Do indicators really work in crypto futures trading?
The answer is not definitive, but if there were an answer to specify whether they can or cannot predict the prices of assets, the answer would be simple. No, they do not.
However, they can help filter entries under the premise of being an INDICATOR, not a predictor; in fact, it should not be taken as an element that predicts but rather as a support in the decision to go long or short, depending on the case.
Let us remember that each indicator has a certain percentage of accuracy in its use as a predictive element, but none, NONE, has 100% accuracy; that does not exist, and for anyone who says otherwise, I am willing to learn and have them demonstrate it to me.
It is important that despite what many may say, the key to using them as a filter or predictive element emphasizes really being used under a risk management that is relentless against the very accuracy and percentage of success of such indicators.
Finally, it is super important to understand that indicators do not predict; the only thing that actually does is the supply and demand generated by live and spot price action. What even makes this way of viewing the market unpredictable due to market orders that can strongly alter the "predictions"
Happy New Year 2025, and always have a risk management plan so that this year you achieve profitability. Regards to all.
Knowing whether you should trade futures or hold cryptocurrencies will depend on your goals, experience and risk tolerance. Here are my thoughts on the matter, I hope they can help you make a better decision. FUTURES
Advantages: -Highly lucrative if you master technical analysis and have a solid and effective strategy with a 50% win ratio over a 1:2 risk ratio. -It allows you to take advantage of short-term movements, both upward and downward. -Using leverage and knowing how to use it, you can obtain high returns with little initial capital.
It turns out that in 2018, Hector, a boy with no trading knowledge and really a novice in the matter of cryptocurrencies, was advised by a trader whose experience was slightly greater and better than his; to buy an amount of BTC that wouldn't affect his pocket and that he could leave there as a lost thing for an indefinite time until the experienced trader would notify him again... The inexperienced trader, new to this, bought in 2018, when the price of a BTC was around 6600 dollars just 0.33 BTC... that is, just 2200 dollars that he could gather with great sacrifice.
Many times we can incorporate a cryptocurrency into our portfolio, a network or an altcoin that may have growth potential, however when we see a DAO that is in such high demand it is difficult to say no. The project has a good purpose, however, it is not worth it until it is put to the test.
The initial uncontrolled growth, apparently "manipulated" when tested in the futures market, is synonymous with strength. However, we will consider that this strength will be true when faced with the retail sector, which is eager to gain from corrections.
If price close under The 60100 is going to be bearish, but the lower negociated price was just 60k then has a correction, thats why is going to be bullish again... #bullish vs bearish
THE REAL REASON FOR THE FALL OF BTC "Bitcoin falls again below $60,000. It also happened yesterday, Saturday, although it rebounded quickly..."
Hahaha this news 😂 makes me laugh a lot since it only causes FOMO or FUD in traders who do not understand the real reasons why a price falls or rises.
Yesterday when a teacher asked me where he thinks BTC is going, I answered
"Let's have a coffee man" let the market fall to its liking!
BTC can react at 60070 or fall to 59127, if it does not react there, then at 54620 and if not, then at 52009 and if not, at 50238 and if not, then somewhere...
I repeat, let it fall as it pleases or rise as it pleases. Adapt your strategy to these falls or rises and take advantage of the trend. If your risk management strategy and plan is correct, you should not worry about the rise or fall of a price, neither this nor any asset. If you understand and truly understand that the fall or rise of a price is reflected in its price action by supply and demand as well as the number of contracts in the open interest you will stop being surprised or angry by falls or rises in price. , since in addition the nature of the market and the law of self-balancing of the market make THE MARKET OSCILLATE.
So the price will go where it has to go... Neither FOMO, nor FUD.
Plan, strategy and risk management, the rest is normal in the market.
YOU SHOULD NOT LEVERAGE YOURSELF, THAT IS VERY DANGEROUS...
That is a fallacy, intelligent leverage is one of the best options to grow not only your futures account, but also your assets inside and outside the market.
We often hear that leverage is dangerous and that can actually be true but only if you don't know how to use it and you don't know what it was created for.
If you think that leverage was created to make you rich overnight, say goodbye to your money, but if you know what it works for and how to use it, welcome to the group of traders who are not afraid of 100X.
