Market Analysis
BTC appears to be stabilizing after the 40% crash last week on the 12th of March. Unfortunately, many investors lost a substantial amount on this day. However, there are ways to still turn a profit or at least avoid large losses during bear markets.
It goes without saying that it is much easier to make a profit as a day trader or even as a swing trader when the underlying trend is in your favor and when Bitcoin is on the rise. But how can you determine the underlying trend, and how can you automate this? This is what we will explore in this newsletter.
Moving Averages
Moving averages are trend following indicators and are very useful in determining the current trend. As such, day traders or short term swing traders may consult them on the broader time frames before entering a position. Some traders will choose to stay out of trading when the underlying trend is against them, while others will choose to short the underlying asset if it is in decline.
Leveraged tokens
The leveraged tokens take shorting to another level by magnifying the potential gains up to 3 times. Although this volatility can be very beneficial, it can also make trading much riskier by magnifying a trader’s losses three fold! The leveraged tokens are relatively new to the Cryptocurrency market and should only be traded by people who fully understand them as they can carry additional risks such as lack of liquidity and delays in price movements. Without further due, let’s see how you could have profited over the past weeks using the BEAR token.
Automate your trading with triggers
Setting up triggers in Cryptohopper makes it possible to not only disable your trading temporarily but also to change settings automatically for your hopper in order to prepare for a bear market. An example of this would be to set up a trigger based on the market BTC/USD where the cross between the 10 and 30 EMA on the daily chart changes the template of your hopper. Your bear market template can thus have the BEAR token for example setup along with a strategy that functions well with this token. In our example we have the cross between the 10 and 30 EMA, along with the ATR in order to decrease the amount of fake signals generated by these moving averages.
You can also setup a bullish trigger for then the 10 EMA crosses over the 30 EMA on the daily BTC/USD chart, where you have your template and strategy setup for the bullish market conditions.
BTC appears to be stabilizing after the 40% crash last week on the 12th of March. Unfortunately, many investors lost a substantial amount on this day. However, there are ways to still turn a profit or at least avoid large losses during bear markets.
It goes without saying that it is much easier to make a profit as a day trader or even as a swing trader when the underlying trend is in your favor and when Bitcoin is on the rise. But how can you determine the underlying trend, and how can you automate this? This is what we will explore in this newsletter.
Moving Averages
Moving averages are trend following indicators and are very useful in determining the current trend. As such, day traders or short term swing traders may consult them on the broader time frames before entering a position. Some traders will choose to stay out of trading when the underlying trend is against them, while others will choose to short the underlying asset if it is in decline.
Leveraged tokens
The leveraged tokens take shorting to another level by magnifying the potential gains up to 3 times. Although this volatility can be very beneficial, it can also make trading much riskier by magnifying a trader’s losses three fold! The leveraged tokens are relatively new to the Cryptocurrency market and should only be traded by people who fully understand them as they can carry additional risks such as lack of liquidity and delays in price movements. Without further due, let’s see how you could have profited over the past weeks using the BEAR token.
Automate your trading with triggers
Setting up triggers in Cryptohopper makes it possible to not only disable your trading temporarily but also to change settings automatically for your hopper in order to prepare for a bear market. An example of this would be to set up a trigger based on the market BTC/USD where the cross between the 10 and 30 EMA on the daily chart changes the template of your hopper. Your bear market template can thus have the BEAR token for example setup along with a strategy that functions well with this token. In our example we have the cross between the 10 and 30 EMA, along with the ATR in order to decrease the amount of fake signals generated by these moving averages.
You can also setup a bullish trigger for then the 10 EMA crosses over the 30 EMA on the daily BTC/USD chart, where you have your template and strategy setup for the bullish market conditions.