Trading Signals for Bitcoin and Cryptocurrencies

You can get involved in Bitcoin and cryptocurrencies in many ways. You can donate them, gift them, or use them to pay for goods or services. You can also use them to take your business to the next level. Or, you can may also decide to trade them in the hope that you can make gains by buying and selling them. This section is about trading Bitcoin and cryptocurrencies.  

Introduction

You may not have any use for Bitcoin or cryptocurrencies now. You may not have a business or a business idea. Even if you do, Bitcoin and cryptocurrencies may not bring many benefits given the nature and current circumstances of your business. Still, you believe that cryptocurrencies will one day be adopted and used worldwide, you might think it is a good idea to have some now while they are still relatively 'cheap', right? But given the reality that many cryptocurrency projects have been abandoned and that cryptocurrency exchange rates widely fluctuate, what do you do when these fluctuations go against you? Do you sit and hold on, leaving the value of your holdings to whatever fate other people or events give it? What if the people behind the coins you hold botch up the project? Or, what if they realize the tasks ahead are too hard and give up?

You have to actively manage your investments. But this is not an easy task. How do you know when it is the right time to buy, get out, or even short the market? What if you exit at the wrong time? Then buy back in. How do you know when to buy back in? 

The market is a relentless adversary: a sea of endless challenges and unpredictable circumstances. Every trader/investor needs a strategy. If you don't, you will get caught up in your emotions. You have probably already recognised these if you have ever been basking in euphoria when the market was making new highs appreciating how good a trader you are and you did not secure your profits until they disappeared. Afterwards, you may have been paralysed by fear as you watched the markets go down as people panic and sell their holdings. This is what human psychology and emotions do to you when you confront markets. Without a strategy, you will almost certainly fail. 

In July 2020, I developed a trading strategy for cryptocurrencies. Since then, I have been posting these trading signals day and night, 7 days a week. These are its trading signals. After a year and a half, it is still showing great results. It is free to access these but you can subscribe to have the signals email to you so you can be informed immediately. 

Which cryptocurrencies does the strategy trade?

1. Cardano (ADA) 
2. Cosmos (ATO/ATOM) 
3. Bitcoin SV (BSV) 
4. Bitcoin (BTC) 
5. Polkadot (DOT) 
6. EOS (EOS) 
7. Ethereum (ETH) 
8. IOTA (IOT/IOTA/MIOTA)
9. Chainlink (LINK) 
10. NEO (NEO) 
11. OMG Network (OMG) 
12. Tron (TRX)
13. Stellar (XLM), replaced by XRP on 23 July 2021
14. Tezos (XTZ) 
15. 0x (ZRX) 

How are these pairs selected?

The pairs I include in this portfolio are filtered through using criteria based on:

• Liquidity and popularity: Are there enough people trading the pair so that it is easy and quick to buy and sell closer to the latest execution price?
• How long have they been active? We need enough historical data on which to test. 
• How do they move? Do they move up and down where identifiable patterns can be found?
• Would our trading strategy have been able to capture enough profits to make it worthwhile trading?

Sometimes, pairs are taken out of the portfolio for a few reasons. It is usually because in practice running them on test accounts, there are execution difficulties like it is taking too long to executet a trade either because there is in fact not enough volume, or there maybe something wrong, or something I do not expect or understand about the way its blockchain work or how they are integrated and implemented with exchanges or data providers. These were the reasons why I stopped giving signals for Stellar (XLM) and Metaverse (ETP). 

Trading Approach / Philosophy

Lots of people have opinions about the where the market will go or what the market will do based on what someone said, or a news article they read. They use their analysis, guesses and hunches to trade the market. However, the truth is, the market is made up of millions of people and they move the markets. This mass of people might be right, or they could be wrong. Our belief is that trading is not about being right or wrong, or about having an opinion about what the market is going to do. In fact, we try not to have any opinion at all. This allows us to see what the market is really doing, accept it quicker and act on what we need to do.

We deal with this uncertainty and unpredictability by having a strategy, otherwise, your emotions and your perceptions of what the market will push to keep making the wrong decisions time after time. We do not know precisely the outcome of any trade but we have a strategy. The strategy makes a lot of trades that are small relative to one's total trading account. It trades simultaneously across different markets (in this case, trading pairs) to spread exposure and achieve some level of acceptable diversification so we are not reliant or threatened by the success or failure of a single project. As at January 2022, after about 18 months and more than 700 trades, this strategy is showing solid results.   

Trading Rules & Parameters

• Trades are focused on checking the market around the clock so I can post trade signals at any time. 
   
• Most trades last for days or weeks, but during times of market uncertainty, trades may be reversed within 24 hours. This is not a day-trading strategy, where every trade is resolved within a day. This is a trend-following strategy and so it follows the trend depending on how long they go. There could be days where I may trade many times a day if there is no defined trend, and there could be an entire week where I do not have to reverse any trades because the market has made a clear trend upwards or downwards. 
   
• Trade/Position-sizing
   
  • At the start divide your trading equity by how many trading pairs you wish to trade. For example, if you have $15000 and you want to trade 15 Trading Pairs, then you allocate $1000 to trade each pair. 
     
  • That $1000 allocated to trade each pair will be used to buy or sell 100% of what it can can afford. No leverage is to be used. For example, if the trading balance is $1000 and BSV is $200 each, the strategy is tested to trade 5: no more, no less. If the trade gains $100 then you use $1100 to buy or short-sell the next trade. If the trade lost $100 instead, then you use the remaining $900 to buy or short-sell the next trade. 
     
  • I do not transfer the gain of one pair to subsidise the losses of another pair. Each pair has to traded independently. It is tested this way. I have not tested how the portfolio would behave with Asset Allocation/Redistribution.  
     
• The trading method takes both LONG trades and SHORT trades. 
  
  This means to trade these signals, you need to use an exchange that uses margin trading, not so you can leverage (borrow money to trade more than what you have), but to be able to do SHORT trades (profit when the market is going down). 
   
• STOP-ORDERS
  
  When do you know when the market has gone too far against your position? In this strategy, the rules that define when we reverse or get out of a trade is the same as rules that define our STOP. Therefore: No live stop-orders are created. The next signal to reverse or get out of a trade IS our STOP.

If you do not understand what all these mean, I have explained these concepts in my book,"The Part-Time Currency Trader". You can buy a copy at Amazon. More information is here:https://marquezcomelab.com/the-part-time-currency-trader. Even though it was written for Forex Trading, these concepts are the same. 

Statistics — Back-Tests, Performance and Analysis

The link below is where we post back-tests, calculations, and various analyses to track how we are doing.   

>> Statistics — Back-Tests, Performance and Analyses

I do not want to trade for myself, can I just give you money and you invest it for me? 

No, I do not trade for the general public. However, if you represent a corporation, an institution, or if you qualify as a sophisticated or accredited investor (or equivalent), we can explore options.