Because it is mainly a strong bull market I am an investor. I follow a buy and hold strategy using no leverage.
Of the 25 crypto currencies I have invested in in the last few months only 3 are showing a negative return at this stage. My biggest winner more than covers the losses of those 3 crypto currencies. To say that I am happy with the returns I have experienced to date would be an understatement.
Currently I believe that while the bull market continues that is the simple policy to follow. Buy as much quality coins as you can and hold on to them
I am not totally convinced that technical analysis, day trading is the answer at the moment but I might be totally wrong. You would probably to better using a fundamental approach which looks at the management and future prospects of crypto currencies.
I have been testing one of our Forex robots which is absolutely ideal for a bull market – and I will tell you why – you can set this Forex robot to take advantage of every single buy opportunity that present itself on a totally automated basis. It works on a grid system that ensures buy opportunities are taken and cashed in when appropriate.
The ideal market for this EA is a sideways or bull market. 95% of crypto coins fall in this category.
So very simply it divides that market into grids.
So let’s look at grid trading in action
These are the results of running the grid system since 1 June on the Bit coin charts.
This is the chart over that time
This is a section of the chart showing the grid trades.
The settings allow you to have maximum trades and vary the grid sizes in unfavourable trends
So if you like the idea of grid trading in a bull market this is by far the best EA to use. Quite honestly grid trading in a bull market is the only way to go – it is so simple and it is easy to automate.
Please be aware that trading crypto currencies on Forex Broker MT4 charts is completely different.
Margin requirements / leverage can be very low 1:4 or 1:3 compared to typical 1:100 in forex
Spreads and pip values are completely different – Generally spreads a 100 times that of normal currencies but this is offset by a pip values that are 10 to 100 time smaller.
You have to get your calculations right otherwise you will either make peanuts or get a margin call.
In this market, the motto is – it you snooze you’ll lose. Bitcoin was $400 at the beginning of this year and it is now at $8000 – and it and many other cryptocurrencies have just started.