Compound Trading My Smart and Cautious strategy to build $10 to $3,000+

[programmer3666]

Let me share the journey of my slow, steady and progressive trading strategy perhaps it will inspire others.


I was really losing in all my trades at first but then I came up with a personal strategy of compounding my profits and adding it to my initial capital to take low-risk trades!! because the idea is to make money not to lose money, so I had to discipline myself psychologically.

Using my compund trading strategy I came up with the plan to use $10 to build up to $3044.82

I applied certain rules and God willing it has worked perfectly for me!!

These are the rules i stick to:::

• I don't go above 10% profit target per trade
• I make sure to stick with 5x leverage low risk no matter the temptation to increase the leverage i don't give in
• I stamp it in my heart that it has to be Strictly 60 trades in total
• I made up my mind that No greed, no rush but to just stay discipline

After just 24 trades, I have  grown my $10 to $98.5

It doesn’t sound like much yet but at least it is a work in progress.

The major reason why this works well for me is that

• I take Small daily gains and project big long term growth in my mind
• And one fact is that compound interest is a silent wealth machine if it is properly applied
• I don't overtrade and I don't think of unrealistic targets
• I only trade quality setups and pause in volatile markets!! especially now that the market is really swinging both ways, its a bit scary.
• I make it a habit to use an Excel sheet to track every move so i can be on the path i set out.
• I don't do revenge trades
• I respect market volatility and take breaks when needed
• I stick to the plan not the profit
• And above all I don't trade uncertain coins or new coins

Currently i am at Trade 24 trying to hit 30 and also have a recess before I continue, I marked every step i have passed with green color on the table and i highlight the next step with yellow until i have successfully passed it. One key Fact is that 5x leverage and 10% profit point is really a safe haven!! you will hardly face liquidation threats


I hope someone takes away something from this!! Trading a plan is much realistic than trading emotions.
 

[Asiska02]

As a trader, no matter how careful you are on your trades and also how much of risk management you use, you can always face loss. In a case that you’ve faced a loss in the process which in the table you’ve provided none as appeared there, do you still make use of 5x leverage and target a 10% profit knowing fully well that some part of your profit would have already been eaten up by the trade you took a loss on? Do you reduce your leverage and profit target in your next trade since you won’t be chasing your loss? Or a loss simply signifies the end of it all and no more trades?

[tvplus006]

...One key Fact is that 5x leverage and 10% profit point is really a safe haven!! you will hardly face liquidation threats

Of course, I wish you good luck, so that you reach step 60 of your trading strategy, and thus complete your challenge from $11 to $3,044. But I doubt that you will be able to go this way and not lose your deposit. Don't forget to set a stop loss, it may help you save your deposit in case of an unforeseen market situation.

[BitMaxz]

How many trades did you do in a single day?
Based on the image, you have a consistent profit in your strategy, but I don't know how many trades you do on that day.
For me, I can't consistently make a profit day by day; I have some losing days even following rules and conditions. Crypto is unpredictable; there's no perfect strategy that you can consistently use to make a profit. If you can provide some trading history as proof from the exchange, I might believe in this.

[DPHOR]

...One key Fact is that 5x leverage and 10% profit point is really a safe haven!! you will hardly face liquidation threats

Of course, I wish you good luck, so that you reach step 60 of your trading strategy, and thus complete your challenge from $11 to $3,044. But I doubt that you will be able to go this way and not lose your deposit. Don't forget to set a stop loss, it may help you save your deposit in case of an unforeseen market situation.

At this point it will be that hard for such to be actualized because we know that we can't actually know what the market give birth in the next minute or moment of his trading. Trading is not that easy to earn money from it but anyone who is dedicated could raise money from trading but not by using 11$ to give that person $3k plus profit which I think the trader might lose their money along the line without them even gotten to their desired amount needed. Like they said, it the amount deposited was around $1k then I can say it would be that possible to raise that amount to above profits level he mentioned.

[SmartGold01]

How many trades did you do in a single day?
Based on the image, you have a consistent profit in your strategy, but I don't know how many trades you do on that day.
For me, I can't consistently make a profit day by day; I have some losing days even following rules and conditions. Crypto is unpredictable; there's no perfect strategy that you can consistently use to make a profit. If you can provide some trading history as proof from the exchange, I might believe in this.

That is true at least to convince us here there should be solid prove to show that what he is saying absolutely right.
cryptocurrency most times doesn't permits to have what type of profits one wishes to have at their own point in time but as the day advance that is how we may lose or gain but can't be sure of everyday winning, thus; Its all rely on the type of trading op is doing (from his post it shows that he is trading future trade) this mean there are possibility for making at some dollars everyday while trading. If I am not mistakenly there was competition that was hosted by two users that said they can make profits everyday and they go on bet think the trade won something similar but can't vividly recall any longer.

[programmer3666]

As a trader, no matter how careful you are on your trades and also how much of risk management you use, you can always face loss. In a case that you’ve faced a loss in the process which in the table you’ve provided none as appeared there, do you still make use of 5x leverage and target a 10% profit knowing fully well that some part of your profit would have already been eaten up by the trade you took a loss on? Do you reduce your leverage and profit target in your next trade since you won’t be chasing your loss? Or a loss simply signifies the end of it all and no more trades?

