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12 ноября 2021 г.

xSignals and Binance: profit on simple strategies

xSignals and Binance: profit on simple strategies

Cryptocurrencies continue to generate income at any time and day of the week. There are many automated Expert Advisors with sophisticated "proprietary" strategies and indicators. Usually, this is only advertising, you can make money on simple strategies with basic technical indicators.

Strategy characteristics:

Type: Trend.

Timeframe: Any in the range M1-M5. In our case, M1 is used, but with an increasing period of analysis, the accuracy of the signal an increasing.

Trading asset: Any crypto options trading signals. The main requirement is a fixed (2-3 points) spread and no hidden fees.

Trading time: 24 hours / 7 days a week.

Percentage premium option: Not less than 70-75%.

The strategy uses two basic technical indicators:

  • Bollinger Bands (BB). The indicator informs about the direction and volatility of the current trend, and the horizontal movement of the lines will show a flat - in this case, it is better to stay away from the market, especially if the price moves in a narrow channel. When the range expands sharply, the position volume by 10-15%.
  • MACD (6, 12, 9). This indicator works both as a trend and as an oscillator instrument, so it will be the final signal to open order.

We will open positions on the Binance crypto exchange - the leader in client activity and trading volume. After installing the tools, the terminal's working window looks like this:

Bollinger Band: basic setting

Trading signals are simple; there will be no problems even for novice traders. The first signal will be a rebound from the Bollinger Bands or midline crossing. The main condition is to wait until the MACD crosses the zero level. This means a final shift in the balance of power between buyers/sellers. The final confirmation will be xSignals.

We trade orders for a rebound from only 3-5 candles after its start, we are sure to wait for a downward reversal of Bollinger Band.

Recommendations about use …  

  • Bitcoin will be the basis of any strategy. First of all, we look at it, even if it is an index. Other currencies, even if they are moving behind it with a delay. The exception to Ethereum is the opposite trend, rollbacks and corrections. This is usually the case when publishing important events about the currency, speculative actions are short-term and almost do not occur.
  • As the second currency of the pair, we recommend choosing one of the StableCoin, which is based on a “real” (fiat) asset. We chose Tether (USDT exchange ticket) guaranteed, according to the authors, in US dollars. This allows traders who have previously worked on Forex, options and stocks to calculate the position volume and profit level faster. Without extra conversions.
  • Be patient and let your profits grow. This principle works even when a position is opened "by the market" without pending orders and Take Profit/Stop Loss levels. As in our case. Beginners should always set the maximum loss level, but here you need to look at the asset.

Too “small” Stop, for example, Bitcoin or Etherum, will constantly trigger large losses compared to AltCoin. It should be at least 30-40 points if the deposit and leverage allow.

Summarize… 

If you are a "technical" and not a "fundamental" trader, there should be no problems. Digital money is very volatile inside the day, especially AltCoin. This gives additional opportunities, if you have a good command of basic technical tools, you will be able to get a good and stable profit.