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No its not a picture of Mickey Mouse...🐭It's a super clear diagram on what key ingredients you need to find the 'sweet spot' = profitability. The thing is, most people are desperately hunting for the holy-grail, you know - that 100% winning strategy... the silver bullet. It doesn't exist - I'm sorry. 😢 So even a profitable strategy that's awesome can blow your account if the other 'factors' are not considered.... Greed and risk management. With poor risk management you can blow your account on a profitable strategy. Much like if the casino didn't set a trade limit - they could go bust if a gambler got 'lucky' - because its the casino that has the mathematical 'edge', right? You must factor in your losing runs to ensure you not exposing your account to the 'risk of ruin'. So yeah a profitable 'edge' is key, but without managing your mindset and using effective risk management, its actually useless too. Having an understanding of probability is fine too - but if you don't execute your 'edge' or if you don't have one, you won't be profitable too. And lastly, yeah - you can have your risk management nailed on - but if you've not got a profitable edge too, you'll lose money. Just less money. You could absorb 500 consecutive losses on a £1000 account at 1% risk per trade, but you'd only have about £6 left. Your strategy would have to be really poor for that to happen! But you catch my drift, that effective risk management is vital. So in summary, you need these three key ingredients... Strategy with an Edge Effective Risk Management planning for probability Trading Psychology - (greed under control, no fear, discipline, resilience, etc) You can't get to the 'sweet spot' without all 3 being in perfect alignment. Good luck. Darren If this helps - please show me by liking this post if you can, its appreciated and I'll do more like this 😎
Education
by pow_removetheguesswork
3
Statistical approach to risk management - Python scriptThis script can be used to approximate a strategy, and find optimal leverage. The output will consist of two columns, one for the median account size at end of trading, and one for the share of accounts liquidated. The script assumes a 100% position size for the account. This does not take into account size deviations for earnings and losses, so use with a grain of salt if your positions vary greatly in that aspect. Code preview cdn.discordapp.com/attachments/592684708551327764/848701541766529034/carbon.png TradingView does not allow posting external links until you've reached a specific reputation, so i can't use the url feature Input explanation WINRATE : chance of winning trade AVGWIN : average earning per winning trade AVGLOSS : average loss per losing trade MAX_LEVERAGE : maximum leverage available to you TRADES : how many trades per account you want to simulate ACCOUNTS : how many accounts you want to simulate the inputs used in the source code are from one of my older strategies, change them to suit your algorithm Source code pastebin.com/69EKdVFC Good luck, Have fun -Vin
VEducation
by Vindruee
BTC WILL BOUNCE ON JUNE ? We are on a simetric triangle that could be bullish or bearish, I'm bullish since we have higher lows. - We don't have much volume since the CME Globex Trading Schedule is on Holidays for Memorial Day (28 May - 1 June 2021) - The action price looks clever, the miners keeps holding. - Project Jasper is developing a new way of payments allowing works with bitcoin. - Investors and institutions started to invest in BTC. - Could be the end of wyckoff. - ADX is bullish/range since not have force enouth - Weekly RSI : 44 - Daily RSI : 32 Conditionals: - Hold the 30k -33k triangle. - Hold the 30k support. Bearish scenario. - Current behavior from Long-Term Holders and Short-Term Holders only resembles two other times: 2018 bear market & 2013 consolidation between double pumps - If we lose 30k - 29k Support we could reach 20k - 19k and then bounce. Things to consider: - Montly candle is the key for the possible scenario. - The volume will start 2 - 3 June. - Big meeting of BTC : Bitcoin Conference 2021 (4 - 5 June) - Goldman Sachs changed opinion about BTC. - Chinesse Mining Enterprises are considering move to EU and USA mostly, which is not great for the crypto but maybe for the price because big institutions will get more confident since the goberments start to dig and tax the mining and have better control of exchanges.
Long
by awstian
USOIL 6-1 Retrace ShortWith summer quickly approaching the initiative in the oil market has changed with more aggressive bids similar to what was seen in December of last year. With inflationary conditions in the market becoming evident and supply chain issues causing major ruptures across many markets I still have very a bullish outlook on Oil. That being said, I also expect for a retrace before a continuation higher next month for Oil. This end of month unwind is not uncommon as contracts are rolled, settled and options approach expiration. My ideal target for this trade would be 64.70 where auctioning really picked up in the past 10 days for oil which offers a 6-1. I placed my stops above highs to prevent any impulse move from causing unwanted drawdowns. Feel free to share your opinions and refer to my other post for longer term projections.
