‘Trading Methodology This document is an attempt to capture Quiekfingor Lue's trading approach and was compiled from his Stoomit Blog, Siack videos and comments. Please visit and ypvore Luc's blog here- hrtos.//steemit,com/fauiektingersluc "Notes compiled by @RoBOr “Safety Is the first Priority” Buy Safely Under the base / never lose money / only take the safest trades This methed only requires that you see things @ certain way and develop the patience fo wait for @ clear opportunity. Thats really al here is fo t. Each chart tells a story, you lear fo read the story, and you buy in where the chart tell you to, then you start selling when you're in profit. it always comas down to the same thing, what are the odds, pattem recognition and history of the chart your trading Find a strong base, qualify it by the strength of its bounce ( are there buyers in this market?) Assess the probability of a trade being successful. Look in the past to see how far panics usually fal. Wait for the crack for @ panic to happen. Start layering in buy orders based on what you see from the past. ‘Think in probabilities, If! look at the chart, and see other Identical trades in the past, how many time has this worked ‘out before? Say 7 times, then you have a 70% chance this will Work out. So you read the chart and know what the story Is and then you know what the probabilty Is. Step One- Look for an argument, Markets with a lot of movernant and a lot of people involved. This Is a large group of people disagreeing on where the price should be. This will make the chart predictable, People ‘who vote the price down, will have the other side of people who vote the price right back up .Look for suppor (where the price is supported and does not go below the support line) You can also have tle arguments in between the bigger arguments. The bigger arguments are always the safest, but you can play the litle ones, you just have fo be quick Step Two: Read the story of the chart, what is your probabilty of success? (about 30 seconds), a good chart you can trade that chart for months. You are looking for high probabilities of your trate becoming successful. Read the story ofthe chart and make sure you have a high probability of your trade working out it you looked back in the chart and drawn in your bases, and the drawn in your safe circles (where you would have bought) then you can calculate your odds of success... after you do that you will know how safe this next circle will be.. as an exemple if you would have a had a profitable trade 9 times out of the last ten base cracksiparic dves.. then your next safety citcle has a 90% chance of success.. that's a prety safe circle ‘Step Three- Set yourself alerts- You found markets that have a lots of volume, you evaluated the probabilities of success, now you plug in your alerts to the spots of where you would be buying,Selecting a chart and setting its view. With chaifs, look for a good argument between the buyers and sellers Look for an argumentmarket that has a lot of movement and a lot of buyers/sellers who are not agreeing on a price, a chart with good volume and arguments on price. The chart will show the price going up and down, \which provides a lot of opportunity. Read the story of the chart. Make sure you have a high probabllty of your trades always working out (Count the dips back to baseline). Read the chart of the market you are looking at, If all the panic dios would have all worked out, then you can feel confident that this next trade wil too, Ask yourself, ‘© What! the probability of you winning? ‘¢ How many arguments have there been before support of the coin buys up the coin? (Look at the volume). Always look at least a month of data on the chart to get a real fee! for how the coin reacts to surprises. You have to expand your view to 1-2 months of data so you really get a feel for how safe your trades would be ‘The higher the time trame the easier the trades are. A 4 hour candle charts super easy to draw bases on, Ifyou can get used to the ‘hr charts, you can very easy do the hr charts or 1 day charts. Something like ETH, the argument is so thick that locating bases would work on a 4 hour or 1 hour chart. ‘A two month, thr candle charts all you really need in cryptos, and it's the sefest method. Exemple ‘fl: Needles aibinne oblast earache ie lier cali SA nee aan ‘ital as Slee Sie HS NO Seehour. This slow time frame means it's a very slow trade, so when it cracks you have 8-10 hours sometimes to getinto a trade, (Zoom out so that the price on the right side Is apx .5 increments) Ifyou work within @ one hour chart, you have to expect to make your move within an hour or two IMyou are going to work with @ 4 hour chart, you have to expect your moves to happen within a few days. (One hours candles on a chart of 2months data, these trades will ake a day or two to complete, ‘Support & Resistance and establishing “Bases” 2 What a real bounce looks like Whats a crack Another Example of drawing base- HERE Let the erack play out A.base is defined by how much of a bounce you get off oft, ‘Abbase Is also Gefined by the Dounce they get off of tnem.. If there Is no decent bounce then they are not bases: Acchatt with good "Support and Resistance’, will help to establish a good base. A base Is where there is a good chunk of volume want to see a real big reaction bounce in order for me to qualify a base.| choose my bases by the bounce they receive- Examole 10. You have to qualify your bases by bounces- Examole Does this base, sgnify that there are buyers in the market? Some bases are strong and some are not, Example here Walt for a clear base iting for a a In wy zon Does this base signify buyers in the market? (Only look back at the last 2 bases). \Where are the buyers vling to step in and bounce the price? With the current news ofthe day, where was the last base, or maybe the base before that? Those are the only ones that count. ‘Where there big bounces off those bases? ‘Are there a ft of buyers inthe market? How total; You wil get a nice big bounce off the base. Exampiehere. Alte bounce, not so many buyers in that market. Sig bounces means new buvers ‘212 faking over. big drops past support the buyers are stil there. This Is the SURPRISE, this is where you buy. Another example How many buyers are in the market you are looking at? The support tells you how many buyers are inthe market vata hc ce “Gli Ses thn nad is inh Mik dina iia es hee Wh tg cis‘A chart with good “Support and Resistance’, will help to establish a good base, A base Is where there Is a good chunk of volume. Bases are defined by the bounce that happened off them, s0 you look back at all those bounces, you will ‘see what should be defined as a base. A base is only drawn after you see that big bounce to quay it, It there is no big bounce then there can be no big surprise in the future, The crowd makes the story, we only read it (No Big Bounce= No Surprise). 4. Qualify your base by comparing the bounce to other bounces of the past, So ifa price area received a big bounce reaction, then draw in that base and walt for a future crack. 