How I trade ALTs?
My Personal Alt Trading Strategy
Bitmex trading takes up most of my time and hence, I do not get enough time to TA Alt Coins.
Now, Bitmex is profitable, but just to scatter my risks, I ventured back into ALT Trading last month probably after a gap of 6-7 months.
I came up with this indicators based ALT trading Strategy that I'm sharing with you all here.
I use two indicators, namely ->
1. FOMO Momentum Scalper
This is the leading indicator I use for this trading strategy. I created it a couple months ago and is available for FREE on TradingView
2. FOMO Buy_Sell_Indicator
FOMO is being used in this strategy as a confirmation of trade tool. FOMO makes up for a big percentage of my Trading Decisions in any sort of trading. Unfortunately, it's not free. It's not really required if you can perform some TA or rely on some other indicators for confirmation.
The links to both the indicators are at the bottom of this Idea.
The Strategy
1. I've created a TradingView watchlist of decent to high volume Alt Coins.
It shouldn't look like this on 1hr timeframe.
2. Added FOMO Momentum Scalper (Free) Indicator to my chart.
3. Added FOMO to my chart.
4. Choose 1hr Timeframe and go through the watchlist probably 6 times a day, every 4-5 hours.
5. Wait for a Buy Signal from FOMO Momentum Scalper. Looks like this.
6. Set an Alert for FOMO 1hr Buy Signal on the coin with FOMO Momentum Scalper Buy Signals.
You can add an extra layer of confirmation if you want like FOMO HTL 1hr Crossover. I'm currently running with just 1 confirmation.
Once the Alt Coin you are looking at has crossed over HTL comfortably (consolidating and HTL has started moving up), you can say that that coin is bullish on 1hr Timeframe.
Problem is, with more confirmations, your profit factor on a trade will reduce. As most of the time, while waiting for a confirmation, you'll lose out on initial profits.
For example in this case
9. I find the previous structural LOW and stagger to that low followed by a SL behind that low. I'm mostly running with a fixed percentage for my TPs instead of finding previous structural highs for TPs.
Since, Binance doesn't let you add TPs n SLs at the same time, I'm using 3commas to add SLs, staggers and TPs at the same time.
10. Then, I set up the trade in 3commas and leave it until I come back to the charts. If I see that a couple of TPs have been filled and if there is a reason to let it run, I let the trade run or if it isn't looking good and a couple of TPs have been filled, I close the trade in profits. This is not a bot trading. It's completely manual. There is no point in letting a profitable trade to come back in negatives when the charts have started to become bearish.
Sometimes, I move my SL well in profits for example at TP1 or TP2 and let the trade run if it seems a bit bullish with very little bearishness.
11. Rinse/Repeat. I strictly follow the rules I've set for myself. I do not run around messing with my trades if I'm in profits or even in loss. Let the trade takes it course.
Examples
1. This trade went in other direction. Looking at the chart it was clear AION is downtrending but could be getting very close to reversal. Now I zoomed out and noticed that there is a possibility of Double Bottom. I decided that will be my stagger in case the trade doesn't go in my direction initially. And if it breaks double bottom prospects, it's obvious that it'll keep dropping/downtrending. So, there won't be any point of chasing it in case it doesn't double bottoms.
I set my SL a little below the double bottom and kept my last stagger at the double bottom.
AION ran 9% soon after. Proved to be a good profitable trade in the end.
2. Similar to 1. After running 3-4% a couple times, forming new lows (higher lows) this trade finally ran 9-10%
Prospects of double bottom. Placed Staggers carefully. Staggering, proper risk management paid off in the end.
3. Couldn't find any immediate structural low except one before previous short term uptrend as shown in the chart.
Hence, used that as a possible last Stagger and SL behind it
Looking at the chart, one cannot find any possible reason to close the trade just yet considering, we would have the best possible entry in the trade.
Improvement
I would be keen to know if there is another indicator/timeframe that you've tried with this strategy or made any improvement to it.
I've traded with this strategy for a while now. It works just the same on longer timeframes. For example on 4 hourly and daily.
