How to Generate Bitcoin Signals with Bitcoin Trading Systems Strategies
Crypto Currency MT4 Signal Indicator
The only method of bitcoin trading is through signals, It's best to learn how to generate these trade signals for yourself, this way you don't have to rely in others to generate them signals for you.
Generating bitcoin signals isn't easy & requires you to have a lot of cryptocurrency trading analysis knowledge & experience, but the earlier you begin practicing how to generate these signals for yourself the better it's for you.
A good technique of how to practice generating bitcoin signals with bitcoin systems is to open a free practice Bitcoin demo account ==22==and test out your signals on the practice account risk free without risking your money, then once you have tested your bitcoin strategies & they are profitable on the trade practice demo account you can the use these bitcoin signals on a live account.
The method of how to practice generating these signals and also how to back test the bitcoin signals on the demo bitcoin account using MetaTrader 4 software is discussed below:
So, How Can a Trader Generate Bitcoin Signals?
The best technique of generating bitcoin signals is through bitcoin systems, You can Learn how to create bitcoin systems from the guide how to create Trade Systems on the right navigating menu under the courses Bitcoin Key Concepts.
A system is a combination of 1 or 2 or more crypto indicators with written rules of how these crypto indicators will generate these bitcoin signals.
Take an illustration of the simplest trading system or strategy referred to as moving average(MA) ==22==crossovercross-over method. A buy cryptocurrency signal or sell cryptocurrency signal gets generated when there's a cross over of the two moving averages: either a buy cryptocurrency signal for an upward moving average crossover or a sell cryptocurrency signal for downwards trend.
Generating MetaTrader 4 Free Signals - Crypto MT4 Signal Indicator - Bitcoin Signals MT4 Indicator Strategy Moving Average(MA) Cross over Method
The system example illustrated below shows a bitcoin system using the above moving average strategy combined with the RSI & MACD ==22==indiicatorsteechnical--indiicators to generate buy and sell trades.
Example of Generating MT4 Free Signals - Crypto MT4 Signal Indicator - Bitcoin Signals MT4 Indicator Strategy Method
In generating buy & sell signals, traders should use simple bitcoin systems to generate these bitcoin signals.
Generating MetaTrader 4 Free Signals - ==22==CryptoCryptoCurrency MT4 Signal Indicator - Bitcoin Signals MT4 Indicator Strategy - Buy and Sell Signals
Generating MetaTrader 4 Free Signals
An example illustration of a simple btcusd system which works, is one that's a combination of:
- Moving Average(MA) crossover method
- RSI
- MACD
The written bitcoin rules are:
Generating Bitcoin Signals Strategy System Examples
Bitcoin Trade Rules:
Buy Bitcoin Signal is Generated when:
- Both Moving averages going up
- RSI above 50
- MACD above centerline
Sell Bitcoin Signal is Generated when:
- Both Moving averages going down
- RSI below 50
- MACD below center line
Generating Buy and Sell Trades - Examples of a Method
Exit Signal
Exit signal is generated when the Moving Average MA Moving Average, RSI and MACD cryptocurrency indicator give a signal in the opposite market trend direction.
The crypto chart time-frame to use is 1 hour chart time-frame or 15 minutes chart timeframe depending on what type of trader you are.
For a beginner bitcoin trader the above written rules will give good buy & sell bitcoin trade signals, the only thing which a trader needs to do is to have the discipline to follow the written bitcoin signals rules the exact way they are, & wait out for a buy/sell trade position to be indicated by your bitcoin strategy & trade after the signals have been generated, not before they are generated.
Back Testing
Generating Trade Signals with a system is one of the easiest method to trade bitcoin, it is the best way that a beginner can attempt to figure out the direction of the market price bitcoin trend with a good level of accuracy, & with a little backtesting on demo account so as to gradually increase the level of accuracy of this bitcoin signals strategy
The best way to back-test a btcusd cryptocurrency strategy is by following these 2 steps:
- Paper Trade
- Crypto Currency Demo Trade
Bitcoin Paper Trading - This method of testing a bitcoin system involves placing your system on the charts, then take the chart back to a particular given date, 3 months back e.g., and then using this chart history to figure out where your bitcoin strategy would have given buy, sell ==22==& exit signals. Write down these points & the profit per trade transaction on a piece of paper and then calculate the total profit after you've recorded a good number of trades like 50 paper trade positions bitcoin transactions & determine if your ==22==trading method is overall profitable, the win ratio, the loss ratio and the risk:reward.