2, Set alerts under that base you found.. if your alert hit you see a bunch of red bars, meaning there is ‘some panic selling, then you are in the safe circle and you can start layering in Every base Is different and for itferent reasons, Sometimes it's actually just a number In people's heads like 200.. and nothing gets past 200 on the chart. or it could be a price where something big happened like ews...and the news produced a bounce and now after that news no one can imagine that coin lower than Where that news came out..s0 you see, It's not mathematical.. but It's easily seen on a chart and then you Just set your alerts and wait for a crack. \When looking for bases, the LAST support is the only one that counts. Keep your bases current, Current support means current buyers. ‘As an example, ETH has enough support to buy back to where the crack was. Every “supporiselcrack’ gets a bounce and every “Crack”, gets a “Bounce” with ETH, you need good bounce back in order to qualityEvery dip goes down a cifferent amount, there is no way to predict the size of the panic drop you will get. You have to gauge the drop by the length of ather drops in the past, 30 if you are approaching one of th ‘deepest drops compared to all the others in the past 2 months or so, i would jump in heavy. Estimate what an average panic looks like by looking at the last 1-2 months of data. Panies are when bases are broken and all the buyers/holders are shaken out of there positions, they are surprised and panic sell dropping the price.. right? .. ok, so then when the panic stops, people start buying it back up to previous suppor... ok.. $0. tan now trade around in that area, because we have lust redefined a support and resistance ‘You Should refer to previous base drops and figure out what is a normal length panic. © Example of an average Panic Dive- HERE The green lines are your panics, notice the length ofthe lines, so this guides you on where you should put your buy orders.The blue lines are where prices returned to their bases ater the panics, basically you need a panic of near the average length to be safe, so if you buy in that circle you drew, then you should just nibble and watt for a drop to get more, © Looking at the average “Panic Dive"- HERE. ‘The most important part of the chart is that the price didn’t bounce back to the previous base, on the earlier bases.. so that means there Is extreme weakness showing on that chart, and so | wouldn't trade I. Don't play bounces off support, walt for a crack of suppert and then the panic dive- that's my play. You have to ses it from the perspective of market reaction... you need panic to buy in.. without panic, if you buy, you could be buying a grind lower..that's why you want a large bounce, to show you strong buyers and to help you Identify a base, and then, later when it cracks, you need to see a panic drop.. then you know you're getting in at the right place. | want the crack of the base and then a panic drop for me to get In.. the crowd has to panic as a result of the crack.. that's the best situation I you're working on a one hour bar chart, you have to read the history of the chart ask yourself:¢ How far does a panic typically fall? © What's the longest panic you can see within 2 months back? Is your present dipypanic anywhere near that deep a fal? © Does every base crack get a bounce? In a two month period? that’s the questions you ask yourself in your mind before you think of trading it. s0 you know your odds, ‘Those type of questions will guide you to get in a the right spot and net too early Strength of the bounce- if you don't get a strong bounce then you have to trade very small on the next crack or maybe not at al. you need to look at 2months of chart action to know your odds of success on, each of these coins. How strong of a bounce happened at the previous base, tells you how interested the buyers are at that price, and how much of a surprise a crack will be., (big surprise, big panic) and what you want to buy is a panic drop. You use the current base to decide where to place your safe circle and you buy within that circle, ut you do have to see evidence of a panie first. If you see something drop, you really don't know the story? why is it dropping? who knows... But when a base gets cracked and then traders panic out, right after a crack, then you do know the story Its a panic drop due to a base crack and that's usually an overreaction. You need to read every chart history that you are thinking of using to make sure It always works out on that timeframe.. history counts You have to gauge the drop by the length of other drops in the past.. so if you are approaching one of the deepest drops compared to all the others in the past 2 months or 0, | would jump in heavy It there Is a crack of those bases, there will be a huge surprise, everyone will panic, the price will drop, but you know the buyers are stil there and they will bounce it right back up and or higher. My rule of thumb is to never lat a bounce get away from me without at least participating. so that means selling some on every bounce, ‘The key is really patience to catch @ good panic drop. Draw your bases and find your surprises and make money/capitalize on those surprises Set alerts and Buy/Sell ordersMake a list of all the coins that interest you and that have lots of volume and movement. Then, add them to your favorites in Coinlgy. Then simply put price alerts on them. ‘Set Yourself Alerts In Coinigy, plug in the spots where you should be buying, (Alerts in the range of an anticipated dlp) Set alarms for every coin that has a good chart. If the chart respects bases, then set an alert. ‘© Setting alerts- Example ‘© Where to set up your buys: example Simply use coinigy to add charts to my favorites, then set alerts on all the charts that you Ike, the alerts are alway’ set under the bases.. or if think i's about to crack Just start setting up trades way down on the bid where you would like to buy. In addition to setting alerts, use Coinigy Market Watch.. ts up in apps... it will have all your favorites in the ‘app and you can sort them by % down and see what's falling In real time. Place buy orders in advance of the move you think will happen, then as soon as you gain some coins /% gain, set 2 sell (Once the “stuffing” comes in an Increase of volume, that most Ikely willbe the lowest It goes. Get in with the ‘QuyS with the “stuffing” this willbe the bottom. Watch how the argument then the panic drop and volume pushes the price backup Just trade the charts that are safe, and base trade size on how safe they are, not on how much you could make. Before any crack happens, know where your base Is. In anticipation of the crack, putin a buy order to ‘automatically go through. This isin anticipation of the crack in case it goes through. Then stick in a "Sell Gintiee onrsil Uinta iieenttinn seem -eaiinnetih aol dial Wiammesie.Unies you get real bad news, you should always get a bounce to the base that got you in the trade in the first place, so exit the trade anywhere around there, Increase position sizing on the way down, Don't exit your full position, always save a ite for later on.. ike maybe 20% to either save as an investment €or sell later higher. ‘Acne hour bar charts slow.. and you will often see a bounce take 12-24 hours to play out. but Participate in the bounce. if you bought the dip, then sella ite on the bounce, even if you're hoping it will ‘bounce higher, ust sell a bit here and then and that will nelp