How to trade a bull market
Risk On/Off
Traders tend to get lost in their fomo thinking they must be max exposure all the time
Risk is how you grow and risk off is how you keep
How do I define Risk On/Off?
Some version of the following...
Risk On: Spot BTC, Spot Alts, Deriv. Longs
Risk Off: Hedged BTC, Sell Alts
The best version of this for most of you is
1. Spot long BTC
2. Spot long alts when BTC has strong momentum, sell into BTC when things are slow
Understanding Risk On/Off is how you manage your portfolio
But how do you actively trade a Bull market?
My two core strategies are The Dalai and the Vwap Retest
Dalai - Larger market wide pullback
Aggressively enter into BTC and Strong Alts
If BTC momentum is strong hold for a few days, if weak take profit
Vwap Retest - Buy shallow pullback on momentum day @ Vwap
Take profit outside of value
Asset Selection
We must be able to identify what coins are strong and ignore the other 99%. This is the most underrated skill this cycle, so how do I do it?
Spaghetti & Vwap Scans
Protecting the money
Everyone's always focused on making the gains but the real skill is in keeping them. In crypto its not that hard to run it up but few hold on to it
So how do you keep it?
"Be ready sell 20-30% lower than the all-time high"
Very few will sell the top, I somehow managed to last cycle but don't plan to be so lucky this time around
Once the trend starts to die, you need to not get hung up on the fact you could have sold 20% higher two weeks ago. This makes people turn winner into roundtrips or worse, losses
Attribute your successes to luck, this will keep you humble
Parts 2 & 3 next
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Cheers