How to Write the Best Bitcoin Trading Plan
The following is a trade plan examples template of a best bitcoin trading plan:
JUSTIFICATION
1. Bitcoin Trading IS A BUSINESS, SUCCESSFUL BUSINESSES ALWAYS HAVE PLANS
- Businesses that are successful always start with a plan.
- Successful business planning will guide you to success, think of the bitcoin trading plan as a map: it is a constant reminder of how you will consistently pull profits from the btcusd trading market.
- Difference between a successful bitcoin trader & a losing one is the bitcoin trading plan.
2. TO KEEP ME IN THE RIGHT DIRECTION when Trading BTCUSD
Consistency is important in your routine to measure how successful you are.
Keep you on target, read your bitcoin trading plan everyday and stick to it.
When it comes to your bitcoin trade plan you should think of it as a map that shows you this is what you follow, it should have clear bitcoin trading rules that specify when you open or close a btcusd trading transaction.
Your bitcoin trading plan should cover all aspects of bitcoin trading, you should read your bitcoin trading plan everyday until it is on your finger tips so that when you are trading on the fast moving market of bitcoin trading you'll always know what to do in every situation.
Your bitcoin trading plan can be as simple or as complicated as you like, but the most important thing is that you've one. By having a bitcoin trading plan you've an advantage over the btcusd trading market, you will have better odds of making a profit than those bitcoin traders who do not have a bitcoin trade plan.
This bitcoin trading plan tutorial topic provides bitcoin traders with an example bitcoin trading plan template which you can use for creating your own bitcoin trade plan. By now you have already written down the justification part of your bitcoin trading plan template, If not get a pen and paper and write the justification part. Next we shall look at how to write the cryptocurrency trading system.
Bitcoin Trading plan is one of the secrets which can help you to improve your profits. A good bitcoin training guide like this one should show you how to create a bitcoin trading plan using a bitcoin trading plan template which you can use as example to develop your own.
One of the most commonly asked question is, Is Bitcoin Trading profitable? one of the techniques to make it profitable is to have a good bitcoin trade plan.
IF YOU HAVE A GOOD Bitcoin Trading PLAN AND ARE DISCIPLINED ENOUGH TO STICK TO ITS Rules When BTCUSD Trading Bitcoin, YOU WILL BE SUCCESSFUL.
GOALS OF THE Bitcoin TRADING SYSTEM
- Ability to IDENTIFY A Bitcoin TREND AS EARLY AS POSSIBLE .
- Ability to AVOID WHIPSAWS .
The bitcoin system should find a compromise between the 2 Goals,
Find a way to identify a bitcoin trend as early as possible but also find ways to help you distinguish the fake signals from real ones.
FUNCTIONS OF EACH Bitcoin INDICATOR
MA - Identify a new bitcoin trend as early as possible.
MACD - Identify a bitcoin trend as early as possible.
Determine strength of a continuing cryptocurrency trend.
RSI - Swing failure to confirm the start of a new cryptocurrency trend.
Extra confirmation cryptocurrency indicators & tools to help determine the strength of our cryptocurrency trend.
Parabolic SAR - Help to ensure that we are not caught up on the wrong side of the cryptocurrency trend.
Bitcoin Trend-Lines - Signals a reversal when the bitcoin trend line is broken
Bitcoin Price Action Signals - confirm the weakening of a cryptocurrency trend.
Bollinger Band - for bitcoin trading price action study
To learn and know more about each cryptocurrency indicator & how these cryptocurrency indicators can be used to generate cryptocurrency signal setups you can go to the Cryptocurrency Indicators Section
CHART TIMEFRAMES
- Main crypto chart time frame is the 1H.
- Bitcoin Signals are generated on the 15 minute chart time-frame.
15 Minutes Bitcoin Charts
- Bitcoin Trend-Lines (Support & Resistance)
- 5 & 7 LWMA
- RSI (14)
- Bollinger Bands (20, 2)
Bitcoin Trading System RULES
LONG ENTRY
Entry
15 Minute Charts
- Both MAs are moving UP
- MACD Above Zero Center-Line (Not MACD moving UP)
- RSI >-> 50
- Parabolic SAR is below the bitcoin trading price ( Support )
When a cryptocurrency signal is generated on the 1 H chart, use the 15 min chart time frame to open and close positions.
LONG EXIT
- RSI gives opposite trading signal
- Bitcoin Price breaks Support Bitcoin Trend Line
- Parabolic SAR is hit (Trailing Stop)
RULES
SHORT ENTRY
Entry
15 Minute Charts
- Both MAs are moving DOWN
- MACD Below Zero Center-Line (Not MACD moving Down)
- RSI <-< 50
- Parabolic SAR is above the bitcoin trading price ( Support )
When signal is generated on the 1 H chart, use the 15 min chart time frame to open and close positions.
SHORT EXIT
- RSI gives opposite trading signal
- Bitcoin Price action breaks Support Bitcoin Trend Line
- Parabolic SAR is hit (Trailing Stop)
ROUTINE
- cryptocurrency signals are generated using 1H crypto chart time frame and executed using the 15 minute bitcoin chart time frame.
