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Common TradingView Mistakes and Friendly TipsIn this video idea, I share some common mistakes I see people make when looking at and interpreting strategies and indicators on TradingView that may impact their profitability when trading. I also share some helpful tips on how to avoid falling for other people's mistakes by getting sucked into public strategies that seem too good to be true, and also how to use some of the more undervalued features on TradingView to help improve your experience.
OANDA:SPX500USDEducation
by BigBitsIO
5
How To Trade Classical Head And Shoulder Formations.________________________________________________________________________________________________________________________________________ Hello Traders Investors And Community. Welcome to this idea about the classical head and shoulder top formation which can be found on smaller timeframes as also higher timeframes. Although there are inverted head and shoulder formations and formations which brake to the upside than to the downside there are often failures in these formations whereas this is the classical formation confirming the reversal with volume and the activated price-target with a high probability. The formation can be divided into 5 phases with each phase confirming the ongoing formation and besides that minor phases and major phases which increasing the possibility for the head and shoulder formation to form the final breakout and confirmation. The formation can be traded in several ways where the most common ways are either with the final confirmation or before the final confirmation, both with different risk-preferences and fitting to each trader individual approach. ________________________________________________________________________________________________________________________________________ Confirmational Phases 1.) Buying Climax On High Volume 2.) Consolidation And Declining Volume Upside Attempt 3.) Upward Breakout With Lower Volume To Prior Climax High 4.) Another Consolidation Like (3.) With High Declining Volume 5.) Neckline Forming By Lowest Point With Following Breakout ________________________________________________________________________________________________________________________________________ First Phase: Up to this point a strong upward breakout is reaching up to new highs with increased volume, this looks just like a continuation of the priors established uptrend till bearish pressure sets in and the first signs of weakness showing a possible stopping of the uptrend with firstly declining volume. Second Phase: In this phase, the price forms a consolidation zone which can look like a bull-flag or triangle in decreasing volume before it shows an upside breakout on low volume, this is also forming the overall left shoulder and the established channel can be used for the ongoing measured right shoulder. Third Phase: This is an important phase and the key point of the formation where another upside attempt follows with significantly decreased volume forming the head before showing a markdown with still lower volume marking weakness of the bulls and a continuation of the head and shoulder formation. Fourth Phase: This is the last attempt to form new highs in the structure with lower volume compared to the phases before and normally low momentum showing the increased weakness of the bulls before the initial markdown shows up and set up for the final breakout confirmation in the fifth phase. Fifth Phase: The final confirmation the fifth phase showing the break of the prior established neckline and therefore the last confirmation point where a breakout happens with high bearish volume confirming the following moves to the downside and activating the overall head and shoulder downside target. ________________________________________________________________________________________________________________________________________ Trading Approaches A.) Trade The Final Confirmation B.) Trade The Right Shoulder Forming Trade The Final Confirmation: In this approach, a trade on the short-side is placed when the dip down of the right shoulder penetrates the neckline which is confirming the overall formation, the stop-loss is placed above the right shoulder, a variation of this is to sell short when the right shoulder has finally broken the neckline to the downside but as this move can be volatile and fast it has to be done before the selling pressure sets in, the minimum target is the price projection from the high at the head of the formation to the neckline measured from the breakout to the downside. Trade The Right Shoulder Forming: This is the more speculative variation but can result in a good risk-reward and profit potential, in this scenario the trade is placed when the head with low volume has formed, price touched the neckline and the head of the right shoulder is forming on decreased volume, the stop-loss will be placed above the head of the formation or above the right shoulder. Placing the stop above the head of the formation in this variation will be the more logical and conservative approach, the targets in this variation are the same like in the first one with price projection of final confirmation. ________________________________________________________________________________________________________________________________________ When spotted right and traded in the mentioned manner the trade of this formation can lead to a good profit. Also, the volume is playing a major role in this formation, although it can vary in some cases it will add to a high probable trading setup on the short-side. There are other variations of the head and shoulder formation but they arent that accurate in the approach like the classical head and shoulder top formation pointed out here. ________________________________________________________________________________________________________________________________________ In this manner, thank you for watching, support for more tutorials and a good day! trading effectively is about assessing possibilities not certainties Information provided is only educational and should not be used to take action in the markets. ________________________________________________________________________________________________________________________________________
BITSTAMP:BTCUSDEducation
by VincePrince
32
Profit factor world record!!I spent a week curve fitting Lambo script for the SPY/ES futures market and today all the parameters hit the sweet spot with super high profit factor. I did it by severely limiting the script's ability to go short. All metrics for trade entering is very specific with longs operating off a 300 moving average and shorts operating off a 120 MA. I used FRAMA as the main MA and DEMA to determine tops so that longs don't get trapped. No stop loss. The primary mechanism triggering when to buy and sell is the indicator I created last week. I also converted CCI into one of the indicator rows for a total of 6 rows. The top row tracks CCI and the rest below track price. I also used VWAP. There are a ton of things going on in this script and it would be impossible for a human to check and confirm every and all parameters before trade entry. That being said, I wish there was a way to automate paper trades using the signals from a script. I'll release indicator prob next week.
