A Trade as Simple as "Shooting Ducks in a Barrel" - BTC LONG
DISCLAIMER: This is not trade advice. This is for educational and entertainment purposes only to demonstrate how I intend to participate in this market. Trading involves real risk. Do your own due diligence.
People like myself (with average-to-below average intelligence) need a simple strategy.
My "Ducks in a Barrel" strategy is exactly that. Simple. Clear. Rules Based. Effective. Zero Discretion.
BTC (and several other cryptos, for that matter), are setup for "Ducks in a Barrel" long trades. Lets review the process for identifying these setups. To be clear, this is not a "long now" post. This market is SETUP. This is not a timing tool. We get into the market once we get a technical long TRIGGER on the Daily timeframe. From there, we FOLLOW THROUGH on the trade by managing risk and maximizing profit. Without the TRIGGER, we have not trade.
STEP 1: Identify a market with a strong trend on the weekly timeframe. I utilize the 39 and 52 period MA. For uptrends, we want to see both MA's sloping up and pulling away from each other. We see on BTC that the two MA's are still upward sloping and pulling away from each other. This confirms step 1, that we are in a strong uptrend.
STEP 2: We need at least 2 of the following to be in unison with the direction we want to trade (in the case of BTC, we need 2 of these to support the long idea).
VALUATION: For longs, we need an undervaluation vs Gold &/or Treasuries.
STOCHASTIC: For longs, we need to see the market is oversold.
SENTIMENT: For longs, we want to see Bearish advisor sentiment (we fade the public sentiment).
STEP 3: We see that BTC is Oversold on the Stochastic and is Undervalued vs Gold & Treasuries. This meets our criteria of 2/3 indicators supporting our idea. This market is now SET UP for longs. Now we wait for the TRIGGER.
STEP 4: We are waiting for Step 4 in Bitcoin right now. We need to see an entry TRIGGER on the daily timeframe via one of the following entry techniques.
18 Period MA Entry
10 high 8 close MAC w/ Williams Acc/Dis 57 MA Confirmation Entry
Stop either 150% of 3 Period ATR, or 2 times the width of the MAC, whichever is greater.
There are other entry techniques, but they are higher risk. The two entry techniques above will not catch the absolute bottom, but will ensure that you are buying into a confirmed trend change. Other entry techniques come with the risk of trying to "bottom/top" pick, which increases your odds of several losses prior to the real move occuring.
If you have questions about the "Ducks in a Barrel" strategy, feel free to shoot me a message.
I hope you all have a great week.
And as always.....
Good Luck & Good Trading.
People like myself (with average-to-below average intelligence) need a simple strategy.
My "Ducks in a Barrel" strategy is exactly that. Simple. Clear. Rules Based. Effective. Zero Discretion.
BTC (and several other cryptos, for that matter), are setup for "Ducks in a Barrel" long trades. Lets review the process for identifying these setups. To be clear, this is not a "long now" post. This market is SETUP. This is not a timing tool. We get into the market once we get a technical long TRIGGER on the Daily timeframe. From there, we FOLLOW THROUGH on the trade by managing risk and maximizing profit. Without the TRIGGER, we have not trade.
STEP 1: Identify a market with a strong trend on the weekly timeframe. I utilize the 39 and 52 period MA. For uptrends, we want to see both MA's sloping up and pulling away from each other. We see on BTC that the two MA's are still upward sloping and pulling away from each other. This confirms step 1, that we are in a strong uptrend.
STEP 2: We need at least 2 of the following to be in unison with the direction we want to trade (in the case of BTC, we need 2 of these to support the long idea).
VALUATION: For longs, we need an undervaluation vs Gold &/or Treasuries.
STOCHASTIC: For longs, we need to see the market is oversold.
SENTIMENT: For longs, we want to see Bearish advisor sentiment (we fade the public sentiment).
STEP 3: We see that BTC is Oversold on the Stochastic and is Undervalued vs Gold & Treasuries. This meets our criteria of 2/3 indicators supporting our idea. This market is now SET UP for longs. Now we wait for the TRIGGER.
STEP 4: We are waiting for Step 4 in Bitcoin right now. We need to see an entry TRIGGER on the daily timeframe via one of the following entry techniques.
18 Period MA Entry
10 high 8 close MAC w/ Williams Acc/Dis 57 MA Confirmation Entry
Stop either 150% of 3 Period ATR, or 2 times the width of the MAC, whichever is greater.
There are other entry techniques, but they are higher risk. The two entry techniques above will not catch the absolute bottom, but will ensure that you are buying into a confirmed trend change. Other entry techniques come with the risk of trying to "bottom/top" pick, which increases your odds of several losses prior to the real move occuring.
If you have questions about the "Ducks in a Barrel" strategy, feel free to shoot me a message.
I hope you all have a great week.
And as always.....
Good Luck & Good Trading.
Disclaimer
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