Trade Strategies And An Update On One Of My Trades

#altcoins #altseason

Traders,

As we approach what I anticipate to be a bullish second half of the year for crypto, there may be some volatility. Last minute flash crashes could occur which would potentially liquidate some of our longs. So, we have to set our stops accordingly.

There are two strategies here that would get us through these type of liquidation events.

1. Set our stops low enough so that we can avoid liquidation (this doesn’t seem to work well for me), or

2. Set our stops fairly tight and be ready to be liquidated. Then attempt to re-enter at a lower price.

I guess there is another strategy which is one that I was burned on during the LUNA crash and that is to take out your stops completely. This is not recommended unless your entry makes up only a small portion of your entire trading portfolio. I’d set a threshold of no more than 8%, but even that may be a bit high pending your own risk tolerance.

Anyways, for the purposes of demonstrating safe trading on my public portfolio which all of you have access to, I usually bet no more than 20% per trade (avg. is closer to 15%) now and take on no more risk than a 2/1 rrr. This keeps my stops fairly positioned. The rrr increases as I become more bullish but should never drop below 2/1 (i.e.- I almost never enter a trade with a 1/1 rrr unless it is large-cap like BTC).

Additional strategies I implement include taking profits when it is reasonable to do so (i.e. - 20%+ in one day + hit on resistance). I also tend to trail my stops to prevent losses if possible.

And that brings me to a current trade. I was stopped out of this trade for a profit but it was a small profit. Upon review however, I still see some very positive indicators supporting a big send soon. Let’s take a look at what I am talking about.