CME_MINI:ES2!Education
by ZombieStar
14
Berkshire B - Next stop at?I am willing to invest in this value share but really... I have no clue as to where it is going. Is it a buy or is it going down? The chart says a good short will give you a huge profit. But... this is Warren Buffet. Is it his moment of truth? I am going in with my paper trading account for a long. historically it should go up. But the current situation in US says auch. Who can shed a light on the next election results in favor of Liberals? What would possibly be the effect on this share. BTW I m a noob. Just started. But I want to go long on this one.
NYSE:BRK.BEducation
by WileyCoyote_
WHY CAN´T I BE PROFITABLE??!!Every trader has got himself into a loosing trade. This is simply the part of this game. You will never be able to predict every move correctly. The biggest thing that separates a profitable trader from an unprofitable trader is actually not better technical analysis or more experience. The biggest factors in my opinion are trade management and risk management. These two components will have immense effect on your profitability. With good risk management you can be profitable even if you are right on less than 50% of your trades. Good risk management means you know where you should get into a trade so you can set a stop loss (which upon hitting it should invalidate your entry) relatively close to your entry. This makes your losing trades much smaller than your winning ones. And the result of this ratio will be seen in your profitability through time. On the picture above you can see how one of my last trades went. I got in on the close of the candle marked with a green arrow. The trade then quickly went against me. But with my risk management i minimized the loss by closing the position when it closed below the red support line. I also put a stop(white support line) at a level that would upon breaking very likely invalidate my my long entry. Even though i took a loss i do not regret taking that trade since taking losses here and there is a part of my strategy and it can not be otherwise. Yesterday i also posted about another trade i was playing on the s&p 500. That trade turned out perfect. And with 50% winning rate for that day i made some really nice profit simply thanks to my risk management. Here you can check out how it went You can also go check out my posts from yesterday on why i was taking those trades.
Education
by Mathsio
🧐Is your trading system (TS) profitable? Check it!👊🏻 Hello, friends!👋🏻👋🏻👋🏻 Most of you have heard the combination of the words "trading system" many times.🙉 Today I wanna invite you to check your trading system, think about it's profitable. Or maybe even think about creating it 💪🏻💪🏻 Let's Go🚀🚀🚀 🤜🏻 There are 2 ways to check if the system is profitable. The ☝🏻 way is trading in this system in real time, and the ✌🏻 is testing it. System testing takes place in 3️⃣ stages: 1. Preliminary testing. At this stage, the idea underlying your trading system is tested. 2. Optimization . At this stage, the best parameters are selected. 3. Final testing. Testing takes into account the money management system. Testing can be carried out in 2️⃣ ways: 🔺manual testing 🔺computer testing 💥 The main parameters, that will let you know is your trading system is profitable. 