Yo yo yo, Mike Cryptobrant here, a newcomer to this gigantic topic!
Some may have crossed my path on the Monero's subreddits, I have been kind of active there this past month.
I'm a newcomer, I met Monero a month ago and it was love at first sight. I invested some fiat in it, as an investment and not for trading, because I don't have the skills nor the balls to trade (and because Monero means so much more than that to me.)
But with all the hype and the crazy Korean market, I've been trying to elaborate some easy strategies with a friend on how to cash in on the pumps and dumps. Just because we need more Moneroj!!! More more more!
As I told you, I am a noob. I hate gambling, I easily Fomo, I find no pleasure nor adrenaline in doing this. I just want to ride the biggest waves while it's time.
I don't know anything about charts except for the most basic concepts and indicators. With my friend we have elaborated a kind of a checklist to know when to sell before a dump. We have benchmarked it a few times, it worked every time. We wanted to put it in action today and sold some XMR but we FOMOd as fuck because the trend took some time to clearly reverse and we, stupid, just read the price changes on a 30 seconds basis.
As a result we won about $0.50 because we just wanted our Moneroj back. Had we waited 1h30 more, it would have been enough profit to buy a new XMR.
Well... you learn from mistakes everyday.
Here is our strategy. The goal here is to learn a bit about what is good and what isn't in this - I believe very conservative - strategy:
We use 3 indicators:
- MACD
- RSI
- PSAR
We have decided that we needed a green light from all of them to move.
Here is the kind of chart I use:
https://www.tradingview.com/chart/6ZUGoUVJ/Before the action:- RSI must be Overbought
- MACD must have been over the signal for a good amount of time.
- PSAR shows bullish trend (there are dots under the candlesticks.)
When action starts to kick:- On the 5m chart, MACD is crossing signal from above.
- RSI is no longer overbought and is on a downward trend.
Then we switch to 15m chart to check that the trend reversal we spotted on the 5m chart is kicking in. Usually, if those signals were not just short term, MACD is gonna cross the signal too.
At this stage we have a 15m chart with:
- RSI is no longer overbought and not so close to the top anymore.
- PSAR has inverted, we now see a new dot over the last candle, meaning that the trend is bearish.
- Last but not least, MACD has crossed signal.
Time to sell.
From our simulations, it's a bit conservative because it could be possible to sell at a bit higher price when the bearish trend starts on the 5m chart, but we prefer taking the least risks.
What is your opinion on this very basic strategy?
We are so scared to see a sudden reverse of trend. Monero mooning and never coming back... (fomo, I told you.)
Thanks and can't wait to see what happens next day!
Welcome to moneroland. My recommendation is not to follow that strict rules. Hold the 95% in the colder storage that you can get and use that 5% to trade not been too greedy. Trade only when you are in a clear mindframe and spend time looking, reading the charts. Contemplate it, zoom in and out. Let the insights and revelations develop. As time happen you would start to see it as Neo in matrix, perceivingthe feeling of the market, what the whales are planning, developing your own recognition patterns about what is going to happen.
Learn some TA and some elliot wave theory. Basics is enought, you don´t need to go to the deep end of the rabbit hole. Learn the fibbo extensions. Its like learning a new language, but instead of grammatical its a mixture of visual, intuition and feeling. Read all the news about the coin. With time you will see throght the bullshit and do nice calls.
Even then, its normal to fail 20-40% of the time, noone here do it right everytime. Do it as hobby if you like it, but the best strategy in this market is to do nothing, be patient and hold it.
