How to Write a Good Bitcoin Trading Plan

bitcoin trading plan checklist - the following is a template example of a bitcoin trading plan template example:

JUSTIFICATION

1. TRADING IS A BUSINESS, SUCCESSFUL BUSINESSES ALWAYS HAVE PLANS

• Businesses that are successful always start with a plan.
• Successful business planning will guide you to success, think of bitcoin trade plan as a map; it is a constant reminder of how you will consistently pull profits from the btcusd trading market.
• Difference between a successful trader and a losing bitcoin trading one is the bitcoin trade plan.

2. TO KEEP ME IN THE RIGHT DIRECTION

Consistency is important in your routine to measure how successful you are.

Keep you on target, read the bitcoin trade plan every day and stick to its trading rules.

When it comes to your plan you should think of it as a map that shows you this is what you follow, it should have clear rules that specify when you open or close a transaction.

Your bitcoin trading plan should cover all aspects of bitcoin trading, you should read the bitcoin trading plan every day until it is on your fingertips so that when you are transacting on the fast moving market of bitcoin trading you will always know what to do in every situation.

Your bitcoin trading plan can be as simple or as complicated as you like, but the most important thing is that you have one. By having a one you have an advantage over the btcusd trading market, you will have better odds of making a profit than those who do not have one.

This bitcoin trading plan checklist tutorial topic provides with an example bitcoin trading plan template that you can use for creating your own bitcoin trade. By now you have already written down the justification part of your bitcoin trading plan template, If not get a pen and paper and write the justification part. Next we shall look at how to write the system.

Bitcoin plan is one of the secrets that can help you to improve your profits. A good bitcoin trading training guide like this one should show you how to come up with one using a bitcoin trading plan template which you can use as an example to develop your own bitcoin trade plan.

One of the most common question is, Is Bitcoin profitable? one of the methods to make it profitable is to have a good plan.

IF YOU HAVE A GOOD BUSINESS PLAN AND YOU ARE DISCIPLINED ENOUGH TO STICK TO IT YOU WILL BE SUCCESSFUL.

GOALS OF THE TRADING SYSTEM

1. Ability to IDENTIFY A TREND AS EARLY AS POSSIBLE .
2. Ability to AVOID WHIPSAWS .

The bitcoin trade system should find a compromise between the two Goals,

Find a way to identify a bitcoin trend as early as possible but also find ways to help you distinguish the fake signals from the real ones.

FUNCTIONS OF EACH INDICATOR

MA - Identify a new bitcoin trend as early as possible.

MACD - Identify a bitcoin trend as early as possible.

Determine strength of a continuing trend.

RSI - Swing failure to confirm the start of a new cryptocurrency trend.

Extra confirmation tools to help determine the strength of our cryptocurrency trend.

Parabolic SAR - Help to ensure that we are not caught up on the wrong side of the trend.

Bitcoin Trend Lines - Signals a reversal when the line is broken

Bitcoin Price Action Signals - confirm the weakening of a trend.

Bollinger Bands - for btcusd price action study

To learn and know more about each indicator and how these indicators can be used to generate trading signal setups you can go to the Cryptocurrency Indicators Section

CHART TIME FRAMES

• Main time frame is the 1H.
• Signals are generated on the 15 minute time frame.

15 Minutes Charts

• Bitcoin Trend Lines (Support & Resistance)
• 5 & 7 LWMA
• RSI (14)
• Bollinger Bands (20, 2)

RULES

LONG ENTRY

Entry

15 Minutes Charts

1. Both MAs are moving UP
2. MACD Above Zero Center Line (Not MACD moving UP)
3. RSI > 50
4. Parabolic SAR is below the btcusd price (Support)

When signal is generated on the 1 Hour Bitcoin Chart, use the 15 minute crypto chart time frame to open and close positions.

LONG EXIT

1. RSI gives opposite signal
2. Bitcoin Price breaks Support Bitcoin Trend Line
3. Parabolic SAR is hit (Trailing Stop)

RULES

SHORT ENTRY

Entry

15 Minutes Charts

1. Both MAs are moving DOWN
2. MACD Below Zero Center Line (Not MACD moving Down)
3. RSI < 50
4. Parabolic SAR is above the btcusd price (Support)

When signal is generated on the 1 H chart, use the 15 minute crypto chart time frame to open and close trade positions.

SHORT EXIT

1. RSI gives opposite signal
2. Bitcoin Price action breaks Support Bitcoin Trend Line
3. Parabolic SAR is hit (Trailing Stop)

ROUTINE

1. Signals are generated using 1H crypto chart time frame and executed using the 15 minute crypto chart time frame.
2. Trading signal to be executed immediately trading rules are met.
3. Entry alert signals should be executed during daytime.