you to stay patient, because you will feel ike at least if tums back down you made some profits Set alarms for every coln that has a good chart. Ifthe chart respects bases, then set alers, Buying into that panic Is the safest area. Risk versus reward.. sof its very safe like ETH then my buys might be as big as 50% of my account. iis lass safe like AMP, then | might risk 2% of my account ‘There is no need te track all your trades, just watch your totals on all the exchanges continue to go up each day, ‘The market is always very unpredictable...that's why you always have to keep some money aside, dont spend all your bullets at once. Its totally normal to be getting in too early after a crack.. that's why I sometimes ribbie.. if really want in, i buy just a bit to satisfy that need to trade...out save my big orders for lower into the safe circle | set up way way way more alerts..Im sure | have over 200 alerts going at all times.. and | only reset them when they go off | look at the time and sales and level 2 to see what's normal, and then | start putting In orders all the way down the bid. litle here and there, and then | watch how the coin drops.. tit drops fast. then pauses. | might buy a large chunk all at once.. ft takes its time and does not show evidence of real panic selling, then Iwill keep my orders smal. Even if| do disqualify a char, | dont sell at a loss, | just dont buy more..| stop buying, and give ita chance to correct the error.. Some bounces do take longer to play out, It you set alerts below bases, on all the coins you like, then you will nd your alerts go of, quite often, Just set those alerts at places that you would buy, not at base cracks, but lower.. and then you can also use the scanners to take small account building trades for fun, with small amounts of money, just to keep yourself active all day.. That helps with patience while you walt for the bigger position trades.Selling Just buy dips, on surprise drops, on Coins that have a perfect bouncing history. Then if you believe in the Coin, leave your profits in, and take back the principle, therefore only creating free coins in my bank, then reset an alarm for the next possible dip. ‘* Where to sell- When “stuffing” enters- Example © Where to sell - Example I sell most of my coins on the bounce, because | cannot predict the future.. So | just make a profit and sell but ifit was an awesome trade where | make, lets say 40% on the trade, then | would only sell half and hold the rast. but ii made only 20% on the trade then | would hold only 20% of the position and so forth. | usually hold my profs on the trade. ‘There is no mathematical system for getting in and getting out. you cannot predict the future, so that’s why | layer in my trades... Who knows how far it will drop.. but it wll bounce back to the base that was cracked, so anywhere just under the base Is a great place to take profits If you look at previous panic drops, you can pretty easily guesstimate where the drop Is getting overextended. when you start to get a longer drop then you have ever seen on the history of the chart and there seems to be good volume, i would jump in with both feet | set up sell orders right away... set up several all the way up ...but ifthe coin jumps up very fast. | will cancel all orders and sell out quick.. a fast trade is better than a long walt.. Always take a gift in the market, and redeploy your capital on another trade.. time is money. but iit just slowly grinds up then | leave orders to sell as it slowly makes Its way to the base and perhaps beyond.Read the chart to know how safe base cracks have been in the past and then set up your orders. accordingly. almost always layer in and out | usually sell some in levels.. | write orders to sell all coins near the base right after | get some coins, in case there Is a reaction spike.. but as time goes by, lke a few hours after my entry, then cancel that fist sel order, because a reaction spike is less likely and | start to layer sells all the way back up to the base. Like you | have often missed my sell My rule is to always participate (sell some) on every bounce, when I'm in a trade gone bad. Volume ‘You can use volume to your advantage, when you see those large block tracles, you know someone Is. ‘supporting that price. © Explanation of volumé xample When the crowd reacts, and there is emotions running wild, there is added volume. Buy when there is decent drops where there was a volume spike? Examole Lower volume- The key Is really patience to catch a good panic drop.. I's hard to walt for the real good ‘opportunities, and It's dificult to work with a small account... So where I might write a bunch of orders on a bunch of things, you would have to just set up alerts on different coins and wait for an alert o go off and then tty to jump in while the price is in @ panic drop... But as your account grows then you will be better able to write orders here and there Instead of alerts. but here Is your true advantage to having a small account: you can trade the lower volume coins, and get crazy percentage wins and grow your $1,000 into $5,000 quickly but after that you start to get to big to play with the low volume, and you have to move to bigger volume I you're working with low volume coins, then yes, | buy In a range, and it works Just fine... But | cannot stress ‘enough. that you have to take Into consideration a month of chart data.. you need to trade in the context of what happened all month.. otherwise you cannot know your odds. © soifi’s been ranging really nice for a month, and you can get good percentages within the current range, then | would use that fo build your small account to a few thousand bucks, '* Younged to look at one month of chart data to see how It reacts to cracks of support, or is it ranging with good percentages. ‘The order book doesn't tell you much... except what size order you should put, so that you do not influence: the price.. there are some bots on ETH that aut bid you or out ask you lately... that makes it even harder toread because they disappear in seconds and come back as fast.. Really, using the orderbook to try to decide on a trade will only frustrate you. ‘On Coinigy- The Green bars mean that the buyers are accepting the price that the seller has quoted and purchasing the units that are being offered. The Red bars are the exact opposite. The size of the bars denote the total amount (volume) of such trades have taken place within that time interval Low Volume Coins Strategy: Example Identify 2-5 LVC to day trade ane fund those exchanges. Spit up $1,000 into 3 parts © $330 © $330 * $340 Then trade three different iow volume coins. Even if you meke 20-30% on a trade = let's say $100 proft per trade, that only takes you 10 trades or so before you have doubled your account, but you have a lot less risk than putting all 1,000 on the line in one trade, 10 trades go by fast, maybe 2 weeks and you will double your account, that's how Powerful this type of trading can be on a small account. Example: $330 x 30% $99.00 $330 x 30% $99.00 8340 x 30%= $102.00 ‘Total Profit= $300. From 3 correct trades at 30% Increasigain 410 Trades at 30% profit= $1,000 ProfttWhen looking for a Low Volume coln/Chan,, remember- Charts are visual representations of probabilities. ‘When | look at @ chart | am looking for repeatable pattems on that specific chart and | won't take a trade unless there are enough repeats of the pattern | have observed to calculate a probability. ‘The advantage to Small Account Builder Trades is that your size Is small © Add up your odds before you enter the trade. © Each chart Is cliferent and you have to learn to read the chart for what It is and trade it accordingly. I you learn to read the charts, you will know your odds, With small account Building trades if you read the chart effectively and enter with appropriate size you will have safe trades that are almost guaranteed profit its more about leaming to read charts Individually and trading them according to what the chart is telling you to do. ‘Ask yourselt- Does Every Base Get Bought Up? 2. If Yes look to buy under a base (like Luc’s chart below) and set a sale back around the base It ust cracked 3. Gauge what you think you can use to place an order. 