Bitcoin Trading Plan

 Bitcoin: Balance Management and Trading Plan

Balance management is one of the most important things in trading. If you want to become a successful trader, in the long run, you can't avoid this issue.

"Sometimes you win, sometimes you lose, the important thing is that the result is income".

In short, trading is not about winning every trade. It really isn't. We all have losing trades, but if we can make a profit in the long run, we've just won the game. That's how trading works, and now let's get down to business;

If your trading capital is $100,000, you need to split $90,000 and keep only $10,000 for trading. The proportions really depend on the risk you are taking, but this is the ideal split. 

After all, you don't want to risk all your capital on a single trade, although you will certainly use a stop loss......

As we work on by bit, the most advanced platform for leveraged trading, the split can be done very easily. 

Just transfer your capital to the Spot account and leave your trading balance on the Derivatives account (in USDT). The transfer via Spot Derivatives is free and takes no more than a second.

So, once you have separated your trading balance from your capital, you are ready. The next step is to choose your leverage, stop and take profit. 

The Bitcoin Indicator team has developed a "high leverage trading method" specifically for bitcoin, but it's a "high risk - high reward" method and definitely not for beginners. You can read more about it in the user guide, but for now, let's stick to the safest way to trade.

Negotiation plan

When I say the next step is SL and TP, I'm not talking about analyzing charts yet. I mean that you need to put a trading plan in place. 

Without a good plan, you will not be able to make profits in the long run and you will only waste your time and money in trading. In the following, I will create a trading plan for you so that you can understand it easily.

Let's say you want to trade all types of altcoins and not just bitcoin because you can find many more entry points. Let's say you only want to trade in the 30m time frame, regardless of the currency. 

In this case, 10x leverage on every trade you make is a good option. This way you will have a difference of about ~7% between the entry price and the settlement price, which is not much for altcoins, but you can easily make a 30-40% profit on a single trade. 

Now that we have determined the leverage, it is time to determine the SL and TP.

It's best to use a risk-reward ratio of 1:2, which means that if your SL is -2%, your TP should be +4%. If your SL is -4%, your TP should be +8%, and so on. In this case, you are profitable if you win 50% of your trades, but this can be difficult because you can't always predict such movements. That's why I like to trade this way;

If my stop loss is -2%, my take profit will be +3%. If my SL is -4%, my TP will be +5%. So, as you can see, I add 1% to the SL to get my TP. 

Thus, the chances of winning increase dramatically. If you do the math, you will see that with this setup, you can win $20,000 to $30,000 in just $100 worth of trades if the winning percentage is 60%. 

Therefore, you only need to win 60 transactions out of 100 to earn more than 100 times the profit.

Bitcoin price

Of course, you can't just open a random transaction and expect to win. That's why we developed the Bitcoin Indicator to help you find the best entry points.

 If you apply the strategies in the user guide, you will increase your chances of winning and perhaps even reach 60% profit in the long run.

Please note that the SL should be calculated based on the current market situation. So I can't tell you that an SL of -2% is always a good option. 

Analyze the chart yourself and once you have your SL, simply add 1% to get your TP as well. Always check if the expected profit level is likely to be achieved. To do this, use previous highs and lows, trend clouds, and/or cash flow levels.

Even if you want to trade with lower time frames and different leverage, you can play with the numbers on winrate.io to find the best possible trading plan.