Day Trading - Pls don't roast me

Ok, so i mentioned i traded a little on another post I wrote re my 1st Mining Rig. Now normally i don’t share trading habits or like to offer advice on what i buy and sell… not because i don’t want to share the knowledge but due to the risk of having an impact on someones else financial stability.

So… if your happy to carry on reading i must stress non of this is financial advice, i trade for fun with money i can spare and if your going to give it a whizz then only use monies you do not need…

I know this goes against what a lot of people here at the pub, cost averaging is a great idea and sometimes… quite often to be fair… i think i should have just done that… but i enjoy trading… it gives me a buzz… i don’t always come out on top but i use small amounts per trade and MOST IMPORTANTLY… i have the time.

So in order to give back what the pub has given me this is how i trade… not very scientific but it works…

So what do i do…

  1. I am not interested in the slightest in the coin i buy… i have no idea what it stands for, what they do, how they do it or is it any good… all i’m interested in is the money… at the end of the day i am trading… not investing.

  2. Volume… Volume is key, it the coin doesn’t have volume you wont get the opportunity to sell it… makes no difference if to try to unload it cheaper than anyone else… there has to be people ready to buy. Having said that… volume is also related to how much to trade with… bear that in mind

  3. Charts. I use two charts… apart from volume… RSI and MACD… in a VERY basic manor…i don’t 100% buy and sell against either but they do influence if i’m going to buy or sell.

For those with little knowledge on charting @peter has taken the time to create some great instruction on the B90X program, you should take the time to watch them but in VERY simplistic terms…

RSI - in simple terms… around or over 70 its overbought… so sell it, if its under or around 30 its under sold… so buy it…

MACD… time to buy is when MACD is below the signal line and it crosses over in an upward fashion, the aim being to catch it just before. Time to sell is when MACD is above signal and is about to cross below in a downward fashion, again the aim being just before it crosses.

I like setting my chart so MACD is green and Signal is red… so when the green line cross the red one upwards i buy and when the green line crossed the red one downwards i sell… simples…

  1. Chart timewindow. I use Trading View… i’m set up with a Pro account as it gives me up to 10 alerts…and to be fair its worth the money. As i’m day ( ish ) trading i only look at 3 and 5 min windows… anything longer doesn’t give me the visibility i need.

One tip on getting trading view cheap… sign up for a trial account on Pro… and throughout the 30 day trial you will get emails offering you discounts if you sign up and pay for a year… wait until the last ish day and you’ll get one for 50% off. More importantly… don’t be tight and support the developers guys… even though i waited for the discount i still believe its important to support them… if you don’t the platform will disappear and then we will all be moaning…

  1. So what do i buy… pretty much anything if it matches the above rules… i do have some favorites which i will list bit just to reiterate… not recommendations…

PTOY
FUN
XVG
KMD
SAFEX
RDD
SLS

to name but a few…note there are no big, top 10 coins there… in my opinion they take to long to move… unless your trading between forks… ha ha ha…

I started off working out what coins to buy by watching the top movers on CoinMarketCap… i also watch the market page in BitTrex and sort by change… look at the ones with the highest change. just because they have already moved allot doesn’t mean there isn’t 3% left in them…

  1. Margins. I look to try and make 3% per trade… doesn’t sound allot but its normally quick … generally sub 15 mins so you can make quite a few during the day / evening or weekend… i do work off stop losses… dont like to as i prefer to watch but as general rule of thumb is 2 - 3 % down and i dump the coin… UNLESS the RSI or MACD tell me otherwise…

Same goes for 3% profit margin… if i’m watching a coin and the RSI and / or MACD tell me the value is going up i keep hold… i prefer to hit the top ( plus 5% ) and then when it turn and comes down to 4% i sell… i don’t get the max but its more than 3%… :grin:

When i buy a coin i instantly overlay a Long Position graph over where i purchased on Trading view… its the 7th tool down on the tool bar, hold down the mouse button and you will get a pop out, select Long Position, select it and then click on the current price line on the main chart… adjust the green and red bars for percentage increase or decrease… set the green one to 3% and thats the price to sell at… don’t forget if using BitTrex you will pay a 0.5% fee for buying and selling ( 0.25% each ) so at 3% your net profit is 2.5%

Whats very important here is to understand and appreciate your not the only one watching the charts… the buyers are too so unless there is volume you will be VERY lucky to sell at the top or buy at the bottom… others are watching the charts just as you are and they will know if a coin is also going to go up or down … so just try to make the most of it and sell when its right… dont be greedy… you will not win !

  1. The future. Now this is where things are getting really interesting for me… i run a couple of I.T. based business, one of which has several developers… in there down time they have written me a Slack app that runs off the BitTrex API. What the app does … in a nut shell… is works off the BTC buy volumes… the rule is if the buy volume goes up by 40% in an hour for any single coin… ( we watch all 200 odd on BitTrex ) and then again by another 10% it send an automated alert with the coin data. I then use that to jump on BitTrex and i still have enough time to spend 30 sec or so, analysis the coin and decide to buy or not… NOTE all my sells are based on 3% as per mentioned above.