- cryptocurrency trading signal to be executed immediately rules are met.
- Entry alert signals should be executed during daytime.
TIME OF DAY TO WATCH MARKET - MARKET HOURS
Watch market during daytime when most companies and online crypto brokers are open for trade transactions. Use this to come up with a suitable bitcoin trading schedule.
Example Trading Plan Template
Bitcoin Trading Tips - You can use the MT4 Bitcoin Trading Software to save this bitcoin trading plan example as a bitcoin trading template on the MT4 platform - that way you do not have to lay it afresh every time you open a new crypto chart. If you want to learn how to save a bitcoin trading template on the MT4 platform, read: MetaTrader 4 Bitcoin Platform Tutorials.
MONEY MANAGEMENT RULES
- Day trading - Low risk High return technique
- Trade when I have a high risk:reward ratio 3:1 or more
- Stop loss = Parabolic SAR
- Set TP target 40-60 Bitcoin Trading Pips
- Never transact beyond 3 % of bitcoin trading account equity
- Never risk more than 2% on a single trade
MINDSET/PSYCHOLOGY
- Trade without Emotions (greed, fear, impulse, bias, anticipation, overexcitement)
- I trade what my eyes see not what I feel.
- I will be patient.
My job is not to be the bitcoin trading system!
It isn't to decide which signal looks promising.
That is the job of my bitcoin trading system - which has a set of rules that tells me this is what I follow. Do not get caught up in bitcoin trading price action & make rules as you go along.
MY JOB DESCRIPTION IS
To sit patiently and wait for my bitcoin trading strategy to indicate that it's time to enter or it's time to exit. And then with great focus I execute the bitcoin trade plan as outlined.
Taking trades not indicated by the bitcoin trading system, second guessing the cryptocurrency trading system & not taking signals given, hesitating and getting in late, anticipating and getting in early are all common place and boil down to lack of faith in the plan and not having a burning focus on accurate execution.
GOAL: To have 100% undivided focus on mastering my ability to execute my bitcoin trading rules accurately.
More you develop the ability to step back from bitcoin trading price movement and watch btcusd trading market dis-passionately, waiting for a trading signal, the easier it will be to witness the fluctuations of your emotions without you getting sucked in to them & allowing them to throw you off your game.
WEAKNESS
- I am greedy.
- I over-trade
- Make a list of all your weaknesses that are interfering with your trading. This is the first step to help you overcome these weaknesses. Use Bitcoin Trading psychology to help you overcome them.
NB: by writing down your weaknesses you'll start recognizing them as you make progress in btcusd trading, once you do this you will start to avoid this mistakes and your trading results will improve.
GOALS
- To focus on exit just as much as I do on entry signals.
- Always protect my bitcoin trading account using stop loss, bitcoin money management techniques, follow with the bitcoin trend direction and always following the rules of my bitcoin trading strategy.
- Never second guess or go against my bitcoin trading strategy. To always keep up my discipline.
- Follow all the rules of my bitcoin strategy & never break them.
- Trade fewer times & execute all my bitcoin signals correctly. Trade what I see, what the bitcoin trading system + crypto charts are telling me.
- Sit patiently and wait for bitcoin trading signals from my bitcoin trading strategy.
- Achieve consistent profitable results before opening a live cryptocurrency trading account.
FOLLOW THIS SYSTEM
This is the most important part of creating the bitcoin trading system.
Always follow the rules
Stick with the rules
Be disciplined & patient enough
Bitcoin JOURNAL
Log all my bitcoin trade transactions in a bitcoin trading journal so that to track my training progress & improve my bitcoin trading execution methods.
The bitcoin strategy uses momentum to determine the cryptocurrency trend.
Even if you are new to cryptocurrency market & you do not know how a bitcoin trading system looks like, this cryptocurrency system examples illustrates to you how a bitcoin trading system strategy should look like, the Bitcoin Trading tutorials explained in other sections of this learn bitcoin training web site will also explain further different aspects that you need to learn.
Hence, the objective is to help you create your own complete bitcoin trading strategy that is if you're looking for one, by showing you one that is already complete. In fact you can just use this bitcoin trading plan examples as it is, or make a few adjustments so that it suits your bitcoin trading style.
The aim is to help you improve your bitcoin trading results by using a bitcoin trading plan that is written, and another advantage is that this bitcoin trade plan will offer you a chance to improve your knowledge and it will help you trade better, make pips and keep them so that you do not keep giving them back to the btcusd trading market.
Read this bitcoin trading plan training guide about developing a bitcoin trade plan of your own, along with learn bitcoin trading tutorials & bitcoin trade strategies listed at the tops of this learn bitcoin trading guide.
The Most Beneficial part of using this bitcoin trading plan template is the "Bitcoin Trading Money Management Part" you will learn how to trade bitcoin and minimize risk, which is the most important thing when it comes to the btcusd trading market.