TIME OF DAY TO WATCH MARKET - MARKET HOURS

Watch market during daytime when most companies and online crypto brokers are open for transactions. Use this to come up with a suitable program.

Example

Tips - You can use the MT4 Bitcoin Trading Software to save this as a bitcoin trading template that way you do not have to lay it afresh every time you open a new crypto chart. If you want to learn how to save a bitcoin trading plan template on the MetaTrader 4 platform, read: MT4 Bitcoin Trading Platform Tutorials.

Bitcoin Trading Money Management

• Day trading - Low risk High return method
• Trade when I have a high risk to reward ratio 3:1 or more
• Stop loss = Parabolic SAR

• Set TP target 40-60 Bitcoin Trading Pips
• Never transact beyond 3 % of account equity
• Never risk more than 2 % on a single bitcoin trade transaction

Bitcoin MINDSET/PSYCHOLOGY

• Trade without Emotions (greed, fear, anticipation, impulse, bias, over-excitement)
• I trade what my eyes see not what I feel.
• I will be patient.

My job is not to be the bitcoin trading system!

It is not to decide which signal looks promising.

That is the job of my bitcoin trading system - which has a set of bitcoin trading rules which tells me this is what I follow. Do not get caught up in btcusd price action and make rules as you go along.

MY JOB DESCRIPTION IS

To sit patiently and wait for my bitcoin trading strategy to indicate that it is time to enter or it is time to exit. And then with great focus I execute the bitcoin trading plan as outlined.

Taking trades not indicated by the bitcoin trading system, second guessing it and not taking signals given, hesitating and getting in late, anticipating and getting in early are all common place and boil down to lack of faith in the plan and not having a burning focus on accurate execution.

GOAL: To have 100% undivided focus on mastering my ability to execute my Bitcoin rules accurately.

The more you develop the ability to step back from btcusd price movement and watch the btcusd trading market dispassionately, waiting for a bitcoin trading signal, the easier it will be to witness the fluctuations of your emotions without getting sucked into them allowing them to throw you off your game.

WEAKNESS

1. I am greedy.
2. I over-trade
3. Make a list of all your weaknesses that are interfering with your trading. This is the first step to help you overcome these weaknesses. Use Bitcoin psychology to help you overcome them.

NB: by writing down your weaknesses you will start recognizing them as you make progress, once you do this you will start to avoid this mistakes and your results will improve.

GOALS

• To focus on exit just as much as I do on entry signals.
• Always protect my account using stop loss, bitcoin trading money management methods, follow with the bitcoin trend direction and always following the trading rules of my bitcoin trading strategy.
• Never second guess or go against my trading strategy. To always keep up my discipline.
• Follow all the rules of my bitcoin trading strategy and never break them.
• Transact fewer times and execute all my signals correctly. Trade what I see, what the system + crypto charts are telling me.
• Sit patiently and wait for signals from my strategy.
• Achieve consistent bitcoin trading results before opening a live cryptocurrency trading account.

FOLLOW THIS Bitcoin SYSTEM

This is the most important part of creating the bitcoin trading system.

Always follow the trading rules

Stick with the trading rules

Be disciplined and patient enough

Bitcoin Trading JOURNAL

Log all my trade transactions in a bitcoin trading journal so as to track my training progress and improve my bitcoin trading execution trading methods.

This bitcoin trading strategy uses momentum to determine the cryptocurrency trend.

Even if you are new to cryptocurrency market and you do not know how a bitcoin trading system looks like, this bitcoin trading system template example illustrates to you how a bitcoin trading strategy should look like, the Bitcoin tutorials explained in other sections of this training website will also explain further the different aspects that you need to learn.

Hence, the aim is to help you come up with your own complete bitcoin trading strategy that is if you are looking for one, by showing you one that is already complete. In fact you can just use it as it is, or make a few adjustments so that it suits your bitcoin trading style.

The aim is to help you improve your bitcoin trading results by using a bitcoin trading plan, and another advantage is that this bitcoin trade plan will offer you a chance to improve your knowledge and it will help you improve your bitcoin trading results and help you make pips when cryptocurrency trading and keep them so that you do not keep giving them back to the btcusd trading market.

Read this bitcoin trading plan training tutorial about developing a bitcoin trade plan of your own, along with the learn bitcoin trading courses and bitcoin trading strategies listed at the top of this learn bitcoin trading tutorial website.

The Most Beneficial part of using this bitcoin trading plan template is the "Bitcoin Trading Money Management Part" you will learn how to trade bitcoin and minimize risk, which is the most important thing when it comes to trading the btcusd trading market.

Bitcoin Trading Plan Checklist - How to Develop a Trading Plan in Cryptocurrency - Bitcoin Trading Plan Example - Bitcoin Trading Plan Doc