The Bitcoin Indicator Strategy
There are three crucial points you must learn; how to use our unique balance management, how to choose the right leverage and how to find entries with the indicator. All of them are very important for the success so don’t miss any parts. Feel free to ask anything in our Telegram group. You can find the link at the bottom of the page along with all the social media links.
Balance Management
The Bitcoin Indicator has it’s own way of balance management so here is how to do it;
Let’s assume you have $100 for trading in total. In this case transfer $80 to the Spot Account and start your trading session with $20. Use the full amount in your balance for each trade.
Each trading session ends when the starting balance multiplies by ~30x. It can be higher or lower, however minimum 10x is recommended.
Let’s stay with the example above. You start your journey with $100 in this case you’ll start the trading session with $20. After ~10 successful trades you will reach your goal (let’s say 15x) and the balance will be around $300. At this point transfer $240 to the Spot account and leave $60 for your next trading session. Reach ~15x gain again so your balance will be around $900. Transfer $720 to the Spot and start a new trading session with $180…
In case of losing trades just refill the balance from the Spot Account. So if you start with $20 refill it to $20. In case you start your session with $500 and lose some trades refill it to $500. As you can see the amount in your Spot Account will be your spare money for refilling. This is how you can build your capital. Even experienced traders lose trades sometimes so it’s totally fine. However you will be able to reach the goal by choosing the right leverage and using the indicator properly.
*See “PRO Tips” at the bottom.
Leverage
Choose the righ leverage which puts the liquidation price far enough from the entry, yet gives a chance for ~30% profit per trade. For this check the size of the average moves.
In this example there are ~3% moves in average so we want the liquidation price to be placed by ~6% from the entry or even more. We would use 10x leverage because that gives ~8% gap and with an average move we would reach more than 30% profit.
Here is a list of the gaps between entry and liquidation price according to different leverages;
- 23x ~3%
- 15x ~5%
- 10x ~8%
- 8x ~11%
- 6x ~15%
*See “PRO Tips” at the bottom.
Indicator
To be able to use the indicator the right way you have to understand it’s nature first.
Bitcoin Indicator B is the main part of the package, however all of the parts should be used together for the best result. Indicator B is not just for trend prediction but also for streght indication.
The dark green wave shows the long-term trend while you can identify pullbacks and trend changes with the light waves. The Bitcoin Indicator gathers data from multiple timeframes and paint the white Money Flow line according to that. You will use it as extra confirmation before the trade.
You can see a normal market behaviour on this picture. There is a nice uptrend, it’s topping (1), makes a nice pullback (2) and checks back up (3). The same happens in the downtrend. The Money Flow also shows the strength of the trend clearly all the way through. The circled parts are the Entry Zones.
And now let’s see Indicator C and the Entry Patterns;
We look for decreasing waves for Short and increasing ones for Long. So for a Short position we want to see a big wave on the positive side and some smaller ones after that. It’s not just the decreasing light waves but they should also cross the dark green wave. The dots are the crosses.
The very first example is the best one as it’s slowly decreasing which gives us a clear picture. The second one is not as clear because it’s too close to the zero line. The third one is kinda good. As you can see there is a bigger wave forming after the Entry Pattern on the fourth example and that’s okay, too. When we get into trade we leave it open from minutes to even days so it’s not a problem if the market doesn’t move to our favour immediately.
The best exit point depends on the size of the actual move we trade. Sometime we can close the position in a huge profit right after we opened it. However usually we wait until the dark green wave crosses the zero and goes to the other side but again, it depends on the market.
Thanks to the Signals you don’t have to spend your time on the chart. Just open it once you receive a Signal and check if it’s an Entry Zone on the Indicator B. If so make sure it’s a clear Entry Pattern on Indicator C and choose the leverage correctly.
These are not typical Signals above/ below the candles. You will see them at the bottom of the chart as little white lines. There is no any differences between Long and Short ones because you will clearly see the market directions once you opened the chart.
Examples
Bottom Long
This is a bottom entry with a nice trendchange. Pretty low leverage should be used here as the price dropped significantly during the previous moves. Like 8x maximum as we need at least ~10% gap.
We would have reach ~100% profit with this trade if we closed it after the first moveup. Bottom trades have the potential to reach such a huge profit or even much more if we catch trendchanges.
However it’s better to close the position once we reached our goal as the trend might turns back after the first moveup.