💥 🚩The total profit P (%) 🚩 The sum of all profitable trades S (P) 🚩 The sum of all losing trades S (L) 🚩 MIDD (maximum drawdown), drawdown 🚩 Recovery factor RF = P / MIDD 🚩 Profit factor PF = S (P) / S (L) 🚩 The total number of transactions 🚩 The share of profitable transactions (%) 🚩 The share of losing trades (%) 💥Often when creating trading strategies, traders pursue the maximum profitability of the system. However, it is more important not to increase the value of expected profitability, but to reduce the possible risk, which is expressed in maximum drawdown (MIDD). The empirically established boundary value of the profit factor is taken equal to 1.6.❗ If Profit Factor (PF) of your system exceeds 1.6,it shows GOOD 👍🏻 efficiency, if less - BAD 👎🏻efficiency! ⚡ I recommend you to test your trading system first on virtual money, and then on real money. After that you can see a suitability of your trading system, and then you can start using it. 😊😊I hope you enjoyed my post, don't forget to support me with like 🌞, subscribe, for don't get lost!💋 Below are links to my previous ideas👇🏻👇🏻👇🏻 Stay with me🌞 Your Rocket Bomb🚀💣
BITSTAMP:BTCUSDEducation
by RocketBomb
16
🧲If you want to be successful trader, you must read it🧲🌆Good night, guys!👍🏻 Each of us wants to be a successful trader! 👌🏻 🧷Just as a good technique doesn’t make a profit with the wrong tactics , the right tactics wouldn’t succeed if the overall strategy is wrong . 🧷 🏹With the help of tactics , battles are won, and strategy makes it possible to win a war. 🏹 🔗The strategy determines the opportunity: it doesn’t find an advantage on certain days, but establishes a common source of advantage in the market. 🔗 🧿Ideally, tactics are an instrument of strategy , just as technique is an instrument of tactics .🧿 🔺That’s can be imagined as a kind of pyramid.🔺 💪🏿💪🏿💪🏿Here some tips, how to become a successful trader: 📌focus on fully following your system on every trade; 📌think about weekly or monthly profit, and not about the results of individual transactions; 📌 monitor and analyze your performance; 📌at the end of every day, every week and every month, evaluate your actions and strive for greater success; 📌keep a positive mood; 📌avoid the negative effects of fear and doubt about your competence; 📌teach others how to maximize productivity and with the help of this, improve yourself. If you liked my post, subscribe and put 👍🏻 💋It will be grateful for your feedback🐾 ✍🏻Write in the comments topics, that you would like to read💕💕 Stay with me❤❤❤ Your Rocket Bomb🚀💣
BITSTAMP:BTCUSDEducation
by RocketBomb
6
Making the most of LIMIT UP for ProfitLimit up acts as a guaranteed stop, this early in the trading day it is likely that it will pull back - especially as it follows DAX. I traded a small amount (£100 per point) when it pulled back and bounced, perfect time to sell into the bounce, hold, and achieved 1000 points in around 90 minutes just before it turned negative. The DOW was limit up throughout Asian session, so there is some positive sentiment - probably following the massive decline yesterday. I have closed the position with 1000 points profit. I am expecting a slight bounce before possibly heading lower. I don't see it going back to limit up before the open. WallStTraderandCoach - 5+ years of trading my OWN money in the DJI, Always use a stop loss, Always put my own money behind my trades. Turned 10k into 1M + in my first year. Strategy is one thing, you need to change your frame of mind if you want to be successful.