4. Work within a range.All you need to do - Is watch for market scanner and walt, check coins and trade. How to us 1. video 2. Video2 © First Seannar Second Scanner ‘Set up your scanner to watch for exactly what you're looking for, across the whole market when the conditions you inputed are met, it alerts you. Low Volume coins should have a small market cap: a lot of buyers, people are interested, the economy is really small - Video Get used to identifying low volume coins by seeing the way i's trading on the char.. and you can do the math if you are really unsure, You should be able to just tell by looking at the chart or reading the time and sales info.Low volume coins are so bouncy that you can Just try to buy the lows and sell any pop and since the volume is low you can only take small positions, so there isn't much risk (or proft). Only trade low volume thinly traded coins (account builders) in ranges. its not predictable enough to try to do that with larger colns ike ETH. Round numbers are Important, because humans are the traders, and that's how they think., so as an example $200 on ETH was great suppor in the past. When looking aa chart for a low volume Coin, ask: Do all the litte dips get bought up? ‘Are the percentages high? When | look at a chart | am looking for repeatable patterns on that specific chart and | won't take a trade unless there Is enough repeats of the pattern | have observed to calculate a probability, Since you are dealing with day trading, you fist Look at a 1 month chart then dial it down to a 5 minute chart. Start with thour candles to see what's normal trading then you go to 5 min candles to execute as a daytrader. Keep your positions SMALL since this Is day trading, ‘Spike Down/Fat Finger type of trade - Example Account builder type of trades- Example (Good for small trades to build an account) Coins about to run based upon news- which are experiencing a pullback- ExampleHow a Panic Dive is Formed Example | don't want to confuse anyone with all the Xs on this chart (in the above example) but let's talk about crowd ‘mentality for @ second. So 44s were resistance quite a few times, shown by the Xs and then when it finally broke threw it jumped up to 49s, then a sharp pullback to 44s again to see ifthat was going to hold as ‘support. or in our language, was there a base forming at 4s. then you get this huge spike to 60, and after all the craziness Is over It starts to work its way back to the base and retest it a bunch of times.. barely breaking it. So the question is this: From July 22nd to the 27th is there lots of traders trapped above 447 Yes... Will there be a panic when 44s finally break? Would all those trapped traders start to feel the pain and ball? .. You see, clearly there Is good reason for a panic to develop here, and that's exactly what we're looking for. 60 | would be ready to buy up the 38s 37s 36s and so on, if we get some quick red bar ‘movement down. Drawing bases and safe circles are nice and easy, but simplistic if you don't understand the real reason for them.. You have to read the story of the chart and get why its acting the way itis. Once you have the story clear in your head of what everyone was thinking and how they could get hurt by a surprise, then you can take your trade with confidence when you ses that panic develop. Market Scanner How touse; video If you look at the top of Coinigy in Apps you will see that there Is a market scanner in the works, they say ‘coming soon. No human can keep an eye on every coin all at once, but a scanner can.. you can set up your ‘scanner to watch for exactly what you'r looking for, across the whole market. then when the conditions you inputed are met, it alerts you.. as an example, | would tell my scanner to watch for coins that trade a min of {$5,000 a day, and that dipped below a 3 day low.. then everytime that happens on any coin | would get an alert and could see if i's in a panic dive and ifthe chart is good Since you are dealing with day trading, you frst look at a one month chart then dial it down to a 5 minute chart, you start with thour candles to see what's normal trading then you go to 5 min candies to execute daytrader. Keep your positions SMALL since this Is day trading.‘* Account bulder type of trades- Example (Good for small trades to build an account) © Pullback '* Coins about to run based upon news- which are experiencing a pullback- Example ntions for trading into Fiat It you're not planning to send them to your bank account, you have a few Flat type options: '¢ Tether USDT which stays pretty close to actual USO '* Esteem dollars SD which also tracks the USD price ‘You can convert to those coins and should remain unaffected by a bitcoln crash... otherwise you need to have an exchange in your country that will send you the funds back when you want them. Major coins ike BTC and ETH pair with USDT (tether coin) So you just trade it, Ike you would any pale. right ‘on the exchange... Some exchanges don't do flat at all, so tether really helps. Now If you want to send flat ‘back to your bank account, you will need to find an exchange in your country that will link with your bank. basically the reverse of how you purchased BTC in the first place. Keep most of your money in USDT and only @ core position in BTC ETH and every other coin you can think of.Overall Strategy ‘Strateay Example another Example Create a list of coins that are active and that you are interested in, Most of these are very easy to trade and have great charts.. Its pretty hard to find bad chars in cryptos.. they are full of novice traders, so they're ‘easy to read... but yes then | set alerts and orders in places that | would buy when a panic dive happens. then as soon as | have bought | already set up my sells up above where they should bounce to.. | often layer Into a trade since | cannot predict the future [Just seta lot of alerts and the trades are always the same.. I's quite easy.. set alerts look for the panic.. set Up some buys where you would like to buy.. wait to hear a buy go off. and set up your sells. basically you Just listen for beeps and react when they happen.. Im always siting around watching tv and beep beep beep.. oh, run into the offce for a second.. write an order and back to tv. simple stuff Basically you wait for a crack of a base, then you watch for panic selling to