Continuation Bottom Long
This one is also a bottom long but this time it’s the bottom of a continuation. It happens when the price already reached the bottom, made some moveup and after that it continues it’s way down.
So we want to catch the bottom of this downtrend continuation. Money Flow line is helpful during the trade but it doesn’t help much at the entry.
Pretty wide gap should be used here so around 8x leverage would be the best choice for this trade. It would give us ~11% space between the entry and the liquidation price. Catching this move would make us ~40% profit.
Pullback Long
This happens really often. After a nice uptrend there are pullbacks and we want to catch the bottom of them. Pullbacks usually can be identified by the gray wave. As you can see the light green wave doesn’t go below the zero line, only the gray one. Plus the dark green must be pointing up.
Money Flow line is very important on Pullback trades. It must be staying up high at the time of the Signal.
Catching this nice pump with even as little as 10x would make us more than 200% profit.
Top Short
Two Entry Zones and Entry Patterns circled here because both are crazy good. The first one is the absolute top of the trend, however that can be a bit risky as the price moved up significantly before.
Money Flow line shouldn’t be considered on Top and Bottom trades as it will start moving with the trendchange.
~8% gap would be enough here so we could reach more than 30% easily with 10x leverage. However the second one doesn’t need such a huge gap so we would use 15x leverage.
Continuation Top Short
There is a nice uptrend, a little pullback and continuation up. Indicator C shows a very clear Entry Pattern at the time of the Signal right in the Entry Zone. This is a beautiful trade opportunity.
We would recommend 5-8% gap for this so 60% profit can be reached with 15x leverage. However using only 10x would also make us more than 40% profit.
We could reach here even more profit if we kept the position open for longer. It’s not really recommended tho. Money Flow line shouldn’t be considered at the time of the entry but it can be very useful during the trade.
Pullback Short
Dark green wave is pointing and moving down also the Money Flow line is staying deep down. Only the gray wave checks back up while the light green wave is staying down.
All of these together indicate a pretty clear trend continuation so we can open a short position. Keep in mind, Money Flow line is very important during the Pullback entries.
Easy ~50% profit can be reached with 15x leverage. However we would recommend using 10x only as it’s less risky, yet we can reach more than 30% profit.
In the case we leave it open for longer… well, sky is the limit!
PRO Tips
- If you are not confident enough using medium leverage you can trade with a fixed low leverage like 5-7x and go for 10-20% profit per trades. In this case you will need more trades to reach the session goal, yet you can definitely avoid some losing ones.
- Choose one timeframe (15m for example) and set Signal alerts for as much coins as you can. This way you will receive Signals every day and you will be able to find good entries every 2 to 3 days. We have Signals set on these coins: BTC, ETH, OP, LINK, BNB, SHIB, ETC, ADA, DOT, AXS, APE, FTM, ATOM, BCH, MATIC, EOS, SAND, DOGE, NEAR, LTC, XRP, GMT, SOL, GALA, AVAX.
- If you want to faster the process you can trade the 1m timeframe. Use ~25x leverage and go for only ~20% profit per trade. However keep in mind that it comes with more risks as the accuracy decreases on lower timeframes.
- You can find Exit Alerts in the alerts section of Indicator A, too. They are very useful in case you have a busy day so you can’t follow your trade, however the best exit points are usually before the Exit Alerts.
- Don’t let your position to get liquidated rather put a Stop Loss next to the liquidation price. It would be too long to explain but the point is; if you get liquidated you will lose 100% of the balance but if you put a Stop Loss next to the liquidation price you will lose only ~80% of it.
- Check higher timeframes, too. Once you received a Signal on your chosen timeframe in the Entry Zone with a clear Entry Pattern, switch to higher timeframe and see how it looks before you would open a position.
- Trade will come to you. With this strategy you can make 10x or even more in just a few weeks so really no need to rush. Relax, enjoy your time and trade only when you recognize clear patterns.
- Keep your focus on your goal. It’s pretty easy to lose the focus during the sessions and jump into random trades or keep the position open for too long. Keep your goal in your mind and follow the rules.
- Don’t give up. You will have losing trades sometimes even if you follow the strategy and there is nothing wrong with that. Just do your best and you will reach the goal!
This site, products & services Bitcoin Indicator offers are for educational purposes only and should not be construed as financial advice. You must be aware of the risks and be willing to bear any level of risk to invest in financial markets. Bitcoin Indicator and all individuals associated assume no responsibility for your trading results or investments.
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