OANDA:US30USDEducation
by WallStTraderandCoach
1
$10,000 x 1 YEAR = ???Dear trader, something to think about. Is it possible to make millions of $$$$$$$$ from $10,000 in 12 months? For sure! Check out this great story. *Daniel J. Zanger is a technical stock and equities trader. Zanger hit the media spotlight after audited returns showed he turned $10,775 into over $18,000,000 in under 2 years. Personal history Dan Zanger holds a world record for his trading one-year stock market portfolio appreciation, gaining over 29,000%. In under two years, he turned $10,775 into $18 million. Fortune magazine, wrote an extensive article on Zanger, covering his trading results after reviewing his IRS tax returns and trading records. Zanger grew up in the San Fernando Valley area of Los Angeles. His father was a physician & his mother was a psychologist. He started college but dropped out to snow ski for a few years in Colorado and Idaho. He had a few odd jobs, such as bell hop, cab driver and prep cook to support himself during his early twenties. Eventually, he moved back to LA with a high school education and no professional trade. He started working for a landscape company and eventually got his California contractor's license. He ventured into pool building in Beverly Hills as an independent contractor where he made a modest living from then on. His mother Elaine loved the stock market and Dan would often watch the Business Channel with her. One day in 1978 Dan saw a stock explode across the ticker tape at the bottom of the screen hitting $1. He made his first purchase and sold the stock a few weeks later at over $3. From that sale on, he was hooked on the action of the market tape, usually carrying a quotetrek device with him on his contracting jobs to stay up on stock prices. The Internet bubble As technology and internet stocks took center stage in the stock market in 1997, Dan began to see powerful moves underway. He sold his Porsche for approximately 11,000 dollars to have the necessary capital to jump fully into the market. Over the next year, he parlayed the 11,000 dollars into 18 million with the knowledge acquired over two decades playing the market and re-reading the works of William O'Neil. With this success, Dan was able to become a full-time trader and leave contracting behind. *From Wikipedia, the free encyclopedia It is not possible to get rich with normal job! don't forget it. I will soon show you a very powerful tool here on tradingview... I wish you a very good start in the new year. Best regards
BITSTAMP:BTCUSDEducation
by i-like-profit
4
ARE YOU LOSING IN THE MARKET? THEN READ BELOW Losing is inevitable. To be a successful trader you must truly truly understand this. Look back at my analysis. I have both winners and losers and I absolutely love them both. Why do i love my losses? Because I don’t see them as losses, I see them as lessons. Every set up that doesn’t go as I anticipated is crucial information that I must study and this is truly what has made me good technically speaking. I learn from my mistakes and I don’t repeat them. Second most important fact is Risk Management which ALLOWS me to learn from my losses. If my trade goes bad and I lose 1% or 2% on a trade, I don’t feel bad , I simply move on to the next trade and take the information the market has given me and STUDY it. The moment I risk more than 2% and the trades goes bad is the moment my mental being shifts, the emotions start rolling in. I want to close but the trade is valid, I get scared, question why I didn’t risk less etc and I’m sure you can all relate to this. Once this happens, it’s very hard to study the losing trade because you now associate it with pain and you avoid looking back at it at all costs. KEY TAKEAWAYS: 1. To succeed you must fail, to succeed after failure, you must gain experience from your failures. 2. In order to gain experience form your failures, you must manage your risk, by managing your risk, you are controlling your emotions, by controlling your emotions you are allowing yourself to think analytically. 3. Trading is game of probabilities not guarantees. Every trade only has a 50% chance of winning.
Education
by Malika_Analysis
4
HOW TO GRID TRADE: Keys To Your Lamborghini (A to Z Tutorial)Science Has Proven That Reading This Education Post Will Either Put You To Sleep or Put You On Your Path To That Lamborghini. Let's Start From The Beginning... (Print this entire tutorial as a reference) WHAT IS GRID TRADING? Grid trading is a type of trading, typically managed by a dedicated Grid Bot. In a nutshell, you select a range, you divide your range into equally spaced buy/sell grids (like trip wires, sorta). As prices zigzag up and down, your “trip wires” trigger buys and sells catching profits for you incrementally all along the way! If you start your grid as the market ranges sideways (which is 70% of the time) or when it is in a gradual upward ranging trend (15% of the time) then you are going to make money most of the time. Your goal in grid trading is to have price zigzag within your grid range as long as possible with a price exit from your grid out the top. About 15% of the time the market will ranging downwards but worry not, many times even if price exits the bottom of your grid, you may still earn a profit or at worst, have a minimal loss. Grid Trading requires far less skill and less management than most other types of trading -PLUS- it has