Trad3r G

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

Tomorrow I will post a crypto trading strategy I’ve been using successfully for 4+ years.

• Only 1 time frame
• Maximum 2 trades per day
• Easy to execute

👀

Wonderful week.

2.1R on EURUSD

Shared live on X

Was a slow week last week so I decided to comb through some of my trading data.

A few highlights I found:

• Tuesday’s are my worst trading day, with a win rate of 42.86%
•Wednesday’s are my best trading days with a win rate of 83.33%
• If I remove Tuesday’s trading entirely from the data my overall strike increases by 1.9% (from 60% to 61.9%)

Reflecting on my journal has been an integral part of refining my edge and improving my trading strategies. The main thing I am working on now is identifying commonalities amongst my losing trades in order to improve my edge.

A few questions I am going to try and put answers to:

1) What happens if I set a fixed R profit target
2) What happens if I only take 1 trade per week, per pair.
3) What happens if I use H2 timeframe instead of H1
4) What happens if I hold over a trade over the weekend?
5) What classifies a good over/under. Can I define it by pips or $?

I have a list of these type of questions. Anytime I think of a new one it gets added to the list.

Most people will never take the time to ask these types of questions let alone take the time to put answers to them.

There are no shortcuts in this life. Remember that.

Bitcoin trade I took on Monday for 3.2R

Long term stock play

I bought this cannabis stock at $0.01

This is an active company with 12 stores in the US. They are aiming for 24 stores by the end of 2024.

I bought this for 2 reasons.

1. If the US legalizes cannabis it will be a major catalyst for this sector
2. The company is in good health and continues to show growth.

My long term target for this play is $9

this week the only thing that was clear to me was

Price took out previous weeks high and then started to break down.

I always build my trades around previous weeks high, low, & mid range or Mondays high, low. I use the same for targets as well.

I set a limit order at the grey box with risk above the highest high. Target was previous weeks mid range.

Trade provided 2.3R

Bitcoin mining company. Because Bitcoin was on a path to the upside, this provided a nice opportunity once it reclaimed a high time frame support level.

I bought at $2.80 sold at $5.31

In and out.

provided a nice swing short this week.

High timeframe distribution pattern. Once it broke down below green line I put a limit order to sell with risk above the highest high.

Provided a nice 2.3R trade.

Took short this week.

Weekly chart gave me a short bias and a target for the week. I was simply seeking entry on the hourly time frame.

Hourly timeframe gave me a swept of a previous days high where I shorted at market after the sweep.

Locked the trade in for 4.3R 🎯