create a drop from that base (usually consecutive red bars) then you know you'r sate to buy (high probabil trade). then you sell into the bounce at any profit, even In layers as It goes higher If you want... and it should at least return to the base it cracked, and Ifit doesnt, hopefully you got some cut on the way up. | have often missed a bounce and then It will crack another base and go lower without me getting to sell. ‘That's why | try to sell some on every bounce and then you can rebuy when Itretests your base or cracks tt. ‘There Is no math or exact formula for taking profits.. every profit s a good prof. “There is no formula for layering.. | just play it by ear, It drops fast, i get in heavy fast. ifit takes hours to panic lower, then i get in Ite bits every few hours, Puta small order at your bottom line and then bigger and bloger orders below It. and every so often you will ‘get a spike down for 2 seconds and get instant proft. but if you don't get a spike, well atleast you'll plek a litle up at your line and sell at your top line.. ch and layer out also incase you get a top spike Usually In a day Im out (of. trade). but sometimes 2 days... most of the trades | took yesterday, 'm already out| only buy the panic dives while they are happening... That's the safest set of conditions to enter. after the bounce is done, why should bounce again? the reaction is over.. The reason a panic gets a bounce is price discovery.. A base got cracked and as a reaction a group of novice traders panicked out of there position, usually dus to stop losses getting hit and then leading to more panic as the price drops. then when any big buyers step in and stop the drop, it bounces back to where the crack happened or even higher.. the panic is almost always novice players, and that's the best place to get coins, from inexperienced traders... but ift bounces and then settles at a new price, then there is no telling where it will go next.. he odds are not stacked in your favor, like before when you were buying from panic sellers, What | do is keep a set amount of BTC and ETH for trading, and then | also trade BTC/USDT and ETHIUSDT, with other moneys but not the set amount that | had set asice for trading pairs, (Of Course there is the danger that an exchange will get hacked or close or something and you lose your ccoins.. that could happen so | spread out my coins at different exchanges, to keep me in the game ‘As far as finding trades go: ust pick a bunch of coins you are interested in, that you like the charts, and set up alerts on all of them, under their bases...and sit back and wait for the alerts. the more you set, the more often you will get alerted...dont set too many or you wont gat any sleep Ihave never seen a week where there was not a base cracking on something. there Is always something taking a dive... you just have to have the alerts set on all the coins and you will be so busy you will hhave @ hard time keeping up. Here is my process: Example: 1. Ihave a list of favorites, coins that | lke the chart and some that I ike the project that the coin represents 2. Every morning | pull up my Coinigy platform and | go over all the alerts from the night before and make sure | place sell orders on anything | bought while | was sleeping 3. Then go through every chart in my favorites and set alerts or nibble buy orders, anywhere below a base that might get cracked 4. Then | go to trading my stockmarket, but i listen for any alert going off throughout the day. after 4:30 pm when the stock market ls closed, | ralsa the volume on my computer, so | can hear any.‘Wlerts OF orders Mat get Inggered throughout the evening. and that's basically tt.. Ilet the market ‘come to me. | only take trades that are in safe circias (below clear bases) easy peasy. ‘Just keep your positions small to start.. small traces til you feel confident. If at anytime you are worries about a trade, that means you are in too big... all your trades should just be hum drum, easy, and never keep you up at night | hold only positions that | have made profton.. | create coins from trading, and then only hold those... My strategy actually does aivesome in fling markets, because It takes advantage of the panic drops .. and if at any time the coin is not obeying the rules, | stop trading it, is all about probabilities and when there is ‘panic in the market you can really build big positions without investing much, Get a feel for the order history and get lucky with these flash sells- exactly. there Is tons of trades out there everyday. your job Is justto find them and only take those trades that have a great chart. Just set your alerts under those bases and get ready, because no market goes straight up, and the safe Circles are the best areas to buy, hands down, your highest probabil trades, you have to be patient and set your alerts and wait for the market to come to you. Ifyou are tracing correctly, you will have reviewed a 2 month look at the chart to make sure all panics had bbounces...so if your chart changes, and does not bounce properly, then you need to stop buying it something has changed. the odds are no good no more...s0 you stop buying It, and you start selling info every litle bounce it gives you.. that's how i take a loss ( but if you read the chart correctly, it wil almost ever happen). | Just read the chart, and see how it responds to panics, and | buy in at the safest possible areas.. and sell Part or al for @ profit. over and over again ‘This market is so small that | have no trouble keeping up with the opportuntties.. | bearly take 3-5 trades aey ee ‘The most important part of trading is timing. You have to be patient and walt for the right time, you need to ‘buy where the chart tells you to buy. ‘Simply put, If your odds of a trade working are over 90% then why wouldn't It work? It had to work 9 out of 10 times already just to qualify the chart you're thinking of buying, otherwise you wouldn't take the trade, Math ‘The secret to trading : never lose monay, only take the safest trades, so that you dont allow your capital to go down... | am a reaction trader, | let the market tell me where | should enter, and never base my trades off a gut feeling, or something everyone Is telling me Is gong to be the next big thing. | just read charts and let the chart tell me where to get in.. and | usually get a 2 month picture of the chart for big trades, and day trades those are 5 minute bar. When to sell- You alvays want to blend in with the market.. so you have to watch the time and sales and ‘see what kind of trades are usual, then make orders that won't stand out on level two... As far as the layering into a trade goes, When a base cracks and | realy ike the coin, | often take a nibble after the first litle bit of panic... but then ita real panic happens, | will buy bigger and bigger with each buy. always keeping an e| ‘on your average position, so you know your break even point..then you can start selling whenever you ate in the profit. Depending on the volume behind the bounce. | wil take a quick proft or I will wait for it higher prices... Once im safely in profi, then | make those decisions based off how volume is coming in My mathod of trading is by no means the only method that would be successful. There are hundreds of ways. for you to take successful trades. However you have to be able to calculate your odds. That's the key, any type method you want to develop, you need to be able to have a clear set up that you can backtest and know what your odds are.. Also, you need to know the story of the trade, in my method 41. (1) we walt for a base to form and qualify that base by the amount of buying or buying reaction that ‘occurred the last time that price was hit. then we know there are buyers that like that price point ‘so thats our base...we have the first piece of information in our story. 