Hey everyone, I just signed up on this forum. Wanted to say hi to the experienced folks and the mods.
So, I'm here to share my simple trading strategy.
Take a moment to think about this question.
What do you think is the ideal trading method?
For me, a perfect trade should check off these three boxes:
1) Is it in a position with a good stochastic P&L ratio?
2) Are the entry, stop-loss, and exit points clearly defined?
3) Is it psychologically sound?
* Can you sleep easy at night?
I’ve been digging for the ultimate trading method, and I came up with the Golden Ratio algorithm.
This algorithm has four key elements:
1) Enter when the price breaks below the lower Bollinger Band.
2) Wait for a candle that shows a tail.
3) Jump in when the chart retraces to the 0.236 level.
4) Look for divergence.
* Divergence can signal a higher chance of trend reversal.
So, 1) BB breakout, 2) divergence, 3) candle tail, 4) 0.236 retracement, etc. This algorithm is meant to trigger when all these signals pop up together.
Honestly, I've used this strategy in my own trades, and it's been quite profitable for me.
Looking forward to hearing what you all think!
These are all good trading strategies. The BB can signals buy already but the coin can continue to fall in price and later form the tail that you are referring to before more people will prefer to start buying again.
If you can use this with averaging, it might help you a lot. I like to average but it has to be done wisely and you should avoid martingale.
First of all is that it will make your trading riskier.
Traders use it when the are losing. But It encourages them to start an opened position with very little amount of money.
Example is a trader that has $500 for trading. The trader can be using just $100 to trade. If he wins, he will take profit and look for a better coin again to trade with. But if he is losing, the trader can add $100 more to it, making it $200. Also if the trader is losing as the market is against him, he can add the remaining $300 to it. Do not use leverage. Leverage will return it to gambling.
If you are able to make analyses that can make you predict the price you should average, it can help. Averaging will let the market price get closer to the entry price.
It is very risky but it is worth it for traders that knows how to use it.
Averaging and adding funds up when the price falls is when you believe in the coin we are talking about. Or you have clear metrics / facts / etc. to back your thought up - and you do it.
And you do it strictly to the analysis made, not with the gut leading you to it.
OP there is an aspect of trading that you didn't mention and I feel it is also important.
That is patient: If a trader does not have patient then he or she can not execute successful plans in trade. For example, I think it is good strategy to allow a candle to close before taking your trade order. Most times it is impatience that make a trader jump in abruptly to sell or buy just because they see a falling or rising candle only to discover reversal at the end.
To the ongoing discussion about averaging, I think it is very risky to keep adjusting/extending SL. Or to be adding more funds to already losing trade, that amounts to martingale. It is better to allow a losing trade to go so you can start a new order.
Bull*, you cannot code divergence successfully into a strategy because it always plots with a delay.
I assume from what you have said you have that coded into a strategy. Let's see the proof and let's see the test stats.
first, I appreciated for you bro. But, it's better to learn direct from experts.
Also using videos is easier, that is my opinion. For me, each person has their own strategy.
I am very sure that if many traders are asked this question, their answers will not be the same because the perfect trading method is different for different traders. The path to becoming a successful trader involves creating your own trading method and understanding the things to look out for. Sometimes the things to lookout for, may be what has been pointed out generally or maybe something that you personally discovered from consistently observing the charts and trading the market for a long time. One method is not perfect for every trader.
Based on his post, he is trying to teach tutorials as an expert here. His name suggests he is one of the paid shiller of Bitget exchange which is trying to blend in the forum as new account and sharing tips.
However, the tips that he share is accurate method which even pro traders will suggest for newbie trader. The method above is the most common strategy or sign on when the best to enter. BB(Bollinger Bands) is one of the best indicators to know when the price is already at the limit of reversing the trend.
Overall, he share a simple yet helpful insight despite the OP is obviously Bitget shill account.
The trading method you shared sounds very interesting and unique. Trying to combine the right signals through the Golden Ratio algorithm, such as Bollinger Bands breakout, candle tail, 0.236 retracement and divergence. It seems very organized and logical. I hope your trading will be more successful!
Yes it's not subjective and of course traders has their own ways of becoming good traders while trading, this can as well increase their chances of becoming successful. Trading as we know is a bit broad which needs wider range of knowledge and anyone who is not relatively wants to expand their knowledge towards trading may not have that chances or medium to increase on their successfulness in trading and self development, exploring different methods to trade including technical analysis also increases the chances of becoming successful in trading and that is key factors .
OP did a good job when he outlined the main ideas that surrounds the market, how are we able to generate more terrific methods to explore our existence in the market. Why do we buy and sell in the market? Well this happen to be the ongoing trades that exists in the market, we buy at our appropriate time based on our solid strategies and trigger the sell order if we sense some good position of generating profits. Its no longer surprising to see people hitting the market and printing profits. We have seen entirely different method of the market, we know exactly how to cope with the system and having to encompass most of these observations just to prove our points.
There is no such trading strategy that would allow you to regularly make a profit. As a rule, indicators give signals after the price has already changed, and unexpected events, both positive and negative, can be one of these factors.
You said one good thing I agree with you because each trader does their own speed. Each trader has its own strategy by adopting that strategy and entering its trades. And if each trader is asked how your trading method will come different opinions from every trader because when a trader starts trading successfully, he verifies the markets very well and he trading from his own strategy to his own thinking. So if you want to be a radar, you need to experience slowly as the way children learn to walk. After gaining experience you will become a trader.
It can be a perfect strategy but the problem is when you have too much of conditions to be satisfied to open a trade, you will rarely get that 'perfect' trade like one in a week or a month. This is the real problem of a perfect strategy. Because, we need lots of filters to avoid noises whereas some of those noises could be a profitable entry for other traders who works will lesser conditions compared to you. If your all 4 main parts of your algorithm are with 'and' connected, then you will get rarely any signal but that will be a perfect entry to catch a trend reversal point.
If those are connected by 'or' then you will get a signal for at least one condition satisfied which will be more riskier like hitting stoploss and target will be having equal possibilities. Overall, no strategy will work forever still having a perfect one is the dream of every trader.