was too late to enter the market for the rebound. And then again… no action.

Where is this rollercoaster 🎢 that we experienced a few days ago?! Volatility left us or what? It will be boring without it, and I still need to earn at least 36%. Even more. Yesterday’s positions were closed by stop orders. Of course, after positions closing, the price moved in the right direction 👍. If I had not placed stops, I would have had a decent profit. But on the other hand, I am satisfied that I did everything according to the strategy and did not exceed the established risks 🧐. 

While there are no interesting intraday movements, I decided to create a mini-portfolio of promising coins 👀. I decided to use part of my equity to hold some coins and monitor how they will move. I will check the daily charts for further purchases. If they fall a lot, then it’s not something special. The maximum risk for this portfolio is 10% of my equity. But if the price goes up, it will be a great bonus 💰.

So far I do not understand how to trade in such conditions 🤷‍♂️. No action, then 5 minutes of something interesting, and then no action again. It’s difficult to find the right moment. Maybe it’s time for some swing trades 🤔. Hope there will be something on the weekends. All other assets will not be traded, so people may pay more attention to cryptocurrencies. Still waiting for large movements with sharp changes. Waiting several hours for some action sounds so boring 😴.

 

  • ROI for today: – $21, that’s -2.6%.
  • ROI for this trading week: -4%
  • ROI since the beginning of the trading month: – $201, that’s -40%.

Day 20

🧑‍💻 When I looked at the older timeframes, I didn’t see any strong trends. But I decided to look at smaller TFs, selected the most liquid instruments for myself, with minimal spreads, and started intraday trading.

🤦‍♂️ The idea with the portfolio has failed, nothing moves and I see no reason to freeze capital. I can’t only go long too. The asset doesn’t move and then flies away 🦅. This is what I had with LTC today. I sat, looked at it, waited for the long entry point to appear and then it just began to fly up in front of my eyes 🚀. On the one-minute chart, it seemed it would fly into space. And when it stopped, the moment of entering short appeared.  There was also a double top… 👀 So I had to sell. Although when I now analyze the situation after the closing of the deal, I see that there has been actually a point of entry into long before all this movements. I just somehow hasn’t noticed it((( I could have got such a profit!! 😤

🧐 A similar situation was with ADA and LINK. But at least the entry points for long appeared there. Let me remind you that I enter a long when at least two candles close up, then there’s another candle, and after it closes, I enter a long 🧠. For ADA and LINK there were classic situations and everything worked out perfectly 👍.

📊 UNI had beautiful short entry points. I missed the moment when it was growing, but didn’t when it was declining 👌

😋 Though today is an interesting day. And it was boring on the weekend.  I worked on mistakes. My mistake is that I miss a bunch of entries and trade chaotically. There is a minute – I come in and look. This will not be the case. 🤓 I’ve read that the guys have an API.  After the end of the month, I will spend the profit on developing a signaling algorithm. It will identify the patterns I need and signal when the situation I need appears. So as not to look at the charts stupidly, but to enter only at the right moments 🤩. And a dream will come true)) I will sit on the ocean shore, drink a cocktail and trade with profit only))) 🏖

🤷‍♂️ In the meantime, I continue making same mistakes. I opened a long with LTC. According to the strategy, but with the volume I obviously went too far. Imagined that I’m a guru. I think that there will be a continuation of the trend and I can enter with a good lot. I am a little worried, but I believe that the alts season will begin soon and they will fly up 😅.

 

  • ROI for today in equity -$170 this is -21% to the deposit.
  • ROI for this trading week -23%.
  • ROI since the beginning of the trading month -$370, this is -74%.

Day 21

☀ The day was wonderful. For the night I decided to lock my positions. 💡 This is a tactic that allows you to fix the result and wait out the period when the price can move against the trader. 📊 I held a couple of long positions on Litecoin. But the position was very large, and since I went to bed, and at night anything can happen, I decided to place a short equal to my long. I bought 200 Litecoin coins, so I sold 200 coins. Thus, wherever the price went, it would not affect me 👌. In the morning, I saw that the price was moving in the direction I needed at night and even reached my take profits, which I had removed at night. Well, OK. Then the price began to fall intraday and I took profit on my short 💰. Everything was amazing.  My account grew to $1000, equity was about 800. And then there were continuous mistakes 🤦‍♂️.

 🤓 The tactics is as follows: set a stop on a profitable position and wait for the trend to resume. And I closed my short and immediately added another long. I didn’t analyze anything. Thus loading my account. This was unnecessary, but emotions prevailed 😤. I wanted too much to quickly close my losing positions. Too much I believed that it was from these marks that the price would begin to reverse. The price went up a bit and my faith grew stronger 😬. But then a sharp drop by another two dollars and the liquidation of positions ❌. Holding a position of $25,000 with $800 in your account is already a lottery 🎰. I played with fire and knew I could get burned. But I continued. 😳 The desire to earn a lot and quickly, to work out the previous loss drove me into the same situation as during the first trading week. And even the asset is the same. Litecoin… 😫

😭 How easy it is to lose your head after a series of winning trades. And I also noticed that the effect of the previous fatal error was short-lived. 💁‍♂️ Exactly one and a half weeks, I traded according to the strategy, observing the volumes and risks. And everything was fine, but along with the success came confidence in the control of the market.

🎯 Now I understand that the goal was originally fake. I wanted to double my balance in a month. But profit goes side by side with risk. You want to earn 50% in a month? Be prepared for a similar risk 🙄. The rule is simple. And only now I realized that the goal should be to make 100 trades according to the strategy. Chasing easy money will not lead to success in the long run 😐. In my first month of trading, I was afraid to take risks, I controlled the volume and was rewarded. It’s time to start minimizing my risk. Therefore, I do not need x100 leverage 😒. I’m not a professional yet 😔. I move to a smaller leverage. I switch to a risk of 1% of the capital and no more. I move to the goal of making 100 trades according to the strategy. If I make at least one trade not according to the strategy, the counter is reset and then again 100 trades according to the strategy. I can! ✊ I know what will happen if I deviate from the strategy, I do not want to repeat this. I must save capital and take risks wisely, then there will be a result and I will prove it 💪.

If you missed the last series of  #TraderForAMonth 2.0 you can check them here:

Follow the Experiment: https://t.me/CEXIOBRoker

The post The Experiment 2.0: Day 10-21 appeared first on Bitcoin & Crypto Trading Blog – CEX.IO.

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