far less risk. Many grid traders make better returns from grid trading than they do with any other trading strategy. Can you lose money grid trading? YES, but with a little knowledge losing money is hard. A consistent grid trader is a winning trader. BIGGEST BENEFITS OF GRID TRADING? It reduces your addiction to chart watching. It allows you time to eat, sleep drink and be merry. It allows you to exploit trading opportunities around the clock It allows you to manage your risks without emotions It allows you to follow a predefined trading pattern that often beats the ROI (Return on Investment) you're getting from other hands-on trading strategies. It allows you to trade with less concern about price direction. It may be a faster way to that Lamborghini everyone is always talking about! WHAT DO YOU TRADE EXACTLY? You may trade any cryptocurrency pair. For example, if you have QUOTE currency in USD (or USDT) you would use that to buy a BASE currency (like BTC) within your grid range. It all starts with an initial investment to get the ball rolling Then your BOT will buy or sell an equal amount at each grid line Buy and sell gridline "hits" are replaced with new limit orders gridline-by-gridline as you go along. Buy and Sell fees are whatever your selected exchange charges (over 25 exchanges are available). HOW DO YOU EXIT OR QUIT A GRID If prices exit out the top, you take your money and run! 100% profit. If prices exit out the bottom, give yourself a little wiggle room but you can pre-set a stoploss. Sometimes your earlier grid gains will equal or exceed any loss your stoploss might incur... like magic! Many grid traders only trade assets they don't mind holding (like BTC or ETH) and thus never use a stoploss. Remember: It is far better to take a smaller loss and move your grid to a new range than to get stuck in a coin you do not want to hold. HOW MONEY DO I NEED TO GRID TRADE? $100 would be a good start on the lower end. $1000 (or more) would allow you to run multiple grids simultaneously (which is a good idea). Regardless, you must follow good money management rules and avoid over investing in any one grid. 5% max of your investment capital per grid and never more than 50% of your capital across all grids will keep you in the game so you can maximize your profits. Remember, the Wright Brothers were NOT shooting for the moon at Kitty Hawk. They merely want to get off the ground! 10 REASONS MOST TRADERS ARE NOT GRID TRADING? 1) It's a macho thing. 2) It seems too easy. 3) It seems too good to be true. 4) They've never heard of it. 5) They don't know how to automate the strategy. 6) They love watching charts all day, drawing and re-drawing their Elliot Waves. 7) They paid big money for a signal service and are waiting for the big winning signal. 8) They are waiting to catch the next blast off TO THE MOON! 9) They tried umpteen other strategies and are now flat broke. 10) They thought grids were a side dish often served with bacon and eggs. 12 QUICK TIPS FOR STARTING 1) Open a grid bot account to assist with your automation requirements. 2) Connect your bot to your preferred exchange. 3) Start with a cryptocurrency you trust (BTC , ETH or a top 10 coin) . Something you'd be ok holding (HODL) if worse came to worse. 4) Wait for a market where you expect or anticipate sideways or slowly upward ranging price action. Use my indicators to help you nail winning grid areas. 5) Keep your total grid range (lowest grid to highest grid) within 4% to 8%. 6) Select a grid count that renders your grid spacing (distance between each grid line) to a space comparable to typical zigzags you see in recent price action. Typically a .5% to .6% spacing between gridlines (as measured on your Tradingview chart) is a good place to start. 7) After your settings are enter in your bot, click the BACKTEST button. Double check settings, make tweaks, backtest again until you are happy. 8) Invest MINIMALLY on your first few bots (say $100 or something you can afford to lose) . Think of your first grid bot as a "learning experience." 9) Set a stoploss below your grid (there is a setting within the bot for this). If you don't mind holding the coin if prices temporarily drop, then you can forego a stoploss. 10) Don't dream of riches, instead anticipate all goes well and you get a rather healthy ROI (better than a bank and perhaps better than your trading results/ROI using other non-grid strategies). 11) If your first bot does not go well (worry not, remember the first time you tried to ride a bicycle?) . Review what happened and try again. 3%, 5%, 8% gains might be just around the corner. Many people following my strategies are achieving 20% or more in gains over average 3 to 20 day periods. 12) Give your bot time to "do its magic" (perhaps 3 days, a week or longer) ... as long as prices are within your range, you can leave your grid up and running. Move your grid if price range changes. HOW DO I LEARN MORE? 1) Review my related IDEAS and TUTORIALS (linked below) 3) Explore my GRID INDICATORS (linked Below) HOW DO I AUTOMATE MY GRID STRATEGY? Explore further help and links at the bottom of this tutorial. PLEASE HIT THE LIKE BUTTON (and follow me... lots of great stuff in the works!) As always, I appreciate your support. Please share with others. ENJOY! Dan Hollings Master Crypto Grid Trader Please Explore My Other Indicators, Scripts, Grids and Educational Ideas. @ DanHollings on Tradingview.