You have a point, which is why i point out the fact that i don't do revenge trades. Most of the time I will long a market and it will take more than 3 days before it even bounces into profit but abd if it eventually does and the profit percentage is at something like 5% - 6% i just set my stop loss at that level and if the market retraces back there, then it will automatically close it at either 5% or around tha range then the next trade i take will be to fill up the remaining percentage so even if i get 4% - 6% in the next trade i just pull out of the market because it has hit the required 10%.

I mostly get these delays in coins like ARB, XRP, TON, SUI, Grass, MNT and BOME They are very sluggish in bouncing back into profit but almost very safe to trade with.

One key thing again is that i was fortunate enough to have a very good observation at these coins when the market was way more terrible, especially during the time Russia-Ukraine war started, when Donald Trump came into power, and the market had a very downward retracement and the market was stagnant for some months due to his tarrif war against several countries and again when Isreal and Iran war started the market had a stumble as well, So during all this factors that negatively impacted the Crpto, Stock and other Digital market ecosystem, I was very observant and i noticed no matter how bad the market was some of this coins refused to fall below a certain price. Which is why most of my trades are to Long the market.

 I long coin like ARB a lot because it hardly fall below a certain price and hardly moves above a certain price.

[slaman29]

Hey it's $10, worth trying something. And very very good to hear you don't do revenge trading. Sure you won't deposit again when you lose? Because compounding just means you will wipe out when you eventually run a losing trade.

Hope you have a referral earning all your fees GL to you!

[tvplus006]

Most of the time I will long a market and it will take more than 3 days before it even bounces into profit but abd if it eventually does and the profit percentage is at something like 5% - 6% i just set my stop loss at that level and if the market retraces back there, then it will automatically close it at either 5% or around tha range then the next trade i take will be to fill up the remaining percentage so even if i get 4% - 6% in the next trade i just pull out of the market because it has hit the required 10%.

It's a stupid strategy to close an order only because the price has reached a 10% profit, i.e. a figure that the OP came up with for himself. The deal should be closed not when the profit has reached 10%, but when the price has reached the resistance zone. Accordingly, the take profit should be set at this level immediately after the trade was opened, as well as the stop loss.

[joeperry]

Good luck on your trading journey, this is really interesting. I think a lot of people might think that along the way you will lose, of course there's no such thing as 100% guaranteed profit in trading and along the way you might hit a consecutive losses but as long as you stick with your rules I'm pretty sure you'll be successful, you've already come a long way and congrats on that. I am just curious what strategy are using? Do you swing trade, scalping, etc. and what crypto currency you're focusing on, big volumes like BTC, ETH, XRP?

[Strongkored]

I've heard stories about someone who found success using compounding, but he did it in investing, not trading, and it was in stocks, not crypto. Every time he received a dividend, he would buy back shares of that company.

I agree that compounding can increase your assets faster, but I don't think it will work perfectly in trading, especially in crypto where the market often moves unpredictably.

However, if you feel comfortable with the strategy, go ahead and continue, as you understand how it works best.

[Mrbluntzy]

If you are able to achieve this win, it means you are an expert and you can actually be able to manage the big capital that you have grown.  This strategy will help you to become discipline but if you are taking too many trade in a day, it can create avenue for much losses because from what I read on the other comment,  if you are taking 5 or 10 different trades in 1 day, you will lose some and it can be draining and not possible to take so much trade in a day.

[Zaguru12]

Hey it's $10, worth trying something. And very very good to hear you don't do revenge trading. Sure you won't deposit again when you lose? Because compounding just means you will wipe out when you eventually run a losing trade.

Hope you have a referral earning all your fees GL to you!

This is one of those reasons why I still don’t like compounding capital but we can practically see that the OP is definitely taking a very less risky trade by actually going for a profit target of little of Margin, but as long as this is a speculative market where predictions can go either ways even the 10% profit target can still not get hit and the market might take another turn. I still think a very good stop loss will be very important.

As for the fees I think it is depend on the position size but definitely will be a lot of fees incurred though

It's a stupid strategy to close an order only because the price has reached a 10% profit, i.e. a figure that the OP came up with for himself. The deal should be closed not when the profit has reached 10%, but when the price has reached the resistance zone. Accordingly, the take profit should be set at this level immediately after the trade was opened, as well as the stop loss.

It is strategy and sincerely if it is working out well for him then he should stick to it because that’s what trading is all about. But personally i don’t also agree with percentage profit target. The profit target is definitely to be set using technical analysis from the chart, if there is any doubt of market actually rebounding before the resistance then the stop loss can be adjusted above entry price as profit increase to avoid it running back to loss

[tvplus006]

It's a stupid strategy to close an order only because the price has reached a 10% profit, i.e. a figure that the OP came up with for himself. The deal should be closed not when the profit has reached 10%, but when the price has reached the resistance zone. Accordingly, the take profit should be set at this level immediately after the trade was opened, as well as the stop loss.

