Balance Management
Balance management is one of the most important things when it comes to trading. If you want to become a successful trader in long-term you just can’t avoid this.
“You win some you lose some as long as the outcome is income.”
So in nutshell, trading is definitely not about winning all the trades. That’s kinda impossible. We all have losing trades but if we can make profit in long term we just won the game. Balance management can be done several ways, however the Bitcoin Indicator has it’s very own.
In this article we refer to bybit trading platform which is the most advanced platform for leverage trading. If you register an account and use it on your trading journey we give you 50% discount from the full price of the Bitcoin Indicator. Registration does not require KYC. Claim your discount at Checkout!
If you want to go with the spirit of the Bitcoin Indicator;
Let’s assume you have $1,000 in total to trade with. In this case you will deposit 900 USDT to your Spot and 100 USDT to the Derivatives account which is stand for leverage trading. Transfering funds between Spot and Derivatives is really simple and fast. It takes literally less than a second.
So once you have 10% of your total capital in your Derivatives account you can start trading. Choose your favorite asset and use our trading strategy to find entries. The leverage really depends on which asset you trade and what timeframe you choose but let me explain this way;
Check the lower timeframes (we usually trade 5/15m). If your coin makes around 1-2% moves in average you want to use 30-35x leverage for your trades. This way you will have 2% gap between entry and liquidation price. Always choose your leverage according to the size of price moves. If you are not sure about liquidation gap per the size of leverage you can use the calculator on bybit.
So if you have 2% gap you will set your Stop Loss to 1.9% (right next to the liquidation price). This way you will lose “only” ~60% of your balance if things don’t play out as expected. 60% is a lot, yet if you let it liquidate you will lose 100%…
In case of losing a trade just fill up your Derivatives account from Spot balance or continue trading with the remaining balance… it’s up to you but I prefer re-filling it because I don’t like to re-build the starting balance after a ~60% loss. I rather restart my *trading session with the same starting balance as before.
And here is the good part; your Take Profit will be around 1% so if you win the trade you will make ~30% profit. Obviously when you trade you will keep watching the chart and if it explodes you will just let it run into 40-50% profit… or even more.
Re-invest your profit so use the total balance in Derivatives account for your next trades. This way you can multiple your balance with a few trades. Once you 10x your starting balance you will have 1,000 USDT in Derivatives. It can take from a few days to a few weeks… depends on how much time you put into trading and which timeframe you trade on. So once you 10x it just transfer ~700 USDT to Spot and keep continue trading with the remaining. This is the point when you actually realize your profit. As an experienced trader you will be able to win much more trades in a row so you will be able to make even 30x or more in each session.
*Trading session starts when you have 10% balance of your total capital in Derivatives account ready for trading and ends with profit realizing from Derivatives to Spot. In worst-case scenario it ends up losing a trade and the remaining balance will be less than the 10% of your total capital. However the goal of each session is winning as many trades in a row as possible. The more risks you take the higher the return!
Now you got the point of our unique Balance Management so it’s time to win as many trades as possible. Use our main trading strategy or analize the Indicator and build your own… the possibilites are endless with the Bitcoin Indicator!
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