Education
by DanHollings
7
What is an Hard Exit ? and a few notes on trading managementHi everyone Today I'm traveling so can't really share a script because A) it's not coded B) I'm tired C) no inspiration today so instead, I'll be spreading a bit of wisdom (if I may call it like that) I see a lot of traders out there solely depending on two main signals to exit a position : 1) A signal in the opposite direction 2) A stop loss to exit a position (fixed, or trailing) Those two points are a very good practice but what if you could exit a position before "sh*t will hit the fan" (pardon my french). For instance, you enter a trade, you see it's going against you, you're down 2% and your stop-loss is only a few % more away. Thanks to your experience, you know that when one of your trade goes down below a given threshold, it will wreck (= rekt in crypto terminology) you even deeper with a high probability. Obviously, sometimes it will, sometimes it won't and you'll never figure out the right stop loss level to handle all the edge cases... Let's now introduce the concept of a hard exit . What is it exactly? In short (no pun intended.... actually yes it was...), now thanks to your experience, you know that whenever a given indicator gives an opposite signal, you'll have to exit your trade if you don't have a positive trade balance. If positive, you know, that you should either set your stop loss to breakeven (entry-level of your trade) or exit it completely. When such a scenario happens, maybe sometimes, it's better to exit a trade completely when you have that signal before going to bed... Hands up anyone who took a trade before sleeping, thinking they'll wake up way richer and finally discovered they got margin called? or lost way too much money because their stop loss wasn't hit because that mean broker decided to use the "SUPER WRECKING SLIPPAGE" function to go beyond your stop loss... Your stop loss is looking at those candlesticks going above and doesn't understand what's going on... The example in the screenshot is very interesting. Let's assume a very simple strategy using the supertrend. When it's green, we go long, when it's red, you go..... (finish it) You noticed that the MACD Zero Lag will often allow you to exit the position before your stop loss will be hit and before the trade will go in the opposite direction. Sometimes, it won't save you any $$ doing so... but most of the time it will save you a few % of capital per trade and this will add up very quickly. (imagine saving a few percents or capital per trade multiplied by dozens of trades) I'm not advising to use the correlation between the Supertrend and the MACD Zero Lag here. This is just an educational example :) Warren Buffett said this: “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.1”. We all believe we're smarter than the average but 95% of us is losing on the market... this doesn't add up :) 95% is losing... let that sinks in. Does it mean that most of the things you read on Trading Twitter about guys taking leveraged trades and waking up with a brand new Lamborghini might be a fake story? (rhetoric question) Am I saying that you should close your trades before sleeping if not already winning? (rhetoric question again) "But sir I'm sure of those trades, I know the market, I'll be promised to go to the Valhalla by John McCaffee if I hold this XVG, XRP and TRX positions" (no one actually told me this that way but that's what I hear when someone finds reasons to keep losing trades overnight/over weekends) Those people generally have a plan in mind and they want to stick with it. Either because they're scared to exit and to see then their trade going in the desired direction... or because they're too stubborn. And even then, if you have a system giving you a few signals and you count on each of them to pay your rent.... you're doing that trading thing wrong my friend Either way, you have the choice between not losing or risking to lose big but maybe winning when you'll wake up. The best traders I know constantly doubt, optimize their strategies but never assume the market will favor them, not even once. However when they see a great potential profitable setup with an amazing Risk:Reward, they know that's with those trades, they'll have to go real BIG (betting the house, the wife, the kids, the car, ...) but certainly not with the already losing trades and hedging before sleeping ... (who...came up with those expert advisors using martingale during sleeping hours...very dangerous... ) If you wonder who I am to give all those lessons and scripts. I worked in a bank alongside traders for years, and I saw hundreds of traders/investors losing everything and I mean they lost more than their trading capital. This is truly sad because trading is a psychological game between you and the casino (market). We surely have more hedge than playing cards in a casino for sure thanks to technical analysis and that's why I got so deep into TA 6 years ago, made it a full-time job in a bank and learned everything I could to secure my trades/investments and become an emotionless machine when trading. That's why I made the Algorithm Builder, to remove most of the psychological aspect. This made my own and my clients' trading way more enjoyable. More to come about it tomorrow or the day after. Wishing you a great end of your day Dave ____________________________________________________________ Be sure to hit the thumbs up - I'm an officially approved PineEditor/LUA/MT4 approved mentor on codementor. You can request a coaching with me if you want and I'll teach you how to build kick-ass indicators and strategies Jump on a 1 to 1 coaching with me - You can also hire for a custom dev of your indicator/strategy/bot/chrome extension/python - if you like my work and wants to buy me some coffee : - BTC TipJar: 3MKDve7stWTe1io99oFxeQXvP8XB4zCQ8m - LTC TipJar: MC5oeBAhw9BLqyi65TR3J1Lid8io9uHADw
