The main idea behind Bitcoin1% methodology is Newtons law of inertia, what is in motion wants to stay in motion. Meaning if there is a clear & strong trend in any direction, it will want to continue in that direction. So how do we take advantage of this universal phenomenon? Once a strong trend is identified, we want a position, but we won't just enter anywhere, we wait for a pullback, then patiently wait for those swimming against the tide, to get exhausted & once they are exhausted, we step in to catch the next impulse. Thats the fundamental principle of high leverage trading with Bitcoin1%
This also means if there is no followup move, as it happens often in sideways market(No Trade Zone) you're likely to get caught up in a bad trade. So avoid indecisive market. Only trend is your friend
This also means that if there is no structure & the market gives a vertical line, we are unlikely to catch a trade, in such cases you can activate 'Long/Short Lines' & use it to take position manually
METHODOLOGY OF TRADING
5 IMPORTANT POINTS
1. AVOID NO TRADE ZONE
The sideways market is a deadly trap for leveraged traders & is best avoided. This No Trade Zone is characterised by good looking setups that fail frequently on both sides. After a big movement market generally goes sideways for a couple of days, wait it out. A good trader knows when not to trade, because trend is your friend.
2. WHAT LEVERAGE?
Whatever you're comfortable with. Beginners should start at 5x
I trade at 40x some trade at 100x However we recommend you do not go over 70x
3. WHEN TO TAKE PROFITS?
As the name suggests Bitcoin1% recommends you take profit at or before 1% movement in price of BTCUSD. More often the run continues well beyond that, so it's the trader's choice. Bitcoin1% augments you with partial & total exits along the way, in both directions.
4. WHERE TO PUT STOPLOSS
1% or more; you can also incorporate a larger trailing stop.
When Bitcoin1% indicates a trade, say a long trade, its basically telling you "bitcoin is more likely to move up 1% from here than down 1%" If you agree with Bitcoin1% you take the trade; set target & stop at 1% Cheers!