Most likely after this publication, I will be kidnapped and killed. But this does not stop me because hiding the truth is already unbearable. I can no longer watch as thousands of young and talented people simply disappear in this meat grinder called 'Trading'.
The first thing you need to understand is that large players in the market do not trade based on charts. I mean active trading, not investing. They do not build support and resistance levels, do not draw Fibonacci grids, do not use indicators, do not look for order blocks and other nonsense.
Secondly, when creating a trading model, large market participants do not take into account the price indicator of the asset. Can you imagine? They don't care how much the coin costs at all. I understand that this is very hard for an ordinary trader to grasp, but try.
Thirdly, large market participants do not engage in forecasting. They do not trade on expectations, nor do they base trading strategies on news, political or macroeconomic situations in the world. That is, they do not care whether the price of the coin will rise or fall. At all.
I hope I have already shattered all your stereotypes. So, let's get to the main question: how do large funds actually trade and why are they almost always in profit?
Large players trade liquidity imbalances. They find zones where there is a maximum concentration of market orders with a significant predominance of buyers or sellers. Then they wait for this liquidity to be broken (or help it happen) and buy the asset at a very good discount. That is, they only trade with an obvious positive mathematical expectation. Which over time generates them good profits. Essentially, they do the same thing as scalpers, but on larger timeframes.
So we end up with a little sandwich: large funds on top, scalpers on the bottom, and ordinary positional traders in the middle, who get it from both sides (or from two barrels).
That's how things are, brothers.