We have tried lots of variations of the rule and this seems to work best so far with an accuracy of around 9 out of 10 alerts resulting in a buy and profit… not always 3% but that my daily goal… not per trade. And the great news is some of the DEV Guys and Gals are also using it and making the monies… hows thats for a great staff incentive program :grin:

When i am happy its working as expected i will look to release the channel for the Pub but i dont want to be viewed as someone trying to create my own pumping group… thats not what its about…

So thats where i am… i appreciate this post is not probably what some were expecting as it isn’t fully of coins to buy / sell and make money off but to be fair if i knew what they were I would be writing this post from my private island in the Caribbean… not wet and cold England… :roll_eyes:

Just to say… there are lots of coins out there that move quickly… 3% is not overly hard to make AS LONG as you have the time to watch them… do not expect to buy something, create an automated sell order for 3% and make lots of monies… i tried that and it doesn’t work… :rofl:

If your interested in what 3% a day will make you… based on 3 trades a day, 5 days a week over 6 months… check out the attached spreadsheet… its in Excel i’m afraid as thats what i use but should open in Google Sheets…

Excel 3% trading calculator

Its all about the compound increase… but i’s defo like to watch the sweat on someones face wit a trade with 1.7 Mill…:wink:

Feel free to change the settings… 5 trade a week, 2 trades a day… start with 100 bucks… and have fun…

22 Likes

This is a great write up and definitely gives me some ideas on improving my own trading practices.

Similar to you, I’ve started targeting much lower percentages on profits. Instead of trying to hit 20% or 30% profits per trade, focusing on making more and smaller bets that cash out at 2%. At the moment, I’m about 70% win rate and getting better with my choices.

One thing I’ve started focusing on over the past week is simply risk management. That is, making sure I lose no more than X% (in my case right now, 5%). So what I do now, is as soon as the order fills, I place a stop-loss that’s 5% below what I bought in at:

image

The goal with this strategy is to enter into a trade with a pre-defined loss cap. And then as the coin goes UP, cancel the stop-loss and move it higher and try to track the growth trailing 5%, which, after a 5% upward movement, I start adjusting to 3% trailing then 2% (tighter and tighter stops).

Your spreadsheet is the perfect example of why 2%, 3%, etc. profits on a consistent basis will earn you a handsome ROI over the long run! I had worked out something very similar myself when I started experimenting with much smaller profit targets, but your spreadsheet is way better than mine.

Michael

5 Likes

Watching ajfkda;jfkdlajkfdjkfj;aj;d

2 Likes

@mwlang… Perfect… i have learnt several times ( i have several coins i’m locked into as i didn’t obey the rules ) that you need to be strict with the Stop Losses… personally i prefer not to set them as an automated rule as i have lost out before when a coin hits my 3% stop loss and then shoots up…

I prefer to use the Long Position graph, work out my stop loss position and run it manually… BUT i’ll be totally upfront and say its hard… when a coin is coming down… your loosing money and you have to break out… all the time you think it’ll go back up… hence why i’m locked into a few… DOH… i guess thats where the automated rule kicks in… there’s always next time to make it up :stuck_out_tongue_winking_eye:

But as i always tell myself… if your down… you only loose money if you sell… thats when day trading becomes HODL’ing.:rofl:

4 Likes

Indeed! That’s my trap right there. I have five positions I didn’t properly manage the stop-loss on, so will have to await their return to green pastures to sell as I will not sell for greater than 3% or 5% losses. That’s the risk of learning and gaining experience, but ultimately, I’m confident as my trade management is getting better each week.

Michael

4 Likes

Savage write up @Pigsfoot !!

I have been trying similar methods as you are, playing around with margin trading on bittrex. Thanks for the clear informative post, and the excel resource too. Major help. Cheers!

4 Likes

Worth rt. This is an excellent write up with solid reasoning… for you :). Appreciate you taking the time man!

8 Likes

@peter Duuude… thats made my day… cheers Bro…

4 Likes

@Pigsfoot You just gave me the incentive to watch all of @peter’s trading videos. : )

4 Likes

Great Post and thanks for writing it. I’ve traded for years and have run a global hedge fund with over USD150mm. I know many trades, methods, and styles from Hurst to DeMark. Whatever though, and this is the internet which means I could be lying and sitting naked in a bunny suit covered in pringles crumbs next to a corpse (Sorry I’m feeling Halloween today).

Back to your post.

You’ve presented a system for this market which works for you with a write-up of how to use it. I’ve yet to find a system that works in this market. Partially because there isn’t enough historical data to back test and I need to trade size to make it worth my time. Your system is simple and I will check out. My one suggestion on your style is why not look for a tweak to let your winners run. Again though, if you’re making money listen to nobody. Thanks again.

It’s great you’re having fun. That with time are key ingredients to success.

Just some comments for new traders.

It doesn’t matter what system you trade only that you trade it well.
What works for some people may not work for you and visa-versa
Paper trade prior to real money. Then start small.
This is a small cap market easily and often manipulated.
Don’t listen to other people - own your trades (go review the nonsense moon comments in this forum)

4 Likes

Lol. Yes. We did go through a phase. Or. … still are.

1 Like

💰 YEN · YouTube ·️ YEN.CAMP 🧠