First, I am going to leave an example of how leverage works and then with some questions I will let you, as critical readers, draw your own conclusions.
EXAMPLE
The following traders entered short and cross-margined their portfolio.... (Which they also consider dangerous hahaha)
Jhon entered a short in BTC at 65,000 dollars with a position of 10 USD as leveraged margin at 125X, that is, the maximum possible on this exchange for BTC. Jhon left his Stop Loss at 66,300 (2% risk which unfortunately he touched because the asset rose).
Louis, for his part, also shorted BTC at $65,000 but with a larger position; 125 dollars of margin, and since he has heard that the leverage is very dangerous, he only went to 10X, also leaving his stop loss at 66300 (2% risk and which, also, unfortunately, he touched since the asset went up)
The purpose of this example is so that you can draw your own conclusions and not be influenced by clowns who do not know how to use it and do not understand that the key is in risk management, in the amount of X...
Answer the questions, draw your own conclusions and share them in the comments...
1. How much did Jhon lose and how much did Louis lose in dollars? 2. Who had the least cost to operate? 3. Who is smarter using leverage? 4. If both of their bills are 200 dollars, who risks more? 5. Who can diversify best?
What is Technical Analysis and does it really serve to predict the price?
First we must start from the idea that technical analysis is a method of evaluating values by observing information that is derived from both past and present price, so that it is mainly used to predict the direction of prices through the study of that information that is financial, mathematical and statistical.
Market analysts believe that the market trends suggested by that data can predict the future activity of an asset, but DOES IT REALLY WORK?...
First we must start from the idea that Technical Analysis is the basis of work for many traders and therefore we consider that it ultimately works, but considering trading operations based solely on the technical analysis of the indicators derived from price information can not be the best option for trading.
Technical analysts who are actually profitable with this trading method is not the only thing they use, I do not know traders currently in my circle who only use Analysis as an efficient and functional trading method, but who actually use other methods that are supported each other with Technical Analysis information, such as: Price Action, Chart Pattern Valuation and other tools.
To say that the technical analysis of indicators works on its own is to have only one part of the winning equation. We must add fundamental analysis, verification of open interest, Volume, price and of course supply and demand, putting everything together it is very likely that we will have the key to success.
Can I really become a millionaire by buying 10 dollars of a meme coin?
The answer is simply no, since to achieve it with the current real value and its percentage increases the amount you must buy is much more than 10 dollars, do not be carried away by those who say otherwise. That is an absurd illusion since for that to happen the capitalization of the meme currency must be so high that it is simply not possible.
Let's give an example, if I buy 10 dollars of $PEPE , I would receive at today's price an approximate of 635k coins, which means that, in order for me to become a millionaire, each pepe must be worth 1.57 dollars and sorry, but someone has to make them see The truth is, that is practically impossible. The meme currency has a circulation of 391,790,000,000,000, yes the exaggerated amount of 391 billion, but there are 420 billion that exist. That would mean that for each pepe to be worth 1.57 usd and you can be a millionaire, the market capitalization to reach that value would have to be 6.60 trillion dollars and to give you an idea, the entire capitalization of $BTC is only 1.45. ..
So stop dreaming and following people who only take advantage of the ignorant... Stop asking how in your reels and posts, since it makes no sense to do so.
And well, let's hope that everything falls under its own weight and the weight to fall of most meme coins is too high to be considered something of value.
You should think like this "make profits whether short or long and run away from there"...
Why should we all have a trading plan and what does it consist of?
A trading plan is the first step well taken to achieve consistency and then profitability, expecting to be profitable and trading without a plan, is like going to a war where we do not know what type of weapons will be used, going to said war and defending myself with what you find along the way. Most likely, you will lose your money.
A trading plan consists of 5 well-structured steps.
1. Select the type of strategy to apply. 2. Select the candidate asset to be operated with said strategy at the appropriate time. 3. Consider how I will manage my account, that is, the operational risk as a percentage of my account. (0.5 to 5% etc) 4. Select the profit-risk ratio that I must consider for said management, 1:1, 2:1, 3:1, etc... and know if, after the invalidity of my operation, I will accept stop loss, or go to coverage 5. Keep a trading diary or very detailed statistics with balance, entries and exits, which allows me to make the pertinent adjustments to my entire plan in case I am doing something wrong, or, consolidate those things that are being done well. so continue.
