Predictable way to trade the cryptocurrencies, indices, or commodities
Same as KYC in the investment industry, you should know the behaviour of your instrument. There is no one template to slot all trading assets in the financial market; some are friendly, other untamed, some are just rogue. All this calls for different hunting skills. For now, I will cover non-currency instruments.
Trading these assets is a bit predictable, though not bullet safe. If say, for example, the cryptocurrencies, indices, or commodities are on a bull run, they extend for a long time which applies to a bear markets. Therefore, if the strategy behind your core strategy is concrete, you will stand to profit even after a significant drawdown. So, timing is significant.
For instance, grid trading systems are known to gluttonously wipe accounts in the long run if the strategy behind it is unstable. However, the strategy can work if used properly on top of a truly working formula. In cryptocurrencies, indices, or commodities traders can take advantage of retracements and buy when the price dive is actually deep or sell in the event of a true surge.
Here is a working strategy.
Indicators to use
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Bollinger Band (Period:500, Shift: 0, Deviations:2)
Timeframe to trade: 1H Chart
Buy Rule: -
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Make sure the price on 4H chart is above the main band (middle line)
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On 1H chart, make sure the price is below the lower band.
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Buy when the True Oversold Overbought mt4 indicator crosses -5000 from below. This way, you buy only when the price exits oversold state.
Sell Rule: -
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Make sure the price on 4H chart is below the main band (middle line)
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On 1H chart, make sure the price is above the upper band.
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Sell when the True Oversold Overbought mt4 indicator crosses 5000 from above. This way, you sell only when the price exits overbought state.
And if you want to implement grid or any other system under these conditions, you will be profitable.
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Check here on how to draw oversold/overbought lines
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For Additional tips
That's all. Be profitable.
