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