NASDAQ:AAPLEducation
by Daveatt
11
How to interpret the results of my Dollar Cost Average indicatorGood morning to the US, Good afternoon to the EU, and Good night to ASIA This post has 2 purposes. 1) Showing you with the video below how to use my indicator Dollar-Cost-Average-Data-Window-Edition/ 2) Collect your likes and move up in the Pine scripters ranking (no shame) Let's start with the first goal here Here's a quick reminder of what's the Dollar Cost Average investment/trading method Dollar-Cost Averaging is a strategy that allows an investor to buy the same dollar amount of an investment on regular intervals. The purchases occur regardless of the asset's price. My Dollar Cost Average (DCA) indicator will analyse for the defined date range, how the DCA method would have performed vs investing all the hard earnt money at the beginning If you missed the video above, here's the link again Dollar-Cost-Average-Data-Window-Edition/ (Yes people ask me info that are on the description, screenshots, videos so please don't take it personally if I repeat myself a bit, trying to get my inbox empty by the end of day and receiving loads of questions already answered won't help :p) The DCA performance versus Your trading performance Full disclosure here before going further ..... it's not because a DCA methodology worked in the past that it's guaranteed to work in the future. Otherwise, trading will be too easy and we''ll be all multi-millionaires But as we say often that the "trend is your friend", dollar cost averaging on a bullish market in a daily/weekly/timeframe is often (but not always) a way to make a decent amount of money To be honest, most of my friends who dollar cost average are making much more than many of my traders friends who're staying hours per day in front of the chart. They take less trades but they're consistent with their method. DCA allows to reduce the stress of trading, the stress of chosing the right moment, the right news and the right crypto animal twitter accounts to follow. A day trader, is more likely to commit mistakes in my opinion. This is certainly not because you take more trades that you'll have a better performance and I hope my tool will highlight it for you. Taking more trades increase the risk of losing as each trade is an opportunity but also a risk and the higher the number of trades, the higher the risk is of losing your previous gains This educational post is not an invitation to DCA blindly and abandon your trading not all. Because if you do, I'll be unemployed... but a great way to introspect and think and ask yourself the good questions : - Am I outperforming a DCA method ? - If my personal performance is negative or way below the DCA, should I reallocate part of my trading capital into a DCA-oriented methodoogy ? The DCA humbled me a lot on assets that I was so sure to have a killer performance with my trading. It has been and still is a great trading lesson that I'm sharing with you today See you tomorrow for the strategy version of that indicator which will help you compare side to side your own strategy vs a DCA ____________________________________________________________ Feel free to hit the thumbs up as it shows me that I'm not doing this for nothing and will motivate to deliver more quality content in the future. - I'm an offically approved PineEditor/LUA/MT4 approved mentor on codementor. You can request a coaching with me if you want and I'll teach you how to build kick-ass indicators and strategies Jump on a 1 to 1 coaching with me - You can also hire for a custom dev of your indicator/strategy/bot/chrome extension/python
BITSTAMP:BTCUSDEducation
by Daveatt
1
How to use the Risk to Reward/PnL toolHeyaaaa As promised, here's the video tutorial showing in silence/muted how to use the new indicator published today Risk-Reward-InfoPanel/ I'll try from next week to buy a microphone and you'll all hear how nice is my french accent.... I can imagine the complains I'll receive saying no one understood anything. Will be fun for sure Anyway, please let me know in the comments section if anything is not clear. You have the source code for FREE so I'll hope you'll learn from it and invent something cool, sharing with the community and pay me royalties. Don't forget the French arm who fed you in your young trading years my apprentices. PS Remember my Trade Manager (Open Source) version ? Trade-Manager-Open-Source-Version/ ? You for sure can connect the Take Profits and Stop Loss to a Risk/Reward and PnL panels. This will update in real-time your PnL based on the data on the chart this time I did it myself this afternoon with my version of the Trade Manager See y'all tomorrow for a new indicator/new day Dave
