This is a trading strategy specially used on btcusdtperp in binance 1H chart The most important part of this strategy is to use Support and Resistance with trading volume Auxiliary indicators are include Directional Movement Index, trading volume, Commodity Channel Index,volume-weighted average price,Range Filter Why is it not applicable to other trading varieties or exchanges? Because the activity of each trading target is different from the trading volume, this strategy is very focused on the change of trading volume, so it may not be applicable to every trading variety
The idea of this strategy is to chase when the trend in the market is clear Determine whether to break support or resistance to identify trends But the market is full of false breakouts Therefore, trading volume is an important indicator for judging the true and false.
Therefore, when the price breaks through support or resistance, accompanied by a huge trading volume, and forms a resonance with auxiliary indicators, the strategy will follow the trend, a time stop loss is also set. After entering the market, if there is no immediate profit to the stop profit, you will leave the market first. But the market is always random, so the profit and loss ratio must be taken into account Use a fixed stop loss space in exchange for a larger profit space, and ensure that the expected value is positive to make stable profits in the market Therefore, this strategy uses 3.2% stop loss, 3.3% Take profit1 and 7.2% take profit2 About 1.5:1 profit and loss ratio to ensure positive expected value
Because the market has a clear trend only about 10% of the time So the trading frequency of this strategy is very low According to the backtest of up to 2021-01-01 till now , it takes about 5 days to make a transaction User can choose their own leverage to obtain higher returns. But be sure to prioritize risk. In order to prevent you from using this strategy without knowing it, the trading date of this strategy is only executed until the release date, and positions will not be opened and closed for subsequent markets. You can contact me if you want to know more about this strategy