Jump to content

TrendFollower

Community Member
  • Content Count

    3,217
  • Joined

  • Last visited

  • Days Won

    61

Everything posted by TrendFollower

  1. If anyone wants to share the 'Strongest Trending Assets' in this thread then please feel free to do so. For me 2019 has been all about Litecoin and Bitcoin. They have been the two strongest trending assets I have been trading along with Bitcoin Cash in third place.
  2. @Excel09, I would slightly disagree with you. What we think, analyse and assume can have a bearing on the assets we decide to trade. I make a lot of assumptions. Some are right and some are wrong. I allow the price action to test my assumptions. I am not worried or scared about my assumptions being wrong. Assumptions allow me to have a view on the direction I think the asset is going to travel in. I made an assumption yesterday as you can see in my post that I felt Bitcoin was heading to $13k. It actually hit $13,170.60 overnight. It is currently trading around $13k levels now at the time of writing this post. Bitcoin at this rate is looking like going to $14k double the $8k predictions and more than double the rumoured $6k level. This ego, emotion and personal belief stops a trader from profiting from the strongest trending asset in 2019.
  3. @Excel09, I use the UK broker, Hargreaves Lansdown. However, they only offer Bitcoin in SEK and EUR and Ether in SEK and EUR. I have selected both Bitcoin and Ether in SEK due to the uncertainty of the EUR going forwards. Hargreaves Lansdown have not yet started offering both Litecoin and XRP to its customers.
  4. One of the key concepts is to make trading decisions based on data rather than emotions. One must put their emotions and personal beliefs to one side. Use the data which is being generated by price action and use it along with other indicators / signals to make an informed decision. Now different traders will have and use different risk/reward ratios. This is true between different trend followers. Some of the aggressive trend followers will take on far more risk than some of the more less riskier trend followers. Another point I want to make is that you do not have to be exact with trade entries and trade exits. This is something that traders who do not believe in trend following or think trend following does not work will pick on. They will state that your trade entry / exit was wrong based on their own personal trading principles. The beauty of trend following is that the entry and exit points can be far more relaxed and flexible than other trading strategies. Trend Following can be used across most other assets. So it can be used to Commodities, Cryptocurrencies, FX, Bonds, Equities, ETF's, etc. I personally like to see 'Higher Highs' and 'Higher Lows' being formed in an upward trend and 'Lower Highs' and 'Lower Lows' being formed in downward trends. Looking for breakouts is a key area and the earlier one can identify a potential trend to trade the better. The reason why I use technical indicators / signals is because it takes my emotions out of the decision making process. I am not emotionally attached to any specific asset and nor do I hold any loyalty to any specific asset. I want to trade the strongest trending assets what ever they are. Having entry and exit rules which are determined by technical indicators / signals removes emotional decision making. It allows you to trade the strongest trending assets. Those traders who are allowing their personal emotions, ego and personal beliefs cloud their judgement cannot trade Bitcoin, Litecoin or any other top performing Cryptocurrencies which from a performance perspective have trounced other more traditional assets.
  5. WSJ: Grayscale Bitcoin Trust Outperformed Everything in H1 2019 https://cointelegraph.com/news/wsj-grayscale-bitcoin-trust-outperformed-everything-in-h1-2019
  6. Vela is now starting to release positive news flow. For me this needs to equate to a rising share price. If a share does not move when positive news is being released then it is a red flag for me. Vela suffers from massive dilution which is going to impact share price appreciation. It is going to take some very heavy buying over a sustained period for the share price to motor but if it does then this could be an excellent value investment at current price levels. Below is the latest RNS Vela released to the market this morning: Vela Technologies Update re. WeShop Limited https://www.investegate.co.uk/vela-technologies--vela-/rns/update-re--weshop-limited/201907091032179384E/ Based on the value for Vela's stake in this alone at current prices the market cap / valuation seems very low. Of course the flip side is that it may be low for a reason. I have heard though yet to be confirmed by Vela that another one of the companies it has invested in (Rosslyn) has got two nice contracts. This should be filtered through to the media shortly.
  7. @Henniet, 👍😁 At times it is nice to have a sense of humour. Your question inferred you were looking at earning interest on your $10,000 so I merely made one suggestion. Of course there are many ways in which you could earn interest on $10,000. I appreciate you are asking specifically why IG does not pay interest on $10,000 in your account. I offered an answer that it is not a bank! I could not resist but appreciate my humorous response may not be for everyone so I shall try and tone down on my humour in future. On a serious note I do not know the specific or exact reason why IG do not offer you interest but you may wish to ask IG directly as even if someone provides you with an answer, how will you verify that it is actually 100% correct?
  8. Below is the latest RNS released this yesterday morning. KR1 plc Buyback of Deferred Shares https://www.investegate.co.uk/kr1-plc--kr1-/prn/buyback-of-deferred-shares/20190708152633P0081/