Finally, you must understand that there is no infallible strategy, however, sticking to one that has been considered in a trading plan with the other elements that I have already mentioned in this text, will allow you to have structure and consistency and thus be able to achieve profitability with the passage of time, guaranteed.
Some time ago I asked one of my mentors, annoyed and worried, "Professor, I'm not yet profitable and I've already done "everything" to be profitable, but I can't do it."
He looked at me and asked, "Have you really done everything already?"
Answer, yes
He responded, “Okay, show me the statistics for a month of operations please.”
I know that it is an intrusion into the most sacred privacy we have and something that few would dare to reveal and not so much for reasons of honor, but often for security. Distressed, I showed him the balance of a month and with that he was able to give me an unforgettable lecture.
"How do you want to be retable if your losses exceed your gains!" He said.
First, he noticed that although he had an amazing success rate of winning trades, 21 out of 30, yes, an incredible 70% win rate, that was not enough, because most trades had profits of 5 to 14 dollars, while In the 9 non-winning trades, the losses ranged from 48 to 93 dollars. This meant that I had a negative equity even with that success rate, because, even if my 21 winning trades were all of 15 dollars per day, I would only have 315 dollars, while in 9 days, even with the minimum loss presented of 48 dollars in Each trade my loss would be -432 dollars, this means that in general terms I would have a loss of -117 dollars from the account.
My mentor said —So really everything ehhh...—
I answered —The thing is, once I start winning in my operation, I move my stop to profit to ensure even some profit—
Without my mentor saying anything else, I realized that I didn't really understand what risk over benefit is.
If you really want to be profitable... The answer is simple.
Let your profits run to TP or SL!
Do absolutely nothing else, just wait for your TP or your SL, nothing to secure a little or move the SL. Manage a risk of 1 to 3% of your account, take statistics and evaluate what you have done.
Why using Stop Loss will not burn your account while avoiding its use can be catastrophic for your assets?
The answer is simple, with a stop loss you limit the loss up to that point, no more...
But how much is good, how much risk should I take, how much loss is correct if that happens?
That question is very common and I really get asked it a lot.
The answer lies in the type of trading you do... It is not the same for a scalper as it is for an intraday or spot position trader.
But I hope to help with the following idea.
The risk reward ratio should be 1:1, 1:2, 1:3 or even 1:4 according to the types of trading
1:1 For Position or Spot Trades 1:2 for swing or intraday trades 1:3 For intraday or scalping trades
Now, one thing is the risk reward ratio and another is how much I should risk...
Spot or trading position 10 to 30% Intra day or swing 2.5% to 9.9% Intra hour or scalping 0.25 to 2.49%
These percentages are healthy and in line with the time in operation. When for some reason you opt for them and the trade is invalidated, you can have coverage as protection either within the same asset or in another...
If you have any ideas, questions or comments, write to me and we'll talk about it.
Some time ago I spoke with a farmer to try to make an analogy between his activity and mine...
He tells me —I see, you buy assets when they are cheap and sell them when they are more expensive—
I responded proudly —Exactly—
Then he answered me - But that has no science -
I responded proudly —Exactly—
Then I told him, "I do the same thing as you, only you cut the fruit from the tree, put it in boxes and sell it."
He responded proudly —Exactly—
I told him, "That doesn't have any science either, because you just have to wait for the fruit to bear, right?"
He responded proudly —Exactly—
I also told him - I see that you have the habit of looking at the ground, near the tree and picking up some fruits that fell and that can still be saved and I suppose you sell those too -
He responded proudly —Exactly—
"I do it if I see that the fruit is not rotten," he added.
"That's good," I responded.
I do exactly the same, sometimes I see some assets that are on the ground, I check if they are not rotten, I pick them up, put them in the box and sell them too...
He exclaimed in surprise - wow -
I admit that he earns much more than me hahaha... but he and his people work much harder than me.
I just check the chart, look at floor and ceiling levels, support and resistance, go short if it breaks levels and go long at low prices.
