BTCUSD Trading strategy and Trading tactics

3 Okt 2018

The trading strategy is a common vision of how, by means of which methods, using what tools and in what markets the trader is planning to earn money for a long time.

In our case, since we are going to trade on the crypto-currency market, it is worth determining whether we will trade the most liquid coins using the marginal leverage, or it will be trading in cash. Maybe it will be an investment in top projects, which are in the limelight; maybe, it could be an investment in low-liquid projects that are far from the top on coinmarketcap, but they can give the X-s in the future. Accordingly, it is necessary to choose a trading platform for these purposes. For margin trading I recommend Bitfin, I do not recommend Bitmex. For trading top coins, Bitfin or Binance, will suit your capital. For trading potential projects - binance, cucoin, bitrex.

Further it is necessary to decide what type of trading you are interested in depending on the time. This will be a day trading where the trader searches for trading opportunities throughout the day, constantly monitoring the market, or swing trading (middle term trading), when the trader determines the direction of the market, takes a position and holds it until the prerequisites for a reversal of the trend appear. Alternatively, this is a long-term investment, when the trader accumulates a position, having a firm belief in the direction of the main long-term trend.

Regarding methods and tools for analysis: we are going to study TA, respectively, this is the method that is suitable for us. Each trader will be able to determine for himself a set of tools for technical analysis with time and practice. Someone is more inclined to use patterns and levels, someone is an “indicator”, and someone likes to use volumetric analysis. My opinion is the following: you need to have a certain "crown", but use all available TA tools for additional help in the analysis.

Trading tactics is a strict set of rules for using methods and tools for technical analysis, the risk / capital management rules to achieve strategic goals.

For example, while choosing the liquid assets trading, these rules should encompass:

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Clear rules for entering the position: the reason, the volume of the transaction, case scenario, which will increase the already open position.

• Clear exit rules: predefined TPs and SLs, coordinated with the development of cases, which will allow changing the initial settings of target levels, the rules for transferring SLs in the black and further.

• Calculated, strictly defined risk / capital management rules.

• Disciplinary tasks

Risk and capital management.

Strict control over losses is probably the most important prerequisite for successful trading. There is a classic rule: eliminate the loss-making positions as quickly as possible, keep the profitable positions as long as possible.