This is an ancient technique of testing bitcoin systems which was used by traditional investors when there was no online markets or pc computers for that matter, the bitcoin trader would use something such as the A3 or A2 paper, graph format paper and draw the charts manually (Imagine plotting the charts on your bitcoin platform by hand each day each hour, would you be ready to do that? I doubt) Those investors were hard-working than most, some were so used that they still continue to paper trade the online market and draw the crypto charts on paper, anyway for our paper method examples, just a sample data of 50 trade positions is all we need.
A good bitcoin tool to use to back-test your system is known as the MT4 BTCUSD Crypto Step-by-Step Tool. Found in MT4 charts tool bar of MetaTrader 4 ==22==softwareplatformsoftware--platform, If you want to find the charts tool-bar on the MetaTrader 4 it's at the top of MT4 software. If it's not: Click View (next to file, left top corner of MT4)>>> Tool Bar >>> Charts. Then click Customize button >>> Choose Bitcoin Step by Step >>> Press Insert >>> Close.
MT4 Bitcoin Platform Chart Tool-Bars - How to Trade Bitcoin for Beginners
MT4 Chart ToolBars - Bitcoin Step by Step Button Key for Back Testing Bitcoin Systems Discussed
Once you get this MT4 tool you can move your trading chart backwards, & use this MT4 tool to move the crypto charts step by step while at the same time testing when your bitcoin system would have derived and generated either a buy or sell trade, & where you'd have exited the BTCUSD trade, then write down the amount of profit/loss per bitcoin trade position and out of a sample number of bitcoin transactions you'd then calculate the overall profits & losses generated by the strategy.
If your bitcoin strategy is profitable on the paper method then, it's time to demo btcusd trade & testing if the it's profitable on real market as it's on paper technique. This is the process of testing or backtesting a system.
Writing a ==22==BTCUSDBTC/USD Crypto Trade Journal
Maintain a BTCUSD Journal to keep track of profitable bitcoin trade positions, and determine why these trade positions were profitable. And also keep a log of all losing trade transactions, determine why these trades made a loss & then avoid making these same mistakes the next time that you trade using your trading strategy.
Tweak your btcusd system until you get a good risk to reward ratio, with bitcoin signals which you generate. Aim for a good risk: reward of 3:1 and a win ratio of above 70 % is a good ratio, with good bitcoin money management even a bitcoin strategy with a win ratio of even 30% i.e. Less than half of your bitcoin transactions make profit you can still make a profit. You may want to read and study this lesson to know and learn what the illustration below is talking about: Risk to Reward Ratio.
Risk-Reward Ratio Chart of Bitcoin Trade Money Management Strategy - BTCUSD Trading Strategies Described
Read Bitcoin Money Management Methods Lesson
A manual bitcoin system is still the best way to generate bitcoin signals compared to automated systems, a manual strategy is a better method & is also much simpler to implement.
However, other traders prefer automated bitcoin systems & for those then they can check the info on this page MQL5 Crypto EAs and automated bitcoin systems.
You also can view our extensive list of bitcoin trade strategies topics that provides you with various methods of buy & sell trading analysis using a number of diverse trading methods, navigate to Bitcoin Trading Strategies Section.
Learn More Tutorials:
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- How Can You Display BTC USD Chart Timeframes in MT5 Platform/Software?
- BTCUSD Charts Analysis in BTC USD Trading Definition
- How Can You Open Live BTCUSD Account with $10?
- What is Morning Star BTC USD Candles in BTCUSD Trading?
- Best Trend BTC USD ==22==Technical Indicators
- How Can You Open Live Bitcoin Trade Account with $30?
- How to Trade BTC USD Trendline Signals in Bitcoin Trading
- Accelerator Oscillator BTC USD Technical Indicator Described
- Learn BTC/USD Analysis Step By Step Lesson Tutorial
