How to Generate Bitcoin Trading Signals with Bitcoin Trading Systems

Cryptocurrency MT4 Signal Indicator

The only method of bitcoin trading is through cryptocurrency trading signals, It is best to learn how to generate these cryptocurrency signals for yourself, this way you do not have to rely on other cryptocurrency traders to generate them for you.

Generating bitcoin trading signals is not easy and requires you to have a lot of cryptocurrency trading technical analysis knowledge and experience, but the earlier you start practicing how to generate these cryptocurrency signals for yourself the better it is for you.

A good method of how to practice generating bitcoin trading signals with bitcoin trading systems is to open a free practice Bitcoin demo cryptocurrency trading account and test your bitcoin trading signals on this practice account risk free without risking your money, then once you have tested your bitcoin trading strategies and they are profitable on the cryptocurrency trading demo practice account you can the use these bitcoin trading signals on a live cryptocurrency trading account.

The method of how to practice generating these cryptocurrency signals as well as how to back test the bitcoin trading signals on the demo bitcoin trading account using the MetaTrader 4 platform is discussed below:

So, How Can a Trader Generate Bitcoin Trade Signals?

The best method of generating bitcoin trading signals is through bitcoin trading systems, You can Learn how to come up with bitcoin trading systems from the lesson how to create Bitcoin Trading Systems on the right navigation menu under the topics Bitcoin Key Concepts.

A cryptocurrency trading system is a combination of one or two or more crypto indicators with written bitcoin trading rules of how these crypto indicators will generate these cryptocurrency signals.

Take an example of the simplest bitcoin trading system or bitcoin trading strategy known as moving average crossover bitcoin trading method. A buy cryptocurrency signal or sell cryptocurrency signal is generated when there is a crossover of the two moving averages; either a buy cryptocurrency signal for an upward moving average crossover or a sell cryptocurrency signal for downward trend.

Generating Cryptocurrency MT4 Free Signals - Cryptocurrency MT4 Signal Indicator - Bitcoin Trading Signals MT4 Bitcoin Indicator Strategy Moving Average Crossover Method

The cryptocurrency trading system example illustrated below shows a bitcoin trading system using the above moving average strategy combined with the RSI and MACD bitcoin indicators to generate buy and sell cryptocurrency trades.

Example of Generating Cryptocurrency MT4 Free Signals - Cryptocurrency MT4 Signal Indicator - Bitcoin Trading Signals MT4 Bitcoin Indicator Strategy

When it comes to generating buy and sell cryptocurrency trading signals, cryptocurrency traders should use simple bitcoin trading systems to generate these cryptocurrency signals.

Generating Cryptocurrency MT4 Free Signals - Cryptocurrency MT4 Signal Indicator - Bitcoin Trading Signals MT4 Bitcoin Indicator Strategy - Buy and Sell Bitcoin Trading Signals

Generating Cryptocurrency MT4 Free Signals

An example of a simple bitcoin trading system that works, is one that is a combination of:

• Moving average crossover strategy
• RSI
• MACD

The written bitcoin trading rules are:

Generating Bitcoin Trading Signals Strategy - Bitcoin Trading System Examples

Bitcoin Trade Rules:

Buy Bitcoin Trading Signal is Generated when:

• Both Moving averages going up
• RSI value above 50
• MACD above center line

Sell Bitcoin Trading Signal is Generated when:

• Both Moving averages going down
• RSI value below 50
• MACD below center-line

Generating Buy and Sell Crypto Trades - Example of a Crypto Trading Strategy

Exit Signal

Exit signal is generated when MA, RSI and MACD cryptocurrency indicator give a signal in the opposite direction.

The crypto chart time frame to use is 1 hour crypto chart time frame or 15 minutes crypto chart time frame depending on what type of bitcoin trader you are.

For a beginner bitcoin trader the above written bitcoin trading rules will give good buy and sell bitcoin trade signals, the only thing that a bitcoin trader needs to do is to have the discipline to follow the written bitcoin trading signals rules the exact way they are, and wait for a buy or sell bitcoin trade transaction to be indicated by your bitcoin trading strategy and trade after the signals have been generated, not before they are generated.

