Creating a BTCUSD Trading System That Works
When creating your own bitcoin system, there are a few things to keep in mind. Your bitcoin strategy needs to be able to spot new Bitcoin market trends, while at the same time making sure you do not to get faked out/whipsaws. Real trick is, once you've created a bitcoin system that works for you, stick to it. Being disciplined will help you a lot in becoming successful in cryptocurrency trading.
Before trading Bitcoin on a live bitcoin account, you've to figure out what trading strategy works for you. It is good to know in what crypto chart time-frame you're going to be working in, & how much you are willing to risk once you start bitcoin trading online. All these factors should be factored in, & should be written down within your bitcoin trading plan. A good place to test this bitcoin trading plan would be on a free demo trading account. This is where you test your bitcoin trade strategies risk free without investing money to determine which strategy is best suited for you.
So, now how can a trader like you come up with a "good bitcoin trading system" or the "best bitcoin trading system"?
To come up with a good trading strategy the first thing to do is to define your aim or goal:
The following examples illustrates a goal and explains the rules of how to achieve that goal
Bitcoin Trading Goals
1.Identify a new bitcoin trend
Moving average crossover method bitcoin trading strategy is the most commonly used strategy to identify a new cryptocurrency trend. Time to open a long or short trade is determined when 2 moving averages indicators cross over or cross under each other.
2.Confirm the new bitcoin trend
RSI(RSI) Crypto Indicator and Stochastic Oscillator Crypto Indicator are the most commonly used indicators to confirm a Bitcoin trend.
Indicator based Trading System
The best type of a trading method is one that is indicator-based. You will find it straight forward to generate the cryptocurrency signals and thus less error-prone on your part & this will help you to avoid cryptocurrency market whipsaws.
There are several things we want to achieve when creating a BTCUSD trading system:
- Find entry points as early as possible.
- Find exit points securing maximum gains.
- Avoid fake entry & exit signals.
- Proper Bitcoin Trading Money Management Rules
Finishing these four goals will result in a profitable bitcoin strategy that works.
The last piece of data needed, is deciding how aggressive you're going to be when entering & exiting a trade. Those traders who are more aggressive wouldn't wait until the cryptocurrency chart candle closes and would enter as soon as their crypto indicators match up. But most traders would wait until the chart candlestick of the chart time-frame they are using has closed, to have more stability when entering a the btcusd trading market.
To get profits out of the btcusd trading market you need to build your own profitable trading system: a trading technique that will generate profitable cryptocurrency signals. You need to have your own bitcoin strategy that will help you achieve your financial goals. Sometimes the best trading systems are the ones that you build on your own. No need to keep searching online for the best trading systems or for bitcoin trading systems which work, this web-site provides you with all the trading tools required to help you and lesson you on how to create your own bitcoin trading systems.
Shown Below is an example of a Bitcoin trade system based on RSI, MACD & Stochastic.
Bitcoin System - Best MT4 Examples Trading Systems
The cryptocurrency trading system example above is comprised of four cryptocurrency indicators in total, all of these generate Bitcoin trade signals using different methods, the moving average will generate cryptocurrency signals using the moving average crossover method shown, the RSI indicator, Stochastic indicator & MACD indicator use different technical analysis to generate the long and short signals as shown in the above example. How to generate these Bitcoin signals is discussed in next topic (on the sidebar navigation study trading lessons menu under key concepts).
For beginner cryptocurrency traders, it is difficult for them to create their own trading strategies since they don't have much knowledge about the btcusd trading market. However, this learn bitcoin website will explain how a beginner bitcoin trader can create their own free bitcoin system in just seven easy steps. The best strategy is the one you come up with yourself & learn how to trade the btcusd trading market with it.
The main advantage of creating your own free bitcoin systems is that you'll know how to make profits by yourself - & not rely on other peoples efforts.
In the next bitcoin course located at the sidebar navigation learn trading courses menu below the bitcoin trading key concepts will show you how to create a bitcoin trading system like the one above, write it's bitcoin trading rules & how to back test the cryptocurrency trading system on a practice practice cryptocurrency trading account before using it on a live cryptocurrency trading account.
4 Examples of Free BTCUSD Trading Systems
Example 1: The Moving Average Crossover Method
The moving average indicator cross over method uses two moving averages to generate Bitcoin signals. First Moving average uses a shorter period & the second is a longer period.
Moving Average Crossover Method - Moving Average Crossover Strategy
This above trading method is referred to as the moving average crossover method because btcusd signals get generated when the 2 averages cross above or below each other.
Bitcoin Trading System Trading Example Template - Short & Long signal Generated by Trading System
A buy cryptocurrency signal or going long trade is generated when the shorter moving average indicator crosses above the longer moving average technical indicator (Both Moving Averages Going Up).
A sell cryptocurrency signal or a going short trade is generated when the shorter average indicator crosses below longer moving average technical indicator (Both Moving Averages Going Down).
Example 2: Stochastics Bitcoin Trading System
Stochastic Oscillator cryptocurrency technical indicator can be combined with other indicators to form a cryptocurrency trading system.
- RSI bitcoin technical technical indicator
- MACD bitcoin technical technical indicator
- Moving Averages bitcoin technical trading indicators
Trading Systems Example - Best MT4 Examples Trading Systems
Short Signal or Sell Trading Signal
How the short sell Crypto signal was generated
From our bitcoin trading rules the short signal is generated when:
- Both Moving Averages are heading down
- RSI is below 50
- Stochastic heading downwards
- MACD heading downward below center-line
Short signal was generated when all the written bitcoin rules were met. The exit trading signal is generated when a bitcoin trade signal in the opposite direction is generated.
Good thing about using such a trading method is that we are using different types of indicators to confirm the cryptocurrency signals and avoid as many whipsaws as possible in the process.
- Stochastic - bitcoin momentum oscillator indicator
- RSI - bitcoin momentum oscillator indicator
- Moving Averages Technical Indicator - bitcoin trend following indicator
- MACD - bitcoin trend following oscillator
Based on the crypto chart time frame used - this strategy can be used as Bitcoin scalping system when the minute crypto charts are used or as a Bitcoin day bitcoin trading system when hourly crypto charts are used.
Example 3: Trading System BTCUSD Example
This cryptocurrency system is fully described within the bitcoin trading plan on the bitcoin trading plan tutorial on this learn bitcoin website under the key concepts section located on the right navigation menu.
Chart Time Frame
1H chart
Trading Technical Indicators that spot a new bitcoin trend
Moving Average Crossover Trading Indicators Strategy
Trading Indicators that confirm the bitcoin trend
RSI indicator
STOCHASTIC OSCILLATOR technical indicator
Long Entry - Buy Signal
1. Both MA(moving averages) pointing up
2. RSI above 50
3. Both stochastics going up
Short Entry - Sell Signal
1. Both Moving Average pointing down
2. RSI below 50
3. Both stochastics going down
Exit Signal
1. Moving Average Trading Indicator gives opposite signal
2. RSI gives opposite signal
Risk Management in Bitcoin Trading
Stop loss- 35 pips
Take Profit Order - 70 pips
Reward to Risk 2:1
Example 4: New Gann Swing BTCUSD Trading Chartist Plan
The Gann Swing Oscillator is meant to be used in combination with the Gann HiLo Activator & Gann Trend to form a complete strategy commonly referred to as the - 'New Gann Swing Chartist Plan'. Within this methodology the Gann Swing Oscillator is used to help determine cryptocurrency market swings for trading only within the current market bitcoin trend is shown by the Gann Trend.
Shown Below is examples of New Gann Swing Chartist Plan
Gann Chartist Plan - MetaTrader 4 Template Trading System