2. (2) Then by looking at a 1-2 month view of the chart, we can see if there has been alot of interest in this char, if there are buyers that come In on every dip, this glves us context and odds, 3. (3) then when a panic happens below the base, we know why there was a panic, because all those buyers were surprised, and started to stop loss their positions... now we know the whole story and really have the odds in our favor... Unfortunately Patience is one of the most important skills, you need to develop as a trader. After | buy anything, | Immediately put In my sells for where | think it should go.. With Coinigy, | can leave my ‘computer on and it will make an alert | buy or sell anything while Im not in my office, So do often end up running back to the office to submit an order at night.. But t just depends ifthe trade is big or not...Coinigy also sands you emall alert, s0 even If you're not at home you can see if anything has happened in your portfolio, As far as adding up my day goes, I's difficult to try to accurately ad everything up and see a running flat total, s0 {just ake a good guess each day of what | mace and give myself a total, then once a week or s0 | Te marranisih weston deidlah' Iter enitzenttiee martini‘Strategy for Account Management Rules to govern account end balances. (Develop per personal risk tolerance) 41. Minimum proft per trade- 10% (do not enter a trade until at least 10% below base) 2. Normal size for trade 10% of total account (30% for larger panies) 3, Layering buy stratagy - 20% of trade, than 35% of trade, than 65% of trade at final position (close or below the average depth of a panic). Getting Started Buy Bitcoin from Coinbase using a bank account or creditidebit card- HERE Move these coins over to GDAX (part of Coinbase, but has a lower transfer cost) ‘Transfer/Deposit Bitcoins to an exchange, such as Bittrex- HEREAlt + R resets to "auto" Scroll the Chart with Arrow keys (press alt to scroll fast, No action for up/down) Alt + H for horizontal Ine At H for @ horizontal line, Shif-Drag to define a percentage. At-H again Slack Notes- Account building Keep buys small ‘You must leave enough size for yourself to continue buying if price runs against you, This is in the event the price continues to go down and you need to change strategies to a normal position trade, ‘+ Keep a sheet of your balance, and sizing schedules so you know how much to add for position trades. you have to work it out before you start entering and have to be prepared through you sizing schedule, on what. to do next if pricing runs against you or, if nseded, look to exit on the next bounce ifit runs harder than expected. Make your second entry larger than the first and the third larger than the second. With each entry, expect lass of a bounce and revise your targats for a lower exit. At this point the percentage gain is lass important as you are in for more size now. © You should ALWAYS have your story of your chart on your charts, meaning traditional bases and average panics. This Is your backup plan. © Your trade sizes for your As should be smaller than typical. This is so you can eventually get into a standard position if you need to. © Next look at prior lows on the chart. How far down does price typically go within a given range? Find this average, these are your possible entries, © Exits... how far up does price typically go? This is your exit. This should be 5-10%. If price runs against you... this is when you add on new buys, which will be a higher size. If this happens, revise your sells to just abovelat the last entry For account bullders, sell ‘anywhere in prof’ as you buy lower. ‘After you exita trade, Immediately set an alert.‘©The chart tells you everything, including how long you will be waiting to get your coins... you just set up you buy a ite above the bottom of the range andi then walt the amount of time that It takes to dip. just look at past dips, its all there for you.. the chart tells you everything, Slack Notes- Position Trading You should be planning your trade entrance and exit points, and allocate how much you're going to spend as you layer in your entries. This includes saving some extra coins in the event the chart drops lower than you precicted before the bounce. ‘As the chart drops lower, you should have pre-allocated your purchases. And in tum your exit strategy should be predefined so you have a plan of attack as soon as the bounce upward occurs, Let's say you think a chart will drop 10% below the base, and you make your first buy at -8% off the base, Good job! But the chart bounces a litle bit upwards by 4%, and then keeps dropping... now we are at ~15% below the base. ‘What should we do? KEEP BUYINGIIIlI! This Is a good thing, do not be afraid! You will need to re-consider your exit strategy sometimes, and other times the exit strategy will remiain the same, but this is an ideal situation. The deeper the drop, the greater your ROI when It bounces = the more you should want to invest on this trade. How to Place a “Limit Sell Order” without having any coins to sell first © Step 4: Place a regular “limit buy” below a base that | think will break. * Step 2: Place a “Stop Limit Sell Order’ at the base (where | believe the price will return too).with the bought amount.© Step 3, Set the ‘stop’ trom the “Limit Sell Order" at the same place as the buy. This will trigger the sell order and Coinigy will send it to the exchange. Coinigy won't send the sell order to the exchange until the stop has been triggered (and you have your coins bought). the stop limit orders you put into Coinigy are only sent to the exchange after the stop hits. © Stop price should equal the price at which I place my limit order as seen below.(the “Stop Price” may be better to be placed a little below the buy, this way, coinigy will not execute your “Sell Order” and fail, because your balance did not update quick enough.. It would make sense to have a stop limit sell order for every buy you have placed.with the stop just below every buy, and the sell price, well, wherever you please.Market CorrectionsMarket Corrections Watch BTC to find out how ALTS are going to move . Buy in the the highest Vol coins first. ‘© Where to buy?- Expect Support of BTC off of major price levels. BTC should bounce off of psychosocial price levels such as as $8K, $5K. Look to buy in at places of good past market support (based on chart history), Also use average crack/panic to determine how far the price will drop. Zoom out and look for the strongest bases to have cracked. Bounces will be faster back to those bases.3 MAJOR volume coins and trade only them, do not be too concerned with other lower volume coins. Once the major coins recover/bounce, move funds into lower vol coins.