TVC:USOILShort
by crawfordpaul
BTC is now 1:1 value with the DJI where do we go from hereSo got a nice line up for tonight bitcoin and the down jones are an even bet right now at 1:1 you can by one bitcoin or one issue of DJI both cost the same, but do both have the same future profit potential ahhhh now you can see why they want you to see cryptos as dangerous and a failure, the Feds have been talking down bitcoin along with other governments while they are all taking steps to turn their own currencies into crypto.... mean while companies that house crypto exchanges are setting the ground work for regulation from the feds this has split the crypto market in half one half is regulated through exchanges and the other half through digital wallets, privacy coins and subnets
OANDA:BTCUSDLong
by RobinhoodFX
We are in 27%+ on spot so far If you followed my activity probably you now that we managed to short the top of the market, and we bought back the bottom as well. The market bounced from out long position and our community members managed to gain 27% on spot so far, we also set a break even stop just in case of a surprise event, but we do not expect any major pullback until we will reach the 58-60k levels. Some of our latest results: ETH: short: 4320$ stop out 4454$ ---> 1st target 2500$ ----> 2nd target 2000$ profit(spot):52% | profit(5xLeverage): 258% BTC: short 51k$ stop out 52k$ --->Profit: 240% (5xleverage) ------> 1st target: 33k$ ------> 2nd target 30k$ Open long: 33k$ -31k$ ---> stop out 29250$. ----(Modified to break even: now we are risk of from the bottom) Pending: 1st target: 55k 2nd target: 58-60k Thank you guy being a member of our community! community.protradersnetwork.com
Long
by tmsarn
GOLD 200DAY / 1,800 RETEST provides a compelling opportunityOne has to imagine that gold will find its way back to its 200 day before marching on higher given the fundamental tailwinds. If gold trades down to 1800 and we get a nice close above it - I would believe this to be a compelling opportunity to get long or add length if you took a more aggressive entry prior to the breakout. A change in market sentiment with respect to the USD, or a FED hiking cycle beginning sooner than anticipated (or the anticipation thereof) , would act as a circuit breaker to this trade. PDC
OANDA:XAUUSDLong
by Parkdale-Capital
Ethereum Rebound to 3700 in trend channel - See it!Dear traders, A picture says more than a thousand words. You see here the hourly chart of Ethereum and we have just made a double bottom, reached the bottom of the trend channel and are heavily oversold. It's time for a short recovery in my opinion. Prices never go down in a straight line but they do go down in a saw tooth pattern. Let me be clear, I am not bullish anymore for this moment on Ethereum but for the short term I see a possible rebound to around 3700 / 3800. As a trader and investor, I believe more in the value of Bitcoin. Simply because the circulation is limited to maximum 21 million coins while with Etereum it is unlimited. Yes there can be mined coins as much as they want. One can just change the algorithm there. Not with Bitcoin because the maximum is already known. What they do is halving Bitcoin every 4 years. You can read about it on the internet. It means that the degree of difficulty is doubled. This means that mining can continue for a very long time with very powerful and expensive equipment that quickly becomes obsolete... That mining is necessary to validate the payment transactions on the blockchain. Because it takes more power each time to mine, Bitcoin does need to get more expensive to get out of the cost as a miner. I know this because I was a miner myself but changed because trading is better and less risky. If Bitcoin starts to rise faster than the ALTS we are also going to see a correction in those ALTS but that all remains to be seen. That is the Bitcoin dominance. It is important to trade what you see and not what you think! Patterns change all the time and you need to adopt you to the new situation. You need to be able toswitch from long to short and vice versa without hesitation. This market is volatile and goes fast up/ down. Don't run behind prices because often you are too late. Better plan your trades at the lower boundery of trenchannels for longs and simular techniques. Than you can make better profits with less risk. Risk management is everything! Traders, this is purely my personal idea about Ethereum /ETH and not an investment or trading advice! As a trader you should always do your own research and protect your capital with money management. The famous 1% rule or you risk to get to a zero account. With the 1% max loss per trade rule you can trade for a very long time. Do also not overtrade! If you guys appreciate my work it will be a motivation for me if julle give a thumbs up and follow me for updates. Wish you all great and safe trading with lot of profits! Take care!