This token farming is less demanding. It doesn't burn my back, it doesn't exhaust me, I have air conditioning in my studio, my laptop gives me signals about the weather that affects or helps the crypto fruits and I just take advantage of the harvest.
So plant and grow with your analysis and buy or sell according to your analysis and go short or long when the fruit is ready.
So take advantage of the fall, remember that this is like a store, you buy a product to sell it at a higher price.
If you are in futures, apply a hedge or take advantage of a short sale, do not lose more, offset your long entries with a good profit from a short. Halving can help you get out of those lengths without problems. $BTC is on the bridge where it jumps long or falls a little more, but a downtrend in BTC will not occur until below 44500, so if the price falls, simply gain the short and add it to your long.
Take advantage of the halving I often see people asking how to best take advantage of the world of cryptocurrencies and the key is to diversify, of course... "Don't put all your eggs in the same basket."
However, lately, with this halving, I see with concern that there are those who are equally afraid and greedy.
Personally, I believe that the best way to take advantage of cryptocurrency processes is through a more neutral and flexible approach that allows crypto holders to face the risks involved in price increases and decreases.
This approach focuses on having the certainty that something is being taken advantage of and for this I want to tell you that you can take advantage of the momentum that will occur in cryptocurrencies and in $BTC as a result of the halving. Many new traders consider that the asset has reached its all-time high again and that it is time to take profits. I think differently; I think it is time to invest and own not only Bitcoin, but also $ETH , $SOL and $LTC.
I say the above, because these assets are always benefited or affected by the value of BTC. I know they will say I'm crazy, but I avoided FOMO and FUD before, but today I understand it, so I take advantage of it to my advantage and continue buying even at high prices, but the key is to own in spot and sell short in futures, with this I am not only charging the financing rate but I have lost the fear of being "trapped" in maximums or "losing everything" if the asset reaches new ATHs I will be earning in spot, if the price falls I will be earning in the short ones, the reality is that solving that is very easy using DOUBLE TAP. Are you interested in this strategy?
The answer is a resounding NO, but to understand the answer, it is important to identify the type of leverage that we are choosing to have... Well, it is not the same to have a 100 USD account and go to 100x with 1% of said account , which leverage 100x 100% of the account.
In the first case, 100% movement against me is required to be fully liquidated without considering an SL before and in the second case, only 1% movement is required against me to be completely liquidated without considering an SL before.
I still see people who believe that if I use 100X leverage on BTC I will lose all my money and that is because they ignore the power of leverage and the virtues of the mathematics behind their position, in the maximum risk of their possible admitted loss and the transaction volume.
Read the following cases of operations with 100USD accounts, both on cross margin, without Stop Loss 😱 and draw your own conclusions.
-Mike, use 2 dollars from your account leveraged at 100x and the price goes against you by 3%.
-Alice, use your $100 account but leveraged at 2x and the price also goes against you by 3%.
1. Who loses more? 2. Who will lose everything first? 3. What percentage against does each require to be completely liquidated if they are in cross margin?
If you don't know how to answer these three questions, not only should you not be using leverage, but you should not be doing futures.
Thinking that by using a large leverage they will liquidate you quickly or that if you do it with cross margin even more so you will be liquidated and lose all your money, not only says that you ignore the power of leverage and what it was created for, but also that that you still need to learn a lot about risk and volume management.
Now, if you know the answer to the questions and understand the concept of position risk management. You know well that leverage is not the enemy. Don't be fooled, DYOJ
I explain why having Bitcoin even with high prices is much better than just waiting for the halving, which will happen starting today.
It turns out that the halving is an event that happens every 4 years and that we all already know, it serves to reduce the production of the $BTC blocks by half and thereby help reduce the inflation of the currency, but here is the million dollar question Should I wait for Bitcoin to drop in price to take advantage of the halving and its possible increase in value and price?
My humble answer is no, but (DYOJ)... Here's my why. Having Bitcoin is better than just waiting for the halving, since historically, not only the price, but the value of the asset has benefited from this event. In this way, although the percentage of the possible profit has been reduced by approximately half in each event, the price and value of Bitcoin has increased noticeably each time.