© Most coins will fall and recover at the same time at BTC. Watch BTC for price movements as described above. Most Major Als will fall and bounce at at the same time. Pick 2-3 MAJOR volume coins and trade only them, do not be too concerned with other lower volume coins. Once the major coins recover/bounce, move funds into lower fal coins.React to the Chart- Only Play the chart! Do not get consumed on FUD from outside sources. Participate- Nibble, as the price is going down. Don't just watch. Nothing is worse than watching a price bounce without you. Scroll out and look at the big picture. Buy under a STRONG BASE. It is key that you participate in every bounce... or the coin your trading could very well drop again, and you are stuck holding it quite a bit higher than you hoped.. it will likely all work out anyway, because the way we trade is very very safe, but you would do better if you adopt the philosophy to participate at least a little in every bounce.. remember that you don't pay extra commissions to split up your orders, so you simply layer out, from small to large orders... so if something is in a panic and falling you might buy a size of 5 then 5 then 25 then 100.. well when a bounce is happening you might sell 5 then 15 then 35 then 75.. but if at the 15 or 35 the price starts to continue its dive, you are in better shape to buy the panic further down... Dont forget, we get paid to participate, thats the game. Be patient when entering the trade. Look to get in at the absolute bottom. If you do not catch the bottom, look to sell on the nent bounce on order to buy at the bottom When a base cracks, and | see a panic, immediately set orders up, where | think the panic might drop to.. I'l ayer my orders and use the past drops as a guide for how deep this panic could go. then when ever | get a fil | will place a sell order for a nice quick pop... but yeah, there is no need to stare at a chart for hours.. what | described that's a few minutes and your done.. and if you miss a base crack.. no worries, there's another coin cracking shortly.. in the market you cannot catch them all Start with small nibbles... (not any mathematical formula) Lets say | was gonna nibble with $1,000 bucks.. | almost never get more than 3 entries on a panic. so | might go $1,000 then if it really gives me a good long red candle, Ill grab another $1,000 and then if it says "surprise" and drops further | might go in $3,000 with a big smile on my face because finally | get some size on.. and then ifit drops further , its game on.. | might go to $10,000 or more on the next buy, ‘herwiiee The ealals aun hat ai Coltiel Of hal arriitions aha te Wen Colas tine.Ina panic | dont want it to bounce, | want it to keep dropping...Im not saying "! hope this is the bottom" Im saying, "Come on panic, drop crash fall!" | want size.. This is really hard for most traders to understand, because they feel like they are at risk.. But its the opposite, its safer the farther it falls, that's why | get in bigger and bigger and more aggressive as it falls.. because the price gets ridiculous. Explained a different way. If your at 100 and it drops to 50, price has to move 50 point to return.. that could be alot.. maybe. but let's say you started at 40 and price drops to 20, then 15, then 10.. if you bought equally at those numbers you would average 15 (20+15+10=45/3 buys=15) and a bounce to 30 would double your money. If you bought a little 20 and a little 15 and then huge 10s.. your average would likely be 12 or 413 (20+15+10=45 /3 buys= 13) and your in profit right away.. However 40 is still fresh in everyone's mind... can you see how ridiculous 12 as a price is when everyone is still thinking 40.. as soon as everyone calms down and takes a breath, they will be jumping hand over foot to get those 13, 14, 15s... that's how it works.. but while its falling you should be thinking, come on | want to load the boat at 5 and 3 and 2s.. (however that never happens, unless you have a thin thin book). In times like this focus your attention on the top coins... In my opinion thats BTC, ETH, NEO, BCH (ath sorhe Heston). EOS... 18 lst the fet Of inv bolifolio it cider 6f athount Invested.Luc's holdings: ETH..BTC..NEO..BCH..EOS..MKR..MANA..QASH..SALT,.ETHOS..COSS..QSP..FUEL..TNC..D RGN..SNM..CV..OST..DBC..KCS..BTS..BAR..GAS..MOIN..DENT..DICE..ENJ..NLC2..EBTC..IN T..PLACO..BAS..TIO..CPAY..UTK..FUN..XCS..NULS..AGI..STORM..RPX..GRX..ATS..GTO..KB 3..DOT..ALL..BNTY..BNT..CON..TRX..BITB..KNC. ‘These are my coins in order, not including all the ICOs that I have in wallets that are not on exchanges yet. That is a list of my holdings... Im always making free coins on everything in that list (actively trading them). It's very consuming to have alerts on too many coins.. | just can't do them all.. My list are not the best in the market, there just the ones | like and have free coins. Safe is always best.. | rarely ever think, | wish | went in more.. | want the extra in reserve to buy if the panic goes stupid deep honestly all day everyday | get small insignificant trades, but thats what I do,, and once in a while | get huge trades too.. | let the market decide .. but | dont care what | make, and for that reason (because | put safe trades above all else) | make huge profit in the end. Only take those absolute safe trades. that means that | miss a ton of great bounces and | miss a ton of losing trades.. but in this environment, there are bases being broken everywhere, so its really easy to find those panics. Delayed Profit Strategy/Free Coins So lets say I bought NEO at $15.. (actually | did) and then | sell half at $30 then I am in for free.. So if | started with 1000 coins and now | have 500 for free... | put them aside and continue buying panics and next time lets say | make another 200 free coins from trading in and out of those panics .. ok, my account balance is stil in tact and | have now 700 free coins... then lets say Neo runs away and | dont get anymore bases to trade off.. Neo runs to $50 fast and Im Ee Se Ra ila ai ay nF al Sle le ie Eg ln angcoins and a whole bunch of profit added to my account. There is no situation here where | lose money... goes down i make free coins.. goes up stupid, | sell for profits.. often insane proft.. | just traded TRX/USD.. | was trading it down in the .002s and .003s collecting free coins during november. now | just sold some .035s and .05s ... do that math.. and | still hold 50% of my free coins... That is insane profits.. These opportunities are all over the place in this market.. Just follow the rules and you won't believe the account growth..Ok im done my rant.. back to focus on trading. If you are having trouble with holding "free coins" because you worry the market might turn down at some point. Here is an illustration of a traders mindset. We have a job/function to do as traders, and that is buy those panic drops to make free coins... Why do I collect free coins instead of Just selling all and receiving a small profit on every trade? let me explain (| hope my illustration makes sense). The problem is not mathematical its mindset.. In order to not feel fear or greed (emotions that kill traders) you have to be able to separate investments from trading. If | told you that if you sweep some old guys step each moming some mornings