Back Testing

Generating Bitcoin Trading Signals with a cryptocurrency trading system is one of the easiest method to trade bitcoin , it is the best way that a bitcoin beginner can attempt to determine the direction of the btcusd trading market bitcoin trend with a good level of accuracy, and with a little back testing on demo practice account so as to gradually increase the level of accuracy of this bitcoin trading signals strategy

The best way to back test a bitcoin trading strategy is by following these two steps:

1. Bitcoin Paper Trade
2. Cryptocurrency Demo Trade

Bitcoin Paper Trading- This method of testing a bitcoin trading system involves placing your cryptocurrency trading system on the cryptocurrency charts, then take the cryptocurrency chart back to a particular date, 3 months back for example, and then using this cryptocurrency chart history to determine where your bitcoin trading strategy would have given buy, sell and exit cryptocurrency trading signals. Write down these points and the profit per bitcoin trade transaction on a piece of paper and then calculate the total profit after you have recorded a good number of cryptocurrency trades such as 50 paper trades bitcoin trading transactions and determine if your bitcoin trading method is overall profitable, the win ratio, the loss ratio and the risk:reward.

This is an ancient method of testing bitcoin trading systems that was used by traditional investors when there was no online cryptocurrency markets or computers for that matter, the bitcoin trader would use something like the A3 or A2 paper, graph format paper and draw the trading charts manually (Imagine plotting the charts on your bitcoin trading platform by hand every day or every hour, would you be ready to do that? I doubt) Those investors were hardworking than most, some were so used that they still continue to paper trade the online cryptocurrency market and draw the crypto charts on paper, anyway for our paper method example, just a sample data of 50 bitcoin trade transactions is all we need.

A good bitcoin trading tool to use to back test your cryptocurrency trading system is known as the MetaTrader 4 Bitcoin Trading Step by Step Tool. Found on the MetaTrader 4 charts toolbar of MetaTrader 4 platform, If you want to find the charts toolbar on the MT4 platform it is at the top of the MT4 platform. If it is not: Click View (next to file, top left corner of MetaTrader 4)>> Toolbar >> Charts. Then click the Customize button >> Select Bitcoin Trading Step by Step >> Click Insert >> Close.

MetaTrader 4 Bitcoin Trading Platform Chart Tool Bars - How to Trade Bitcoin for Beginners

MetaTrader 4 Chart Tool Bars - Bitcoin Trading Step by Step Button for Back Testing Bitcoin Trading Systems Explained

Once you get this MT4 bitcoin trading tool you can move your cryptocurrency chart backwards, and use this MT4 bitcoin trading tool to move the crypto charts step by step while at the same time testing when your bitcoin trading system would have generated either a buy or sell bitcoin trade transaction, and where you would have exited the bitcoin trade transaction, then write down the amount of profit/loss per bitcoin trade transaction and out of a sample number of bitcoin trading transactions you would then calculate the overall profits/losses generated by the bitcoin trading strategy.

If your bitcoin trading strategy is profitable on the paper then, it's time to demo bitcoin trade and testing if the it is profitable on the real market as it is on paper method. This is the process of testing or back testing a cryptocurrency trading system.

Writing a Bitcoin Trading Journal

Maintain a Bitcoin Trading Journal to keep track of profitable bitcoin trades, and determine why these cryptocurrency trades were profitable. And also keep a log of all losing bitcoin trades, determine why these cryptocurrency trades made a loss and the avoid making these same mistakes the next time you trade using your bitcoin trading strategy.

Tweak your bitcoin trading system until you get a good risk: reward ratio, with the bitcoin trading signals that you generate. Aim for a good risk: reward of 3:1 and a win ratio of above 70% is a good ratio, with good bitcoin trading money management even a bitcoin trading strategy with a win ratio of even 30% i.e. less than half of your bitcoin trading transactions make profit you can still make a profit. You might want to read this topic to know what the table below is all about: Risk : Reward Ratio.

Risk to Reward Ratio Chart of Bitcoin Trading Money Management Strategy - Bitcoin Trading Strategies Explained

Read Bitcoin Trading Money Management Strategies Tutorial

A manual bitcoin trading system is still the best way to generate bitcoin trading signals compared to automated bitcoin trading systems, a manual bitcoin trading strategy is a better method and is also much simpler to implement.

However, other traders prefer automated bitcoin trading systems and for those then they can check the information on this page MQL5 Crypto EAs and automated bitcoin trading systems.

You can also view our extensive list of bitcoin trading strategies topics that provides you with various methods of buy and sell technical analysis using a number of diverse technical methods, navigate to the Bitcoin Trading Strategies Section.