  9. Carrying on from my previous post yesterday it seems a breakout is materialising. Looking at the 'daily' timeframe I think the possible clue is that Bitcoin may head towards around the $17k level with a consolidation / pause for breath before going for $20k and above making new highs. It first has to surpass $14k and $15k but if it can then I think there will be very strong momentum and support for Bitcoin to make new highs.
  10. Bitcoin hit $12801.30 and is currently trading at $12735 so is now heading for $13k. It also seems like a breakout is materialising should this price action continue. Looking at the 'daily' timeframe it seems $17k will be the first target before making new highs of over $20k.
  11. @Excel09, It is 10:30 pm UK time and Bitcoin is trading at around $12240 levels. There were some who have a negative bias towards Bitcoin who were inferring / suggesting $8k and maybe even $6k but based on nothing but personal negative emotions. Never fight a strong bullish trend. It can last a lot longer than you think. Upward trends can last longer than downward trends which tend to be quicker and sharper than upward trends. Yes there will be lots of 20% or even 30% corrections along the way which will feel like a trend reversal but may not necessarily be so. Once one understands how Bitcoin's price behaves in a bull market then one can appreciate the trading opportunities it presents. Do not fight the tape!
  12. @Excel09, I personally invest in this derivative and have done so for a few years now. However, it is not for me to say whether anyone should invest or not. I am merely sharing a product in which I myself have invested my own capital. There are risks with Exchange Traded Notes (ETN's) and it is for you all to conduct your own due diligence and ensure the products fits with your risk profile. For me personally it has been a great product and has similarities with ETF's.
  13. I was just reading an article which states that famous investor - Mark Mobius - would consider buying Bitcoin if it continued its getting stronger. This is a great endorsement from a great investor. Bitcoin has been trading in a tight range over the past few days and so there is the potential of a breakout to the upside as we all know Bitcoin cannot stay quiet for too long when it is in a bullish mood. Also in the past when Bitcoin has been trading in a tight range it tends to behave rather flamboyantly shortly after. The issue here is in which direction Bitcoin could breakout. There are valid arguments for both breaking out upwards and breaking out downwards. Based on current trend strength and momentum I would slightly favour a move upwards and the odds and probability will be in favour of a move upwards. However, this does not mean it cannot go down so one needs to look at Bitcoin's price behaviour closely to see if there are any clues which could give an indication on its next directional move.
  14. I think one must be looking at any potential breakout from the current trading range / consolidation period to see if a new upward trend emerges. Following the price action will be key.
  15. Bitcoin seems to be rallying at the moment and the other altcoins seem to be following suit. Bitcoin at $11.8k. Trying to go for $12k.
  16. No problems (Guest Phil). I mean XBT Provider One are way ahead of the game in terms of these types of derivatives. A couple of years back they were attracting US citizens to invest in them as there was no similar product in the US. The US have the Grayscale Bitcoin Trust. Also Scandinavia is more open to Cryptocurrencies and countries like Sweden have embraced them more hence these products being domiciled in Sweden.
  17. Bitcoin is still trading around the $11.5k level after the weekend so it is showing some robustness. It has still not crashed downwards to $8k or even $6k like some have suggested. It really has not gone below the $10k critical level for any significant period and where it has, it is quickly bounced back above it. So what does this mean? To me it means a steady period of consolidation which is very healthy for Bitcoin after its parabolic rise. This is not a bad thing at all. Corrections are inevitable. I personally think it will take another piece of positive news to push Bitcoin higher and it will need a strong catalyst. Bitcoin will need to be news driven for any the speculative capital and herd to come in with FOMO taking effect for it to hit $20k levels. All I would say is just be weary of the online media, friends / relatives with very little knowledge or understanding as they can influence your thinking and have an impact on your emotions when it comes to Bitcoin and the Cryptocurrency asset class. This in turn can have an impact on whether you trade the price action for Bitcoin or not.
  18. I am just going to share some of the latest news in relation to XBT Provider One products. They are Swedish domiciled so I am hoping they will not be included in the Crypto derivatives ban as they are not physically based in the UK though you are using a UK broker to invest in them. However, I cannot say 100% at this stage as I simply do not know what the outcome will be. XBT PROVIDER CHANGES NAME AND SYMBOL OF LITECOIN AND XRP TRACKING EXCHANGE TRADED PRODUCTS https://www.globenewswire.com/news-release/2019/07/02/1877055/0/en/XBT-PROVIDER-CHANGES-NAME-AND-SYMBOL-OF-LITECOIN-AND-XRP-TRACKING-EXCHANGE-TRADED-PRODUCTS.html
