Trading Rules

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These rules will work for any asset, but in my case I trade Bitcoin derivatives so the rules were designed with that in mind. I tried to make them simple an easy to follow. I have used them now for the past 9 months with small adjustments and found out that when I follow them very close I have the best results with my trading.
I trade on the biggest Bitcoin derivatives exchange BitMEX. If you open an account using this link you will receive 10% discount on your commissions for 6 months: https://www.bitmex.com/register/WGhKhX

Rule 1

Trade in the direction of the current trend

  • Enter near support/resistance or when overbought/oversold depending on if you are going long or short
  • Use TA indicators to help you with your entries/exits. Usually I want at least 2 or 3 indicators to align
  • When the market is choppy it might be hard to identify the trend. Also the trend on a bigger time frame might be different than the trend on a smaller time frame. The best time to trade is when the trends on all timeframes are the same.

Rule 2

Always use stop orders

  • place stops bellow/above support/resistance. If not possible you can use this simple formula to calculate your stop: Profit Target/4. So if your trade is set to make $400 your stop should be about $100 bellow your entry price. This will give your trades Risk/Reward ratio of 4. This means that you only need 1 profitable trade every 4 trades to not lose money.
  • The reason this rule is on second place is because capital preservation for me is the most important aspect of trading.

Rule 3

Once in profit and price has moved far enough from your entry move stop to break even

Rule 4

Let your winners run

  • When you hit a profitable trade you don't want to close it right away because of fear of reversal or just to take profit. You want to maximize your profit as much as possible. One way to do this is by moving your stop higher when the price moves
  • This rule will not be applicable if the market is choppy or the price has hit a major resistance point.

Rule 5

Do not invest more than 5% of your capital in a single trade

  • For BitMEX trading you could translate this to: do not use more than 5x leverage.

Rule 6

Never trade when emotional

  • If you had a losing trade or a series of losing trades do not rush to enter another trade just to get back at the market or make up for the losses. Wait for a good opportunity to present itself before entering a new trade.
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i'm always following you on twitter! Thanks so much!

How many percent increase have you made on your capital for 11 days please?

Half of him( he made like +100% in couple weeks) , but i miss many of his calls cause different entry points.. you know, not fast enough with my twitter notifications :D

I started following you today on twitter.
The first trade was not bad, with a good ratio gain / loss.
I can not wait to see more;)

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