Let me show you some examples
Bitmex trading takes up most of my time and hence, I do not get enough time to TA Alt Coins.
Now, Bitmex is profitable, but just to scatter my risks, I ventured back into ALT Trading last month probably after a gap of 6-7 months.
I came up with this indicators based ALT trading Strategy that I'm sharing with you all here.
I use two indicators, namely ->
1. FOMO Momentum Scalper
This is the leading indicator I use for this trading strategy. I created it a couple months ago and is available for FREE on TradingView
2. FOMO Buy_Sell_Indicator
FOMO is being used in this strategy as a confirmation of trade tool. FOMO makes up for a big percentage of my Trading Decisions in any sort of trading. Unfortunately, it's not free. It's not really required if you can perform some TA or rely on some other indicators for confirmation.
The links to both the indicators are at the bottom of this Idea.
The Strategy
1. I've created a TradingView watchlist of decent to high volume Alt Coins.
It shouldn't look like this on 1hr timeframe.
2. Added FOMO Momentum Scalper (Free) Indicator to my chart.
3. Added FOMO to my chart.
4. Choose 1hr Timeframe and go through the watchlist probably 6 times a day, every 4-5 hours.
5. Wait for a Buy Signal from FOMO Momentum Scalper. Looks like this.
6. Set an Alert for FOMO 1hr Buy Signal on the coin with FOMO Momentum Scalper Buy Signals.
You can add an extra layer of confirmation if you want like FOMO HTL 1hr Crossover. I'm currently running with just 1 confirmation.
Once the Alt Coin you are looking at has crossed over HTL comfortably (consolidating and HTL has started moving up), you can say that that coin is bullish on 1hr Timeframe.
Problem is, with more confirmations, your profit factor on a trade will reduce. As most of the time, while waiting for a confirmation, you'll lose out on initial profits.
For example in this case
9. I find the previous structural LOW and stagger to that low followed by a SL behind that low. I'm mostly running with a fixed percentage for my TPs instead of finding previous structural highs for TPs.
Since, Binance doesn't let you add TPs n SLs at the same time, I'm using 3commas to add SLs, staggers and TPs at the same time.
10. Then, I set up the trade in 3commas and leave it until I come back to the charts. If I see that a couple of TPs have been filled and if there is a reason to let it run, I let the trade run or if it isn't looking good and a couple of TPs have been filled, I close the trade in profits. This is not a bot trading. It's completely manual. There is no point in letting a profitable trade to come back in negatives when the charts have started to become bearish.
Sometimes, I move my SL well in profits for example at TP1 or TP2 and let the trade run if it seems a bit bullish with very little bearishness.
11. Rinse/Repeat. I strictly follow the rules I've set for myself. I do not run around messing with my trades if I'm in profits or even in loss. Let the trade takes it course.
Examples
1. This trade went in other direction. Looking at the chart it was clear AION is downtrending but could be getting very close to reversal. Now I zoomed out and noticed that there is a possibility of Double Bottom. I decided that will be my stagger in case the trade doesn't go in my direction initially. And if it breaks double bottom prospects, it's obvious that it'll keep dropping/downtrending. So, there won't be any point of chasing it in case it doesn't double bottoms.
I set my SL a little below the double bottom and kept my last stagger at the double bottom.
AION ran 9% soon after. Proved to be a good profitable trade in the end.
2. Similar to 1. After running 3-4% a couple times, forming new lows (higher lows) this trade finally ran 9-10%
Prospects of double bottom. Placed Staggers carefully. Staggering, proper risk management paid off in the end.
3. Couldn't find any immediate structural low except one before previous short term uptrend as shown in the chart.
Hence, used that as a possible last Stagger and SL behind it
Looking at the chart, one cannot find any possible reason to close the trade just yet considering, we would have the best possible entry in the trade.
Improvement
I would be keen to know if there is another indicator/timeframe that you've tried with this strategy or made any improvement to it.
I've traded with this strategy for a while now. It works just the same on longer timeframes. For example on 4 hourly and daily.
Let me show you some examples
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Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.