  19. I think one must be careful that the time period of any 'Forward Testing' is significant enough to make a real impact on your trading strategy. I remember when I was looking at trading Natural Gas many years ago, I forward tested for a couple of months and it simply was not enough. At the time I paid the price as my trading system clearly had flaws and I lost a lot of money trading Natural Gas. The volatility killed my account as my stop losses were far too tight. I have heard someone on the IG Community suggest or infer not to use stop losses. I would urge that person to try trading Natural Gas without stop losses. It would be extremely dangerous based on my personal experience. I had stop losses and still ended up losing money. Now I am talking about around 15 years ago. Some people may think that your trading system must include super complex algorithm. Your trading system can be as simple as you want it to be but I still think you need to forward test it. Having a more complex trading system does not necessarily mean you will have more / higher profits at the end of each year. However, if you have conducted 'forward testing' for a reasonable amount of time then it could help you to minimise your losses. Losses will still be incurred and no amount of forward testing can stop or completely eliminate that but it could help with damage limitation should you effectively use the data / results obtained from the forward testing and apply it to your trading strategy / trading system.
  20. @Excel09, There appears to be some really nice consolidation going on with Bitcoin at $11k price area. There were times when Litecoin would lead the price assault upwards but I think Bitcoin has taken over this mantle and will lead the way going forwards.
  21. @Excel09, To answer your question from another thread, I use the online broker Hargreaves Lansdown.
  22. @Excel09, I have a thread called XBT Provider One Bitcoin and Ether or something like that. Have a look at that thread of mine. It should answer all your questions. If you still have questions after looking at it then let me know.
  23. Trend Following can be applied to Cryptocurrencies just like it can for Commodities. They are actually more similar than one would believe. Bitcoin in my opinion can be used to apply trend following principles in the way you trade it. Some of the things one must consider if they are thinking of doing so are: Do not fight the price action of Bitcoin so in in other words do not fight the tape as Jesse Livermore would put it. Keep losses to a minimum and maximise profits by not selling to early (Let your winners run and cut losses early) Use leverage to maximise profits (Apply sound risk management though) Ignore 'Market Noise' and all the online media channels What I find with applying Trend Following principles is that it allows me to be less exact with my entry and exit points. No one has a crystal ball and very few if hardly any on the IG Community will have the ability to physically trade the optimum price points in terms of entry and exit. Trend Following eliminates this issue for me. I really am not bothered about finding the perfect entry points. Of course I will try and identify the best entry and exit points I can but it is not a necessity for me personally. Now what causes a trend to manifest itself in Bitcoin? Based on my personal experience things such as 'Fear of Missing Out' (FOMO), greed, news, fundamentals, Risk On / Risk Off market environments, etc. I personally would not want to trade against the trend on Bitcoin. It would decimate your trading capital as it experiences extreme volatility. Your stop loss and risk management system would be tested to the limit and it would drive you crazy.
  24. A lot of traders will discuss the importance of 'back testing' their trading systems but very few on the IG Community discuss 'forward testing' their trading systems which in my opinion is just as if not more important. Now I shall try and keep things as simple as possible with the IG audience in mind. So first of all what is 'forward testing'. It is a way of measuring and testing your trading system in live market conditions or as close as. Some may use 'demo accounts' to do this and others may actually use live accounts but trade with the smallest capital possible and smallest trade sizes to really assess the trading performance of their trading system in a 'live market environment'. Now how many years you go back in your 'back testing' and how many years you go forward in your 'forward testing' is a decision that the individual trader has to make. Many traders will simply not forward test and will never do so. They will not have this decision to make. For those who do decide to really fine tune and improve their trading system then I think this is a necessary decision to make. Some of the traders I know will forward test one year for every three years of back testing they conduct. So six years of back testing would require two years of forward testing before that specific trading system goes live. Now this is just one example and it is not not necessarily the right example. It will be all to do with the asset in question, the trading system in question and the market conditions. I know one trader who has been backtesting and forward testing their trading system for the past few years and still has not gone live. Now this is overkill for me as in this period the trader is missing out on some of the strongest trending opportunities to profit from. So there needs to be a sensible and reasonable balance. Back testing is all about historical data. Forward testing is all about live (real time) data. I have known traders to perform forward testing by just keeping data on a spreadsheet of how a trade would have performed in current real time market conditions without actually using any real money. I personally do not like that method. I personally want to use real money and actually physically trade albeit the smallest amounts possible to get as close to real life trading performance to really understand the performance, any flaws or issues with my trading system.
×
×