Analyzing and Demo Trading of BTCUSDT using the Red Army Strategy

Hi friends,
I remain your favorite crypto analyst in the person of @simonnwigwe from Nigeria 🇳🇬 and it is a great pleasure on my part to share with you all the analysis I did today on a new pair of crypto assets called the BTCUSDT.

I want to believe we are all familiar with the green and red army strategy at this point. Yesterday, my analysis was on the green Army and today we are looking at the red army. If you have no idea about this strategy please read through my post.

For the sake of those who are new, I will give a brief highlight of the strategy once again. For the red army, when you go to your portfolio and discover that everywhere is red as in the screenshot below, then you will know that the red army has taken over the market all you need to do is to short the market.

Similarly in the case of the green Army, when all or almost all your portfolio is green then you will know that the green Army has taken over the market and all you need is to long or buy the market.

Based on the above explanation, the opportunity we will be looking at for this market is to sell the market. So considering the screenshot below we will look for a good entry to short the market. From the below screenshot, you will notice that the resistance level has been rejected.

And the indicator indicates that the market has been overbought meaning the market will have to go downward. Seeing that, all I needed was to short the market using a very good entry position so I decided to wait for the close of the last bearish candle.

Seeing that the last candle closed very bearish, I decided to introduce my sell logo as you can see from the screenshot below. Based on the screenshot, I was able to determine the percentage profit I needed and the percentage loss I was also ready to incur.

From the screenshot above, the sell logo shows that the risk reward ratio of the trade I have taken is around 1:8 which is a good risk to reward ratio of you ask me. If the market goes as predicted, I will make a good return on the trade but if it goes against me, I will be loosing a few amount.

To properly keep track of the progress of the said pair of assets, I decided to introduce a demo trade to at least keep me on track and in check so that I will have a little emotion when the market goes in my favor or against me. See the screenshot below.

From the above screenshot, you will notice that the demo trade has been activated already. If the market goes as predicted, then I will be able to earn a total of 8384.52 USD, and if the market goes against me for any reason I will lose 1135.42 USD. This shows that it's a good risk-reward ratio if you ask me.

Finally, I also decided to go to the position side to get complete information on the market so that you all can see it more clearly. The details below talk about the points where I take my profit, my stop loss, and even the current price of the asset when I'm making the post.

From the screenshot above, you will notice that the side is short (sell), the quantity is 1, the average fill price is 68441.00, the take profit level is at 60062.01, the stop loss is at 69575.67 and lastly the P&L at the moment is -26.41, that is all about the open order.

After a while, I decided to check back on the trade to see if the market was going in my favor or against me. Going through the chart I saw that the market did not respected my analysis and that is what gave us the result you can see from the screenshot below.

From the above screenshot, you will notice that the profit made is already at +6.43 USD which means our analysis is in my favour at the moment. I will still hold on to the market and see the final movement of the asset because I'm confident that it will go my direction. So let's be patient as market will still go as predicted.

Conclusion

Analyzing the market using the Green or red army strategy has proven more effective over the past few months that I have used it. We have seen how we moved from a serious loss to a profit using this strategy. The market may not always move your direction immediately but always be patient and wait.

My advice is that you always set a stop loss and always invest what you can afford to lose. I know the percentage I can be able to loss and that is what I set for my stop loss. So that is how to be a successful trader.

Remember also that trading is like meditation, patience is the key. Always wait for the market to come to you and not for you to go to the market. Learn to identify your key support and resistance level and also trade with the trend and in that way, you will be a successful trader.

Finally, I want to thank you all for reading through my post today. If you have any questions or contributions, please do well to use the comment section of this post. See you all in my next publication.

Disclaimer: ^{This post is made as an education and not investment advice. Digital asset prices are subject to change. All forms of crypto investment have a high risk. I am not a financial advisor, before jumping to any conclusions in this matter please do your research and consult a financial advisor.}

NB: All images except otherwise stated are mine and taken from tradingview.com website