Algorithm Builer CRYPTO - XBTUSD - Review Oct 20th, 2019

21 ott 2019

Hello traders

I. Daily tutorial publishing challenge officially begins

Starting today, I'll be publishing every night what were the setups given by the Algorithm Builder CRYPTO

II. Why a 5-minutes chart?

The indicator won't give more than 3/5 trades per day even. This is not a scalping trading method, it's intraday and based on smoothed indicators for entering in a strong trend only.
Those are the most secure trades possible because:
- the Algo Builder waits for a strong confirmation and will avoid the fakeouts
- the 5 minute allows to enter very early. This point is crucial.
We made it so that to enter early but with a minimum of security.

III. Signal of the day

1. We had a first LONG position invalidated with a small loss.
The signal was given against the leading trend (red background/green signal) and in front of multi timeframes resistances.
I always wait for a pullback near the EMA 15/20 to be invalidated with a minimal loss. I made the trading method so that to be invalidated with a minimal loss

2. The second trade was fabulous !!!
Signal given, in front of resistances so not easy but a pullback near the EMA 15/20 was mandatory. It even gave a better entry than the signal on the chart - allowing to enter 50 USD lower for that LONG.
Those resistance lines are my take profits zones. Then, the Algorithm Builder CRYPTO users should take the first take-profit at the first resistance (here the daily SMA(7)) for a 150 USD move upwards.
The second take-profit was at the second big resistance - namely the Daily SMA(20).
I generally let a bit of money on the table from there, as the stop-loss is already trailed by the indicator automatically. I do it, in case, there would be another upwards move that I could catch, and for free.
For free because, the stop-loss is already moved to the TP1 level at that point, and I can't lose anymore on that particular trade setup.

Total trade distance: 261 USD



All the best,
Dave