he would open his door and give you $10 and sometimes he would give you $50 and some mornings he wouldnt give you anything but then some momings he would give you $5,000 .. would you keep sweeping? its not costingyou anything to sweep... Your not losing anything. So you may aswell keep sweeping, even if for a week he doesnt open his door and toss out $5... Your account will only keep growing, because it doesnt cost you anything to keep sweeping.. Its the same here.. You have a function/exercise to preform everyday. you cannot predict the future... You dont know if the coin your "sweeping" (trading) will go up or down long term... but you create free coins, and thats your function (thats sweeping)... Sometimes they go up and you get paid, and sometimes they go down and you keep sweeping.. But you cannot think of those free coins as money, until they take off upwards (they are just free, they didnt cost you anything).. Because when they do run up, then you can't sweep, you can only receive payment... The point is to avoid Fear and Greed from clouding your judgement you have to separate your investment from your trading... Your account balance is whats in FIAT if thats your base currency or your balance could be whats in BTC if thats your base currency. and all other coins that you are holding long term are free ones that you have created from trading. (you cannot predict what will happen with those, only you know that you will get paid handsomely from most of them) Even with Small Account Building Trades | hold some free coins... with those trades | often make 50% on a single trade, so | wouldn't just hold all profit as free coins, because there is just stupid big profit. but | always hold some We cannot predict he future.. and some of these coins will be huge later.. so you dont have to worry about taking profits on a trade.. all the free coins that you own will surprise you when they jump, and you will slowly be taking huge profits off of them, milking them as they go higher.. this ballons your account, all the while you keep doing your free coin collecting on other coins. From Pelt- use your profits to keep free coins... if you capture say a 20% movement in price, sell anywhere from 81-99% of your position back... that way the coins you are left with areLITERALLY FREE!!! From Tommo- You spend $100 buying below the base... to keep it simple imagine it's just on buy... it then bounces back to base, 30% lets say. So you have $130 worth of the coin now... you sell $100 worth and keep $30 worth. Those are free coins... if the coin shoots up at some point, lets say it doubles in price at some point, that $30 is now worth $60... 60% profit v 30% and risk free really as it was free... pretty cool. | will try this way of trading and thinking rather than just taking all the profit right away. If your mindset is those coins you create are free than you love major corrections and could care less how far the free coins go down.. if you can think of them as free, its emotionally easier to hold through a correction. Well if you see it like | do, you actually make nothing on you account... you only get a ton of free coins.. You simply take back your investment and you are whole, and ready to buy another panic,... meanwhile you now hold a bunch of free coins.. now when those free coins see crazy movement upwards you will start selling them.. so perhaps in the case of BTC that will be a run to $20,000 and you got the free coins down in the $8,000 range... but remember .. so how does that affect your account?? what percentage of growth did you get by collecting free coins instead of taking profits?? its a millionaire mindset. | know this concept of collecting free coins is hard for some to grasp... But trust me, it multiplies your money more than any trade by trade profit taking could... You are investing in this market and getting 2x or 4x or 10x on your trades (later in the future)..What do you mean?? I create free coins by trading. and often | even send those free coins to my private wallet... and continue making free coins... It cost me nothing but my time to make free coins in any project that | find interesting, or any chart that | find that is just giving easy trades... So if you could invest in anything you like, for FREE, would you do it? and who cares about taking quick profits, just make free coins in every corner of this market... get your fingers into everything while its easy and cheap. ‘As long as mentally you can consider those coins as free, then you wont get shaken out with market movements.. its a mental game... you want your account to only go up.. but in order to do That'vou) Hinge te collect Wee coins ahd Hisve thathet eifert vou biindole.Forget about taking $$ profits, your free coins will ballon your account later more than you could ever dream...| was selling BTC in the $19,000 area that | had sitting in wallets | created back at the $1,000 area.. thats 19x... thats why | only sell 30% of my holdings everytime | get the hot potato feeling after selling some "free coins" my $$ account becomes bigger permanently. ‘Something else that might make you reconsider whether holding free coins is the best policy, it too look back in your records and figure out when you held the most of any particular coin.. Maybe there was a time when you had 10BTC in a wallet, or maybe 5,000 ETH was a normal size trade for you.. it really makes you think. Everytime | take 30% off a coin, thats the only time my account actually grows in $S.. but yes, it never decreases. | never cut losses.. My method doesn't work that way... | simply create free coins and put them aside... if they go down, no worries.. if they go up (Which they almost all do) then i sell into the future when they are worth stupid amounts, at 30% at a time The whole run up | was making videos with arrows on my charts of where | sold some more of my free coins... | was participating in the bull run.. Now that we are having a correction, | am participating in every panic and collecting my free coins back. its win win .. but the key is im “hike ecermeiiiie Rie. onan Wianees Ural ile icra ieee verdinen ‘vaus surat eeoiill ousiiiildemin in Alinnext cycle coming, Free Coins Example; . Ifyou put in 1 BTC on Jan 1 into XYZ coin and you make 20% on the trade, then you will have eamed .2 BTC. With the “Free Coins’ method, you would take your original 1 BTC out of XYZ coin, and leave the .2 BTC in as free coins (let's call it 1000 of “free” XYZ coin). Then as XYZ coins goes on a huge run l.e. 5x, 10x, ete. then you take 30% each time you start feeling a “hot potato’ feeling, Le. you're thinking to yourself there’s no way this coin can keep sustaining its growth. So just to be specific, les say you got XYZ coin for 10 cents and 6 months after you made your free coins, it's now worth $1 after a huge pump and you feel like it might crash down, then take 30% of your coins. 1000 XYZ * 3 = 300 Coins. You sell 300 coins for $1 and hold the remaining 700 for the future. 6 months later XYZ goes on another crazy run and the price goes up to $10. You feel the hot potato feeling again and sell 30 %... 700 remaining coins * .3 = 210 Coins. You sell 210 coins for $10 and hold the remaining 490 for the future. And this process repeats itself over and over until you run out of coins.