Long
by PegasusTechCharts
29
DOGEUSD - STILL NOT ENOUGH SUPPORTYesterday I shared my opinion about the price evolution of Doge. Today I will share you my pending position on Doge as well. Yesterday I told you that there is an opportunity to buy from 0.40$. If you did that, congrats to you, but you can buy from 0.25 ( that means nearly 50% discount from current price). Right now I am planning to play with the hype, but only from fundamental values. BTC is still in a corrective move, the market need to kick out the weak hands. If you want to play safe, you can use my setup in order to have a profitable and low risk reward trade. (Max loss on this trade -9% expected profit +290% - since DOGE is a highly speculative coin I had to increase my SL level to 9-10% in order to survive the correction). See the charts attached below: Consider to join our community to get more of this kind for Free. community.protradersnetwork.com #forextrader #forex #forextrading #forexsignals #forexlifestyle #trading #money #cryptocurrency #trader #bitcoin #forexmarket #forexlife #technicalanalysis #stockmarket #forexanalysis #forexmentor #daytrading #forexgroup
Long
by tmsarn
2
RISE MY PIPS!This is an interesting one! the pair hit the resistance at 85.00 and then started its short wave but around the mid point of the trend coloum it seems to have retracted with a strong reversal pip on the 4H time line. The STOC shows the buyers starting to take over as a crossover has appeared as aswell as a strong buy signal on the 1 hour timeline. the moving averages have crossed over and are looking towards a long position. Im entering after i receive a strong indication of the reversal taking place. TP and SL could be set in a 3:1 ratio for those juicy pip profits. My TP is set at 85.00. READY FOR THE JUICY PROFITS HERE!!!!!!
Long
by simonbland
BTC/USD price action - final stageAnalysis: Bitcoin latest buy opportunity just right here, since we started a positive feedback loop, and we are at the start of a positive correction. Risk reward low, this could be a potential long term trade since. I would like to mention that I am not always bullish, we can have a sudden flash crash as well, but using my risk management strategy, you can make money on your own without loosing your capital. NEWER TRADE WITHOUT EXIT PLAN!!!!! Trade: BUY 1st trade entry: 53200$ 2nd trade entry: 54100$ 1st target: 68k 2nd target: 95k S/L: 51900 Check out my yesterdays catch - chart is attached below. Consider to join our community to get more of this kind for Free. community.protradersnetwork.com #forextrader #forex #forextrading #forexsignals #forexlifestyle #trading #money #cryptocurrency #trader #bitcoin #forexmarket #forexlife #technicalanalysis #stockmarket #forexanalysis #forexmentor #daytrading #forexgroup
BITSTAMP:BTCUSDLong
by tmsarn
5
The Put/Call Ratio in a NutshellWhat is the put/call ratio? The put/call ratio (PCE) is a popular barometer of market sentiment, which shows the ratio of trading volumes of Put vs Call options. However, with distortions in the current price of nearly every instrument off the back of "free money," and persistent market intervention by policy makers, we're not quite seeing the price discovery we're used to, which has made it more difficult to make sense of the Put-Call, and other technical indicators as well. What is a derivative? To understand the value of the put/call ratio, we must first understand the derivatives market. A derivative is a (leveraged) instrument, which gives the holder a right to either buy (call) or sell (put) a specific amount of a stock (or other instrument), at a specified price, and timeframe. If your'e holding a put, you're likely expecting the price of the stock to fall, while holders of calls are expecting the price to rise. Puts are usually used as a solid hedging tool, while calls are more often related to speculative behaviour. How to use the put-call ratio? When the put/call rises above 1, it indicates that market sentient is shifting more bearish. At the moment, we're looking at a put/call of around 0.46, which indicates that market sentiment is very bullish, and actually, it's been bullish for quite some time as you can see in the chart. When we see a massive shift in the put/call back above 1, naturally it would be showing that investors and traders are becoming more defensive.
USI:PCEEducation
by Hedge_Of_The_World
32