BITMEX:BTCUSD.PEducation
by Daveatt
2
How to Trade to Win"Those who lose - trade not to lose. Those who are successful - trade to Win." Losing Vs Winning Most traders are more focused on not losing than they are on winning. Do you understand what this means? This means you are acting not in your best interest, but against your self. By focusing on how much you can or might lose, or on not losing, you increase the likelihood of making mistakes which ultimately lead to a losing traders equation, and a negative equity curve. Profitable traders do not care about losing. They understand it is part of winning. They focus on winning. What is the best move in this moment? Should I get out or continue to hold based on what the market is telling me? Winning traders accept the risk totally and completely; before getting into the trade. In other words, they have already lost what is on the line. Therefore they act in their own best interest, not based on their thoughts about what they could lose, but based on what the market is telling them to do in this moment. Other than this psychological difference, here are a few other key components on How to Trade To Win. Defined Edge - Every trader who is making money in the market has some form of edge which he employs. Even if his edge is purely intuitive. This is extreme and rare however, and most traders have clearly defined their edge and will only trade that edge. This removes randomness. Many beginners think they are going to study the market and be able to trade the market no matter what it is doing (trade intuitively). This is simply not the case for most. The purpose of studying the market is to identify opportunities in form of an edge. An edge is a setup or context which repeats itself over time. It might occur once a day, once a week, or once a month. It does not matter. All that matters is that you only trade your clearly defined edge, and leave the randomness behind. For more information, you can read about the edge I use in every market I trade. We also describe how you can develop your own edge, and trade it in any market. Stop Doing, Relax Efforts - If you are losing in the market, chances are you are doing too much. Many beginners, and even experienced traders think they must be trading in order to be a successful trader. This leads to random trading, over trading, and mistakes which compound themselves. You end up digging a hole, and instead of looking for a way out, you look for a different shovel. The harder you try to make a profit, the more you do, the more actions you make, and the more you lose. The market rewards those who are observant, disciplined, and most importantly patient. The market takes from those who try too hard, and do too much. If you dont believe me, try as hard as you can to make money, and see how you do! By relaxing your efforts, you relax your mind. In turn relax your actions and decision making. You do not have to trade every day to be a profitable trader. It sounds paradoxical doesn't it? How can I make money trading if I dont trade? By only trading when it is appropriate like when your edge is present, you better your odds of success. Profitable trading does not come from trading constantly. Profitable trading comes from the act of non-doing, and out of a state of emptiness. Profitable trading is effortless, it comes out of waiting for just the right moment before taking action. And then waiting some more while the market proves you right or wrong. Profitable trading is not forced; it just happens. Active VS Passive Trading - This is very similar to the previous topic. Active trading is a trader who is constantly in the market, trading whatever he see's or feels right. This trader is often wrong, and when he is right he makes the mistake of exiting too early due to fear. This leads to a negative traders equation as he continues to struggle to do the right thing. An Active Trader mentality is one which does not believe in "non-doing." He believes he must, and can, do something. He is afraid of missing out and is often swayed by thoughts and emotions. So he continues trading never looking back, and at the end of the month cannot figure out why his account is in the red. A Passive Trader is the opposite. He passes on more trades than he takes. He does not care about what he misses out on. He only cares about what he takes and the actions he makes in the market. He does not force trades, he just watches the market until he knows what to do. Or he waits and waits until his edge finally sets up. He is passive in his efforts, rather than active. He does not care if he doesn't trade today, this week, or even this month. Trading is not what is important to him; winning is. He knows that profits come from sitting, waiting. Because he is willing to wait, he is peaceful. And profits continue to come into his account, effortlessly. For more information on developing this type of mentality, see below. We also detail how to understand markets through price action, how to create, define, and employ an edge, and how to develop your traders mentality to succeed in markets. If you found this helpful please like! Feel free to comment or ask questions
Education
by tradersmentality