If we look at the graph, it is very possible that the increase from today's starting point, Monday, April 1, 2024, will reach a growth of 45%, which would imply a value growth above 90K. Put this way it is likely that if you wait for the price to return to 30k, 20k or even 15K or less to invest; the rocket has already taken off, and without you, why despite buying at 69k or 70K this Monday, it is very likely that we will reach 90k or even more, since the experts are aiming for 100k...
My intention is not to encourage FOMO, but simply to show the reality of an asset that has been benefiting from the recent approval of ETFs, the imminent decrease in rates in the US and the advantage of halvings as an investment enhancer in BTC as safe haven assets.
I don't know... Think about it! If you like the content, share to reach more people.
Are you going to lose your money if $BTC falls again? I don't believe it...
There are people who at this point do not buy the assets that would surely give them profits when they see their price rising and not because it is too late, but because they are afraid of being trapped, but I tell you, that is not going to happen if you know how. protect their investment with "insurance for their investment in futures" and understand that the best projects can give them profits even if the price falls and well, you may wonder how?
That's very easy. You must have insurance for this fall, because of course, risk management also applies to Spot, or what did you think, that you can only do "average trading"? Of course not...
The magic word is "futures" yes, just as you hear it, while you are long in spot, because it is the only way to win in that way of investing, you can place a "stop" price to open a short position as of "coverage" or hedge when you no longer feel comfortable with the loss equaling the volume or lot of the position in spot... (it is never mandatory to go to maximum leverage in futures) although newbies believe that this was invented to apply it to 500x and nothing more false than that... Although of course you can do it then.
As up, so down (long vs short = even) regardless of leverage and you would also have the opportunity to earn the financing rate.
Hedge contemplates an opportunity to win even in both positions, but to do so you must know how to trade and not just hold.
Are you interested?
Find me on Telgrm as AMTranding and leave the fear of investing in the top ten of the coin market cap even when their price falls.
Some time ago I made a post on a FB story where I made a 300% profit on a futures trade of $BTC and a person asked me what I did. I gladly told him that I was a digital asset trader and he asked me if I earned well... I told him "if I knew how to do it well, yes."
I told him that I consider this job as being the owner of a store that I can open at the time I want, to sell "products and digital assets" that I want within that store, which I first purchase on sale and then sell. more expensive as a "rule of thumb". I knew he understood that perfectly because I saw his face with a certain disdain...
However, when I told him that I made that profit by buying high and selling low, because I could also sell very expensive products and assets at a relatively lower price and still win, his surprise was so great that he even told me a little upset 😠 ... "Eh, that can't be done." I laughed a little and explained to him what it means to go short, using precisely a tablet that he brought as an example:
"Imagine that you lend me your tablet (of a recognized brand and a recognized model), which at today's price is 1000 dollars, I sell it perhaps a little cheaper, let's say 980, but then, I wait a while and when the same model, the same brand and even the same color drops in price, let's say 650, I buy it again and return it to you. Now tell me, did I make money in that transaction? It stayed...🤔👌🤐
I told him, obviously you are going to be upset if I do that with your tablet today, because you are giving me the confidence to lend me something that is yours and that you surely want me to return to you in full. But in "my store" I have the assets that I can buy and sell and with which I can go long or short without problems, earning the percentage differences of the transactions I make according to the amounts of my investment, always under a certain risk... Oh and the inventory is practically unlimited.
We know that "smart money" plays dice with the price of crypto assets, but I truly hope that you have chosen to invest in assets of real value and scalability.
I know that there were memecoins, tokens and shtcoins that gave a your wallet once the bull run is over.
And, while $BTC gets the flu in the "bearish market" and the top 4 that follow it $ETH , $SOL , $BNB and $XRP get a cold, the rest of the tokens get COVID or fulminant pneumonia. Therefore, we must focus our attention on achieving a balanced portfolio and converting our investments into true profits that we can enjoy.
Let us then seek to establish the criteria of Utility, MarketCap and Scalability of the projects to invest in them with confidence.
Always respect the golden rule "buy low and sell high" or "go long at low prices and short at high prices."
Being faithful to the idea of diversifying, I leave you an idea of percentages for your medium and long-term investment.
BTC 30%, ETH 20%, SOL 15%, BNB 10%, LTC 7%, XRP 5%, ADA 3% and Alternative Tokens the rest in the proportions you consider appropriate.