It is strategy and sincerely if it is working out well for him then he should stick to it because that’s what trading is all about. But personally i don’t also agree with percentage profit target. The profit target is definitely to be set using technical analysis from the chart, if there is any doubt of market actually rebounding before the resistance then the stop loss can be adjusted above entry price as profit increase to avoid it running back to loss

This is not a trading strategy, only OP considers it as such. A trading strategy should take into account risk management and the risk-to-reward ratio. The established 10% is simply taken from the ceiling and has nothing to do with the trading strategy.

[BitMaxz]

I mostly get these delays in coins like ARB, XRP, TON, SUI, Grass, MNT and BOME They are very sluggish in bouncing back into profit but almost very safe to trade with.

Are you sure that bome and grass are almost very safe? I don't know how you trade, but as you said in your previous post, most of the time you are long.

Grass is too bearish; no signs of reversal. CMC shows that this coin, after being listed keeps declining until now.

Bome is also bearish and this one is very volatile with choppy price action so how can you sure these coins you mention are safe?

[programmer3666]

How many trades did you do in a single day?
Based on the image, you have a consistent profit in your strategy, but I don't know how many trades you do on that day.
For me, I can't consistently make a profit day by day; I have some losing days even following rules and conditions. Crypto is unpredictable; there's no perfect strategy that you can consistently use to make a profit. If you can provide some trading history as proof from the exchange, I might believe in this.

Not like i trade every blessed day, sometimes i take a trade and it can take up to 2 days before it bounces into profit, the trade will be slightly on a downward trend!! You know how the market is, as soon as you long a trade it will try to scare you out by going in the opposite direction before it retraces back and vice versa. Of course, i lose some trade in the interval and most at times i just close the market manually if the market moves on a downward trend in a scary mode, I have lost up -9% plus... That's when i closed manually. I don't know if it is appropriate to share the PnL here esles i will compile some in a smaller image and take a shot of it and upload but i don't know if that particular screenshot is against the rules. I can send the shots directly to you Message if you will be okay with that?.

[programmer3666]

I mostly get these delays in coins like ARB, XRP, TON, SUI, Grass, MNT and BOME They are very sluggish in bouncing back into profit but almost very safe to trade with.

Are you sure that bome and grass are almost very safe? I don't know how you trade, but as you said in your previous post, most of the time you are long.

Grass is too bearish; no signs of reversal. CMC shows that this coin, after being listed keeps declining until now.

Bome is also bearish and this one is very volatile with choppy price action so how can you sure these coins you mention are safe?

The reason i personally go with BOME and Grass is that i have followed their price movement for quite a long time now and it is a bit safe to say i kinda became best of friends with their price movement and what mostly drive their ups and downs trend. Take for instance i was very keen in mining grass token itself and i started following its market ever since. From the first All time high price just few weeks after it was lunched and how Liquidity was being pulled out systematically by the whales and how every AMA Live section on X/Twitter is a key factor of it bearish move, at one time it was very static around $2 -$2.4 and suddently it relaxed around $1.7 -$1.5, $1.10 - $1.19- $1.22 and now it has even fell below a dollar and i suspect the reason being that the season 2 mining which is currently at Epoch 10 will be the last before another TGE so Liquidity is stylishly being pulled out to stable the price before the tokens are being distributed.

In the aspect of BOME i kinda of noticed it since at the level of $0.028 during the last year bull run and the price later settled at $0.02 then gradually stayed around $0.018 for a very long time it will flunctuate down and bounce back to that range not until Trump came into power and it fell all the way to $0.0010 - $0.0009 and another Key Factor is that it Moves Along with Solana, so if sol is doing well BOME also follows suite.


I occasionally short the market sometimes but most of my trades are to Long the market because i feel more comfortable longing it!! Due to the fact i have seen most of these coins at their lowest level when the market was on the deepest of bearish trends and it seemed like there was no hope of bouncing back.

I have some of the PnL if you are keen to see it, I can share with you on your Private message just for review..Let me know. But just to be clear though! I just said it is my personal strategy and it has being working for me so far.

[slaman29]

Hey it's $10, worth trying something. And very very good to hear you don't do revenge trading. Sure you won't deposit again when you lose? Because compounding just means you will wipe out when you eventually run a losing trade.

Hope you have a referral earning all your fees GL to you!

This is one of those reasons why I still don’t like compounding capital but we can practically see that the OP is definitely taking a very less risky trade by actually going for a profit target of little of Margin, but as long as this is a speculative market where predictions can go either ways even the 10% profit target can still not get hit and the market might take another turn. I still think a very good stop loss will be very important.

As for the fees I think it is depend on the position size but definitely will be a lot of fees incurred though

10% in crypto, easy. Altcoins? Even easier. Like I said all it takes is an unlucky turn

Oh ya and compounding and doing a lot of trades? Hell yeah commissions will be accruing, people don't realize 0.1% fees x 100 trades is 10%. Compounded? You can easily be earning a lot of money as a ref. Its one of the ways forex people used to 'be successful' just refer loads of $10 people and tell them to compound trade