The System For Trading On The Downtrend Of Cryptocurrencies «Forester»
For crypto assets the beginning of 2018 was marked by a serious downtrend of market quotations. Active sales of digital coins were mainly caused by security issues on crypto exchanges and the loss of confidence in such specific assets on the part of investors. However, despite this intricacy, these innovative financial instruments are still an attractive resource for direct investment of funds. Moreover, it’s also an asset for trading in futures contracts. Considering this, we offer you a trading system dubbed «Forester», which enables you to obtain very high rates of capital growth on active fluctuations of the chosen cryptocurrency. By simply applying this method in futures trading you can count on up to 90% of profitable positions. As a result, the dynamics of capital growth is going to have the maximum figure.
Before you start using this system, you first need to understand the specifics of the movement of quotations of the main set of digital coins. Here we should immediately say that cryptocurrencies turn out to be the undisputed record holders for the level of price volatility during the day – we can often observe the tumble or growth of quotations of major digital coins by several hundred or even thousands of points. Almost always quotations of crypto assets after impulse leaps demonstrate relatively long price consolidations or flat movements. Such a distinctive feature of digital currencies requires traders to use tools, capable of rapidly responding to both minimal changes in the vectors of the asset market movement and long-term trends in the price movement of the currency. To obtain combined data in the analysis of quotations, we need a specific set of indicators. In this case, we will apply such a list of services:
- The Ichimoky2s indicator – this service is an advanced version of the classic indicator, which uses more advanced and optimized data for calculating the moving averages of resource zones. With the help of this service, we will be able to very accurately identify all the necessary market indicators – flat and trend movements with a definite direction. Thus, we will be able to determine medium-term trend periods of the market of cryptocurrencies and also zones, when it’s better to stay away from trading (flat).
- The CCT Bollinger Bands Oscillator – in the service settings, you should set the periods 100/30. Thus, we will be able to expand the technical range of market valuation and it will give us an opportunity to identify medium-term technical trends of quotations. This way we can clearly understand who prevails in the market – bears or bulls, and on the basis of it we will be able to adjust our strategy.
- The Wave Trend – it’s a classic oscillator in the trading system. It acts as a signal filter. This tool is necessary to identify clear levels, on which it will be profitable to formalize the contract.
Together, the indicators will generate high-precision trading signals for trading in cryptocurrencies (are cryptocurrencies a scam?). To make use of such services, we recommend to opt for a professional technical resource tradingview.com.
In the finished form, the layout of the strategy «Forester» on the technical chart of the asset looks as follows:
To test the technical signals of the system, we recommend using the trading terminal from Binomo. This service offers investors the most attractive financial operating conditions and allows them to make profit on crypto assets in comfortable and maximally effective conditions.
Signals of the system
To work with contracts on a downtrend, use this set of system signals:
- The CCT Bollinger Bands Oscillator with the medium-term market valuation shows the descending vector of market movement by building a relatively strong divergence of moving averages between each other down.
- The Ichimoky2s indicator generates a standard signal of the downtrend in the market in the form of crossing of the fly zone by asset quotes and the red moving average downwards.
- The filtering oscillator Wave Trend confirms the downtrend via the breakdown of the level of its own scales by moving averages.
To work with contracts on an uptrend, use this set of system signals:
- The CCT Bollinger Bands Oscillator with the medium-term market valuation shows the upward movement of the market by building a relatively large divergence of moving averages between each other.
- The Ichimoky2s indicator generates a standard signal on the uptrend presence in market in the form of an upward crossing of the flat zone by the asset’s quotes and the moving average.
- The filtering oscillator Wave Trend confirmed the upward trend of the market via the breakdown of the level of own scales by moving averages.
The system uses universal settings for analysis services. It allows you to effectively evaluate any frames of asset quotes. Depending on the choice of the market period, the evaluation will determine the indicator of the optimal rates for profitable trading. So, when working on the minute period of the cart, it’s highly recommended to use positions with redemption of up to 15 minutes. As for a 5-minute frame you should hold positions with repayment of up to 60 seconds. For the overall effectiveness of trading, you can use a series of rates with different repayment periods, thus you can reduce losses and financial risks.
In order to reduce risks and financial losses when trading in the system, use contracts with a cost limit of no more than 5% of the amount of your capital. When trading on a minimum account, we recommend you to work with contracts with an initial value.