Disclaimer: The information from this article and analysis is for informational purposes only. It is not intended to be an investment or financial advice. Seek a duly licensed professional for investment advice.
This month we have been profitable again, based on balance we have been 0.61% profitable (Ⓢ23.54 from our Ⓢ3,856.94 balance). Based on closed positions, we have been 3.95% profitable (Ⓢ152.17 from our Ⓢ3,856.94 balance). The difference, as you can imagine, is in the opened positions. There are more than 30 open positions and -Ⓢ128.63 in losses.
I'm delighted with the result from this month (even if we only account it as 0.61% of profits) because this month Bitcoin has been moving profoundly in both directions. In one day it went from almost $12,000 to nearly $14,000, and the next day it fell to almost $10,500. It started the month at $8,500 and ended at $10,800. We all know how the Bitcoin price can affect the entire market when you are crypto-trading, so a profitable system, with this situation, is a win. However, I'm not yet pleased with the strategy.
After analyzing the Providers' Analytics view, I decided to pick up providers with a high win rate that send many signals. Instead of following the providers' recommendations, I applied the insights that I got from the Providers' Analytics view.
The idea was to get a small profit as fast as possible and reinvest the amount in a new position. This also would contribute to increase my monthly traded volume.
If you check the first week, it didn't work.
I made the mistake of basing my numbers on the average data, which resulted in not being a good idea. Then I used another source of data, I went to the selected provider, in the signals section, and I used the sorting feature of the signals' table. So I could see how down, a specific provider usually goes, and at least how high it usually reaches. I also removed the stop loss, and change it by the Time-Base Autoclose option. I can't tell if this was a good idea or not because after the day Bitcoin fell almost 25%, I lost Ⓢ250 during the next two days. Some positions were closed with huge losses, but I'd have had stop losses instead of closing by time, my account would have been opening positions's a closing them by stop loss, over and over. I could have had fewer losses per positions, but more positions with losses. Because of the Time Base Autoclose, my full balance was invested, and no more positions could be opened. I guess that the stop loss would have worked better, but I can't tell.
My total win rate was 89.83%, which is really close to what I looked for in the Providers' Analytics view (providers with more than 90% of win rate), but the small target I've configured and the huge losses that the Time-Based Autoclose provoked, limited my profitability. This strategy goes against the famous quote Cut your losses short and let your winners run, so we still need to retouch it.
- Limit your losses.
- Increase your earnings.
Limit your losses
To limit my losses I'll analyze the Providers' Analytics view again and try to get some insights regarding where to place a functional stop loss; I have to balance it and give it margin for reaching the higher possible point.
Increase your earnings
The problem with take profits is that it's all or nothing. If you place it very close to the entry point (as I did, in some cases at 0.6% target), you will secure your earnings, but you will miss those that go higher, if you place it very far from your entry point, the price could never reach it, and you will lose everything.
A quick summary of providers that I used for this strategy. Again, I didn't follow the provider's recommendations, so you can't blame it for the results; it was me experimenting with my strategy.
Crypto Base Scanner
107 closed positions, 81 wins (75.70% win rate) and 0 open positions. Total profit Ⓢ57.50
This is one of the few providers where I set the take profits target above 1% (3%). It's also interesting that, as you can see in the image, there isn't any open position. So that's net profit.
306 closed positions, 236 wins (77.12% win rate) and 14 open positions. Total profit Ⓢ46.17, Unfortunately, the current open positions would have a big impact in the final result.
This is the only provider where I use the Accept Take Profits Values From the Buy Signal option. Some of its targets aim for an interesting.
533 closed positions, 475 wins (89.12% win rate) and 11 open positions. Again the current open positions will impact the final result, but I prefer to count it in the month that they are closed.
A lot of signals and good win rate, my target here is 0.8% of profits.
506 closed positions, 485 wins (95.85 win rate) and 6 open positions. The current open positions aren't so bad, so at the end this would have been a profitable provider for this strategy if I would have closed everything at the end of the month.
It sends many signals too and has a good win rate, my target here is 0.6%.
CTA Signals - Crypto Trend Alerts
357 closed positions, 342 wins (95.80% win rate) and 5 open positions but with huge losses.
A right amount of signals, but it didn't work with this strategy, the losses were significant, if we can increase the profits from the wins, it could do better.
CQS Scalping Free
10 closed positions, 8 wins (80% win rate) and 0 open positions.
Not many signals, which is normal, it stops sending signals whenever Bitcoin is moving considerably.
CTH - Scalping Signals
156 closed positions, 147 wins (94.23% win rate) and 2 open positions.
It hasn't worked for this strategy, after double-checking, I think it could work if we aim for higher profits.
Monthly Traded Volume
I've traded ฿28.5, still far away from the ฿100 level of Binance for lowering the fees. I've paid a total of Ⓢ200 on fees, so if I could reach the next level, the fees that I'm paying now (around 0.15% per position) will decrease significantly.
I think the Providers' Analytics view gives us a lot of data to play with. It requires more time, and knowing a little about how to trade cryptocurrency, than just following other's recommendations, let's see if we can convert it in a passive income system.