10/26/2025
Crypto Trading Strategy
Non-Discretionary Rules (Mandatory)
1. Time Frame: Only use the 5-minute chart (5m).
2. Order Type: Only use limit orders.
3. Trading Session: The strategy is only valid at the daily open.
4. Trade Frequency: A maximum of two trades per asset per day are allowed.
5. Stop Loss: A stop loss is mandatory on every trade.
Discretionary Rules (Flexible)
1. Profit Taking: It is up to the trader to decide where to take profit.
2. Asset Selection: The choice of cryptocurrency is up to the trader.
3. Position Size: The amount of capital risked per trade is up to the trader.
How the Strategy Works (Step-by-Step Ex*****on)
1. Box the Range: Identify and mark the high and low of the first 5-minute candle after the daily open. This defines the trading range.
2. Wait for the Break: Wait for the first 5-minute candle that clearly closes above or below the boxed range.
• A close above signals a potential long trade
• A close below signals a potential short trade
3. Place Entry Order:
• For a long signal, place a limit order a few ticks below the closing price of the breakout candle.
• For a short signal, place a limit order a few ticks above the closing price of the breakout candle.
4. Set Stop Loss:
• For a long trade, the stop loss must be placed below the low of the opening range.
• For a short trade, the stop loss must be placed above the high of the opening range.
Before trading this live, backtest it. Too many traders skip this step but data is what gives you confidence.
In a world where everyone’s chasing signals, the real edge comes from rules + data
